BCH Torchiere Market Assessment

Transcription

TORCHIERE LIGHTINGMARKET BASELINE ASSESSMENTFOR BC HYDROJune 18, 2004A REPORT BY

ACKNOWLEDGEMENTSJEM Energy and Associates wish to acknowledge the efforts of Fred Liebich and hisentire BC Hydro Power Smart team for their contributions in the valuabledirection, input and constructive comments of this report.Respectfully submitted,Dave MillerProject LeadPrinciple, JEM Energy Inc.44 STRATHCONA RD. SWCALGARY, AB T3H 1V5403-860-6361dmiller@jemenergy.com2

TABLE OF CONTENTSEXECUTIVE SUMMARY .51TECHNOLOGY PROFILE.71.1Background . 71.2Description of Available Torchieres. 71.3Energy and Demand Savings Potential. 81.4Reliability. 91.5Power Quality. 91.6Health and Safety. 101.7Environmental Impact. 111.8Functional Impact of Energy Efficiency . 112MARKET RESEARCH AND ANALYSIS .132.1Methodology . 132.2Questionnaire . 142.3Survey Responses . 142.4Market Analysis . 142.5Current B.C. Torchiere Market . 162.6Current Penetration of Torchiere Lighting in the B.C. Market. 172.7Pricing . 202.8Promotion . 212.9Retailers’ View of Consumers. 212.10Market Barriers to High Efficiency Torchieres. 242.11Consumer Awareness of Energy Efficiency . 253

2.1233.1Standards . 26BUSINESS PLAN & RECOMMENDATIONS.28Objectives. 283.2Initiatives and recommendations. 283.2.1Voluntary Initiatives . 293.2.2Market-driven Initiatives . 294CONCLUSION .335APPENDICES .346REFERENCES .594

EXECUTIVE SUMMARYThe halogen floor lamp or torchiere reached the North American market in the mid-1980s fromthe lighting design houses of Italy. Priced at hundreds of dollars, it was an elegant, “high tech”way to provide brilliant, white, indirect light in upscale homes. Prior to this, incandescenttorchieres had been available but were not as popular because of the high cost and modest lightoutput.By the late 1980s, the halogen torchiere’s basic design had been copied by various factories inChina and Taiwan, which were able to produce the product at a far lower cost. These lessexpensive halogen torchieres began reaching the North American market in quantities of millionsper year by the early 1990s, and prices fell to as low as 16 per fixture.At these prices, halogen torchieres took the North American lighting market by storm, capturingnearly 10% of all types of light fixtures sold each year. Home improvement centres and discountstores routinely sold the products in prominent displays at the end of retail aisles and used themas a means of building traffic, even if it meant making little or no profit on their sale. However,by 1995, evidence began to emerge that halogen torchieres were causing an unusual number ofhousehold fires, due mainly to the extremely high filament operating temperatures of 750 F to1100 F.Due to the popularity of torchieres, utilities had become concerned about the high powerconsumption and sought a more energy efficient lamp. The compact fluorescent (CFL) wasavailable but the lamp alone cost as much as some entire torchiere fixtures. At that time, CFLsprovided less light, had no dimming or multi switching capability and were not usable in halogentorchiere fixtures.Though inexpensive to buy, halogen torchieres use significant energy - 300 to 600 watts of powerto operate while incandescent torchieres use about half this amount. The energy required tooperate a halogen torchiere for five years costs approximately 131.00 and an incandescent costsapproximately 65.00. In both cases, the majority of energy is wasted on generating heat so mostof the electricity they consume is wasted.Since the early 1990s great strides have been made in CFL technology. The light produced iscomparable to that of halogen; the lamps last up to 10,000 hours and reach temperatures of only100 to 200 F; lamps use only 56 to 72 watts (so the comparable energy cost is about one sixth ofthe halogen or approximately 32 over five years) and only need to be replaced every four toeight years.In 2004, BC Hydro commissioned JEM Energy to conduct market research with retailers,distributors and manufacturers. The objective was to determine market penetration of torchieresin B.C. and recommend an effective strategy to maximize the more energy efficient CFLtechnology to replace less efficient halogen and incandescent lamps.JEM Energy developed a comprehensive data-base for retailers and manufacturers/distributorsand then used telephone, email and facsimiles to solicit responses to questionnaires. JEM Energycontacted a total of 69 retailers, 14 distributors, and 23 manufacturers.5

Based on information from reputable sources, it is estimated that there are approximately 700,000halogen or incandescent torchieres in B.C. Since sales of halogen torchieres have been in sharpdecline due to safety issues, it is estimated that there is a 60/40 halogen/incandescent split in thefixtures currently in use.Based on this data, if all halogen and incandescent torchieres could be replaced by CFLtorchieres, annual energy savings for B.C. could be approximately 10.4 million and 174 GWh,which would mean a reduction of 62,640 tonnes of CO2.While there are definite benefits for making the switch to CFL torchieres, such as theconsiderable savings, there are also some barriers preventing a quick conversion. Consumerawareness tops the list followed by distribution challenges and product availability.Although consumers benefit on multiple levels from using energy efficient products, utilitiesoften must stimulate demand for these products through education and public outreach events. Inthis case, it is fundamental to the successful outcome of a CFL transition program to ensure thatCFL torchieres exist in the market that meet customers’ needs by providing the desiredbrightness/light output and appealing design. To encourage the conversion market, JEM Energyhas proposed several initiatives that BC Hydro could implement alone or in partnership withothers. These include sessions with manufacturers and distributors, targeted communicationprograms, a web-based conversion calculator, a torchiere turn-in program and co-op programswith other interested and affected parties.6

