< PreviousHIGH PERFORMANCE HVAC TODAYIf You Don’tYou’re Just Guessingtomers a 95% or 20 SEER efficient system.The customer assumes they got what you sold them. That is, until the first scorching hot or freezing cold day arrives, and the new equip-ment cannot perform as promised. Then the first utility bill arrives, the customer’s proof of efficiency, and the guessing game is over – they know they didn’t get what they paid for. Everyone up and down the chain loses when this happens.HVAC SYSTEM PERFORMANCEHVAC equipment rated efficiency is a number measured in a laboratory under tightly specified conditions. It is a valuable number that is care-fully and scientifically documented. It expresses the maximum potential efficiency of the equip-ment.However, in no way does this number guar-antee or insinuate system efficiency in the field when conditions change. Once installed and connected to up to five other mechanical systems to become part of a heating and cooling system, all bets are off.Ideally, the moment you in-stall equipment, you should re-move the yellow efficiency rat-ing sticker. You should apply a new sticker stating the mea-sured and verified efficiency of the entire installed heating or cooling system.The typical installed HVAC system’s efficiency is 40% to 50% less than the rated equip-For nearly two decades the NCI slogan, “If you don’t measure you’re just guess-ing,” has encouraged the HVAC industry to measure and not guess HVAC system performance. Once you know how to test, cal-culate, and quantify performance, you realize everyone else in the industry is just guessing as they promise comfort and efficiency. Let’s take a look at the difference between measuring HVAC system performance and guessing at it.Since the focus of our industry shifted in the 1970’s from providing comfort to offering effi-ciency, everyone assumes installed efficiency is equal to the rated efficiency of the equipment. If the yellow sticker decrees 95% AFUE or 20 SEER, the typical HVAC salesperson offers cus-By Rob “Doc” FalkeTECHNICALIMAGE: ISTOCKPHOTO.COM10 JANUARY 2018JANUARY 2018 11HVACTODAY.COMsense to nearly every consumer con-sidering buying, replacing, or upgrad-ing their HVAC system. This is the pri-mary reason an NCI professional has such an advantage over competitors.This definition of system efficiency totally eclipses the old rating methods, because it measures the efficiency de-terioration imposed on the equipment by its installation into a building. Ap-propriately, measure, calculate, and publish a new installed system ef-ficiency. That way, all parties influ-enced by the job know for sure and the efficiency guessing game is over.IS THE NCI SLOGAN MAKING MORE SENSE NOW?Trained and certified NCI profes-sionals can design, install, test, and sponse to such news about the HVAC system in your home or office?HVAC SYSTEM EFFICIENCY DEFINEDThe Western HVAC Performance Alliance defines an efficient heat-ing or cooling system by the amount of heating or cooling measured from the system into the building.What really matters is the amount of heating or cooling that makes it into the building. If the equipment is rat-ed to deliver 100,000 Btuh of heating and only 50,000 Btuh makes it into the building, the system is operating at only 50% of equipment rated capacity and efficiency.While this is a new method of view-ing HVAC efficiency, it makes perfect IMAGE: ISTOCKPHOTO.COMment efficiency. This is no longer an opinion of NCI, but a well-researched and documented fact. Imagine your re-12 JANUARY 2018HIGH PERFORMANCE HVAC TODAYing method takes less than an hour to complete on most systems. Training, certification, test instruments, and software are available to support this measurement and scoring method. Here are the basic steps to determine the score of an installed residential or basic commercial HVAC system.1. Gather the equipment name-plate information and specifica-tions. From this data, determine the equipment’s rated heating or cooling capacity under current operating con-ditions.2. Measure system airflow into the building. Do this by mea-suring airflow at each supply register. Then add each of the readings to-gether.3. Measure and average the air TECHNICALing and cooling system efficiency in mind, go online and study the man-ufacturers’ and other contractors’ websites. Notice their claims of com-fort and efficiency assume equipment rated efficiency equals the installed efficiency of the HVAC system. You will see most are guessing.HOW TO MEASURE SYSTEM PERFORMANCENCI has developed, taught, and sup-ported a test method to score HVAC system performance since 2001. NCI’s basic HVAC system scoring meth-od is being shared with the industry through the development of a pro-posed ASHRAE standard that should be available for public review soon.The basic test and calculation scor-adjust systems to perform the closest