Advanced Thermostats: What They Offer the Nonresidential Sector

Michael RovitoSenior Consultant

January 31, 2013

Agenda

• Introduction to advanced thermostats• Technical capabilities • Value-added features• Market transformation potential• The learning curve• Conclusion

A Definition

Advanced Thermostat = Programmable, Communicable Thermostat

Synonyms: web-enabled thermostat, connected thermostat, smart thermostat

Fundamental Components

• Hardware– A thermostat that controls an HVAC unit

• Communications – Ethernet, Wi-Fi, ZigBee, etc.

• Software– Data collection and analysis on the backend

A Small, but Growing Market

• Estimate fewer than 50,000 sold per year in US market to nonresidential facilities– Compare with roughly 1 million standard

programmable thermostats• Firms report sales growth 20%-50% YoY

– 10% market share in ~3 years– 50% market share in ~10 years

This Could Be a Big Deal

1. Fulfill the promise of standard programmable thermostats

2. Massively increase the available data

3. Change the relationship between the HVAC unit and maintenance staff

4. Anchor a modular, light building management system

Technical Components

Hardware

• A standard programmable thermostat– One-to-one replacement– Not for multi-zone or VAV systems

• More input and output channels– Continuous and discrete

• Increased power needs– Usually not a problem

Communications

• Thermostat to the world– NOT thermostat to HVAC unit

• Methods– Wi-Fi– Ethernet– Mesh networks

• No “best” method

Software

• Mostly cloud based– On the web– Mobile platforms

• Easier to use• Remote access• Presentation of trends• Alerts

Value-Added Features

Controls Integration

• Methods– Built-in connectivity (hardware)– Open-source interoperability (communication)– Application programming interface (software)

• Uses– Extra inputs: discharge air temp or occupancy– Control other equipment: lighting, electric

water heaters, plug loads…

Performance Management

• Improve the effectiveness of maintenance staff– Comfort complaints can be investigated and

rectified remotely– Automatic alerts can catch problems before

they become complaints or damage the unit– Regular review of trends can reveal

degradation or other problems

Energy Savings

• Usability makes it easier to view, set, and maintain setpoints and schedules

• Smart recovery/staging• More inputs (e.g., occupancy)• More things controlled (e.g., lighting)

Demand Management

• Phased startup• Pre-cooling• Cooperative load management• Automated demand response

Market Transformation Potential

Fulfill Original Promise of SPTs

• Standard programmable thermostats (SPTs) were kind of a disappointment

• ENERGY STAR suspended labeling– Lack of usability– Difficulty substantiating savings

• Advanced thermostats more usable!• Will (hopefully) save the energy SPTs

were supposed to

Massively Increase Data

• Collecting, transmitting, recording 24/7– Indoor/outdoor air, binary output controls, etc.– Highly frequent intervals– Never captured systematically before

• So?– At building: better understand your equipment– Industry: better understand use

patterns/equipment

Change Maintenance Staff Role

• Reduce burden on maintenance staff– Remote investigation/triage/remedies = less

wasted time = lower cost + more time for other projects

• New business models for HVAC contractor– Greater transparency to unit means better,

more proactive service– Possibility to play some of the role played by

on-site staff

Modular, “Light” BMS

• Thermostat is not just a thermostat– Linchpin of software-based controls system

• Can control HVAC, lighting, plug-load, etc.• Expansion is modular and piece meal• Will not replace full BMS, but can act as

cheaper “down market” substitute– Cost: $750-$1,250/thermostat (incl. labor)

The Learning Curve

Barriers to Adoption

• Power problems– Mostly NOT an issue

• Communication problems– There is always a solution that works…– …but contractors do not understand networks

• Wringing out the value– Features are many and complicated– Market must grow comfortable

Conclusion

Programs Can Help

• Train installers to understand networks– Wi-Fi and mesh

• Support growth in understanding of lesser-used, value-added features– Case studies, workshops with installers, etc.

Questions?Michael Rovito

mrovito@ers-inc.com

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