© IEA ETSAP - Technology Brief R03 – June 2012 - www.etsap.

org

Water Heating
HIGHLIGHTS
 PROCESS AND TECHNOLOGY STATUS – In developed countries, modest efficiency improvements in water
heating have occurred in recent years. Water heating is typically the third largest domestic energy end-use after space
heating/cooling and lighting. For example, in 2010 water heating accounted for 13.2% of energy consumption in US
buildings. Demand for domestic hot water averages at 24 litres per person per day across the EU, although substantial
national variations are observed. This demand can be serviced by dedicated water heating systems or by combination
systems that also perform a primary space heating role; such devices are considered in the ETSAP Technology Brief
R02 (Space Heating and Cooling). Dedicated systems can be broadly characterised as storage systems,
instantaneous devices or alternative systems, including heat pumps and solar systems. Fuel splits vary substantially;
most countries rely chiefly on gas and electricity, although oil and biomass use can be significant. Sales and stock
shares by device differ significantly between countries: in the EU, electric storage systems dominate the market with
approximately 55% of dedicated water heater sales, whilst renewables contribute a small portion. Solar devices are
popular in China and heat pumps are widespread in Japan. In the commercial sector, water heating consumption
contributes a smaller proportion of total consumption and is concentrated in limited building types. In the US, 4.3% of
total energy consumption in the commercial sector is attributed to water heating functions, with hotels, hospitals and food
service buildings accounting for over 75% of this. Commercial water heating equipment is typically scaled up compared
to domestic equipment, in terms of power and storage capacity or flow rate, with significant overlap between smaller
commercial units and the upper end of the domestic market. Booster heaters are also utilised to deliver higher
temperature flows, although the market for such devices is small.

 PERFORMANCE AND COSTS – A variety of metrics can be used to characterise and compare the performance
of water heating systems. The key determinant of price and efficiency is size, in terms of storage capacity or power/flow,
with a wide range of systems servicing the market. Domestic storage devices in the EU can provide capacities of over
250L but suffer significant standby losses, with overall efficiencies is the range of 27-41% for gas systems and 27-30%
for electric devices. Large commercial devices are increasingly subject to more stringent efficiency limits in the US.
Typical gas systems provide thermal efficiencies in the range of 76-79% while average electrical devices offer thermal
efficiencies of 97-99%. Alternative systems are better characterised by the energy factor (the ratio of useful energy
output to the input energy, which can be greater than one), with commercial heat pumps offering values of 2.3-2.4 ,while
solar systems can attain a wide range from 0.8-4.8, depending on size, technology and irradiation levels. Prices vary
significantly with size, system type and technology level: average domestic prices fall within the range €80-450 for
conventional EU devices and $4,000-8,000 for US solar thermal systems. Commercial device costs range more broadly
from €150-5,800, with gas systems being most expensive. In both sectors user behaviour is important; values are quoted
for typical tapping patterns, which encompass the frequency and duration of cycles as well as flow and temperature
demands.

 POTENTIAL AND BARRIERS – There is potential for significant energy savings in the domestic water heating
sector, with EU reports suggesting a potential for 60% per unit energy savings with the adoption of best available
technology. The Energy Star scheme in the US is designed to promote the uptake of more efficient devices, including a
focus on instantaneous systems, gas devices, and in particular heat pumps and solar systems. The US market for heat
pumps is growing rapidly, having risen from 0.4% to 1.6% of total sales over 2009-10, but overall the stock share of the
most efficient systems remains very small in both the domestic and commercial markets. Focus by nation varies: in the
US, instantaneous gas systems are strongly promoted; solar systems are heavily endorsed in China and the EU; Japan
leads the way with heat pump technology, and their gas utilities are strongly promoting high efficiency condensing units.
Reports also identify opportunities for the development of new systems with higher efficiencies, which may be necessary
to bring about full market transformation. In the commercial sector, US studies identify unit energy savings of up to 50%
with switches to solar systems or heat pumps, relative to the currently prevalent gas storage systems. However, a
number of barriers exist to slow the spread of more efficient water heating systems across domestic and commercial
markets: high capital costs, market acceptance issues, constraints associated with emergency replacement, split
incentives, and fuel availability are all significant factors.
______________________________________________________________________________
PROCESS AND TECHNOLOGY STATUS desired water temperatures at desired rates. It may or
may not be equipped with a storage tank.
A water heater is a device or set of devices which is
equipped with a heat generator and connected to an This brief deals with dedicated water heaters which
external supply of sanitary water, and can deliver provide hot water directly. Combination boilers (which
provide both hot water and space heating) are

