2021 Boiler Market Trends and Forecast Series: Part 2
In Part 1 of our two-part Boiler Market Trends and Forecast Series, we discussed a few emerging trends shaping the future of domestic hot water boiler systems. In this article, we continue our examination of key trends to look for in 2021 as the demand for higher energy efficiency systems continues to increase.
Energy Conservation Regulations
As the energy efficiency of commercial packaged boilers continues to reach new levels, the Department of Energy (DOE) is adopting more stringent energy conservation rules for units with capacities up to 10,000 MBH. New standards that go into effect in January 2023 prescribe minimum thermal and combustion efficiencies.
For gas-fired hot water boilers, boilers with capacities ranging between 300 MBTU and 2500 MBTU will need to achieve thermal efficiencies of 84%. For boilers between 2500 MBTU and 10,000 MBTU, the minimum combustion efficiency will be set to 85%. In Part 1 of our series, we discussed the shift away from non-condensing boilers towards condensing units. As these new regulations come into play, the demand for condensing units will continue to grow and increasingly phase out non-condensing units.
Decarbonization
Beyond achieving high efficiencies, the next step in emerging boiler and domestic hot water technologies is the elimination of fossil fuels entirely. In California, proposals have been made for banning fossil fuels in all new installations by 2045. While the technology for electric boilers has not yet reached the point that its application for domestic hot water would be feasible, other technologies are being looked to for a carbon free approach.
Heat pumps are one such technology that function as an electrically operated system for hot water heating. A major point of attraction of heat pumps is that they can be a renewable technology. These systems can use ambient heat in the air, ground, or a source of water as a heat source, with more sophisticated technologies being capable of recovering exhaust air to drive the heat pump process. By using a closed loop energy transfer system, a heat pump can take the ambient heat from its heat source and exchange that heat into hot water for domestic use. Such systems have the capability of heating water up to 150ºF.
As current technologies reach greater efficiency and regulatory and market demands for carbon free renewable solutions increases, these key trends will continue to shape the outlook for commercial boiler systems and other technologies for domestic hot water applications.