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2009 Tankless Report
Drawing off the success of last month’s boiler report, Phc News offers its Tankless Report in a similar format. The report lends itself to an easy-to-read format, perfect for the busy contractor.
Phc News spoke to the major players in the tankless industry and received their perspective on what is new and topical, the economy and contractor misconceptions regarding tankless. From sizing to scaling to venting, some of the biggest contractor concerns were answered.
Also, with most tankless products, a Federal Tax Credit will be issued to consumer installing such units — with some installations garnering usgbc leed points.
“Space heating and domestic water heating are the largest portions of all energy bills, and therefore energy usage. WaiWela products, for example, when installed and maintained properly, may reduce carbon emissions and energy usage,” said Neil Greenzweig, ceo, WaiWela brand.
Vendors appear in no particular order.
Navien America, Inc.
1371 Santa Fe Drive
Tustin, CA 92780
(800) 519-8794
Brief history: In 2006, Navien America, Inc. was established to open new markets in the United States and Canada for their Seoul, Korea parent company KyungDong Navien Co., Ltd. (KD Navien). Since 1978, KD Navien has been a global leader producing the most technologically advanced products to more than 30 countries worldwide. Navien America, Inc. provides a variety of hvac products and services to North America.
What’s new: Navien America, Inc. has recently expanded their North America offices, warehouse, training and tech center to a newly renovated 28,000-square-foot facility, located in Tustin. Besides providing the industry’s only 98% efficient condensing gas tankless water heater, Navien America will be expanding its product offering later this year with the first dual purpose boiler. Navien’s new condensing dual purpose boiler will be another industry first. The new NCN-30; NCN-35; NCN-40 & NCN-50 models will provide ultra-high efficient condensing dual heating for domestic hot water supply, as well as space and radiant floor heating.
Tax relief: Thirty percent of cost, up to $1,500. All of Navien America’s 98% efficient gas tankless water heater models meet and exceed all criteria for Energy Star requirements of gas tankless water heaters.
Contractor misconception regarding tankless: Tankless water heaters provide instant hot water. Dispelling the myth: Navien America, Inc. produces the only tankless water heaters available with a built-in circulator pump for instant hot water delivery and a built-in buffer tank to eliminate “cold water sandwiching.”
The skinny: Navien America’s 98% efficient condensing gas tankless water heaters are known in the industry as being the easiest tankless water heater to retrofit from a tank to tankless. Navien’s tankless water heaters can be installed using inexpensive Schedule 40 pvc venting, with vertical or horizontal runs up to 100 feet. Navien America’s 98% efficient condensing gas tankless water heaters will save more money and use less energy than any other tankless water heater available on the market.
Other unique features of Navien America’s 98% efficient gas tankless water heaters include the ability to cascade up to 98 water heaters together with a simple communication quick-link cable. This system will allow for sequencing, full modulation and redundancy. Navien America is the only gas tankless water heater available that provides built-in leak detection as a standard and an optional built-in circulator pump with a buffer storage tank.
Quotables: “Contractors and wholesalers must try and maintain their margins in order to survive during these tough economic times. Navien has established its business model for this purpose. In order to try and help our contractors and wholesalers maintain margins, Navien America will only sell to contractors through the traditional plumbing and hvac wholesale channel,” said Richard Ponce, owner of GPW Sales, Southern California and southern Nevada manufacturer’s sales rep agency for Navien America, Inc.
Takagi Industrial Co. USA, Inc.
5 Whatney, Irvine, CA 92618
(949) 770-7171
Brief history: Having made tankless water heaters for more than half a century in Japan, and more than a decade in the United States, Takagi has built a legacy of innovation and dependability with its tankless water heating technology. Takagi provides the U.S. water heating industry with highly energy efficient tankless water heaters that exceed anything else on the market today. Takagi carries a complete residential and commercial line, which consists of five residential models and three commercial units, six of which are Energy Star rated. Takagi’s units are also the only ones of its kind to receive the Southern Coast Air Quality management District (scaqmd) approval for their low emissions of CO2 and NOx. Takagi is dedicated to creating valuable products that will keep up with the market’s constantly changing demands and continuously bring comfort to people’s homes.
