# C-2.i 

# APPENDIX C-2. MANUFACTURER COST DATA FOR RESIDENTIAL

ELECTRIC AND GAS-FIRED WATER HEATERS

TABLE OF CONTENTS

C-2.1 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2.1

C.2.2 DATA FORMAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2.1

C-2.2 DATA TABLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2.2

TABLES

Table C-2.1 GAMA Manufacturing Cost: Cumulative Variable Cost – Electric Water

Heaters (50-gal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2.3

Table C-2.2 GAMA Manufacturing Cost: Cumulative Fixed Cost – Electric Water

Heaters (50-gal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2.3

Table C-2.3 GAMA Manufacturing Cost: Cumulative Total Cost – Electric Water

Heaters (50-gal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2.4

Table C-2.4 GAMA Manufacturing Cost: Cumulative Variable Cost – Gas-Fired Water

Heaters (40-gal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2.4

Table C-2.5 GAMA Manufacturing Cost: Cumulative Fixed Cost – Gas-Fired Water

Heaters (40-gal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2.5

Table C-2.6 GAMA Manufacturing Cost: Cumulative Total Cost – Gas-Fired Water

Heaters (40-gal) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2.5

Table C-2.7 Average Design Option Component Costs – Electric Water Heaters . . . . . . C-2.6

Table C-2.8 Average Design Option Component Costs – Gas-Fired Water Heaters . . . . C-2.6

# C-2.1 

# APPENDIX C-2. MANUFACTURER COST DATA FOR RESIDENTIAL

ELECTRIC AND GAS-FIRED WATER HEATERS

This Appendix contains the manufacturer cost data for residential electric and gas-fired water

heaters provided to the U.S. Department of Energy by the Gas Appliance Manufacturer Association

(GAMA) on October 20, 1998, for use in the rulemaking process to amend the federal efficiency

standards for such products.

C-2.1 INTRODUCTION

The cost data supplied by GAMA were a primary source for the data used in the Engineering

and the Life-Cycle Cost analyses. GAMA collected cost data directly from the major manufacturers

of electric and gas-fired water heaters. (No data were supplied for oil-fired or LPG water heaters,

which are also covered in this analysis.) The GAMA data provided estimates of the manufacturer

cost for the existing typical baseline models and the design options. Before providing the data to

DOE, they were aggregated to protect the confidentiality of the individual manufacturers. Note that

cost was provided for typical size 50-gal electric and 40-gal gas-fired water heaters only.

C.2.2 DATA FORMAT

The data were provided in a format developed by the Arthur D. Little Company to reflect

the ordering of the design options used in the analysis. GAMA used the term “level” to indicate the

ordering sequence of the design options. The following table shows the GAMA “levels” as they

were provided with the data.

GAMA Level Electric Water Heaters Gas-Fired Water Heaters

1 Baseline Baseline

2 Heat Traps Heat Traps

3 2" Improved Insulation 2" Improved Insulation

4 2.5" Improved Insulation* Flue Damper (electro-mechanical)

5 Plastic Tank* Improved Flue Baffle

6 Insulated Bottom Tank Electric Ignition (IID)

7 Side Arm Heater*

8 Improved Combustion Chamber

*Note that because of insufficient data, GAMA did not provide data for three of the design options being considered:

2.5" Improved Insulation, Plastic Tank, and Side Arm Heater.



# Separate data were provided for variable, fixed, and total manufacturing cost of baseline

electric and gas-fired water heaters and of design options. The variable cost represents materials,

labor, overhead, and transportation; the fixed cost is the capital and product design cost on a per unit

basis; and the total cost is the sum of the variable and the fixed manufacturing costs.

# C-2.2 

# C-2.2 DATA TABLES

The GAMA data are presented in Tables C-2.1 through C-2.6. The following is a list of the

tables containing the cumulative frequency distribution of manufacturing costs provided by GAMA.

The values reflect the results of 10,000 random samples from the aggregate distributions of

manufacturing cost provided to GAMA by the water heater manufacturers.

