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JUNE 2022 l The Wholesaler l PHCPpros.com
the adoption of tankless water heaters signifi- cantly rose in 2021, and there is no indica- tion that the demand will be different this year and in 2023. Part of the reason for this rise in adoption is because, in the past few years, the educa- tion and understanding among contractors and homeowners about the benefits of a tankless water heater have gained traction, he explains. More people than ever in North America have actively embraced what tank- less water heaters are, how they work, how they can be used in a home, why they are more efficient, and why they can dramati- cally impact their monthly expenses. Madison Phillips, Rheems senior manager of global product management, believes this trend will continue into the foreseeable fu- ture, especially as tankless water heaters are more than just energy-efficient, they're also a convenient and economical solution for homeowners and business owners, alike. More states and municipalities will likely embrace tankless technology over the next ive years to save on fossil fuels and reach their savings and sustainability goals, explains Tony Clouse, industrial business development spe- cialist at Bradley Corp. When we talk with plumbers in the field, they are stressing their requirements for gain- ing job efficiencies, he says. Specifically, some need to cut energy consumption by 40 to 50 percent, which further makes a case for using tankless water heaters. Although making a better world for all is aspirational, it ultimately comes down to saving money. We see a push for indirect products to sup- port boiler and heat pump applications be- cause they provide higher operating efficiency and cost benefits, says Nicholas Lane, prod- uct manager of hydronic solutions at Aerco. But this begs the question - which is more efficient: gas or electric? Our manufacturers fell on both sides of the coin. The tankless water heater market will grow as more homeowners and contractors continue to convert to higher efficiency gas units that provide endless hot water, notes Robert Aldrich, resi- dential segment develop- ment director at A. O. Smith. Amy Turner, Intellihots di- rector of marketing, agrees, adding: The gas tankless market grew more than 30 percent last year to more than 1.1 million pieces. It is believed a sizeable amount (10 to 20 percent) of these units are installed in commercial applications for redundancy, space savings and energy savings. With climate change at the forefront of concerns for many businesses and property owners, we expect continued growth in both segments. Dongtaek Lee, senior product manager of specialty products at Bradford White Corp., also agrees, noting: We have continued to see growth in the tankless market, particularly in the high-efficiency condensing category. Throughout this year and next, we will see increased demand as design, efficiency and regulations impact buying decisions. However, other manufacturers see electric- powered tankless water heaters as the path to greater efficiency. Electric tankless is part of the green revo- lution, especially as renewable technologies become a greater source than the use of fossil fuels for electric generation, says Ju- lius Goodman, head of marketing at Stiebel Eltron. In addition, more consumers realize the energy-saving benefits of eliminating a tank, and the water savings, if they can keep from enjoying too much of the endless hot water that tankless provides. The question is whether homeowners and business owners are looking to remove gas from their properties. And if they are, what is driving their decision-making? While there isnt one direct answer, a lot of focus is on state and local regulations. Lane points out that regulations favoring electrification or decarbonization have af- fected tankless water heaters in many states. Some regions ban the use of natural gas or propane for new installations; thus, electric and indirect units have become more attrac- tive options, he explains.
Regulations Steer the Decision-Making
On Jan. 1, 2020, California's Title 24, Building Energy Efficient Standards, went into effect, ef- fectively pushing through several different bills to phase out natural gas in homes and busi- nesses. Effective Jan. 1, 2023, Title 24 will go even further and do more to promote electric heat pump water heaters over gas, affecting the level at which consumers and contractors use gas-fueled tankless products, explains Eric Truskoski, Bradford Whites senior director of government and regulatory affairs. Some manufacturers believe similar regu- lations will take effect across the country - and even though they may be in favor of the outcome, they caution that it is happening too quickly.
Many state and local codes are coming forward with bans on new construction that are hooked up with natural gas, with some being implemented and some being challenged in court, Moffroid says. The intent here is to force a shiftaway from fos- sil fuels and go fully electrified. The truth is the world needs to move to a decarbon- ized future. We understand this issue and
WITH GROWING SIGNIFICANCE ON STRINGENT ENERGY EFFICIENCY NORMS AND INCREASING CONSUMER AWARENESS, DEMAND FOR TANKLESS WATER HEATERS IS EXPECTED TO REGISTER SIGNIFICANT GROWTH.'
- Persistence Market Research
2022
Photo credit: AERCO
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