What’s new: Takagi has had quite a few exciting things happening:
Tax relief: With the new Energy Bill, homeowners will be able to receive 30% of the full purchase and installation price, or up to $1,500 total Federal Tax credit, if they purchase and install highly efficient appliances like a whole-home tankless water heater in 2009 and 2010. Takagi has seven models that qualify for this credit: the TH1, TK3Pro, TK3, TK3SP, TK3OS, TK Jr. (LP Only), and TM199.
Contractor misconception regarding tankless: Tankless is no different from tank type water heaters. Some contractors do not pay close attention to how tankless products are built and how they work. Many of them still think it’s the same and that a simple swap out is all that is needed. Dispelling the myth: Proper installation and sizing are two of the most crucial aspects for any tankless installation. When tankless is installed ‘correctly’ they do work beautifully and it should last a long time. Therefore, training and educating plumbers and contractors is vital to our industry. Takagi provides high level training at no cost to the installers.
The skinny: Takagi produces a complete line of commercial tankless water heaters for applications ranging from light commercial to heavy duty. The line consists of our new T-K3-Pro, T-M32, and T-M50. They feature thermal efficiencies ranging from 82% to 84%. The heat exchangers are made with HRS35 copper alloy, which is the most advanced copper alloy on the market. This heat-resistant copper alloy is eight times stronger and harder than the standard copper used in most tankless units, so it makes the unit much more resilient against erosions and leaks. This heavy duty copper is now a signature trademark for all of Takagi’s commercial products. Our commercial units can also be linked to multiple units for even larger commercial applications. .Nsf is available on all commercial products and asme models are available on the T-M50 and T-M32.
Quotables: “During hard economic times, it’s important that Takagi’s customers know they are there for them, and they care about their business. Takagi provides its contractors and wholesalers with the support and tools they need to be successful, to increase their sales and to better service their customers. Consumers are getting smarter about their purchasing decisions so its important that contractors and wholesalers working with them are well equipped to answer any questions,” said Koji Matsumura, general manager, Takagi.
Quietside
8750 Pioneer Blvd
Santa Fe Springs CA 90670
(562) 699-6066
Brief history: Founded in 1998, with headquarters in California, Quietside is the master distributor of Samsung Mini Splits, Samsung DVM system, Quietside Mini Splits and Quietside water heaters to hvacr wholesale distributors throughout North America. Quietside focuses on energy efficient products that are accepted worldwide, yet are niche markets in North America. Currently, Quietside operates from three locations in the U.S.: Santa Fe Springs Calif.; Carlisle Pa.; and a new facility in Fort Worth, Texas.
What’s new: Quietside recently launched the odw tankless water heaters and the DPW dual purpose water heaters; later this year will see increased capacity dpw units being released. Quietside also is opening a new facility in Fort Worth, Texas, which also will include a classroom and local tech support capability.
Tax relief: Quietside odw and dpw units recently were included in the new Energy Star program, and with our Energy Factors on the odw being >0.9, units easily qualify for many local rebates in addition to the Federal Government Tax credit program.
Contractor misconception regarding tankless: Bigger is better. Dispelling the myth: A correctly-sized unit will offer better performance and efficiency than a unit that is oversized.
The skinny: The Quietside odw is able to vent in Schedule 40 pvc due to its exclusive use of the S Line heat exchangers. A condensing heat exchanger is mounted above the standard heat exchanger and further extracts heat from the flue gas of the unit, increasing its efficiency levels and reducing the flue gas temperature below 130F, allowing the use of the Schedule pvc vent pipe.
Quotables: “Quietside staff and our independent sales reps work hard to ensure the wholesaler/contractor have all the tools necessary to both sell and support the products we carry. Our training program has been increased this year to provide additional opportunities. We also have increased the value provided with our unit by including a set of isolation valves free of charge with every odw and dpw purchased,” said John Miles, vice president of sales and engineering, Quietside.
Stiebel Eltron, Inc.