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discussed in ETSAP Technology Brief R02 (Space systems alongside conventional water heaters which
Heating and Cooling). Also excluded are district water offer a backup.
heating, systems using solid fuels (such as biomass)
Solar thermal systems use solar energy to heat mains
and co-generation systems (for example, combined
water (direct) or a working fluid (indirect). Heated water
heat and power systems). Heat pumps and solar
flows via a heat exchanger to transfer energy to a hot
systems are considered due to their growing
water cylinder. The conventional collector type is a flat
importance as supplementary water heaters, although
plate which is popular globally, although more efficient
they may also have a space heating function.
evacuated tube models are predominant in China and
This Technology Brief focuses on domestic and are becoming increasingly popular elsewhere. Systems,
commercial water heating systems (in a broad tertiary cost and performance differ substantially depending on
sense). Domestic devices are commonly referred to as climate. In the US, solar thermal systems typically
“domestic hot water” systems, while commercial reduce domestic hot water needs by 40-85% [3]. In
systems are often termed “sanitary hot water” devices. warmer countries, solar irradiation levels are
Industrial water heating accounts for 1% of the 6% of consistently high throughout the year, so solar devices
2005 energy-related GHG emissions in the EU-15 can often be sized to service the full hot water demand.
attributed to water heating (including combination Pumped (active) systems are far more common in
systems) [1]. This brief does not cover industrial Europe, the US, Australia and New Zealand.
systems as these are often system-specific and difficult Thermosiphon, or natural circulation (passive) systems
to characterise. utilise convection to operate without pumps, offering a
cheaper but less efficient option in warmer regions.
Heat can be generated by burning combustion fuels
These are popular in Asian markets, especially China.
such as oil and gas, or by the Joule effect in electric
Globally, solar devices are used chiefly to provide
resistance elements. Water heaters can be broadly split
domestic hot water for a single house. However, in
between storage heaters (with a storage tank) and
some European markets and India, a substantial
instantaneous (tankless) heaters. Storage heaters are
number are used for large domestic hot water
typically multi-point appliances and have an internal
applications, or in combination systems to provide an
store of at least 15L, allowing on-demand delivery. Gas
additional space heating function [4].
systems use a gas burner to heat air, which rises
through the flue inside a tank, transferring heat to the Heat pumps are commonly used for space heating or
flue walls and surrounding water. Electric devices cooling, but can also be used to provide sanitary hot
operate on the same principle using electrical heating water. They capture ambient heat, using refrigeration
elements. cycles to bring the heat to a higher energy level. They
can be characterized by the principle process: Carnot
For gas systems a further breakdown occurs between
cycle, adsorption or absorption, or by the heat source,
standard and condensing systems for both storage
which can be ground source, ground water, air or solar.
and instantaneous devices. Condensing systems have
In the EU, it is extremely rare for heat pumps to provide
greater efficiencies as they capture the latent heat of
only hot water. However, the technology is advancing
flue gases. Standard gas and electric models also have
rapidly and this may develop to be a significant area in
high-efficiency variants with superior insulation and 1
the future .
thermal improvements. Instantaneous devices run a
water supply pipe through a heat exchanger and are Some studies further distinguish between primary and
typically used as single point appliances, in the kitchen secondary systems. Standard definitions state that
or bathroom, with either no or a small internal water primary systems service full domestic water heating
store (<15L). These systems heat water through a demand while secondary devices fulfil a limited
continuous flow process, thus eliminating standby purpose.
losses. Hybrid systems do exist; these utilize small
EU-wide statistics suggest that domestic and
storages tanks in an attempt to gain the advantages of
commercial water heating consumed a total of 3,790 PJ
both systems.
of primary energy and was responsible for 6% of all
For electric instantaneous water heaters, a division fuel-related CO2 emissions in 2005 (~2% residential,
occurs between hydraulic and electronic systems; 1% industrial, 1% tertiary and 3% electricity generation)
systems with hydraulic flow rate are controlled by a [1]. These figures do attempt to account for the overlap
simple on/off switch dependent on water pressure. This with space heating systems through the inclusion of
category comprises mainly electric showers, which are combination central heating boilers. Estimates give a
almost entirely restricted to the UK and Irish markets – total internal EU market of 17.2 million units, with 6.8
they are found only in small quantities in some other million of these units being linked to boilers. This
European or Asian nations [2]. Electronic instantaneous equates to a market of €4-5 billion at 2005 prices,
devices using electronic flow-rate control can maintain a including ~15% of combination boiler prices [1].
set temperature through a range of flow rates, and may
The installed stock of dedicated water heaters in the EU
allow user control. This category also encompasses
in 2004/05 was estimated at 146 million, accounting for
devices designed to deliver water up to boiling point.
Alternative systems include solar devices and heat
pumps. These are often incorporated as auxiliary 1
At the present time limited information exists to accurately report
cost and performance information, so stated figures apply to devices
which also serve a space heating function.

