Why You Can’t Always Get What You Want Out Of a New AC System

Posted on Jun. 5, 2014 by Nevi Mendoza

Why, in survey after survey, do consumers indicate they would pay a little extra for better comfort or energy savings but still continue to purchase the basic, minimum efficiency and lightly featured systems? This past year, AC & Heating Connect worked with Triple Pundit (a new-media company for highly conscious business leaders focused on the triple bottom line – people, planet and profit) to survey their readers on issues related to purchasing patterns of HVAC consumers. Industry data indicates that 70 percent of consumers consistently purchase minimum efficiency and minimum featured HVAC systems and only 30 percent buy the higher featured and more efficient models. This is all true despite Emerson Climate Technologies’ sponsored research, which indicates that almost 70 percent of homeowners surveyed prefer systems that offer superior energy savings and comfort or created less impact on the environment.

According to a 2013 survey of more than 500 Triple Pundit readers, we found some indications about what might be going on with HVAC consumer buying behavior. First, we asked if consumers would pay 20-30 percent more for a system that provided certain benefits.

85 percent would pay for better efficiency and reduced energy consumption

68 percent would pay for a lower overall impact on the environment

67 percent would pay for greater monthly energy savings

56 percent would pay for better overall comfort and indoor air quality

6 percent would just buy the lowest cost system no matter what

When asked to rank various HVAC features in order of importance, the respondents indicated the following priorities, in order:

1 – Improved energy efficiency for reduced operating costs

2 – Reliability

3 – Reduction in monthly operating costs

4 – Lowest environmental impact

5 – Improvements in comfort or air quality

6 – Low sound or operating noise

7 – Lowest initial cost to purchase

Again, in line with prior survey findings, the lowest initial consumer cost is ranked lowest by the respondents.

Next, we asked why they thought more people don’t choose to buy higher efficiency systems.

66 percent just don’t want to be uncomfortable (a pretty low threshold)

54 percent are too busy to do the research

45 percent think the terms and technology are too confusing

23 percent have no interest in efficiency or comfort – just want cold air when it is hot

Although the results are not conclusive, we believe these responses give some indication of what’s going on. Confusion about what features are available in new systems and having the time and energy to research all the tradeoffs before making an HVAC investment decision are common problems for both consumers and contractors trying to satisfy their needs. One of the goals of AC & Heating Connect is to clear up this confusion in an easy to access web site which reduces the time and effort required to make smart, informed decisions and help consumers get what they want and not just what they need to get by. We are hoping our readers can take a few minutes to consider satisfying their comfort, efficiency or environmental needs before making another, large HVAC investment.

Providing High Efficiency Systems That Customers Will Want to Buy

Posted on Jun. 5, 2014 by Nevi Mendoza

The demand for high efficiency central air conditioning systems in the U.S. can be segmented into several categories.

One type of efficiency buyer is mostly interested in the financial/economic incentives and these consumers tend to come and go with the vagaries of government and utility based incentives.
Another type of efficiency buyer tends to be influenced by either the current or anticipated future impact of energy costs and these consumers tend to come and go with fluctuations in various related and unrelated energy costs (e.g. electricity, oil, gasoline, natural gas, etc.).
The third type of efficiency buyer tends to be influenced less by economic concerns and is more influenced by environmental, comfort and technology concerns. These high efficiency consumers tend to stay in the market irrespective of other factors but only to the point that the prices for high efficiency equipment are not too high. At very high price points, these consumers typically decide to invest in other products and services to meet their needs.

In summary, we believe the communication of all the benefits of higher efficiency systems is important to maximize their adoption. Communication should not be limited to only talking about energy savings or economic payback, but should always include the total benefits, such as environmental, technological and comfort considerations.

