Technology Tuesdays: Don’t Be Scared, They’re Just Heat Pumps
Over the past year, PG&E’s GK-12 program, which is implemented by Willdan, has launched a campaign for heat pump water heaters. Since this program operates in our service territory, naturally, this means that we too have launched a campaign for heat pump water heaters.
We have had so much success; we have joked that we may change our unofficial nickname from the Steam Trap Queens to the Heat Pump Queens! Hilariously, there have also been some attempts at creating heat pump water heater costumes. Further, there has been a resurgence of a GIF of Marge Simpson circulating in which Marge is stacking old water heaters in her attic saying, “Five more water heaters and we get a free water heater!” You can find that GIF here. That’s the fun stuff!
What I am finding in conversations with partners is that there are parts of the program that folks are still uncomfortable with which is causing them to delay and sometimes even opt out of participating in the program altogether. This is unfortunate because this, like nearly all other utility programs, is specifically designed to shift the market to a new normal and away from old standards. In this case, we are shifting people away from natural gas water heating to electric water heating and in order to do that, the utilities invest a considerable amount of money to drive the cost down. This investment gets passed along to the customer in the form of rebates and incentives.
Anytime we are talking about inserting new technology into the market in an effort to make it the new normal, the folks that adopt the new technology first, most often get the most financial incentive. Speaking plainly, they get it at its cheapest. These folks are called “early adopters”. Many years later when the market shift is complete, prices will have fallen as a natural occurrence of supply and demand. At this point, it is too late to adopt this “new” technology because the market is already making way for what’s coming next. The cycle continues.
Our goal is to ensure as many of our partners, particularly those in under-resourced communities, become early adopters as often as possible. In order to do that, we have to make sure we are hearing and addressing their concerns. So, what are some of the concerns partners are having about heat pumps? Let’s talk about them!
In the simplest of terms, the program addresses 3 primary pillars: energy efficiency, electrification, and demand response.
The energy efficiency piece is a natural part of any new technology, in general. With each new iteration, we get a little bit more efficient because technology is constantly being improved upon.
The electrification piece is, in large part, an extension of energy efficiency. The more we are able to shift our energy use to renewable sources, the more benefit we will see.
The final pillar, in my experience, gives partners the most pause. Which is understandable because it is a new concept for most partners. Demand response is the utilities’ strategy for smoothing out the duck curve. For those that are unfamiliar with the duck curve, you can learn more about it here.
For the heat pump water heaters, the efficiency and grid benefit are maximized when the user enrolls in the demand response program. This allows the utility to remotely control the devise in an effort to shift usage away from peak hours which, in California, is between 4 PM and 9 PM. This is the time when energy is the most expensive and when the most unsustainable types of energy are being incorporated into the mix in an effort to increase the utilities’ capacity to meet that demand.
So, if we are load shifting, who actually benefits? Well, the short answer is, everyone but let’s unpack that a bit.
Utilities benefit because our behavioral patterns (i.e. demand response) better allows them to manage a stable grid and to utilize as much renewable and clean energy as possible to meet everyone’s needs. Energy users benefit because they are lessening the amount of energy they are using during the most expensive peak times.
Let’s walk through an example: A hypothetical partner gets a heat pump water heater then enrolls in the demand response program. The program does not require any additional work on the part of the partner, only a signature on a form. Their new heat pump water heater has online capabilities and can be controlled remotely. There are designated days throughout the year when the utility will call for a special event day. This means that they need our assistance to shift peak time load.
Let’s say that the heat pump water heater is set to maintain a temperature of 120°F. On an event day, it will be programmed to run a little higher earlier in the day when energy prices are lower. Let’s say it is set to 125°F in the hours leading up to the event then it is turned off. The heat pump water heater will cool roughly 1°F each hour when turned off. The event lasts 4-5 hours. Therefore, provided you do not use significantly more water than usual, you will have access to plenty of heated water at the desired temperature without using energy during the peak event.
Energy efficiency, electrification, and demand response all go hand in hand. Users will only realize the complete benefit when approaching them as a package deal and with equal importance. With this frame of mind, we will continue to press forward to help our partners understand the ins and outs of how this all works so they can be early adopters and realize the greatest benefit. Don’t hesitate to contact us if you have any questions about demand response or heat pumps!
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