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49.6% of primary heaters (50.4% were central heating largest market for solar systems, with the majority of
systems) and 100% of secondary water heaters [1]. devices situated in the south. The UK and Ireland
Results suggest that 32.4% of EU households have a represent unusual markets given the use of electric
secondary water heater with the following breakdown: showers, accounting for around 60% of EU electronic
small electric storage device for the kitchen (18.5%), instantaneous hydraulic systems. Advancing technology
second electric instantaneous unit (7.9%) and small gas means solar energy is becoming more versatile; over
system (5.9%) [1]. About 10.4 million dedicated water the course of a year, solar arrays can be used to
heaters were sold in 2004/05, of which 8.3 million were generate 30-60% of hot water demand for a typical
electric and 2.1 million used gas [1]. Estimates give a household in Scotland [13].
long-term average growth rate of 1.5%, with around
The picture is very different elsewhere. Different
70% replacements sales and 30% new sales [1].
customs and practices can strongly influence
The split between domestic and commercial devices is consumption rates. High solar irradiation levels per
not clear, as there is much overlap between the two capita mean that solar systems are already cost-
markets (see Table 5). The EU Eco-Design study completive in sunny regions like the Middle East, North
classifies systems by size, using volume ranges (L) for Africa and southern Europe. Globally, China leads the
storage systems and maximum power bands (kW) for way with 39% more installed capacity of solar thermal
instantaneous devices. Size classifications run from systems than rest of world combined [8]. The market for
3XS to 4XL, with no clear distinction between the Thermosiphon systems are most developed in the
domestic and commercial sectors. Within the EU, 52% Asian countries, especially China. These systems
of units were medium, with all other size categories account for 70-80% of installed global stock, and more
contributing less than 15% of market share [1]. than 85% of the new systems installed in 2009 [4].
 Domestic Water Heating - In the US, water heating Heat pumps are especially popular in Japan, where
accounts for around 14-25% of individual domestic CO2 systems sold under the brand name “Eco Cute”
energy consumption [5]. It is the third largest energy have grown rapidly in popularity; estimates for 2010
end-use after space heating/cooling and lighting, indicate that 5.2 million units were in use in Japan [14].
accounting for 13.2% of total energy consumption in
 Commercial Water Heating - Commercial water
2010 [6]. Most US households use natural gas systems,
heaters can be characterized in the same way as
with around 40% using electric devices [7]. Pool heaters
domestic heaters, but are generally larger and more
are excluded from these figures.
powerful devices. Splits vary per country; in Italy,
An IEA report shows single-family dwellings have heaters become classed as commercial at over 35kW
typical water heating capacity of 2.1-4.2kW, while multi- but 70kW in France [1]. In the US, the classification
family dwellings average 35kW across the OECD in scheme used by the Air-Conditioning, Heating and
2007 [8]. In multi-family dwellings, the growing use of Refrigeration Institute (AHRI) uses power and capacity
individual water metering and billing has accompanied a ratings, specific by device-type [15].
move towards decentralized systems. Virtually all new
In the EU, data is limited for commercial and
units use separate systems and many centralized
institutional users. Projected baselines provided by the
systems are being replaced [9].
European Climate Change Programme for 2010
Examination of average building requirements in five indicate that hot water emissions for the EU tertiary
EU member states suggests a standard of 22-33 litres sector (defined as non-domestic and non-industrial, with
per person per day of hot water at 60ºC [10]. Other cooking included) contribute around 7% of total CO2
evidence suggests a real-life range of 10-50 litres per emissions, with electric systems contributing 9 MtCO2
day, due to difference in habits amongst different and fossil fuel systems contributing 30 MtCO2 [1].
regions, with an EU average of 24 litres per person per
Models suggest that there are around 70 million tapping
day [10]. This equates to 59 litres or 1,246 kWh heating
points in the EU non-residential sector (including
energy per household per year [10].
industrial), with 25% in sports facilities, 16% in hotels
Domestic markets differ substantially between and 12% in hospitals and clinics. In total, this is
countries. In the US, 2010 domestic water heating equivalent to around 33% of the estimated number of
shipments totalled 8.1 million, with an installed base of domestic tapping points [1].
around 100 million units [11]. The majority of sales are
In the US, water heating in commercial buildings
gas and electric storage devices, which represent 95%
accounted for 4.3% of total energy use in the
of the market in 2010. The remainder of the market is
commercial sector in 2010. Estimates suggest that
dominated by instantaneous systems (~5%) with
overall commercial water heating consumption equates
Energy Star gas devices accounting for the vast
to around 30% of the energy used for water heating in
majority of these sales. Alternative systems capture a
residential buildings. Commercial water heating tends to
very small proportion of the US market, although this is
be focused in limited building types with hotels,
predicted to grow. In particular, heat pump sales grew
hospitals and food service buildings accounting for over
from 0.4% to 1.6% of the US market from 2009 to 2010
75% of 2010 US commercial water heating
[12].
consumption [6]. An average of 9% of the energy
In the EU, there is a push towards the use of alternative delivered to commercial buildings is used for water
water heaters, with solar and heat pumps becoming heating. In the wider tertiary sector it is a more
increasingly significant. The EU-27 is the second