Copeland Climate Technologies, who sponsors this site, has identified a phenomenon related to what type of air conditioning equipment consumers “say” they would want to buy and what they actually buy as defined by industry statistics. Basically, Copeland’s research suggests that almost 70 percent of consumers polled indicate they would purchase premium systems based on the factors discussed above (economic payback, energy savings, comfort, etc.) but in reality only about 30 percent actually purchase these systems. Copeland has continued to research the reasons for this disparity and the initial findings suggest that while there are a number of factors affecting this decision, some of the major influencing elements are:

The timing of the equipment replacement decision which limits the consumer’s ability to make good decisions (e.g. peak season failure), particularly if the homeowner had not planned for the financial investment for replacing the system
The availability of basic information on all the factors which come to bear in their HVAC investment decisions, alternatives available, etc., leading to confusion and anxiety
The effect of the poor state of the general economic recovery, high rates of unemployment and “underemployment” along with gloomy consumer expectations
Skepticism about further investments in their homes due to lower real estate values and their ability to secure financing for home purchases and home improvements

Copeland believes continued consumer education programs focused on the above four areas is essential to a successful campaign to drive increased consumer adoption of higher efficiency central air conditioning systems.

In order to drive higher adoption of high efficiency systems, the industry should provide:

Affordable alternatives to basic, minimum efficiency systems
A “step change” in cost-effective energy efficiency upgrades that translates into quantifiable future cost savings
Equipment that can provide a noticeable improvement in other factors such as comfort and indoor air quality along with effective communications which can explain “comfort” to consumers
Some flexibility to zone off certain areas of the home – either manually or automatically without damaging their HVAC equipment
Easy installation into existing homes with ducted central AC infrastructure (75percent of segment)
Equipment that is sized to fit into the common space allowed for HVAC systems in existing homes
The optional ability to tie into peak-load management and other connected system controls where regional requirements require it

As an industry, we should continue to promote the development of superior HVAC systems that truly meet the needs of consumers and then also (and maybe more importantly) develop effective ways to communicate and sell these systems and the benefits they can provide.

New Commercial HVAC Standards Promote Part-Load Efficiency for Split, Package & Rooftop Systems

Posted on Jun. 4, 2014 by Troy Gasper

Significant changes are coming to ANSI/ASHRAE/IES Standard 90.1-2010, which is the energy standard that covers most commercial buildings. Contractors and facility managers should be aware of the impact of these higher requirements and of the many ways to reduce building energy use and costs. The 2013 standard will be 40-50 percent more stringent than the 2004 standard.

The energy cost goals for the 2013 standard are:

Regulated Loads only – 50 percent reduction
Whole building – 40 percent reduction, which includes all energy end uses

The ASHRAE 90.1 standard offers specific recommendations for reducing building energy costs and defines several concepts that equipment manufacturers will work toward. One of these is IEER, or Integrated Energy Efficiency Ratio. IEER is a measure that expresses cooling part-load EER efficiency for commercial air-conditioning and heat pump equipment on the basis of weighted operation at various load capacities. IEER essentially replaces the metric Integrated Part Load Value (IPLV) as the part load energy efficiency descriptor for all commercial unitary products rated above 65,000 Btu/h.

In conjunction with the new standard and energy metrics, the Department of Energy joined industry partners in the Better Buildings Alliance to release a design specification for 10-ton capacity commercial air conditioners, also known as rooftop units (RTUs). The specification was a part of the High Performance Rooftop Unit Challenge initiative, to urge U.S. manufacturers to build and deliver innovative, competitively-priced, energy-saving rooftop units that meet the Commercial Building Energy Alliance-driven requirements for high-performance specification.

Units built according to the High Performance Rooftop Unit Specification are expected to reduce energy use by as much as 50 percent compared to the current ASHRAE 90.1 standard, depending on location and facility type. According to the Department of Energy, nearly half of the cooling-conditioned commercial floor space in the U.S. features rooftop units. Businesses nationwide would save roughly $1 billion each year collectively in energy costs if they replaced their 10- to20-ton commercial units with units that meet this specification.

One of the industry leading OEMs 10-ton unit exceeds the parameters of the RTU Challenge, providing an Integrated Energy Efficiency Ratio of 20.8 – more than 15 percent more efficient than the required minimum of 18.0 IEER.

For more information on the new ANSI/ASHRAE/IES Standard 90.1-2013, visit www.ashrae.com