One House Builder Grows the Whole Warmth Pump Water Heater Market by 30%

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Clayton, a number one single-family residence builder, lately made large environmental information by deciding to transform practically the entire 42,000 fashionable manufactured houses it builds yearly to be licensed ENERGY STAR and Zero Power Prepared Properties (ZEHR). These certifications imply that its manufactured houses will probably be way more environment friendly, save householders cash on their utility payments (as much as 50%) and supply premium energy-efficient home equipment which can be typically thought of unaffordable to the typical household.

Clayton’s change to ZERH additionally means practically all of its houses now include a warmth pump water heater (HPWH), which possible represents the one largest procurement of HPWHs within the historical past of the expertise. To place it in context, your complete HPWH market in 2022 shipped 141,000 items, and Clayton alone will enhance this complete by 30%!

The Causes Clayton Made This Transfer

Clayton’s resolution to change to warmth pump water heaters is successful story for the Inflation Discount Act (IRA). The IRA elevated the tax credit score residence builders obtain for each ENERGY STAR-rated houses (from $1,000 to $2,500) and Zero Power Prepared Properties (from $2,000 to $5,000). Warmth pump water heaters proved to be one of many key applied sciences that helped Clayton qualify for the total ZEHR tax credit score. Ron Powell, president of producing for Clayton House Constructing Group, mentioned, “Primarily based on how we constructed ENERGY STAR 2.0 houses, one of many best methods to satisfy 3.0 requirements was to swap the standard twin component water heater for a warmth pump water heater and add a warmth pump for electrical houses. However as soon as we dedicated to the warmth pumps, the dialog then turned to, ‘Why don’t we go all the best way by constructing DOE Zero Power Prepared Properties?’”

Clayton is looking its new Zero Power Prepared residence eBuilt®. The corporate had 39 of its 40 residence constructing amenities licensed to supply to this commonplace by Could 2023, and as we speak 96% of all new Clayton residence orders are eBuilt®. The houses function LED lighting, good thermostats, low-e home windows with argon gasoline, insulated doorways and thermal envelope, extra insulation, a warmth pump water heater, and most of the houses have a warmth pump for house conditioning as nicely. Because of the IRA tax credit, Clayton was capable of supply a complete of 25 effectivity options with out elevating its costs to the top shopper.

36,000 eBuilt houses have already been manufactured, and within the first 6 months of manufacturing, Clayton constructed extra ZEHR licensed houses than all the opposite ZEHR licensed houses constructed by different residence builders since 2013.

A Warmth Pump Water Heater Success Story

Clayton made a pair modifications when including HPWHs to all their houses. First, they redesigned their residence flooring plans for the warmth pump water heater, making a utility closet that accommodates the warmth pump air handler. This helps hold the noise produced by the water heater followers (normally round 45 dB like a quiet dishwasher) from bothering anybody. Clayton additionally ships the water heater with nylon straps as an alternative of steel, which reduces vibration if the straps aren’t eliminated as soon as the water heater is put in.

The change to HPWHs hasn’t been completely with out challenges. Clayton has gone to vital lengths to guard the HPWH whereas the house is being constructed (see photos under), however some installers I’ve talked to are discovering issues with the HPWH ducting after the house has been commissioned and are having to supply repairs. Different trade insiders are questioning Clayton’s resolution to duct simply the HPWH exhaust, as it might create unfavourable stress throughout the residence. Clayton studies that it has since modified the best way warmth pump water heaters are vented to remove the unfavourable stress danger.

However general, Clayton is receiving very optimistic suggestions from the tens of 1000’s of recent eBuilt householders. They heard from one longtime Clayton home-owner who switched to a brand new eBuilt residence and mentioned that their power invoice had gone from $250 a month within the winter to $75. The decrease power  payments that include these Zero Power Prepared licensed houses sort out the problem of the “hidden mortgage,” the place month-to-month possession prices, like power payments, may be nearly as a lot because the mortgage itself. “Power prices rose 14% in 2022 – double the price of inflation – and 20 million households presently battle to pay their energy invoice,” mentioned William Jenkins, Clayton House Constructing Group’s senior director of setting and sustainability.

Clayton’s historic transfer to warmth pump water heaters and different energy-efficient options in its eBuilt house is a win-win-win. Householders profit from decrease utility payments, the setting advantages from drastically lowered emissions, and the corporate advantages from good press and good tax credit. It exhibits how even one firm can considerably speed up market transformation. Kudos to Clayton for making this large transfer in direction of an energy-efficient, low-cost future.

Watch a video of Clayton Properties presenting on its transfer to HPWHs to the Superior Water Heating Initiative right here.