Table C-2.1 - Electric Water Heaters Cumulative Variable Cost

Table C-2.2 - Electric Water Heaters Cumulative Fixed Cost

Table C-2.3 - Electric Water Heaters Cumulative Total Cost

Table C-2.4 - Gas-Fired Water Heaters Cumulative Variable Cost

Table C-2.5 - Gas-Fired Water Heaters Cumulative Fixed Cost

Table C-2.6 - Gas-Fired Water Heaters Cumulative Total Cost

In addition, GAMA provided average values for the design option components of the variable

and the fixed costs. These data are shown in Tables C-2.7 and C-2.8.C-2.3Table C-2.1 GAMA Manufacturing Cost: Cumulative Variable Cost– Electric Water Heaters (50-gal)Lvl Design OptionsVariable CostsPercentiles0%$10%$20%$30%$40%$50%$60%$70%$80%$90%$100%$1 Baseline87.49 96.18 100.76 110.97 114.26 121.04 129.36 130.62 147.50 152.68 163.502 Heat Traps91.08 100.15 104.74 117.12 120.36 127.99 131.26 132.56 150.02 155.37 166.543 2" Improved Insulation 105.20 115.30 120.83 130.19 133.91 140.23 147.99 151.70 154.77 158.97 169.244 2.5" Improved Insulation 0. 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.005 Plastic Tank0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 00 0. 008 Insulated Bottom Tank 131.90 134.81 136.63 138.68 141.44 147.28 155.54 158.18 160.93 164.43 172.93Table C-2.2 GAMA Manufacturing Cost: Cumulative Fixed Cost–Electric Water Heaters (50-gal)Lvl Design OptionsFixed CostPercentiles0%$10%$20%$30%$40%$50%$60%$70%$80%$90%$100%$1 Baseline0.99 0.99 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.01 1.012 Heat Traps0.12 0.12 0.12 0.23 0.24 0.27 0.47 0.50 0.70 0.71 0.723 2" Improved Insulation 0.24 0.24 0.24 0.44 0.49 0.60 0.64 0.68 16.14 17.18 19.554 2.5" Improved Insulation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.005 Plastic Tank0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.008 Insulated Bottom Tank 2.53 2.66 2.73 2.81 2.93 3.17 3.90 3.95 4.01 4.09 4.27C-2.4Table C-2.3 GAMA Manufacturing Cost: Cumulative Total Cost – Electric Water Heaters (50-gal)Lvl Design OptionsTotal CostPercentiles0%$10%$20%$30%$40%$50%$60%$70%$80%$90%$100%$1 Baseline88.49 97.19 101.76 111.98 115.26 122.04 130.36 131.62 148.50 153.68 164.492 Heat Traps91.57 100.64 105.22 117.37 120.60 128.23 131.97 133.27 150.14 155.49 166.663 2" Improved Insulation 105.63 115.78 121.32 130.84 134.56 142.34 153.80 158.83 163.61 169.59 187.414 2.5" Improved Insulation 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.005 Plastic Tank0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.008 Insulated Bottom Tank 134.54 137.59 139.44 141.48 144.21 150.10 159.56 162.14 164.92 168.41 176.95Table C-2.4 GAMA Manufacturing Cost: Cumulative Variable Cost– Gas-Fired Water Heaters (40-gal)LvlDesign OptionsVariable CostsPercentiles0%$10%$20%$30%$40%$50%$60%$70%$80%$90%$100%$1 Baseline106.24 116.60 122.27 128.52 131.02 133.43 136.03 140.08 147.93 154.92 168.392 Heat Traps109.83 120.22 125.64 131.51 133.95 136.38 139.07 142.75 151.01 158.36 171.923 2" Improved Insulation113.61 124.39 130.70 141.66 148.41 152.13 154.87 158.22 162.83 169.31 184.154 Flue Damper (electro-mechanical) 193.57 200.39 207.18 224.28 232.66 238.32 243.50 251.05 282.22 296.77 321.985 Improved Flue Baffle114.44 125.24 129.48 131.63 133.73 136.10 139.17 144.52 155.58 163.28 176.316 Electric Ignition (IID)147.94 162.11 168.41 