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significant end use, accounting for 20-30% of Other measures better capture the relative efficiencies
consumption in hotels, hospitals and restaurants [16]. of alternative systems, with the energy factor being a
common metric in the US. The solar fraction is an
US studies report a roughly even fuel split between
important metric for solar systems: this is the portion of
electricity and gas devices, with approximately 75% of
total conventional hot water heating load provided by
commercial buildings relying on a centralized heating
solar energy. The coefficient of performance (COP) is
system with storage tank and boiler. Unlike typical
common for heat pumps with values in the range of 2.0-
domestic systems, these use a re-circulation loop which
6.0, to be compared to a COP of 1.0 for traditional
continually distributes hot water to each end-use,
electric heaters [18].
leading to significant heat losses. In 2003, 22% of
commercial buildings used a distributed point-of-use Figures vary with device type, technology type and fuel.
system with dedicated heating devices [17]. Moreover, efficiency varies significantly with loading so
typical device figures are generally quoted for different
Estimates suggest that, of the 3.5 million commercial
sizes.
buildings with water heaters, around 50% have
commercial storage heaters (mainly gas systems) and Real-life efficiencies differ from nominal values, partly
approximately 17% have commercial instantaneous due to standby losses (relating to storage insulation)
devices [17]. It is suggested that others have high- and piping layouts. Consumer tapping behaviour is a
efficiency technology, and that smaller buildings with key determinant: the number and duration of tapping
lower demands use residential heaters [11]. cycles, temperature and flow rate all control practical
efficiencies. Key factors include user number,
Some commercial buildings also use booster heaters:
frequency, duration and timing of usage, and kitchen
these accept pre-heated water and raise temperatures
and bathroom use [1].
to 80ºC or more. They are typically small units used in
commercial dishwashing, laundry buildings, hospitals The EU Eco-design project reports that a spread of
and car washes. Gas and electric devices exist with product lifetimes exist for different dedicated devices,
capacities of up to around 100L. The market share for with an EU-average of 15 years across both sectors [1].
such devices is small [11].
 Domestic Water Heating - In the US, the domestic
market for energy efficient heaters has grown rapidly in
PERFORMANCE AND COSTS recent times, fuelled partly by the Energy Star water
program launched in January 2009. Under US
The performance of a water heater can be measured Department of Energy (DOE) and US Environmental
with a range of metrics. Protection Agency (EPA) standards, this voluntary
 Efficiency: Figures can refer to thermal, specific or scheme offers independent validation of efficiency
gross calorific value (GCV, common outside the EU). All claims and, in September 2010, covered 1,155 models
provide a measure of the ratio of useful output to input of gas storage and instantaneous, heat pump and solar
energy, expressed as a percentage, but the metrics use devices [19].
2
different definitions and consider various conditions . The US Government is promoting efficient
 Nominal capacity: This metric refers to the measured instantaneous devices, and as a result the vast majority
power output of system under standard conditions. of systems now sold in the US are Energy Star qualified
 Flow rate: Provides a measure of the maximum equipment. Shipments of high efficiency equipment
delivery rate of a system for a specific temperature rise, rose from 0.6 million units to 1 million units between
typically 45ºC. This metric is often used to characterise 2006 and 2009, reaching a 13% market share, despite
instantaneous systems. a shrinking market overall [12].
 Energy factor: This is a measure of overall
efficiency, and is the ratio of useful energy output to the However, most of the existing US stock of ~37 million
input energy. This can exceed a value of 1 with the use domestic water heaters just meets original 1990 federal
of renewables and heat pumps. regulations, with the vast majority being storage
 Consumption rate: This can be expressed as energy systems. Electric systems typically have energy factors
per unit time, typically kWh/year to factor in seasonal of around 0.9 while gas systems are generally rated
3
variations. around 0.6 [7] . Energy Star qualified equipment
 Effective useful lifetime: This measure expresses consumes 14-55% less energy than standard low-
the average lifetime of a product under typical operating efficiency models [19].
conditions.
Prices vary significantly with size. Studies indicate EU
Storage systems maintain a constant stock of hot water average prices for a range of smaller system sizes as
and are thus subject to substantial standby-by losses. follows [1]:
The performance of instantaneous devices may be
 €400 for medium gas storage devices
constrained by the ability to deliver large flows to
 €250-350 for gas instantaneous devices
multiple fixtures.
 €99-295 for electric storage heaters

3
2 Note that gas and electric consumption and efficiency rates should not
Note that the efficiency of combination systems is typically indicated be directly compared, without consideration of electricity production and
by the combined appliance efficiency metric (CAE) which can vary from transmission. In terms of primary energy efficiency, gas systems are
0.59 to 0.90 [7]. generally superior [7].