to equipment rated efficiency. Once their systems are installed, they mea-sure and publish this new efficien-cy score to document installed sys-tem performance. Meanwhile, others only guess, imply, assume, and insin-uate the efficiency of their systems. Who do you think will win this race to the top?With this new definition of heat-RARELY, IF EVER, DOES POTENTIAL EQUIPMENT EFFICIENCY EQUAL THE INSTALLED SYSTEM EFFICIENCY.JANUARY 2018 13HVACTODAY.COMdivide delivered Btu of the system by the rated Btu of the equipment.IF YOU DON’T MEASURE, YOU’RE JUST GUESSINGThis number is published as the system’s installed performance score. What score would your installed sys-tems earn? This score can be measured before and after you make improve-ments to the system to document the in-crease in system efficiency. What would a 40% increase in efficiency be worth?If you do measure, you can know for sure and use this new-found infor-mation to improve the performance of the HVAC systems you design, sell, build, and maintain.We invite you to learn about and apply the principles of HVAC system measurement. You will then begin to discover system defects you over-looked throughout your career. You’ll also begin to see the possibilities of significantly improved system effi-ciency, comfort, and performance in your career. temperature leaving each supply register and entering each return grille.4. Calculate the amount of heating or cooling entering the building. To do this, multiply the airflow (cfm) entering the building by the average air temperature dif-ference between the supply registers and return grilles by the appropriate Btu multiplier. The answer is the heating or cool-ing Btu entering the building from the system.5. To score system performance, Rob Falke is the president of National Comfort Institute, Inc.THIS DEFINITION OF SYSTEM EFFICIENCY TOTALLY ECLIPSES THE OLD RATING METHODS, BECAUSE IT MEASURES THE EFFICIENCY DETERIORATION IMPOSED ON THE EQUIPMENT BY ITS INSTALLATION INTO A BUILDING.14 JANUARY 2018HIGH PERFORMANCE HVAC TODAYMost consumers have minimal awareness and understanding of their heating, ventilation, and air conditioning (HVAC) systems. They typically regard the HVAC system as a simple appliance that is only noticed under the following situations:• When it operates noisily• It fails to deliver comfort• If they see an upward deviation in their utility bill.The fact is, most HVAC systems -- whether noticed or unnoticed -- are not achieving the manufacturers’ designed performance specifications. This per-formance variance goes undetected when temperatures are moderate and maximum cooling or heating is not in demand.When an HVAC system operates during these periods in a degraded state, consumers have no idea it is run-ning at a lower efficiency. They also don’t know they are not receiving the full capacity and efficiency of their sys-tems. Unfortunately, many only realize something is wrong only when they:• Receive an abnormally high utility bill• Experience discomfort during the hottest or coldest parts of the year• Are forced to make an emergency re-pair call for a premature component failure.Most consumers want to get the most out of their systems for the least amount of cost.A MULTI-SIDED ISSUEHVAC system performance is not perceivable without measurement. Measurement allows a qualified con-tractor to better communicate to con-sumers with fact-based information about their system. This educates and equips them to make informed pur-chase decisions. Most consumers val-ue this approach as it provides an opportunity to solve concerns with safety, comfort, and efficiency.The reality, however, is that most HVAC contractors do not take an ap-proach based on system performance measurement and improvement. In-stead, they try to sell new equipment and service agreements. Or they only apply temporary fixes to help the sys-tem limp along until the next inevita-ble emergency call.Opportunities to address underlying issues, for those contractors not per-formance-based, typically arise only when a consumer faces a system fail-ure. That is when they must make a de-cision between repairing, replacing, or upgrading the equipment and system. Many utility programs rely primarily Stranded HVAC Performance PotentialTECHNICALBy Mel JohnsonData source: http://loadshape.epri.com/enduseData source: https://www.eia.gov/JANUARY 2018 15HVACTODAY.COMhottest and coldest parts of the year. The good news is that performance can be improved significantly. Reno-vation work on the same 155 systems increased system delivered capacity to 83%, an improvement of 93%!By measuring performance on these 155 existing systems, contractors were able to show customers why their sys-tems were not performing well and costing more than they should. For the first time, contractors were equipped to provide customers renovation work targeted at