Strengthening The Chain
by Katie Rotella
May 1, 2008
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| Craig Ouimette (Cardinal Heating, Air Conditioning
& Solar, Sun Prairie, Wis.) installs a solar thermal panel during the
summer of 2007. Photo courtesy of Hot Water Products. |
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How
one heating rep solidifies its place in the solar supply chain.
Among
the renewable energies, solar is easily the fastest-growing segment in the
United States. The Energy Information Administration announced in its Annual
Solar Thermal Collector Manufacturers Survey that shipments surged 29 percent in
2006 to 20.7 million square feet.
But when a PHC contractor commits to hanging out his solar shingle and installs
that first solar thermal system, he encounters a deluge of information from all
types: the media, Internet, advocacy groups, government agencies, product
manufacturers and more.
For this contractor — who is used to traditional supply chains — confusion sets
in and the questions begin:
- Where do I get proper training
and certification?
- How do I deal with energy rebate
programs?
- What about system design and efficiency?
- Which products do I need and who should I trust?
One wholesale distributor is happy to show contractors the way. Hot Water
Products Inc. ( www.hotwaterproducts.com) in Milwaukee
has positioned itself to be the go-to rep for Midwest professionals interested
in solar hot water equipment.
“In the 1970s, fly-by-night contractors came in and left with bad products and
faulty systems in their wake; it left a bad taste in people’s mouths,” says Kurt
Koepp, manager, solar market development and expansion for Hot Water
Products. “Now that the solar market has repositioned and is ramping back up,
contractors are looking for a supplier that will weather the storm.”
Young Company, Poised To Grow
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| Instructor Bob Ramlow (in hat) supervises
trainees as they install a working solar thermal system on the roof of Hot
Water Products' classroom. |
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Founded
in 1998 by current President Howard Endres, the company
began as a wholesaler that supplied commercial water heaters to the Milwaukee
area, and instituted a leasing program for water heaters and
boilers.
Even then, Hot Water Products was concerned about energy efficiency and boiler
room delivery. It soon became a manufacturers rep for Heat Transfer Products’
Munchkin product line. But because many of its customers were not familiar with
modulating boilers, Hot Water Products began educating contractors and
distributors on the benefits.
Education remained a major part of the company’s valuable services offered to
its clients. Growing to serve more than 100 wholesale houses in Illinois, Iowa,
Minnesota, Nebraska and Michigan’s Upper Peninsula, Hot Water Products added
more education and sales programs. It increased its offerings of high-efficient
systems and became a wholesale distributor for the Bradford White Corp.
Needless to say, it was poised for the green revolution and the rebirth of the
U.S. solar market.
In 2006, Hot Water Products entered the thermal solar segment by offering
high-efficient solar panels for residential and commercial applications. And,
seeing the need for highly trained installers, teamed up with the Midwest
Renewable Energy Association (MREA) and Artha Sustainable Living Center to
offer a comprehensive Solar Water Heating Installation Lab for PHC
professionals.
“In order for consumers to be eligible for incentives through the state, the
installing contractors need to provide proof of certification,” Koepp says.
“The training is worthwhile, and the response has been amazing.” Its first
training session in August 2006 had about 20 plumbing and heating contractors.
It has since trained hundreds.
The course is a comprehensive 18-hour session with both classroom and hands-on
segments, where students build a functioning drain-back solar water heating
system, as well as a pressurized hot water system that incorporates a
PV-powered pump.
The class is taught by MREA trainer Bob Ramlow, a noted
renewable energy pioneer and founder of Artha.
Upon completion of the Hot Water Products course, newly qualified installers
are able to satisfy the educational requirements for inclusion on Focus On
Energy’s “Full Service Installer List.”
Focus On Energy ( www.focusonenergy.com) works with
eligible Wisconsin residents and businesses to install cost-effective energy
efficiency and renewable energy projects.
“Focus On Energy is the state’s latest efforts to help residents and businesses
manage rising energy costs, promote in-state economic development, protect our
environment and control the state’s growing demand for electricity and natural
gas,” its Web site reports.