17 West St.
West Hatfield, MA 01088
(413) 247-3380
(800) 582-8423
Brief history: Stiebel Eltron was founded in 1924 by Dr. Theodore Stiebel in Berlin. Initially, the company concentrated on the manufacture of electric water heaters for the German market. In the decades that followed, Stiebel Eltron branched out into additional products and pioneered the development of tankless electric water heaters starting in the 1950s. Today, Stiebel Eltron is the largest manufacturer of tankless electric water heaters in the world. The sales and service operation for the North American market is located in West Hatfield, Mass. There, Stiebel Eltron maintains a sales, service, distribution and spare parts facility. It has been located in North America since 1980.
What’s new: The next generation Tempra® and new Tempra® Plus tankless electric water heaters include: water output temp to 140°, upgraded heavy-duty electronics, single flow sensor, easy access hinged cover, larger inlet filter screen. Tempra® Plus models have a digital display for °F or °C readout and Advanced Flow Control™ to automatically adjust the flow rate in order to maintain set-point temperature. Tempra® series is an ideal backup for solar thermal systems.
Contractor misconception regarding tankless: Tankless water heaters cannot provide enough hot water. Dispelling the myth: Correct sizing of the tankless heater is key. Use the TEMPRA sizing chart that is on our website and in the TEMPRA literature. Once you know which model you need, check with your electrician to make sure the size of the electric service is sufficient. In some cases, the size of the electrical service has to be increased to accommodate the additional load that is created by the electric tankless unit.
Quotables: “If contractors research the proper sizing for the application at hand, they should be perfectly content with a tankless water heater. As tankless water heaters are heating cold water as it passes through the unit from a city or well source, there is logically a finite gpm flow rate in order to heat the water to your target temperature — usually 110F. Tankless units are dependent on the amount of water flow (gpm), and the amount of temperature rise required (difference between incoming water temp and outgoing temp from unit). The larger the temperature rise required, the fewer number of gpms can be heated to the set-point temperature,” said Bill Riley, sales and marketing specialist, Stiebel Eltron.
Bosch Thermotechnology Corp.
50 Wentworth Ave.
Londonderry, NH 03053
(800) 354-4838
Brief history: Bosch has been selling and manufacturing tankless water heaters for over 75 years and has 30 years experience in the U.S. Bosch is a leader in manufacturing of heat exchangers and is driving the innovation and efficiency in condensing technology for tankless water heaters.
What’s new: The new Bosch gwh 920ES series is a 225,000 Btu condensing tankless water heater with high output capabilities (9.2gpm). The new 920 offers high efficiency (94% Thermal Efficiency) and is fully certified by asme. Bosch’s condensing technology has allowed Bosch to be the only manufacturer to satisfy the 2012 scaqmd Emissions (California’s South Coast Air Quality Management District) for NOx levels below 20ppm, which is the benchmark in efficiency for the U.S. Because of the unique up-fire negative pressure combustion system and superior heat exchanger design, Bosch’s condensing technology is able to capture 10% more latent heat in the exhaust. The secondary heat exchanger is constructed of aluminum and copper which is completely unique to Bosch and represents the forefront of integrating heat transfer and durability.
Also, new for the 2009 is the Energy Star program for tankless water heaters. Bosch has a total of six units that are Energy Star qualified. The importance of the Energy Star program for the entire tankless market is that it legitimizes the technology as being an established and highly efficient option for water heating. Many Bosch tankless models are designed to work in conjunction with solar or geothermal systems as a back up solution that would also provide energy efficient hot water when the main system is not capable of meeting demand.
Noritz America Corp.
11160 Grace Ave.
Fountain Valley, CA 92708
(866) 766-7489
Brief history: Noritz started in 1951 in Kobe, Japan and since then continue to design and manufacture high quality tankless water heaters, and other gas appliances. Noritz America established its first U.S. office in 2002 at Lake Forest, Calif., and has expanded to five showroom locations across the U.S. — Southern California, Chicago, Atlanta, Dallas, New York. Each location features a state-of-the-art facility, plumber training centers, showroom area showcasing possible installation locations and working units. Southern California headquarters location has a R&D facility where new products are designed and tested. Noritz has only been in the United States for a short period of time and it already has gained a significant market share in the tankless water heater segment.
