Transcript Title Sub title Name of Presenter, Dept of Climate Change

Product Profile workshop
Solar Water Heaters
Department of Industry and Databuild Research & Solutions
On behalf of the E3 Committee
A joint initiative of Australian, State and Territory and New Zealand Governments.
Introduction
• Michael Whitelaw and Warren Baldsing
on behalf of E3 Committee
• Alison Scott, Databuild Research &
Solutions
• Purpose of session
– Present some key findings to inform discussion and
feedback
Agenda
• Background:
– E3 Committee
– Interest in SWHs
• Product profile investigation
– Key findings
– Potential implications
• Workshop session on key questions for
stakeholders
Introduction and Background
Introduction and background
• E3 = Equipment Energy Efficiency
• Jointly run by:
– Australian federal, state and territory governments and the
NZ government
• Aims to:
–
–
–
–
Improve energy efficiency of appliances and products
Improve productivity
Reduce energy demand and greenhouse gas emissions
Save consumers and businesses money from reduced
running costs over life of products
E3
• How does E3 achieve these aims?
– Consumer information policies:
• Providing information to help consumers make good
purchase decisions such as:
–
–
–
–
appliance labels
comparison tool
new ‘App’
consumer guides
– Targeted interventions:
• Conducting compliance with associated penalties
• Setting minimum standards to ensure the direct creation
of energy efficiency improvements
E3’s interest in solar water heaters
• Water heating is a significant contributor to energy
use and costs
– Solar Hot Water has the potential to help address this
– There is evidence to show that it can provide significant
savings ($$, energy)
– Substantial consumer, government and manufacturer
investment has occurred in this technology
• However:
– Various government and academic reports have raised
questions about the actual savings that installed solar
water heaters are delivering
E3’s Interest in solar water heaters (2)
• Keen to understand actual performance of SWH
technology to realise their potential:
– Opportunity to improve water heating energy efficiency
– Issues and challenges faced in the market
• Explore whether policy interventions or other actions:
– Are warranted or desirable
• ‘Nothing’ may be the preferred outcome
– Should or could be undertaken by:
• E3
• Other parties/ organisations
Reporting and discussing progress
At this stage, E3 wishes to
• Report publicly on its market investigations and testing to date
• Discuss some fundamental questions the investigation has
raised with stakeholders
• Provide an opportunity for stakeholders to participate
Followed by
Provision of written responses to E3 on these issues
E3 will then
Reflect on all feedback and propose any next steps
Product Profile
Solar Water Heaters
Water heating
• Widely used across householders, businesses and government
• Second largest source of household energy use
• Fuelled by range of methods with variable costs to consumers
Type
Australia*
NZ
%
Key consumer notes
$
Electric
36
76
Substantial energy cost increases over
past 5 years in Australia and forecast to
rise in NZ
Gas
46
21
Energy costs have increased over past 5
years
Heat pump
3
0.2
Heat pumps are efficient and can have
an upfront cost barrier
Solar
12
2.6
Suitability will vary between dwellings
* BIS Shrapnel 2012
Solar Water Heating
• Represents a good alternative to traditionally
fuelled water heaters:
Efficient
Cost-Effective
• Supplies
more heatenergy than
the energy it
consumes
• Uses
significantly
less energy
than
traditional
water
heaters
Tried & True
• Proven
technology
with a
degree of
consumer
recognition
Types of solar water heaters
• 2 main types of solar water heaters
SWH market
• Sales have fluctuated over the past few years
2014 Sales in Australia*
Water heater type
Market share
%
Electric
27
Gas
44
Solar
25
Heat pump
4
*BIS Shrapnel
Drivers of growth
Replacement
rate & pace of
construction
Regulations
Financial
incentives &
rebates
Purchase &
installation
costs
Expected
savings in
energy costs
SWHs
Access to
reticulated
gas
Consumer
perceptions
of energy
prices
E3 market investigation
• Comprised 3 main elements
Review
• Of existing
literature
Independent
testing
• Of different
types of SWHs
(focused on
residential
installations)
• To industry
recognised
standards
Some
monitoring
• Of SHWs ‘insitu’
• To investigate
field
performance
of some
products
Key Findings
What affects SWH’s performance?
