October 2010
Newsletter
HVAC October 2010 Newsletter
Management
Every business choice must be evaluated based on a cost/benefit analysis and “going green” is no exception. In his article “Taking Green to the Bank,” Phil Baugh offer sage advice on how you should proceed. Read his article.
Marketing
In his article titled “Energy Credits Represent Increased Sales for Smart Contractors,” Adams Hudson walks you through the steps to reaping the greatest benefits from the Economic Stimulus Tax Credits. Read his article.
Training
When properly presented, eLearning can make a huge difference in your bottom line. In her article, CallSource VP of Interactive Learning, Ann Kwinn, will show you how to budget for your employee’s success in 2011. Read her article.
Industry News
White House Goes Green
U.S. Energy Secretary, Steven Chu, and Council of Environmental Quality, Chair, Nancy Sutley, have announced plans to install solar panels and a solar hot water heater on the roof of the White House Residence. These two solar installations will be part of a Department of Energy (DOE) demonstration project showing that American solar technologies are available, reliable, and ready for installation in homes throughout the country. “This project reflects President Obama’s strong commitment to U.S. leadership in solar energy and the jobs it will create here at home,” said Secretary Chu. “President Obama has said the Federal Government has to lead by example in creating opportunity and jobs in clean energy,” added Nancy Sutley. “By installing solar panels on arguably the most famous house in the country, his residence, the President is underscoring that commitment to lead and the promise and importance of renewable energy in the U.S.”
The PV system will convert sunlight directly to electricity. The solar hot water heater will have a solar collector facing the sun that will heat water for use in the White House Residence. The DOE will now begin a competitive procurement process to select the company responsible for the installations. By installing solar panels on their homes, consumers are able to effectively lock-in the price of electricity they will pay in the years ahead, acting as an insulator against future rises in electricity prices since the systems installed in homes today are expected to last approximately thirty years. Financial incentives are also available to offset the initial costs of installing solar energy systems, including a 30 percent Federal Tax Credit and additional state, local, and utility incentive programs to encourage the deployment of renewable energy. The deployment of solar energy and other renewable energy sources will help expand U.S. clean energy manufacturing and create new jobs for American workers. Source: GovMonitor
Wireless Technology Uses HVAC Ducts
A new study by a team including a professor from North Carolina State University has found a way to implement wireless monitoring technology – with uses ranging from climate control to health and safety applications – by tapping into a building's heating, ventilating and air conditioning (HVAC) ducts. The finding could lead to significant time and cost savings for builders and building managers, since the systems can be put into place without the expense and effort of running wires throughout the buildings. At issue are radio-frequency identification (RFID) tags, which can be equipped with sensors that allow them to transmit information – such as temperature – back to a reader. RFID systems use centralized readers to collect data from relatively small, lightweight tags equipped with radio antennas.
The technology may also have significant applications for health and safety monitoring. "This would work with anything you can create an electronic sensor for," says Dr. Dan Stancil, co-author of the study paper and professor and head of NC State's Department of Electrical and Computer Engineering. The new research opens the door to RFID tag smoke detectors, carbon-monoxide monitors, or sensors that can detect chemical, biological or radiological agents. "Because you can tap into existing infrastructure, I think this technology is immediately economically viable," Stancil says. The researchers performed their experiments in ductwork that was 30 meters long and found that the RFID tags functioned well at that distance. Source: Science Daily
Tax Credits Set to Expire Soon
The 25C tax credits have been a popular sales tool in the HVAC industry since they were enacted in their current form by the American Recovery and Reinvestment Act (ARRA) of 2009. Under the ARRA revisions to the tax code, homeowners who purchase high-efficiency HVAC systems are eligible for a $1,500 tax credit. However, these residential tax credits are set to expire on December 31st. According to a variety of sources, the 25C credits have had a significant impact on the industry, and have particularly aided sales of high-end, high-efficiency equipment. “Not only has it helped us close deals with people that otherwise would’ve been on the fence, but it has also helped us upgrade people to higher purchases resulting in bigger tickets,” said contractor, Luke Weiden.
Considering these positive reports on the sales of high-efficiency equipment, some in the industry are apprehensive about what will happen when the tax credits expire at the end of the year. Weiden said, “It is hard to say the potential impact this will have on our business, but it will make us have to work harder to make sales that traditionally would have been slam dunks over the past two years.” However, if Congress does not pass an extension of the 25C tax credits, many in the industry still see signs of hope ahead, especially in the trend toward high-efficiency equipment. Others noted that industry incentive programs sponsored by utility companies, manufacturers, and state and local governments should help to offset the expiration of 25C. Additionally, trends toward energy conservation, green initiatives, and environmental awareness are also cited as hopeful signs for the HVAC industry. Source: The News
ACCA and RESNET Sign Energy Performance Agreement
The Air Conditioning Contractors of America (ACCA) and the Residential Energy Service Network (RESNET) have signed a memorandum of understanding (MOU) to work together in promoting home energy performance in the United States. “We believe this partnership with RESNET will help position HVAC contractors for changing standards and pending legislation that may require residential energy audits,” said ACCA President and Chief Executive Officer, Paul T. Stalknecht. RESNET Executive Director, Steve Baden, added, “It is exciting to develop new partnerships with contractors to help improve efficiency performance in the homes market. With the current uncertainties in Washington, it is timely to develop new private-sector alliances.” Some components of the MOU include: Supporting the U.S. Environmental Protection Agency (EPA) in its implementation of the Energy Star Qualified New Homes Program and linking HVAC contractors and energy raters to undertake comprehensive home retrofits. Source ACCA.org
Green Trend Takes Wing in Asia Pacific Region
The green trend is taking wing in the Asia Pacific, with various governments implementing national or regional initiatives and programs to encourage energy conservation activities. A new report provides an overview of green technologies specific to the Asia Pacific region and also gives an outlook of the future of the market. Recently, various governments in the region have mandated utilities to modernize their grids with smart grid technology. The report, “Asia Pacific Smart Grid Market,” finds that the utilities, spurred-on by government funding and the cost-saving benefits of the technology, have started moving toward smart grids.
Companies in the HVAC, BAS, and lighting systems segments are adopting innovative technologies. For example, the HVAC segment has been using advanced technology that allow air conditioners to intelligently lower power levels once the ideal ambient temperature is reached, which, in turn, lowers users electricity bills. In the BAS sector, building owners and facility managers are provided with a Web-based BAS that unifies diverse equipment systems and control devices into a single, easy-to-navigate Website. An innovation in the lighting sector, energy management systems installed in lighting fixtures has a detector that measures the amount of natural light from any nearby windows or natural light source to control the dimness of the lighting equipment. Source: Smart Product Ecosystem Connections