What’s new: Noritz America is innovating and constantly offering new and improved tankless technology to the home owners. Currently, Noritz has the largest tankless lineup in the industry and offers the most selection of tankless with Energy Star certification. Noritz recently introduced a more affordable version of the popular 94% condensing tankless, which can be vented with schedule 40 pvc. Noritz continues to offer training classes to local contractors, installers and plumbers in all five showroom locations. There are different levels of training class, from basic installation to troubleshooting. Recently, a new Hands-On Workshop has been created to further educate installers who already completed level 1 training; however, all installers are welcome to join to learn more about Noritz products. The Hands-On work shop covers various spectrum, from marketing 101 to venting options to component breakdowns and proper heater installation. At this type of training, installers are able to see more, in detail, and actually install a heater. Noritz also is involved in charitable contributions helping people in need — Extreme Make Over 2008 - 2009 season, Brad Pitt’s Make It Right Foundation in Louisiana and Leonardo DiCaprio’s Greenburg in Kansas.
Tax relief: Currently, there is a great Federal Tax Credit for anyone installing tankless water heaters. It is part of President Obama’s restructuring plan by offering tax credit to energy efficient products. Any Noritz’s tankless that is under the 200,000 Btu range qualify for this program. The tax credit is 30% of the total invoice cost (unit(s) + installation) from the installer up to $1,500. It is a dramatic increase from the previous $300 tax credit in 2007.
Contractor misconception regarding tankless: All tankless manufacturers are the same. Contractors assume all technology and functionality are exactly the same, therefore having the same performance. Dispelling the myth: Noritz America dispels the difference by establishing the five state-of-the-art showrooms and training facilities to educate contractors, plumbers, and homeowners — the difference between Noritz and the rest. Secondly, Noritz continues to develop better quality parts, such as using K-copper heat exchangers in residential models, re-designed dual flame burner for better thermal efficiency to eliminate cold water sandwich and provide a stable and comfortable temperature. All gas powered tankless has similar technology; however, it is the quality of parts and craftsmanship that sets Noritz apart from the rest. Noritz America is here to be the dominant player and leader in the tankless market.
The skinny: Noritz has a full line of commercial tankless that are asme rated. Noritz is the first tankless manufacturer that offers a true tankless line-up with the largest unit in the industry at 13.2 gpm. Besides the asme certification required to be a true commercial rating, all Noritz commercial units are in stainless steel casing to differentiate the look and quality of Noritz commercial tankless.
Quotables: “Noritz has always valued the importance of installers; that has been the motto since the founding fathers of Noritz, and it has carried over to the States, selling only through professional distributions — not through the retail channels or Internet. Because of the relationship between Noritz and installers, Noritz has created the ProCard program. The program is design to track installations, and, at the same time, offer rebate checks to installers based on a points system. For every heater installed — depending on the model — points will accumulate, and a rebate check will be mailed back to the installer.
“By offering specialty training and a rebate program, as well as referrals from visitors to the five showrooms, Noritz generates loyalty among its customers,” said Jerry Pan, marketing coordinator, Noritz.
Efficient Technology Sales, LLC
5350 Joliet Street #2
Denver, CO 80239
(303) 339-4900
(800) 605-6542
Brief history: ETS began selling tankless water heaters in 1977 in Camden, Maine, at the time of the oil embargo. ETS pioneered the use and development of tankless water heaters in the United States. Currently, ETS is involved with WaiWela gas tankless and its integration with solar thermal.
What’s new: ETS will begin construction of a mezzanine within its current 25,000-sq.-ft. warehouse this month to provide classrooms and a training facility for solar installers and technicians. This addition will feature roof access where it will install solar thermal equipment for evaluation and to monitor the performance of solar equipment in the Mile High City.
ETS recently established a relationship with SunEarth, Inc. of Fontana, Calif. to provide solar thermal panels throughout the state of Colorado.