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 €81-252 for electric hydraulic instantaneous devices  High capital cost/affordability: High-efficiency
 €245-448 for electronic instantaneous systems. equipment can provide life cycle savings through
lowered operating costs but many consumers are
Larger systems can be significantly more expensive but deterred by high initial expense. Associated with this
relative price relationships are roughly maintained. are sales driver issues: up-selling is difficult since water
Alternative systems require large initial investments, heaters are often perceived as a commodity, as there
which rise with size and technology level. Typical US are few premium features beyond improved efficiency.
prices for solar thermal devices are in the range of  Market acceptance: High-efficiency devices must
$4,000 to $8,000 [3]. achieve sustained superior performance to gain
consumer and installer acceptance. Additional space
 Commercial Water Heating - EU reports suggest
requirements may also deter consumers.
that commercial users with low demand may utilise
 Replacement urgency: Emergency replacements
larger devices also used in the domestic market (see
often necessitate immediate availability so high-
Table 2), as well as larger specifically commercial
efficiency alternatives are rarely considered. Plumber
systems (Tables 3) [1].
stock and training often constrains choice.
In large buildings, distributed systems utilising  Split incentives: Buyers are not always users, so
instantaneous or small storage devices to provide hot may prioritise low initial cost over long-term energy
water on demand can offer efficiency advantages over savings. This is particularly important in new
central heating systems, which utilise re-circulation constructions where builders may opt for the cheapest
loops so are subject to substantial heat loss. allowed solution. Furthermore, choices are often
prescribed by installers as consumers often perceive
The US Federal water heating standards (planned to themselves to have insufficient knowledge, so motives
take effect in 2016) use minimum energy factor limits; and training level may be significant.
these are significantly more strict on devices over 55  Lack of fuel choice: Grid limitation mean gas
gallons (~210L), Large commercial-scale gas storage options are often unavailable. House structure may also
systems will be required to attain energy factors of be significant with regards to the availability of
around 0.75-0.80, electric systems must satisfy limits of chimneys. Solar systems may not be possible for all
nearly 2.0 while instantaneous systems will need to roofs and are not an appropriate option in all climates.
reach values of 0.82 [19].
In the EU, there are no region-wide mandatory
Typical current US commercial gas systems have measures covering energy efficiency or emissions of
measured thermal efficiencies of 76-79% and electrical water heaters in the domestic or commercial sectors,
devices attain figures of 97-99% [11]. although initiatives are forthcoming via the Ecodesign
Prices vary substantially with system type, technology Framework Directive. Business-as-usual (BaU) models
level and size, with gas instantaneous and booster suggest that EU energy consumption of water heating
devices being more expensive than their electric will rise by 12.5% from 2010 to 2020 as the influence of
equivalents. Indicative US price ranges are as follows projected rises in demand, with 10-12% more
[11]: households and more frequent and longer showers,
outweighs efficiency gains through stock replacement
 $2,500-4,500 for gas storage devices [1].
 $950-1,250 for instantaneous gas devices
 $4,100-5,800 for gas booster devices The 2007 Eco-design study concluded that least life
 $3,000-3,500 for electric storage devices cycle cost targets would achieve an energy saving of
 $150-250 for electric instantaneous systems around 35% per unit on the base case. Targets would
 $1,350-1,750 for electric boosters be dependent on size, with point-of-use appliances
 $1,400-4,000 for heat pumps being required to meet minimum primary efficiencies of
 $6,000-12,000 for solar thermal devices 24% and large commercial systems achieving at least
90%. The introduction of stages targets generates a
‘realistic’ scenario in which minimum energy standards
POTENTIAL AND BARRIERS bring down net consumption in 2020 by 41.4%
Government initiatives and regulatory measures compared to the business-as-usual scenario [1].
covering water heaters differ substantially across the Utilising best available technologies (BAT) could realise
world. Overall, a focus on primary consumption means energy efficiency gains of over 60%. Alongside these
that limits tend to be stricter on electric devices. The US targets, the study advocates the use of a
leads with the most stringent Minimum Energy comprehensive labelling scheme covering 10 efficiency
performance standards (MEPS), certainly for storage classes over 9 size categories. The report suggests that
systems. Their example is followed by Canada, such measures would boost EU competitiveness,
Australia and New Zealand. For gas-fired instantaneous benefit installers and reduce consumer expenditure,
devices, Japan lead the way with minimum gross since volume production of BAT will lower prices [1].
calorific values of 83%, probably followed by China.
Limits on NOx and CO emissions remain rare [1]. Bloomberg reports suggest that solar systems will
become more economically attractive for a broader
Reports identify a number of key barriers to more range of climates and technology costs fall and
efficient water heating, which are common to both the efficiencies rise. Forecasts suggest that global capacity
domestic and commercial sectors [12], [1]:

