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MARKET PARTICIPANTS Non-active manufacturers highlighted that development plans are generally heavily informed by, 1) scanning and monitoring new technologies, 2) comparing the new technologies to other products within the market, and 3) overlaying those technologies with long-term regulatory requirements. One common manufacturer barrier was the identification of qualified installers, as well as an overall shortage of trade labor. Product and market barriers and risks by manufacturers: Carbon policy Product development cost Determining specifications to build to the given and/ or pending plethora or regulations across states and countries (e.g., Low NOx, ZNE, etc.) Concern exists that builders could move to all-electric HVAC and water-heating technologies Development costs and first-cost As manufacturers make multi-year commitments to bring products to market, the annual planning cycles of LDCs cause concern. As of now, there is a perceived lack of LDC commitment to emerging technologies, which limits manufacturer willingness to invest in new products. Trends and decision-making process by manufacturers: They are paying attention to and influenced by “electrification” messaging that’s currently driving the market to automatically turn to electric solutions—and away from gas—in pursuit of achieving a low-carbon future Committed to return on investment and maintaining market share Refrigerant regulations Desires for connected devices Several Non-active manufacturers highlighted that regulatory and policy requirements are burdensome and require substantial human and financial recourses—these requirements often drive decisions about committing resources to developing new innovative products How natural gas industry and Sponsors can support the supply side in advancing products by manufacturers: Reduce the number of program technical specifications so that manufacturers don’t have to abide specifications in multiple territories While manufacturers want to be informed on the efficiency and performance expectations through specifications, they do not want LDCs to tell them how to develop products. In early phases of product development and product launch, manufacturers are focused on building the minimal viable product. Manufacturers want and need help with consumer, trade and system nomenclature research to build their initial and ongoing business case Manufacturers need partners to provide financial and human resources to help conduct lab and field testing. They would require help securing test sites and, in some cases, would want partners to keep results confidential. Manufacturers need help generating awareness among consumers, trades and policymakers that natural gas solutions exist in general (e.g., products, renewable natural gas, etc.) and that these solutions can reduce GHG emissions. They also require help exposing installers to GHP commercialized and pre-commercialized product(s), and promoting commercialized products with and/or without incentives. Miscellaneous manufacturer responses worth highlighting: Renewal isn’t guaranteed for annual utility programs, so manufacturers seek a longer term commitment. They would prefer at least three-to-five year incentive commitments (and LDC assistance with incentive design). As rebates change every year and often change quickly, so manufacturers are wary of investing and then seeing the incentives disappear. (One manufacturer stated, “Two year of rebates isn’t enough—we need to know that utilities have skin in the game.”) Presented by: Brio and GTI 22PDF Image | GAS HEAT PUMP TECHNOLOGY AND MARKET ROADMAP
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