Tankless supplier is Paloma Industries of Nagoya, Japan. Paloma will introduce a high efficiency condensing tankless gas water heater by year end. It will carry the WaiWela brand name. New to the WaiWela family of products is the 6.6 Series gas tankless water heaters.
Tax relief: All of the 5.3 Series, 6.6 Series and 7.4 Series tankless water heaters are Energy Star rated and qualify for a federal tax credit of up to $1,500.
Contractor misconception regarding tankless: Contractors believe tankless water heaters do not — or cannot — provide enough hot water for large projects. Dispelling the myth: ETS works with contractors to design hot water systems that are capable of producing endless hot water for almost any application. WaiWela tankless water heaters are unique in that they can combine up to 20 units with one controller to do most residential and commercial apps. Units are serviceable, so in the event one unit needs service, the other units in the systems are still operational, producing enough hot water.
The skinny: All market participants offer competitive pricing so it is important to distinguish ourselves through the exceptional services we provide. The relationship ETS creates with our customers is one of exceptional, individualized service. ETS understands that “time is money” to the contractor/wholesaler so we offer personalized engineering and technical support before and after a sale, in addition to free lifetime technical support.
Quotables: “Recognizing the need to actively reduce carbon emissions, ETS is stepping forward as a leader in green building products. Specifically, the WaiWela Mini Tanks to conserve water by reducing the wasteful run while waiting for hot water at a sink. Space heating and domestic water heating are the largest portions of all energy bills, and therefore energy usage. WaiWela products, when installed and maintained properly, may reduce carbon emissions and energy usage,” said Neil Greenzweig, ceo WaiWela brand.
Rheem Water Heating
101 Bell Road
Montgomery, AL 36117-4305
(866) 720-2076
Brief history: Rheem is a privately held manufacturing company that began operation in 1927 as a supplier of packaging to the petroleum industry. In the 1930s, Rheem began manufacturing water heaters, and in 1947 began manufacturing warm air furnaces. In 1959, the company acquired Ruud Manufacturing Company, a pioneer in the industry with a well-regarded product line and a distribution network throughout North America. In subsequent years, Rheem entered the heating and air conditioning market and expanded in the late 1960s and 1970s with the rapid growth of the central air conditioning industry. In 1985, the company acquired Raypak, a leading producer of copper tube boilers used for swimming pool heating and commercial hot water supply and hydronic heating.
Today, Rheem is a leading North American producer of (tankless) water heaters, central warm air furnaces and air conditioners, and swimming pool heaters and commercial boilers.
What’s new: Rheem currently offers 30 natural gas atmospheric products that meet the Phase I EnergyStar criteria for tank water heaters providing the plumbing industry an economical green replacement product for their customers, including our new 40-gallon short high EF (.62) atmospheric tank water heater. Rheem also introduced a new solar water heating product line that includes both active and passive systems. Rheem continues to offer some of the best training and support in the industry: local field training, new solar training program, or Commercial Institute and Tankless Business College.
Tax relief: There are two Federal Tax Credits.
Contractor misconception regarding tankless: Untrained in tankless technology, contractors often try to size the system based on the Btu input of the system they are replacing or gph recovery, and neither of these play a part in the sizing or applications of tankless water heating. In addition, not understanding how tankless systems are promoted between manufacturers’ can often lead to undersized systems. Many contractors also try to install it like a tank, and therefore they and their customers miss the many advantages tankless technology can offer them. Probably the biggest misconception is simply that it is not a tank and it cannot be installed like a tank. Dispelling the myth: Tankless require different venting, and, more than likely, they will require a higher peak fuel demand. Also, don’t wait until you get a call for a failed tank. Be proactive and get into the consumers’ home or business before a tank fails.
Quotables: “As an industry, we are changing; and as an industry we must recognize these changes and we must embrace them to ensure the success of our individual companies. Tankless water heaters are an excellent example.
“We must always remember that even in a down market, 70-75% of all water heaters sold are in the replacement market, and that is a great opportunity for tankless water heaters and the contractors who pursue it,” said Walter B. “Butch” Aikens, tankless resource manager, Rheem.
