Market Assessment for Gasfired Rooftop Units

1
Market Assessment for Gas-fired Rooftop Units

• Eileen Eaton
• June Meeting 2007

2
Overview

• Market Background for Rooftop Units
• Major Manufacturers
• Typical Unit Characteristics
• Size Distribution
• Common Use Buildings
• Market Segmentation
• High-efficiency Units
• Product Offerings
• Product Cost
• Market Barriers
• Market Requirements
• Energy Savings Opportunities
• Energy Savings Potential

3
Market Background

• Packaged systems are used in two-thirds of all
  commercial floor space in the United States.
• They are popular due to their low first cost and
  simple design.
• Rooftop units account for 60 of cooling energy
  and nearly one-third of total heating and cooling
  energy in small and medium size, low-rise
  buildings.

4
Major Manufacturers

• The major manufacturers of unitary
  air-conditioners are

5
Typical Unit Characteristics

• Common capacities of commercial packaged units
  range from 65,000 Btu/h - 240,000 Btu/h.
• The market is dominated by small systems (lt10
  tons), representing almost 60 of the total
  installed DX cooling capacity.
• The most popular unit size is 5 tons (in terms of
  units sold).

6
Size Distribution
7
Common Use Buildings

• Packaged rooftop units dominate the market for
  small and medium size, low-rise buildings.
• Facilities that use commercial rooftop air
  conditioners include
• Small office buildings
• Clinics and medical care facilities
• Hotels
• College dormitories
• Military barracks
• Retail stores
• Schools and universities
• Prisons
• Warehouses
• Laboratory and light industrial buildings

8
Market Segmentation

• 5.5 tons SEER
• gt 5.5 tons EER
• Off-the-shelf and semi-custom units
• 20 tons
• Custom built units
• 20 tons
• New construction
• Renovation

9
High-efficiency Product Offerings

• A few of the large manufacturers either have the
  equipment or can add a high-efficiency furnace on
  a custom basis.
• A high-efficiency gas pack with a variable speed
  fan and efficiencies up to 96 is available for
  units 6 tons.
• Models are available with an option of a
  modulating gas heater and depending on the
  manufacturer for 35-50 ton units or 20-130 ton
  units.
• One manufacturer makes pulse combustion heaters
  on a custom basis.

10
High-efficiency Product Costs

• A 20-ton rooftop with a modulating furnace costs
  8,000-9,000 more than a 2-stage gas heating
  furnace.
• A 50-ton rooftop with a modulating furnace costs
  9,000-10,000 more.
• The units have additional features besides a
  modulation furnace, which tend to increase their
  cost.

11
Market Barriers for High-efficiency Units

• Lack of Demand
• First Cost
• It is often difficult to sell higher priced
  energy efficient products in an environment where
  buyers select equipment based on first cost
• Maintenance
• An HVAC units location on the roof can affect
  its operating efficiency, reliability and
  serviceability
• Condensing units have problems with the
  condensate freezing in cold weather climates
• Few manufacturers are making high-efficiency
  products

12
Market Requirements for High-efficiency Units

• High-efficiency Products need to be
• Competitive on a first cost basis
• Have low maintenance requirements
• When maintenance is required, easy to service
• Efficiency programs can play a significant role
  in reducing first cost of innovative products

13
Energy Savings Opportunities

• Smaller units (lt 10 tons)
• 60 of cooling capacity
• Mass produced
• Larger units (gt 20 tons)
• Generally less efficient
• Custom built
• Fewer target customers
• High-use buildings medium energy usage (85 to
  115 kBtu/sqft/year) and represent a large amount
  of floorspace.
• Offices
• Mercantile Service
• Public Buildings
• New Construction

14
Energy Savings Potential

• High-efficiency units can yield up to 16 energy
  savings for a 10-ton unit
• Available Technologies
• Gas Modulating
• Savings in fan power and gas
• for heating
• Cost premium
• Condensing
• Recovers waste heat from the
• exhaust gases
• Pulse Combustion - low standby
• losses and combustion air fan energy consumption
  is virtually eliminated

15
Questions?

• Eileen Eaton
• 617-589-3949 x 203
• Eeaton_at_cee1.org
• Kara Rodgers
• 617-589-3949 x 202
• Krodgers_at_cee1.org
• Michelle Rosier
• 617-589-3949 x 232
• Mrosier_at_cee1.org