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will double to 975 GWh by 2030, with China accounting electrical water heating devices and 31TWh for gas
for 50% and India growing to 10% [20]. systems [22]. The same report identifies a techno-
economic potential saving of 11% and 15% for electric
Another report highlights the importance of
and gas systems respectively.
consideration of usage patterns. Importantly, it also
draws attention to the under-analysed area of In the US, reports suggest that the commercial water
distribution system optimisation, in terms of design, heater market has not changed significantly in recent
operation and maintenance [12]. years, despite federal regulations and promotions.
Several states use policies to encourage the purchase
 Domestic Water Heating - In the US, business-as-
of high-efficiency and solar devices, but advanced
usual estimates suggest domestic consumption in 2030
commercial units make up less than 3,000 units of the
will be approximately 149TWh for electrical water
0.6-0.9 million units sold to US businesses [9].
heating devices and 35TWh for gas systems [22]. The
same report identifies a techno-economic potential In the US, minimum standards (set in 2004) are more
saving of 27% and 29% for electric and gas systems stringent for commercial devices: electric systems must
respectively. satisfy minimum standby losses, which vary with size,
while gas systems must achieve thermal efficiencies of
The US Energy Star programme is expected to combat
80%. The Energy Star scheme does not classify
the sales driver issue by boosting consumer awareness
specifically commercial devices, so standards and
of the potential savings with efficient devices. However,
registered devices cover both markets [21].
despite the rise in Energy Star high-efficiency sales, the
majority of water heaters still just meet minimum There is potential for primary energy savings in the US
efficiency standards. The most efficient systems (heat commercial water heaing market, relative to traditional
pumps and solar devices) account for a very small gas storage systems, which remain most prevalent [11].
portion of the current US market. However, the sales of Estimated unit energy savings are as follows:
heat pump devices appear to be growing rapidly [12].
 50% for solar thermal systems
Energy Star reports that the US could save 2% of the  40% for absorption heat pumps
nation’s total energy consumption by switching to  50% for heat pumps
efficient heat pumps and solar heaters. However,  18% for condensing devices
despite the range of high-efficiency technologies  15% for instantaneous systems.
available, reports suggest that true market
Commercial heat pumps do appear to be particularly
transformation is not possible without more advanced
promising devices to deliver large energy savings.
development at more marketable prices [12]. Attention
Studies find that these are at least twice as efficient as
is drawn to the potential for significantly higher
electric resistance water heaters [22].
efficiency electric heat pumps, as well as the feasibility
of gas varieties. Modifications to existing systems can also bring
significant savings: models suggest storage tank
The US Department of Energy has announced that it
jackets, heat traps and piping insulation bring standby
will raise minimum energy efficiency standards in 2015,
savings of 40%, 25% and 3% respectively. Cost-
following the most recent update in 2004. Standards will
effective savings may also be realized through reduced
be based on minimum energy factor limits, dependant
usage with water-saving fixtures and devices; the
on fuel type and tank volume. For models under 250L,
potential for such savings is most significant in water-
this will bring a 4-5% efficiency improvement over
intensive buildings like restaurants [9]. Improvements in
current minimum standards [11]. For larger storage
the design of distribution systems may also bring
models the requirements will represent efficiency
especially significant gains in the commercial sector.
improvements of 30% and 120% for gas and electric
respectively [11]. Gas instantaneous heaters will be Solar thermal systems are forecasted to develop in a
required to meet current Energy Star requirements, a similar manner in the commercial market, with China
32% rise [12]. expected to receive around 50% of the investment in
commercial scale solar water heating systems, followed
 Commercial Water Heating - The lack of current
by India and other smaller markets like Australia, Brazil,
global figures means commercial water heating
Japan [20].
projections are not readily available. In the US,
business-as-usual estimates suggest commercial
consumption in 2030 will be approximately 59TWh for
_____________________________________________________________________________________________________

Please send comments to Michael.Griffin@aeat.co.uk, Thomas.Ramsson@aeat.co.uk, Gena.Gibson@aeat.co.uk (Authors), and to

Giorgio.Simbolotti@enea.it and Giancarlo Tosato (gct@etsap.org), Project Coordinators
 © IEA ETSAP - Technology Brief R03 – June 2012 - www.etsap.org

References and Further Information

[1] VHK, “Eco-deisgn of Water Heaters: Lot 2,” 2007.

