AN ANALYSIS OF THE ADOPTION OF ENERGY-EFFICIENT WATER HEATERS IN THE RESIDENTIAL SECTOR

Abstract

The energy consumption for water heating accounts for approximately 30% of the energy required by the residential sector in FY 2007. Despite the high expectation of low CO2 emission, energy-efficient (EE) water heaters are not yet widely used. In this report, we aim to analyze and discuss the market of water heaters on the basis of a questionnaire survey. Firstly, the result shows that the adoption rate of EE water heaters is higher in the market of new custom-built detached houses than in that of new ready-made detached houses. However, the high initial cost of EE water heaters is likely a financial barrier, and also, customer preferences tend to be affected by builders' product lineup to some extent even in the case of custom-built detached houses. Secondly, the adoption rate is relatively high in the case of newly built apartments for sale, probably due to stiff market competition. Thirdly, concerning the replacement of water heaters in detached houses, the adoption rate of EE water heaters is relatively high, although there still remain barriers such as the high initial cost and influences of the lineup of products that sales channels deal. Finally, the replacement of water heaters in newly built apartments was difficult to change energy sources and types of water heater because of space and structure problems.