system improvement. They then verified the success of that work using the same measurement method-ology they started with.This end-to-end performance-based approach gives customers confidence that they are making the right decisions throughout the entire process, and see-ing immediate reductions in their util-ity bills and improvements in comfort.NCI INTERVENES IN CALIFORNIA’S HVAC STRATEGIESOn Sept. 18, 2008, the California Public Utilities Commission (CPUC) adopted California’s first Long-Term Energy Efficiency Strategic Plan which included “Big Bold Goals” for HVAC1. set use for existing plants.Smart meters allow utilities to send a pricing signal to attempt to get custom-ers to reduce their electric usage during times of high demand. Strategies include peak demand charges, time-of-use pricing, and critical peak-period pricing. These strategies all attempt to match the pricing structure to the load shape, charging more money during times when the most energy is being used.Each of these strategies share a com-mon shortcoming. Customers cannot curb their demand if they don’t under-stand what is causing high energy use during peak periods.MEASURED HVAC SYSTEM PERFORMANCETo identify what causes high HVAC energy use, NCI captured and recorded field performance data for a sample of 155 commercial and residential HVAC systems around the country. This work revealed that the average system only delivers 43 percent of the equipment’s rated capacity to the occupied space.HVAC systems performing this poorly result in extended equipment run time, increased energy use, and uncomfort-able buildings, especially during the on this opportunity to offer high effi-ciency equipment replacements.This replace-on-burnout (ROB) model limits the utility’s and custom-er’s success. It heavily relies on dis-tributors having high-efficiency equip-ment in stock and consumers typically being unwilling to spend the extra money to address hidden issues in the duct system. This leads to the same performance degradation on the new equipment that caused premature fail-ure of the old equipment. So, the cycle continues. HVAC SYSTEMS REPRESENT THE HIGHEST END-USE COSTConsumers are not being informed about the impact of degraded per-formance on their comfort and ener-gy costs. Degraded performance is a symptom of hidden issues that cause uncomfortable conditions, poor in-door air quality, and low efficien-cy. These hidden issues also result in unexpected system breakdowns and shortened equipment life.According to the U.S. Energy In-formation Administration, HVAC ac-counts for 44% of commercial building energy consumption, and 48 percent of residential energy consumption. More detailed regional load shape analysis shows that HVAC also com-prises the largest component of both summer and winter peak demand, with its’ contribution typically exceed-ing one third of a building’s peak load.What these metrics mean for custom-ers is that HVAC is their number-one energy cost, particularly during times of year when they have the highest util-ity bills. Utilities have a vested interest in flattening load shapes to avoid build-ing new power plants and increase as-16 JANUARY 2018HIGH PERFORMANCE HVAC TODAYPerhaps more importantly, it pro-vided a strong correlation between measured performance improvement and savings at the meter.SHARING KNOWLEDGE WITHIN THE INDUSTRYAs our industry shares these con-cepts with broader audiences and col-laborates with utilities, regulators, and state government, we can better quan-tify and improve installed HVAC sys-tem performance. As a result of the the umbrella of the 2009-2017 Residen-tial & Commercial HVAC Programs.A year later, additional profession-al services expanded the industry fo-cus on promotion, delivery, measure-ment, and verification of maintenance and installations performed by HVAC contractors. The work included a per-formance-based renovation pilot pro-gram, which culminated in a field data collection effort that demonstrat-ed significant energy savings for each system renovated.These goals were then taken one step further via an HVAC Action Plan to serve as a road map to transform the market.As a result, California Investor Owned Utilities (IOUs) were required to adopt the HVAC Action plan and Strategic Plan strategies. They had to take steps to incorporate stakeholder input into their energy efficiency pro-gram planning and implementation statewide.In late 2010, the HVAC Industry was invited by the California Investor Owned Utilities (IOU’s) to provide professional services in support of an HVAC Action Plan and Strategic Plan strategies. They were asked to provide a focused perfor-mance-based HVAC workforce educa-tion and training (WE&T) effort under TECHNICALJANUARY 2018 17HVACTODAY.COMmance degradation. These consum-ers value maintenance that sustains overall system capacity and efficiency. 