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1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost-Effectiveness Draft 6th Plan Assumptions April 7, 2009

1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

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Page 1: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

1

Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost-

Effectiveness

Draft 6th Plan Assumptions

April 7, 2009

Page 2: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

2

Background

• Bonneville requested RTF Review of 6th Plan Heat Pump Deemed Savings and Cost-Effectiveness Assumptions

• Are More Upgrades Cost-Effective with Higher Avoided Costs?

• With A Revised Base Case Assumption for Conversion of Forced-Air Furnace Systems to Heat Pumps, Which Measures are Cost-Effective?

Page 3: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

3

Existing Deemed Savings for Heat Pump Upgrades & Conversions

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Heating Zone 1 Heating Zone 2 Heating Zone 3

An

nu

al H

eati

ng

Sav

ings

(k

Wh

)

UpgradesConversions

Page 4: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

4

Limitations of Current Estimates

• Based on “calibration” to billing analysis of existing homes with forced-air electric furnaces prior to conversion to heat pumps (w/o PTCS)

• All homes in sample were from Heating Zone 1• Analysis “tool” did not fully reflect impact of colder

climate zones nor the impact of alternative control strategies on heat pump performance

• TMY 2 Weather Data• Cost data from DOE Standards process, limited (i.e.,

one) contractor estimates and online prices.

Page 5: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

5

6th Plan Analysis

• 6th Plan savings estimates based on prior “calibration” for Heating Zone 1– Using current SEEM input assumptions, zonal system “base case” most

closely matched prior calibration – Heat Pump w/PTCS duct sealing & commissioning treated as single

measure– TMY 3 weather files– Kalispell as reference site for Heating Zone 3

• Savings assume home is fully weatherized (i.e., installs all cost-effective thermal shell measures)

• Heat pump & duct sealing cost updated based on Energy Trust of Oregon program data base

Page 6: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

6

Base Case Forced Air Furnace Use Assumptions – Crawlspace Homes

0

5,000

10,000

15,000

20,000

25,000

Heating Zone 1 Heating Zone 2 Heating Zone 3

Ann

ual H

eati

ng U

se (

kWh) Prior Base Case

Revised Base Case

Page 7: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

7

Base Case Forced Air Furnace Use Assumptions – Basement Homes

0

5,000

10,000

15,000

20,000

25,000

Heating Zone 1 Heating Zone 2 Heating Zone 3

Ann

ual H

eati

ng U

se (

kWh) Prior Base Case

Revised Base Case

Page 8: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

8

Heat Pump Space Heating Use - Crawlspace (w/ PTCS Duct Sealing & Commissioning)

0

2,000

4,000

6,000

8,000

10,000

12,000

Heating Zone 1 Heating Zone 2 Heating Zone 3

Ann

ual S

avin

gs (

kWh)

Current HSPF 8.5/SEER 14

Revised HSPF 8.5/SEER 14

Revised HSPF 9.0/SEER 14

Page 9: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

9

Heat Pump Space Heating Use - Basement (w/ PTCS Commissioning)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Heating Zone 1 Heating Zone 2 Heating Zone 3

Ann

ual S

avin

gs (

kWh)

Current HSPF 8.5/SEER 14

Revised HSPF 8.5/SEER 14

Revised HSPF 9.0/SEER 14

Page 10: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

10

Heat Pump Conversion Space Heating Savings - Crawlspace

(Base Case Forced Air Furnace)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Heating Zone 1 Heating Zone 2 Heating Zone 3

Ann

ual S

avin

gs (

kWh)

Current HSPF 8.5/SEER 14

Revised HSPF 8.5/SEER 14

Revised HSPF 9.0/SEER 14

Page 11: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

11

Heat Pump Conversion Space Heating Savings – Basement (Base Case Forced Air Furnace)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Heating Zone 1 Heating Zone 2 Heating Zone 3

Ann

ual S

avin

gs (

kWh)

Current HSPF 8.5/SEER 14

Revised HSPF 8.5/SEER 14

Revised HSPF 9.0/SEER 14

Page 12: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

12

Heat Pump Upgrade Savings (Base Case HSPF 7.7/SEER 13 w/o PTCS Duct Sealing & Commissioning

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Heating Zone 1 Heating Zone 2 Heating Zone 3

Ann

ual S

avin

gs (

kWh)

Current HSPF 8.5/SEER 14Revised HSPF 8.5/SEER 14Revised HSPF 9.0/SEER 14

Page 13: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

13

Revised Conversion and Upgrade Cost Estimate

• Energy Trust Data Base– 1260 Heat Pump Upgrades– 610 Heat Pump Replacements

• Regression Analysis Using Size, HSPF, SEER and “Replacement/Upgrade” as Independent Variables

Page 14: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

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Regression Results ( R2 =0.37)

Coefficients* Standard Error t Stat P-value

Intercept ($4,797) 1,223 -3.92 0

Capacity (tons) $508 74 6.87 0

HSPF $205 157 1.3 0.2

SEER $578 48 11.93 0

Upgrade ($775) 114 -6.79 0

*All coefficients significant at the 95% level, except HSFP which is significant at the 80% level.

Page 15: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

Heat Pump Cost Regression vs. Reported Cost

Actual Heat Pump Cost vs. Regression Estimated Cost

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$- $2,000 $4,000 $6,000 $8,000 $10,000

$12,000

$14,000

$16,000

$18,000

Actual Cost

Re

gre

ssio

n C

ost

Est

ima

te

Page 16: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

16

Heat Pump Conversion and Upgrade Cost

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Conversion Upgrade

CurrentProposed

Page 17: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

17

Findings – The Good News

• All Single Family and Manufactured Home Heat Pump Efficiency Upgrades to HSPF 8.5/SEER 14 and HSPF 9.0/SEER 14 with PTCS Duct Sealing and Commissioning are cost-effective in all zones.

• All Single Family and Manufactured Home Conversions to HSPF 8.5/SEER 14 and HSPF 9.0/SEER 14 with PTCS Duct Sealing and Commissioning are cost-effective in all zones for homes with exterior duct work, i.e., crawlspaces.

Page 18: 1 Proposed Changes to the RTF’s Heat Pump Deemed Savings and Cost- Effectiveness Draft 6th Plan Assumptions April 7, 2009

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Findings – The Bad News

• No Single Family Conversions to HSPF 8.5/SEER 14 or HSPF 9.0/SEER 14 are cost-effective in any zones for homes with interior duct work, i.e., basements/half basements.