BOSTON — Utilities in the United States increased their spending on energy efficiency programs by 43 percent in 2009, according to a new report from the nonprofit Consortium for Energy Efficiency (CEE), which represents energy efficiency program administrators from across the U.S. and Canada. U.S. utility spending on energy efficiency programs reached $5.3 billion, including $4.4 billion for electric energy efficiency programs and $930 million for natural gas programs.

Spending on natural gas programs increased the most, at 79 percent, while electric programs increased by 38 percent. Utility energy efficiency programs also expanded geographically, as such programs are now offered in 46 states, compared to only 37 states in 2008. The CEE report notes that electric energy efficiency spending grew the fastest in the Southeast and South Central states, with a 76 percent increase to $800 million in 2009. For instance, new legislation in Maryland increased electric energy efficiency spending by a factor of 13, while Kentucky increased its spending by an order of magnitude and Tennessee’s spending increased by a factor of 5. Electric energy efficiency programs focus a majority of their spending on commercial and industrial facilities, while natural gas programs are skewed more toward residential customers.

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AUSTIN, Texas -- Believe it or not, not all HVACR contractors know about the new 13 SEER standard effective in January 2006. Of those who are aware, not all know the implications. These issues were addressed at a seminar on transitioning to 13 SEER, presented to attendees of the ACCA 37th Annual Conference & Indoor Air Expo in Austin.

Emerson Climate Technologies’ Karl Zellmer, vice president of sales and Tim Fletcher, branding manager for A/C contractors, hosted the seminar.

Zellmer told attendees that Emerson had recently polled contractors and found that only 80 percent of them knew of the 13 SEER changeover. There may be a problem for those who are not prepared for the change, especially if contractors look at the size differences of the new 13-SEER products.

Size Matters
Tim Fletcher and Karl Zellmer answer questions from contractors after their transitions seminar at the ACCA conference.

“There is a 40-percent size increase from a 10-SEER condensing unit to a 13-SEER unit,” Zellmer said. The size of the unit affects all aspects of the business, he noted. He gave the example of warehousing space, which will now be 40 percent “smaller.” And more trucks will be needed to transport the larger units.

Zellmer said there is about a 15-percent size increase from a 12-SEER unit to a 13-SEER unit. Along with the bigger sizes, there will be higher costs. Zellmer isn’t sure that consumers will like to dig deeper into their pockets.

“There might be a trend toward more unit repairs over replacements,” he said. “Consumers will question whether the unit really needs to be replaced.”

Zellmer also discussed another trend in the market -- the move to R-410A refrigerant. Unlike the 13 SEER mandate, the move to R-410A as a replacement product will not be in full effect until 2020, possibly sooner. R-22 is still the preferred refrigerant and, according to Zellmer, R-410A represents only 8 percent of the market today.

However, he noted Wal-Mart has required that all of its rooftop units run on R-410A. And last year, Wal-Mart represented one-third of the new commercial construction market in the United States.

“There are 9 million compressors running on R-22 today,” said Zellmer. “By 2010, 10 million compressors will run on
R-410A.”

Product Differentiation
Fletcher talked about three major trends that will give contractors the opportunity to differentiate themselves from their competitors:

1. 13 SEER -- Making sure contractors are ready for the change before the competition is.

2. Alternate refrigerant -- Time to change system specs when planning a project.

3. Product differentiation/selling up -- Opportunities for selling additional products (add-ons) which involves more technician training.

“Selling up involves comfort, improved reliability/diagnostic capabilities, and sound (low noise),” Fletcher said. “This is going to be a different way of selling equipment and more training will be required.”

Publication date: 04/11/2005