[2] Market Transformation Programme , “Domestic Electric Hot Water Heaters Government Standards Evidence Base
2009,” 2009.
[3] “Solar Thermal Hot Water Systems -Texas expands Incentives for Home Owners,” Solar Thermal Magazine, 2010.
[4] F. M. Werner Weiss, “Solar Heat Worldwide: Markets and Contribution to the Energy Supply 2009,” IEA: Solar
Heating & Cooling Programme, 2009.
[5] US Department of Energy, “Energy Efficiency & Renewable Energy- Energy savers: water heating,” 2009. [Online].
Available: http://www.energysavers.gov/your_home/water_heating/index.cfm/mytopic=12760.
[6] US Department of Energy, “2010 Buildings Energy Data Book,” 2010.
[7] American Council for an Energy-Efficient Econonmy, “ACEEE: Water Heating,” [Online]. Available:
http://www.aceee.org/consumer/water-heating.
[8] International Energy Agency , “Technology Roadmap: Energy-efficient Buildings - Heating and Cooling Equipment,”
2011.
[9] IEA, “Energy Efficiency in the North American Building Stock,” 2007.
[10] VHK, “Eco-design of Energy-using products: Methodology & Tasks,” [Online]. Available:
http://www.ecohotwater.org/public/VHK_Ecohotwater_May_2007_p.pdf.
[11] Navigant Consulting, Inc., “Energy Savings Potential and R&D Opportunities for Commercial Building Appliances,”
DOE, US, 2009.
[12] Navigant Consulting, “Research and Development Roadmap for Water Heating Technologies,” 2011.
[13] HI Energy, “Factsheet: Solar Water Heating,” [Online]. Available: http://www.hi-
energy.org.uk/Downloads/Factsheets/Solar%20Water%20B2.pdf.
[14] Kusakari, “The Newest Situation and the Future View of the CO2 Refrigerant Heat Pump Water Heater in Japan,”
2008.
[15] AHRI, “http://www.ahrinet.org/App_Content/ahri/files/Certification/OM%20pdfs/2012/CWH%20OM-2012.pdf,”
[Online].
[16] Energy Information Authority, “Annual Energy Outlook,” Department of Energy, 2006.
[17] Energy Information Authority, “(CBECS), Commercial Buildings Energy Consumption Survey,” 2003. [Online].
Available:
http://www.eia.gov/emeu/cbecs/cbecs2003/detailed_tables_2003/detailed_tables_2003.html#consumexpen03.
[18] United Technologies Research Center, “Reliable, Economic, Efficient CO2 Heat Pump Water Heaters for North
America,” 2007.
[19] US DOE, “Energy Star: Water Heater Market Profile,” 2010.
[20] Bloomberg, New Energy Finance, “Global Renewables Energy Market Outlook,” 2011.
[21] US Environmental Protection Agency , “Energy Star,” [Online].
[22] Alliance to Save Energy, “Emerging Technologies for Energy Savings Performance Contracting in the Federal
Sector,” 2007.
[23] Energy Information Authority, 2003.
[24] R. Brown, “US Building Sector Energy Efficiency Potential,” Berkeley Lab, 2008.

Please send comments to Michael.Griffin@aeat.co.uk, Thomas.Ramsson@aeat.co.uk, Gena.Gibson@aeat.co.uk (Authors), and to

Giorgio.Simbolotti@enea.it and Giancarlo Tosato (gct@etsap.org), Project Coordinators
 © IEA ETSAP - Technology Brief R03 – June 2012 - www.etsap.org

Table 1 – Water Heating Technologies -Small Systems [1], [2]

XXS - M Water Heaters (domestic and small commercial, see table 5)
Gas/oil Electricity
Instantaneous
Technical Performance Storage Instantaneous Storage
Hydraulic Electronic
<100 <100
XXS 5-10 5-10
Storage size (L) XS 10-15 N/A 10-15 N/A N/A
S 15-30 15-30
M 30-100 30-100
5-10 (S) 2-9
Flow rate (L/min at 45ºC) - - <12-27
10-13(M) 4-9 [2]
XXS - - 2 8 6.3 [2]
XS - 9.4 2 8 12.5 [2]
Power (kW)
S - 17.5 2.5 18
M 5 21-27 2.5 23
1350-1510 (XXS-
Base Energy Consumption (kWh/yr) [2] 1780-4670 1350-3400
XS)
XXS - 25% 30% 34% 34%
a XS - 23% 30% 34% 34%
System Efficiency (%)
S - 21% 30% 34% 34%
M 27% 27% 34% 38% 38%
Costs
Capital Cost (euro/unit) €400(M) €250-350 €99-295 €81-252 €245-448
Market data
b
EU sales share 1.0% 15.8% 34.8% 19.0% 3.8%
a) System efficiency values are the output of the Ecohotwater model: this uses a heat load defined by the applicable base-case tapping pattern, and
calculates at the system level to include unavoidable losses relating to distribution.
b) EU sales shares derived from BRGC 2005 data, grouped by size as proportion of relevant market (such that shares total 100%).

