ACEEE says Wood Stoves Should Have Higher Efficiency for Tax Credits;

Group finds the biggest “bang” for the tax credit “buck” includes heating appliances such as wood stoves

 





Alliance for Green Heat, 12/12/12 - Well-targeted energy efficiency tax incentives will result in significant energy savings and more energy-efficient products being released into the market faster, according to Steven Nadel, executive director of the American Council for an Energy-Efficient Economy (ACEEE), who testified before the U.S. Senate Finance Committee today. The Senate hearing focused on appropriate uses of the federal tax code for promoting investments in energy efficiency, particularly in the context of emerging discussions on tax reform.

Nadel said ACEEE found incentives for residential heating and cooling equipment were also successful in encouraging purchases of the most energy-efficient products. One of ACEEE’s recommendations for future tax credits was to promote higher efficiency levels and practices for residential boilers and stoves. ACEEE said that provisions from the recently expired section 25C should be updated for high efficiency residential furnaces, boilers, stoves, heat pumps and water heaters.

“The ACEEE has been very supportive of including wood and pellet stoves and boilers among appliances that receive tax credits, but have been frustrated that the 75% efficiency threshold for stoves is not third party verified or measured in a consistent manner,” said John Ackerly, President of the Alliance for Green Heat.

“High efficient wood and pellet stoves have a low market share in America and federal support could give advanced stoves the momentum to catch on in the marketplace,” said Ackerly.

The ACEEE report found that “in the case of appliances, tax credits have permanently transformed the market, which is the ideal outcome. For example, for refrigerators, clothes washers, and dishwashers, the tax credits spurred manufacturers to develop, introduce, and broadly market new high-efficiency products.”

To read Nadel’s complete testimony, click here.

How a Green Label Transformed Sales of Wood Stoves in France

Alliance for Green Heat, December 3, 2012 - By the year 2000, the French wood stove industry knew it had to change. Wood smoke from older wood stoves was becoming a greater problem and the R&D needed to make much cleaner appliances was lagging. Industry also needed to work better with the French government to show their technology deserved tax credits. The result was Flamme Verte, a green label recognizing the cleanest stoves.

France set a goal to have 9 million homes heated with wood by 2020, a 50% increase over the 6 million homes that used wood at the time, using the same amount of fuel because the new appliances were so much more efficient than the older ones.

Today, the French wood stove industry is one of the most robust in Europe, selling more than 450,000 units per year. Germany follows with around 400,000. As of 2010, the French industry had created 21,130 jobs and was estimated to hit 38,000 by 2012. The industry estimates that the sector represents a potential source of more than 100,000 jobs by 2020 if the goals are reached.

To read the complete French stove industry report, click here.

Maryland Expands Eligibility in Stove Rebate Program

In an effort to make more low and middle-income families eligible for its clean burning wood stove rebate program, the Maryland Energy Administration (MEA) is waiving the professional installation requirement under certain circumstances. The MEA is also allowing families who heat with wood or pellets to use the rebate to buy a new, replacement stove. Previously, the MEA only wanted to serve homes that did not have an existing wood or pellet stove. As of November 28, the MEA has received around 40 applications for the rebate and has funding for 100. MEA says that it hopes to extend the program next year.

Here are changes, as described by MEA:

MEA is now accepting qualified self-installed wood burning stoves with documentation of inspection. To accommodate those who are qualified to install stoves at their own home, MEA is now accepting self-installations. The agency wants to ensure that the stoves are safely installed and running efficiently, therefore they are requiring that those self-installed stoves are accompanied by documentation that the stove has been inspected post-install by either a county inspector or an insurance adjuster. In the case of an insurance adjuster’s inspection, a typed letter on the company’s letterhead stating that the installation has been inspected and meets all codes/safety requirements of that jurisdiction will suffice as documentation. In the case of a county building inspector, a “passed” photo or copy of the inspection sticker will suffice.

MEA is now awarding grants for the upgrade of older/less efficient woodstoves. With technology upgrades, MEA now offers the same incentives to households with less efficient stoves, as newer stoves are more efficient, cost effective and environmentally friendly. All other requirements still apply to applications.

For more information see http://energy.maryland.gov/Residential/woodstoves/index.html.

Questions? Contact Kyle Haas at khaas@energy.state.md.us.