Eemax Tankless Water Heaters
353 Christian Street
Oxford, CT 06478
(800) 543-6163
Brief history: Eemax is a U.S. manufacturer of the most comprehensive line of “green friendly” electric tankless and mini-tank water heaters available; designed for industrial, commercial and residential applications. Eemax was founded in 1987, and for the past 20 years has achieved industry leadership by providing the broadest line of reliable and well-engineered tankless water heaters. Eemax pioneering sophisticated thermostatic controls, easy installation, advanced safety features and large capacities. Eemax water heaters range form .5 gpm for code compliant hand washing, to the super powerful 25 gpm commercial units.
What’s new: In September 2008, Eemax Inc. announced that the Riverside Company has become a new equity partner. Riverside is a private equity firm investing in premier companies, focusing on high growth, industry-leading manufacturers. Riverside currently has over two billion dollars in capital under management. Riverside’s resources will enable Eemax to further build its dominance in the electric tankless market, focusing on product innovation, customer support and business expansion.
For summer 2009, Eemax will launch a new full line of premium residential electric tankless water heaters. Features include: stainless steel cover; adjustable temperature control with temperature display; and diagnostic interface. Models will range from 1.5 gpm to 6 gpm for apartments, condos, pool houses, cabins, vacation homes and whole house heaters with up to three-shower capacity.
Tax relief: Electric tankless water heaters do count toward additional leed points that can be added to qualify for tax incentives for efficient building design.
Contractor misconception regarding tankless: Electric tankess water heaters are for low volume point-of-use hand washing only. Dispelling the myth: If sized correctly, electric tankless water heaters can provide a variety of high-flow applications, including whole-house and commercial up to 25 gpm. Make sure you get the right heater for the application. Tankless water heaters create hot water rather than storing hot water as storage tanks do. This is an advantage for tankless because they only use power when hot water is needed, and there is no storage to run out. Make sure that you take incoming water temperature into account, as well as the flow rate (how many fixtures, kitchen faucet, lavatory, washers and shower). Once you determine the capacity, you will need to select the correct kW or powered heater you need to meet the demand.
The skinny: The Eemax distribution channel is strictly through the plumbing wholesaler, and Eemax builds on the wholesaler relationship by supporting wholesale “buying groups” and participation in corporate vendor programs. Eemax also supports the asa and regularly appears in industry shows. Eemax also supports the phcc for contractors and has initiated a “Certified Eemax Contractor” program providing training and support.
Quotables: “Eemax builds the most comprehensive line of commercial electric tankless water heaters available with flow rates up to 25 gpm. Tankless eliminates the need to reticulate water from a centralized hot water source and provides hot water solutions for all building types,” said Aaron Siegel, vice president sales and marketing, Eemax.
Grand Hall USA, Inc.
3838 W. Miller Rd.
Garland, TX 75041
(866) 946-1096
Brief history: Headquartered in Taipei, Taiwan since 1976, and with the U.S. office operating out of Dallas since 1985, Grand Hall serves as the leading manufacturer of innovative gas appliances and components for more than 30 years. Grand Hall’s top award-winning product — the Eternal Hybrid Water Heater — introduced in 2006, has received industry accolades.
What’s new: Eternal is experiencing rapid growth, even in a down economy, and has planned to expand its staff accordingly. In addition to growth, Eternal has a contractor rebate program in place, service contractor program established, and lastly, it has built a new contractor website.
Tax relief: Select Eternal models qualify for up to $1,500 or 30% of total installed cost Federal Tax Credit.
Contractor misconception regarding tankless: In Eternal Hybrid’s case, the biggest misconception is cost. Dispelling the myth: When you consider the high flow capacity, pvc venting for easy installation, and one of the industry’s strongest warranty, Eternal is no more expensive than having the use multiple water heaters together to achieve the same result as just one Eternal.
Quotables: “We back the units with a 20-year, no-leak warranty on residential jobs and 10-year, no-leak warranty on commercial jobs. The heat exchanger is made of stainless steel with patented self-cleaning to ensure long lasting, efficient service,” said Paul Home, director of product and marketing, Grand Hall USA, Inc.