Contractor’s Perspective
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| The mechanical room of the Wigwam Mills solar
project. Photo courtesy of Energy Concepts Inc. |
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“There
are many environmental benefits to solar thermal. In addition, the Focus on
Energy and federal incentives make it financially attractive as well,” says
Peter Laskowski, president of Chet’s Plumbing and Heating
Inc. (Stevens Point, Wis.). The PHC contractor has worked with Hot Water
Products nearly 10 years, and has partnered with the rep on its solar projects
for about one year.
Utilizing Hot Water Products’ strong background in working with state and local
utilities to file paperwork and permits, solar contractors and their customers
have an advantage.
To help keep the company on-track with proposals and rebates, Hot Water
Products recently hired Sharon Stuertze, who has more than
seven years’ experience in the solar industry. “She’s a tremendous asset and
will personally work with contractors and customers on getting grants from
Focus On Energy,” says Koepp. “The paperwork is very important. Now Hot Water
Products can turnkey a solar project for a contractor. Design, paperwork,
permits — dealing with all that can cause a bottleneck in the industry, and
leave the door open for potential fraud.”
Laskowski has been happy with the working relationship. “It’s great to have a
local company like Hot Water Products, who will stock the products I need so I
don’t have to comb the Internet looking for parts, who will offer the tech
support and answer my questions. It makes it easier for a company like ours to
do solar.”
Craig Tarr, president of Energy Concepts Inc. (River Falls,
Wis.) is also glad Hot Water Products is bringing solar goods through the
traditional supply chain.
“They’re a one-stop shop for me. They provide the leads, products, support and
follow-through I’m looking for,” Tarr says, and adds that its close location is
a “big deal” and saves him money on shipping.
Energy Concepts, a full-service design/build renewable energy installation
company, recently completed a large commercial solar project in Sheboygan,
Wis., for Wigwam Mills, a manufacturer of high-end knit athletic socks. The
project included 27 collectors, a 120-gallon drain-back tank, flat plate heat
exchangers, two 650-gallon ASME-rated tanks, and all the necessary pumps and
equipment.
It was a unique project that started with a lead from Hot Water Products to
Tarr’s engineering firm, which provided the system design. Wigwam’s own onsite
contractor did the main piping, and Steiner Plumbing and Engineering, a
commissioned contractor with Energy Concepts, made the final hook ups. “It’s
been up and running for two months now, and its performance has gone beyond the
owners’ expectations,” Tarr boasts.
It’s these turnkey projects that are generating word of mouth and more business
for solar thermal installers. And while Hot Water Products is not even close to
the cheapest supplier in his market, Tarr is far more interested in the
value-added services the company provides its customers.
‘Service Beyond The Sale’
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| This
functioning mobile solar display unit is loaned for tradeshows to customers
free of charge. |
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Besides its tech support, training lab, incentive
insight, and warehouse stocked with solar and heating equipment, Hot Water
Products also has invested $25,000 in a mobile display unit: a replica house
with an operating solar system, panels on the “roof” and a Munchkin boiler.
The display is delivered to contractors by request and at no cost. It has been
showcased at more than 60 trade and product shows, where more than a quarter of
a million consumers have had the opportunity to become better
educated.
“What we sell is not only provisions,” says Koepp. “We have service techs and
troubleshooters available. We offer these value-added services, such as system
design and now a working display.”
The company is known for going above and beyond with its customer service, from
delivering parts after-hours and on holidays to forwarding leads it receives
from tradeshows to its list of contractors.
Koepp attributes much of Hot Water Products’ reputation to founder Howard
Endres and his partner Gregory “Jack” Daniels. “They’ll
answer the phone 24/7. You’ll see them every day dolling out the work and
coming in for training sessions.” They
are dedicated to the firm’s motto, “Service Beyond the Sale,” Koepp says, and
it’s contagious. Each of Hot Water Products’ 17 employees treats its customers
the same — “like their next $100,000 sale.”
Hot Water Products is happy to call itself an “old fashioned” company that
still likes to horse trade. And while the rest of the country plays catch-up to
the solar market, this wholesaler — though small — is a hard worker that’s
poised to grow even more.
It is also confident in the future of solar heating. “If we can get the
structure back in to the supply chain, contractors will see the value, and
building owners will ultimately benefit,” Koepp concludes.
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