Alliance Urges Consumers to Buy Stoves with Verified Efficiencies; EPA starts to list actual efficiencies

Updated: Jan. 2017

Efficiency is measured with a "stack loss
method," meaning a ratio of how much
heat stays in the room vs. goes up the chimney.

The EPA has started listing actual efficiencies on their list of certified stoves. Until 2015, the agency had only used default efficiency numbers for wood and pellet stoves, with 63% for non-catalytic stoves, 72% for catalytic stoves and 78% for pellet stoves. See a review of efficiencies of various brands of stoves.

The change allows manufacturers to submit actual efficiency numbers using the B415 test method and give consumers confidence about the efficiency of a stove. It has already spurred some competition among stove manufacturers, particularly the companies that make catalytic stoves and probably have the highest efficiency numbers in the market.  Verified efficiencies are up to 86%.

“If you want an assurance that you are buying a high efficiency stove, the best way is to buy from a company that publishes efficiencies using B415 and submits their numbers to the EPA,” said John Ackerly, President of Alliance for Green Heat. Currently, manufacturers are required to test for and post efficiency numbers for stoves certified after May 2015.  But a large majority of stoves were certified and tested before then, and are not required to disclose their efficiency numbers.  They can do so voluntarily, as Jotul, Blaze King, Kuma and others have.

Efficient stoves save money and time

New, EPA certified non-catalytic stoves are almost all within the 55 - 75% efficiency range, with most in the high 60s and low 70s. Catalytic stoves will likely be between 75% - 82%. “A 20% difference in fuel efficiency can add up to a lot of savings for consumers, whether you buy your firewood or cut it yourself,” said Ackerly.

With pellet stoves, the efficiency range is even greater and consumers stand to gain or lose a full 30% or even 40% in fuel efficiency depending on what model they buy. At least one pellet stove on the market gets only 33% efficiency and another 49%, but most are in the 60s and 70s, and some will be in the 80s. Industry leaders have conceded that most pellet stoves are not 70% efficient despite the EPA estimated default of 78% efficiency. 

Consumers buying new pellet stoves have little access to reliable efficiency information and could easily come home with a stove that is between 55 - 65% efficient. Most pellet stove manufacturers either do not supply efficiency data or supply exaggerated data that that makes their stoves appear far more efficient than they actually are. 

Most stove manufacturers do not disclose how they measure efficiency

The United States uses the higher heating value (HHV) for efficiency numbers for all appliances, whereas Europeans use the lower heating value (LHV). This makes it appear that European stoves and boilers are more efficient as a stove that is 75% HHV efficient would likely be around 83% LHV efficient. Many stove manufacturers use this discrepancy to their advantage by reporting efficiency using the LHV method, but do not disclose the method to the consumer.  

This phenomenon arose partially because the IRS approved the use of LHV numbers to qualify stoves for the federal tax credit that expired in the end of 2011. To add to the confusion, the IRS did not say how efficiency should be measured, allowing industry to use many different methods. As a result, virtually every stove in America was deemed to be at least 75% LHV efficient by the manufacturers who made them. Most manufacturers continue to use LHV numbers and whichever efficiency calculation provides them with the highest number.

Virtually no company, agency or non-profit has openly and honestly discussed this issue and tried to help unravel the confusion around efficiency numbers. One of the few websites that has anything on it is www.combustionportal.org. It says “ On February 6, 2007, the EPA approved use of the CSA B415 test protocol as a means by which to determine efficiency ratings. The IRS sponsored wood stove tax credit program allows manufacturers to use a different method of determining efficiency. IRS allows laboratories to use greater flexibility in determining the thermal efficiency rating for tax credit purposes.”

The decision by the EPA to start posting actual efficiencies on their list of certified wood stoves is a step forward to help consumers identify real efficiency numbers.  

The Efficiency Debate: Required or Reported?

Many of us in the wood heating community have learned a lot about efficiency lately. We’ve learned that pellet stoves appear to be less efficient than wood stoves, when many of us thought they were more efficient, including the EPA. We’ve learned that possibly up to half of all wood stoves on the market today would not pass a 70% HHV minimum efficient threshold – even though they all met a 75% LHV threshold for the tax credit in 2011. And, we learned that industry is gearing up to fight a minimum efficiency requirement in favor of just reporting the efficiency.