171.42 175.36 182.19 193.48 202.44 231.75 242.90 263.577 Side Arm Heater0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.008 Improved Combustion Chamber 173.59 195.64 202.66 208.11 213.43 220.87 241.99 278.95 284.13 290.92 307.37C-2.5Table C-2.5 GAMA Manufacturing Cost: Cumulative Fixed Cost–Gas-Fired Water Heaters (40-gal)LvlDesign OptionsFixed CostPercentiles0%$10%$20%$30%$40%$50%$60%$70%$80%$90%$100%$1 Baseline0.99 0.99 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.01 1.012 Heat Traps0.01 0.01 0.01 0.12 0.13 0.14 0.28 0.29 0.36 0.38 0.423 2" Improved Insulation0.01 0.01 0.01 0.26 0.29 0.32 0.34 0.36 4.98 5.23 5.684 Flue Damper (electro-mechanical) 0.19 0.21 0.22 0.51 0.54 0.61 5.54 5.80 14.96 15.73 17.105 Improved Flue Baffle0.15 0.21 0.22 0.24 0.29 0.40 0.95 1.00 9.72 10.21 11.086 Electric Ignition (IID)0.12 0.13 0.13 0.16 0.16 0.76 0.81 0.87 12.58 13.24 14.387 Side Arm Heater0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.008 Improved Combustion Chamber 1.40 1.49 1.56 1.65 2.04 2.11 2.19 3.40 4.62 5.43 7.29Table C-2.6 GAMA Manufacturing Cost: Cumulative Total Cost–Gas-Fired Water Heaters (40-gal)LvlDesign OptionsTotal CostPercentiles0%$10%$20%$30%$40%$50%$60%$70%$80%$90%$100%$1 Baseline107.25 117.60 123.27 129.52 132.03 134.43 137.03 141.08 148.93 155.92 169.392 Heat Traps110.12 120.51 125.94 131.72 134.14 136.60 139.31 142.93 151.02 158.37 171.933 2" Improved Insulation113.87 124.67 130.96 146.78 151.53 153.91 156.45 159.40 163.28 169.32 184.164 Flue Damper (electro-mechanical) 193.76 200.59 207.39 226.89 235.75 241.23 246.94 254.54 297.98 312.38 337.755 Improved Flue Baffle114.66 125.53 130.01 132.44 135.32 139.94 147.91 152.84 158.19 164.24 177.276 Electric Ignition (IID)148.10 162.27 168.97 172.04 176.01 182.81 193.60 202.57 244.81 256.05 277.177 Side Arm Heater0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.008 Improved Combustion Chamber 178.69 198.93 205.60 210.78 216.35 224.25 247.09 280.57 285.73 292.44 309.00C-2.6Table C-2.7 Average Design Option Component Costs – Electric Water HeatersVariable Costs Fixed CostsMaterial$Labor$Transportation$Overhead$Total$Capital$Product Design$DOE Design Options $/Unit $/Unit $/Unit $/Unit $/Unit $/Million $/Million1 Baseline 62.16 10.57 10.11 38.89 121.73 – –2 Heat Traps 64.75 10.76 10.11 39.71 125.33 0.15 0.243 2" Improved Insulation 70.39 11.07 11.55 41.15 134.16 3.56 1.474 2.5" Improved Insulation – – – – – – –5 Plastic Tank – – – – – – –6 Insulated Tank Bottom – – – – – – –Table C-2.8 Average Design Option Component Costs–Gas-Fired Water HeatersVariable Costs Fixed CostsMaterial$Labor$Transportation$Overhead$Total$Capital$Product Design$DOE Design Options $/Unit $/Unit $/Unit $/Unit $/Unit $/Million $/Million1 Baseline 75.02 10.74 9.67 38.35 133.78 – –2 Heat Traps 77.77 10.9 9.67 38.54 136.88 0.07 0.133 2" Improved Insulation 83.53 11.33 12.23 40.75 147.84 0.85 0.594 2.5" Improved Insulation5 Plastic Tank6 Improved Flue Baffle 75.99 11.99 9.67 39.73 137.38 1.17 1.727 Multiple Flues – – – – –8 Improved Combustion Chamber 134.24 21.68 10.82 61.88 228.62 1.42 1.49 Submerged Combustion Chamber10 Flue Damper (electro-mechanical) 160.07 14.03 16.84 47.84 238.78 3.45 2.0311 Side Arm Heater12 Two-Phase Thermosiphon13 IID 118.8 13.34 14.51 45.9 192.55 2.09 1.47