Table 2 – Water Heating Technologies - Large Systems [1], [2],

Large – 4XL Water Heaters (large domestic, multi-family households and commercial, see also table 5)
Gas/oil Electricity Alternative
a
Technical Performance Storage Instantaneous Storage Heat pump Solar
Volume (L) 120-250+ N/A - - -
Flow rate (L/min at 45ºC) - >13 (L) - - -
L 7.5 2.5
10 -500 (electric)
Power (kW) XL 9.3 40 (L) 3 35-130 [9]
15 -150(gas)
XXL 15.6 3
4,600-4,900
2,400 (Electric)
Annual Consumption (kWh) (230L device) 6,600-7,600 5,400 94,800-14,300 2,200
3,800 (Gas)
[2]
L 29% 27%
b
System Efficiency (%) XL 37% 44% (L) 29% - -
XXL 41% 30%
0.55 (oil)
0.6 (gas) 1.8 (electric
c 0.904 (FS)
Energy Factor, 230L device [19], [7] 0.65 (HE gas) 0.82 (E*) 2.0 (E*) backup)
0.95 (HE)
0.67 (E* gas) 1.2 (gas backup)
0.86 (condensing)
Technical Lifetime, yrs [19] 13 20 13 15-20 20
Costs
d €312-508
Capital Cost (euro/unit) €600-1250 €394-973 - €2940-5880 [3]
€600 (L)
d, e €661
Energy Star installation costs [19] €1470 - €1323 €2350-3530
€955 (E*)
Markets data
EU sales share 1.1% 1.5% 20.6% - 2.3%
a) Quoted values apply to solar thermal systems in the US. Higher efficiencies and lower unit prices apply in warmer regions. b) System efficiency values
are the output of the Ecohotwater-model: this uses a heat load defined by the applicable base-case tapping pattern, and calculates at the system level to
include unavoidable distribution losses. c) Energy factor is the ratio of useful output energy to input energy. FS refers to devices just meeting minimum
Federal Standards, HE indicates typical high efficiency values and E* refers to devices just meeting Energy Star standards. Energy factors for solar devices
are expressed for systems incorporating typical US electric and gas backups. d) Prices converted using average last year exchange rate of 0.7349 $/€
e) Installation costs capture capital cost and cost of installation, for typical Energy Star equipment.

Please send comments to Michael.Griffin@aeat.co.uk, Thomas.Ramsson@aeat.co.uk, Gena.Gibson@aeat.co.uk (Authors), and to

Giorgio.Simbolotti@enea.it and Giancarlo Tosato (gct@etsap.org), Project Coordinators
 © IEA ETSAP - Technology Brief R03 – June 2012 - www.etsap.org

Table 3 – Commercial Water Heating Technologies [11]

Large US Commercial Water Heaters
Natural gas Electricity Alternative
Technical Performance Storage Instantaneous Booster Storage Instantaneous Booster Heat pump Solar
1,000-
Volume (L) N/A 1-110 150-9,500 N/A 20-80 >190 -
2,200
Flow rat/recovery rate (L/min at
- <53 - - <45 - - -
45ºC)
Power (kW) 150-8,500 50-1,300 190-680 5-3,000 2-100 6-58 -
50% of
Thermal Efficiency (%) 77 76 79 97 99 98 -
load
Energy Factor, 230L device (E*) - - - - - - 2.3-2.4 0.8-4.8
Technical Lifetime, yrs 12 20 3-8 14 20 3-8 14
Costs
$1,400-
Capital Cost – total installed cost $2,500- $4,100- $3,000- $1,350- 4,000 $6,000-
$950-1,250 $150-250
($/unit) 4,500 5,800 3,500 1,750 >$10,000 12,000
(absorption)
Market data
US sales, 2010 [12] 78,600 - - 58,400 - - -

Table 4 – Summary of US Energy Star Requirements and Savings [19]

Energy Star water heaters (domestics and commercial)

Metrics Gas Electric

High Efficiency Whole-home gas Solar with gas Solar with
Heat pump
gas storage instantaneous backup electric backup
Energy factor 0.67 0.82 1.2 2.0 1.8
Annual consumption, kWh 6,563 5,362 3,838 2,195 2,429
Life expectancy (years) 13 20 20 10 20
Approximate cost of unit and a a
$1,265 $1,470-2,500 $3,200 $1,500 $3,200
installation
Approximate simple payback
b 10 7-19 16 3 9.5
period
Approximate US units sold,
650 330 7 15 7
2009 (000s)
a) Based on price premium on standard model and expected saving in consumption.
b) This is an average figure; costs vary widely since installations are often custom.

Table 5 – Summary of typical domestic and commercial water heating demands [1]
Maximum flow rate 24hr net demand Typical residential
Size Typical commercial
required, T=45ºC L/min (kWh/day) demand
XXS 2 2.1 Sink, no dishwashing Office toilets
XS 4 2.1 Average sink Office kitchen
Large sink/small
X 5 2.1
shower
Professional practice, shop, bar, small
M 6 5.85 Average shower restaurant
L 10 11.7 Bath
XL 10 19.1 Large bath Medium restaurant, barber shop
Simultaneous bath
XXL 16 24.5 Large restaurant, barber, collective sauna
and shower
3XL 48 46.8 Collective heating Small hotels & camping, small collective
Collective heating, Hospitals, sports facilities, prisons, car wash,
4XL 96 93.6
large military, large collective

Please send comments to Michael.Griffin@aeat.co.uk, Thomas.Ramsson@aeat.co.uk, Gena.Gibson@aeat.co.uk (Authors), and to

Giorgio.Simbolotti@enea.it and Giancarlo Tosato (gct@etsap.org), Project Coordinators