The Alliance for Green Heat believes that a minimum efficiency standard is needed, no question. The only question is where the bar should be set and when. Minimum efficiency requirements are becoming standard for major appliances and we believe wood and pellet stoves are better served by being part of the energy efficiency mainstream, not fighting to be outside of it.

A 70% minimum is likely the best minimum efficiency to include in this NSPS and the debate should center on how long manufacturers have to meet that minimum. One option is to say stoves must be 65% efficient a year or two after promulgation and 70% within several years after that.

Then, we think it’s vital that our industry have an Energy Star program that recognizes the most efficient and cleanest stoves. This will help consumers and our industry gain greater support from policy makers, regulators, the environmental community and the general public.

One reason minimum efficiency standards are needed is that the cheap price tag on inefficient products in Asia often is greater selling point than its efficiency label. Are the high quality domestic stoves producers really willing to compete with cheap, inefficient stoves for the next 10 or 20 years? This would be a great disservice to an industry that is still dominated by high quality domestic manufacturers.

Minimum energy efficiency standards have reduced energy costs for consumers by billions of dollars each year. To date, every federal dollar spent has resulted in an average of $650 in net savings, and has also helped spur product innovation: http://www1.eere.energy.gov/buildings/appliance_standards/. Minimum standards of energy efficiency for major appliances are firmly established by the U.S. Congress in Part B of Title III of the Energy Policy and Conservation Act (EPCA): http://www1.eere.energy.gov/buildings/appliance_standards/laws_regs.html

According to one authoritative study by the Consumer Federation of America, nearly all Americans (95%) think it is beneficial for appliances to become more energy efficient and most (78%) think it’s very beneficial. Nearly all Americans (96%) think energy efficiency is important for personal financial reasons and almost all (92%) think it’s important for the environment as well. Substantial majorities of consumer even favor increased efficiency when it increases the purchase price of the items. And, about two thirds of Americans know that the government requires most appliances to meet minimum energy efficiency standards: http://www.consumerfed.org/pdfs/CFA-Appliance-Efficiency-Report-3-11.pdf

The EPA has been far too slow and timid in establishing the regulations that will help propel this industry forward. The first NSPS was a lifeline for this industry and this NSPS can be just as beneficial. This NSPS could help propel wood and pellet stoves into the mainstream of the renewable energy movement. Look at the example of Europe. Efficiency standards have gone hand in hand with soaring sales of more efficient wood and pellet equipment.

There are pellet stoves on the market today that are under 50% efficient and even below 40%. Imagine those families who keep pouring 40 pound bags of pellets into an appliance that is half the efficiency of what it could and should be. Wood and pellet stoves appeal to Americans because they save them money. It’s all about efficiency. Does the industry really want to publicly fight against a minimum efficiency standard that will save consumers millions of dollars?

Wood Stove Energy Audit Update

The Alliance continues to press for energy auditors to include wood stoves in their audits. Discussions with EPA, NYSERDA, BPI, state officials and others point to a near unanimous agreement that wood stoves deserve better representation in energy audits. The Alliance approached two of the main institutions in the energy audit space, BPI (Building Professional Institute) and RESNET (Residential Energy Services Network) and began initial exploratory talks.  We were also directed to the four companies who have accredited home energy software tools used by auditors. We contacted the representatives from these companies and found that none of the four include checklists for wood stove safety, which means home energy auditors who use this software most likely are not checking wood stoves.

The good news is that most of these software designers are interested  and willing to include information on wood stoves in future editions of their audit software. Andy Bardwell who represents the energy audit OptiMizer software said, “We'd like to include this type of safety checklist for wood stoves in future editions,” after looking over the wood stove energy audit checklist that the Alliance for Green Heat is developing.

The Alliance urges professional auditors and software developers to take a look at our checklist here and give us with feedback on how wood stoves can be better included in home energy audits.

2014 Update: BPI adopted voluntary standards for BPI accredited energy auditor to inspect wood and pellet stoves and make recommendations to homeowners.  However, because they are voluntary, as of 2017 it appears that they have not been used much.  To get these standards used by energy auditors,  state may have to make them part of the mandatory energy audit.  We expect states like New York, Vermont,  New Hampshire and Maine could benefit from this.  Please contact us if you are interested in helping to get these standards used more.