1 The final CLTEESP was released on August 20, 2008. California’s Long Term Energy Efficiency Strategic Plan – September 2008 - Original version of the Strategic Plan adopted in D.08-09-040 and is available at• http://ncilink.com/DLAsset5305• http://ncilink.com/Decision25,000 HVAC Industry professionals in Performance-Based Contracting™. They have also provided professional services to one of the nation’s largest electric utilities. Because of those ex-periences, the greatest opportunity for reducing peak demand and energy use is to target the installed base of ineffi-cient HVAC systems. This is done by addressing performance degradation and equipping installing contractors to sell and install Performance-Based HVAC systems. As a result, consum-ers will become more informed about their HVAC systems and better under-stand how performance affects their comfort and operating cost.Consumers who know what they need to do will expect contractors to provide services that prevent perfor-HVAC Industry’s involvement, NCI be-gan the process of developing ASHRAE 221P, a Test Method to Field-Measure and Score the Performance of an In-stalled Unitary HVAC System.We want to share a key piece of what we learned so the industry can offer a higher standard of quality. Current-ly the standard development process is well underway, with publication ex-pected sometime in the first half of 2018. ASHRAE 221P details the pro-cedures, calculations, and instrumen-tation required to measure system ca-pacity and efficiency in the field.IF YOU DON’T MEASURE, YOU’RE JUST GUESSING!Over the past two decades NCI has trained and certified more than Mel Johnson, Vice President for Utility Programs for NCI, is responsible for identifying and executing business development strategies and partnership building industry partnerships.HIGH PERFORMANCE HVAC TODAYWHAT “IT” ISWith Performance-Based Contracting™, there are no immediate promises of rewards up front. Notice I said no immediate promises or rewards. I’ll guarantee you this though - by the time you’re in second or third gear, cruise control is not far away. It’s going to require some work, adjusted plans, more sweat, and purposeful thinking. Once you commit to just doing it, it’s the coolest, sexi-est, most fulfilling feeling in the entire universe. Here’s a tip. The only way to do performance- based contracting is with absolute integrity. You must say what you will do and do what you say. Guess what folks? You can’t spell the word integrity without “it.” I believe that most HVAC contractors lack a clear understanding of what the “it” is that trans-forms their ordinary equipment replacement jobs into high-performance HVAC systems. This lack of clarity is the difference between an unprofit-able business and one that is very profitable, that stands out in the crowd as the best.For our company, AC by Jay, the “it” is consis-tently delivering service that results in happy cus-tomers who willingly pay a premium price for a premium product and gleefully refer us to all their family and friends. Long story short, we’re com-mitted to shattering our customer’s expectations. SATISFACTION IS NO LONGER THE STANDARDWe must comprehend that satisfaction is no longer the standard! Let me give you an example. Let’s talk about garbage collection. Trash collec-tion day in my neighborhood is every Monday. I am 100% satisfied with the company that collects my trash. I don’t know the driver’s names, ages, ethnicity, favorite sports teams, or any of that stuff. I don’t even know what the sign on the side of You really can sell High Performance HVAC Systems if you first commit to doing it, and then take things one step at a time.“It” is an interesting word. The dic-tionary definition includes: a crucial or climactic point; that one; an explicit or implicit state-of-af-fairs or circumstances; exactly what is needed or desired; a goal to be achieved.I’m amazed that such a simple two letter word baffles, stumps, and even paralyzes many indi-viduals. The sports giant Nike first employed the “just do it” phrase in 1988 as the cornerstone of a new ad campaign, propelling the brand’s North Amer-ican market share from 18% to 43% by 1998. While the campaign never defined what “it” is, the slogan, combined with visuals of hard work and determination, motivated many people to get off the couch and pursue higher levels of physical performance in a variety of recreational and com-petitive venues.Why are we so afraid to just do it? Could it be that we like where we are? Is the fear of the un-known keeping us from achieving better results? Is hard work too big a price for the results we desire?Most people do not realize that by just doing it, “it” will literally improve every aspect of our lives. If everyone committed to this mindset with full devotion, failure would be absolutely impossible.I challenge you to adopt this potent