Efficiency of SWHs can vary according to a number of factors…
Means of
operation
Heating
efficiency
Location &
climate
Factors
impacting on
performance
Solar levels
Incoming
water
temperatures
Installation
quality
Heat loss
Water
usage
pattern
Thermostat
& control
settings
Key issues highlighted
Relating to:
Independent &
claimed energy
savings
Modelled
& ‘real life’
energy savings
Noncompliance &
Standards
Independent and claimed energy savings
• Independently assessed energy savings were slightly lower than
those claimed. Based on testing that was:
Consistent
• Testing of all
product
components rather than
tailoring each
test to give the
‘best’ result
Standardised
• The standard
‘energy savings’
model method
Neutral
• Using the default
Clean Energy
Regulator (CER)
‘instruction’ file measurements
and calculations
rather than
manufacturer
supplied file
Climate zone differences
• Tests showed that the performance of SWHs
varies according to climate
– Expected / claimed energy savings and hot water
may not be achieved particularly in colder
climates
• Furthermore, the tests were conducted in
warmer temperatures
– Differences between claimed and tested results
may be greater in colder months.
Modelled and real life energy savings
• The table shows the difference between what is actually
happening in terms of modeled and real life energy savings:
– There is variability in the performance between different SWHs
– The modelled results are also not as accurate
– Expected energy savings may not be achieved
SWH
System
Energy consumed
(kWh)
Model
Observed
Model E1 (SE250)
10.05
12.53
Model E2 (SF415)
5.45
5.19
Model E8 (TF300)
6.02
6.92
Reference ESWH
12.15
13.90
Energy savings observed in field tests
• In the field it was observed that one SWH, provided energy
saving of only 12% compared to an electric water heater
Points to note
• Energy losses and (frost) damage potential are
inadequately addressed by model and related
claims
• There appears to be little, if any, checking of
compliance
• There is auditing of manufacturer/supplier
inputs by the Clean Energy Regulator
– But no full independent testing or associated
compliance checks in Australia or New Zealand
Literature review and consumer feedback
• Tests were complemented by a literature review
and consumer feedback that identified:
– A degree of non-compliant / poorly operating SWH
components
– Some SWHs are poorly installed
– Concerns about information on SWH performance,
suitability and energy efficiency being
• Inconsistent
• Unreliable
• Difficult to find or understand
Impact of poor information
Lack of adequate information limits purchasers’ ability to:
Make informed decisions on SWH
purchases
Identify most suitable SWH for their
circumstances
Expected energy savings and hot water may not be achieved if:
Claimed energy savings higher than
independently assessed savings
Independent results higher than
those in ‘real life’ situations
There is a clear gap between the savings that consumers and businesses
are told to expect and those that they actually receive
What are the potential implications?
Purchasers
struggle to make
best decision for
needs due to
information issues
Energy savings not
realised
- Particularly in
colder climates Less $$$ saved
Poor rates of
consumer
satisfaction with
performance of
SWHs
Workshop session
Key questions to discuss
Closing Comments
Post-Session Questions & Feedback
Collation of Information
[email protected]
Subject: Solar Water Heaters Product Profile
www.energyrating.gov.au
Closing date extended to 3rd October 2014
Potential questions
Market
Performance issues
Information needs
Market
• Sales of water heaters are ongoing:
• Replacement
• New dwellings
• Things are changing:
• Energy prices
• The RET Review (Australia)
• Which technologies do you think consumers will
favour in the next few years?
Performance issues
Is it a problem that…
Claimed energy savings
were too high?
Results from energy
savings model were higher
than actual performance?
And if so…
Is there a case to formally examine
policies to address the shortcomings?
Information needs
• What is the minimum amount of information required to
enable consumers to make an informed SWH purchase?
Size of tank
Efficiency of collectors
Operating costs
Energy savings
Emissions levels
Climate and dwelling -related information, e.g. relevance and/or
suitability
– Ability to compare with other, e.g: brands and water heater technologies
–
–
–
–
–
–
• What, if any, other information is highly desirable?
• To what extent is the current information on expected
‘energy savings’ important to purchasers?
Closing Comments
Post-Session Questions & Feedback
Collation of Information
[email protected]
Subject: Solar Water Heaters Product Profile
www.energyrating.gov.au
Closing date extended to 3rd October 2014