According to JARN, the heat pump water heaters market in China is growing fast, with sales having reached an estimated 250,000 units in 2008. Although R22 remains the refrigerant of choice at present, some local players have recently begun to develop CO2 compressors and heat pump systems.
A new article by Japan Air Conditioning, Heating & Refrigeration News (JARN) reports that the Chinese market size for heat pump water heaters in 2008 reached an estimated 250,000 units, which corresponds to an estimated RMB 1.3 billion (about US$ 190 million), while for 2009 the market is expected to exceed RMB 1.5 bil¬lion (about US$ 220 million). These figures compare to 360 million RMB (€37 million) in 2005 and 1.20 billion RMB (€106 million) in 2007.
To put this into perspective, the overall water heater market in China is about 18.7 million units each year, which could provide a huge potential market for the heat pump water heaters.
Chinese companies develop CO2 technology
JARN reports that while issues such as high-production cost and the require¬ment for water quality (the hard water in most cities in China would block the pipe when heated) have prevented Japanese companies from selling their CO
2 heat pump water heaters in China, some Chinese companies have recently begun to develop CO
2 compressors and heat pump systems. Nonetheless, R22 is still the main refrigerant of choice for heat pump water heaters, while products adopting R410A are increasing in recent years.
Heat pump water heaters mainly for commercial applications
According to the JARN article, heat pump water heaters in China are currently used mostly for commercial applications, such as hotels, recre¬ational venues, and schools and villas. The smallest capacity that can be found is 2 hp.
Plethora of heat pump water heater manufacturers indicates non-mature market
A highly competitive market of heat pump water heater manufacturers exists in China, with the number of manufacturers exceeding 300 and small OEM manufacturers accounting for more than 80% of the total. The manufactur¬ers can be roughly classified into four types, including central air conditioner manu¬facturers, residential air conditioner manufacturers, solar energy product manufacturers and energy-saving equipment manufacturers. However, the big number of manufacturers in this industry indicates that the market is still at an early stage.
Heat pump incentives and standards in China
Although there are no incentive policies for heat pump water heaters at the national level, some local governments provide financial support for such prod¬ucts. For example, the local government of Ningbo, a city in Zhejiang Province, gives a 20% rebate for heat pump water heater projects. In terms of technical standards, the one concerning commercial products was put into force on 1 May 2008, while the one for residential products is expected to be released this year.