mantra into your minds, hearts, spirit, and every fiber of your being. Do it, and you will succeed. You CAN Sell High Performance HVAC Systems if You Just “Do It”By Eric JohnsonCUSTOMER SERVICETHE ONLY WAY TO DO PERFORMANCE-BASED CONTRACTING IS WITH ABSOLUTE INTEGRITY. YOU MUST SAY WHAT YOU WILL DO AND DO WHAT YOU SAY.18 JANUARY 2018JANUARY 2018 19HVACTODAY.COMdent, premium, and pristine perfor-mance in waste disposal. This com-pany would be the personification of “Just Do It” service!There would be no limit to the amount of trash you could leave at your curb. Imagine the trash collector not leaving one piece of trash be-hind. The driver would get out of the truck at every call and emp-ty your garbage. He would then quickly pressure wash your gar-bage can, and the surrounding area. He would wheel your trash can up your driveway and park it where you desire. Sounds like a lot, huh? But, how many of us would prefer this type of experience versus the one I previously described. There’s a reason I chose to use garbage to make my point. Garbage is what we throw away! So, if we all admit that we’d value a more hygienic and professional way of dealing with the crap we throw out, what type of experience do we owe our customers who entrust us with their family’s safety, health, comfort, and en-ergy efficiency needs? A trash collection company couldn’t be successful delivering expectation- shattering “just do it” service if only one employee believed in “IT.” THE ENTIRE TEAM MUST BE ON BOARD! I look forward to sharing more on how we do it at AC by Jay during the upcoming Summit Conference in Austin, Texas!See you there (If you “just do it”, that is)! expired bottle of Pepto Bismol, and last night’s spaghetti and clam sauce spread all along the curb in front of my house?It’s because the driver did exact-ly what he was paid to do. He did just enough to get his paycheck. He used his robo-claw to pick up my trash can and empty it into his truck. Heaven for-bid he clean up the mess he left behind. Typically, my garbage can isn’t too full and there is no trash left on the ground. Even though they success-fully transferred my garbage to their truck, I’m still left with an empty, nas-ty, smelly can. Ladies and gentlemen, we actually pay for that type of medio-cre service every month!SHATTERING EXPECTATIONSNow imagine this… What if there was a company that delivered pru-the truck reads. But I’m satisfied. And why wouldn’t I be? I assume the driver is doing exactly what he or she is being paid to do. Right? Now here’s the thing. Why is it that I’ve never run out to the garbage truck and professed my undying, unwaver-ing love and appreciation to the driv-er or the company? Well, maybe it has something to do with the time that my trash receptacle was a little too full. So, I come home at the end of my work day. The trash truck has clear-ly come by and emptied my trash can. I love the technology they’ve embraced. They use a very impressive mechanical Transformer-like, death grip Termina-tor extension arm. But, here is the mil-lion-dollar question: since the trash col-lector has clearly emptied my can, why is my son’s dirty diaper, a half empty Meet Eric Johnson at NCI Summit 2018High Performance HVAC Summit 2018 is happening March 4-6 in Austin, TX. Eric Johnson is one of six Performance-Based Contractors™ presenting how they Blaze A Trail to High Performance. Johnson sells approximately $2 million annu-ally in residential replacement and renovations for AC by Jay in Scottsdale, AZ. He considers himself a “pro-person” salesman and will share how his company approaches selling Performance-Based Contracting™. His presentation, You Too Can Sell High Performance HVAC – If You Just Do It! walks you through over-coming the inertia of getting started. He explains how his adaptation of the Nike slogan helps him really set AC by Jay apart in their marketplace. Come meet Eric and network with your peers in Austin. Learn more about the Summit 2018 program at GoToSummit.com.JOIN US FOR SUMMIT, STAY FOR SOUTH-BY-SOUTHWEST MUSIC FEST: Summit 2018 offers you and your team the opportu-nity to not only hear from some of the Performance-Based HVAC Industry’s finest, but also a chance to network with like-minded contractors from across the nation.Take advantage of Early Bird pricing by registering today. EARLY BIRD ENDS ON JANUARY 15th. Don’t hesitate. You can still save hundreds on your registration costs.Questions? Call 800-633-7058 and talk to your customer care representative.After Summit ends, stick around for our Post Show Training classes and then head into downtown Austin for one of the world’s best music festivals, South by Southwest. Click here for details.Eric Johnson sells resi-dential replacement and renovation for Scottsdale- based HVAC contractor AC by Jay. Since 2012 he has consistently sold over $2 million annually.Next >