1 TECHNOLOGY PROFILE1.1BACKGROUNDThe halogen floor lamp torchiere reached the North American market in the mid-1980s from thelighting design houses of Italy. Priced at hundreds of dollars, it was an elegant, “high tech” wayto provide brilliant, white, indirect light in upscale homes. Prior to this, incandescent torchiereshad been available but were not as popular because of the high cost and modest light output. Bythe late 1980s, the basic design had been copied by various factories in China and Taiwan, whichwere able to produce the product at a far lower cost. These less expensive halogen torchieresbegan reaching the North American market in quantities of millions per year by the early 1990s,and prices fell eventually as low as 16 per fixture.At these prices, halogen torchieres took the lighting market by storm, capturing nearly 10% of alltypes of light fixtures sold each year. Home improvement centres and discount stores routinelysold the products in prominent displays at the end of retail aisles and used them as a means ofbuilding traffic, even if it meant making little or no profit on their sale.By 1995-1996, evidence began to emerge that halogen torchieres were causing an unusualnumber of household fires. The four main reasons are cited in the section on Health and Safety.Measures to reduce the risk were implemented by the safety standards authorities and, as thesafety issue with halogen torchieres was highlighted, the market has shifted from halogen toincandescent lamps.1.2DESCRIPTION OF AVAILABLE TORCHIERESTorchiere lighting fixtures are portable, free-standing floor lamps that are designed to provideindirect illumination to an area by directing light upwards, which is then reflected off the ceilingand walls. Structurally, in its basic form, it consists of a metal column approximately 1.8 m highmounted on a base designed to provide a degree of stability and topped with a saucer-shapedreflector that contains the lamp.The fixtures are available in a range extending from inexpensive incandescent and halogen units( 16-20), through more expensive but more energy efficient compact fluorescent (CFL) units( 50-80), to highly decorative and very expensive “designer” units ( 200 and up). Onemanufacturer of high end units uses metal halide (high intensity discharge [HID]) luminaires,which are targeted more toward office/institutional applications. None of these was found in retailoutlets.Indirect up-lighting is relatively inefficient in that the light has to travel greater distances to theplane of illumination than does light from a direct source. The inefficiency is compounded by therelatively low reflectivity of ceilings and wall surfaces, from which the light must be “bounced.”Halogen lamps are a high intensity light source which, to avoid acute visual discomfort, must bekept out of direct sight. Incandescent lamps and, to an even greater extent, fluorescent lamps arelower intensity and will not cause discomfort if viewed through refracting glass. Takingadvantage of this, some torchiere manufacturers are using a refracting glass bowl (in place of asolid reflector) on their incandescent and CFL torchieres. This permits a percentage of the lamp7

lumens to be emitted as side light and down light thus increasing the fixture’s coefficient ofutilization.A recent addition to torchiere features is the reading arm light. This feature is found primarily onincandescent torchieres and takes the form of a small (typically 20 watt) halogen lamp with areflector, flexibly mounted on the torchiere column about 1.2 m from the floor. It can be adjustedto provide direct illumination to reading material for a person sitting adjacent to the torchiere.Most incandescent, halogen and CFL units are equipped with either stepped or continuousdimming control while some have on/off switching only.Consumers sometimes add to the considerable variables in torchiere features by purchasingincandescent torchieres and then installing either (electronically self-ballasted) integral CFL(s) orhalogen A-line lamp(s) in place of the recommended standard incandescent lamp(s).1.3ENERGY AND DEMAND SAVINGS POTENTIALOriginally, halogen torchieres used one 120v 500w T3 double-ended tubular quartz lamp.Following the Underwriters’ Laboratories (UL) Bulletin, revising UL Standard 153, which wasissued in 1996, the lamp wattage was reduced to 300 watts. Research indicates that a significantnumber of the halogen torchieres currently being sold are fitted with a 250 watt T3 lamp.Incandescent units use either one or two 100 watt or 150 watt A-line lamps or a 150 watt trilight(two filament) lamp.The most common CFLs used in torchiere applications are the 55 watt 2D lamp (below right), the55 watt 2C concentric circular lamp (below left), or 2 T5 circline lamps, 1 – 40 watt and one 22watt, concentrically mounted as shown in the centre illustration below.The total power consumed by a fluorescent lamp and ballast combination is determined by theballast. The torchieres described above have rated inputs ranging from 56 to 72 watts. (Ref:http://ciee.ucop.edu/Siminovitch1998/) In order to provide realistic but not overstated energysavings estimates 70 watts was chosen to represent the input power of compact fluorescenttorchieres. Comparing this to the 300-watt halogen would result in energy savings of 230 watts(77%) per unit.At the approximate BC Hydro residential rate of 0.06 per kWh, and an average 4 hours use perday, each 300 watt fixture replaced with a 70 watt CFL could save its owner 20.15 per year.8

The potential energy and demand savings by replacing halogen and incandescent torchierescurrently in use in B.C. are shown in the following table.Potential Energy and Load SavingsSource1.4Number ofTorchieresReplacedPeakAnnualDemand EnergyReduction SavedWattage(MW)(GWh)100.74300 H69.023.36150 000300 H150 60,000900,000300 H150 aved 6,044,400 1,401,600 7,446,000 8,462,400 1,962,000 10,424,400173.74181.33 10,879,80042.05 2,523,000223.38 13,402,800RELIABILITYAfter their introduction in the early 1980s, electronic fluorescent ballasts suffered a fairly highfailure rate. In the last 20 years, the technology has matured and electronic ballasts are nowmechanically and electrically robust and highly reliable. Some carry a manufacturers’ warrantyfor five years.It may be reasonably expected that the electronic ballast will be trouble free for its expected lifeof 10-12 years. Like most solid state equipment, the few faults or failures that do occur usuallyshow up in the first six months of use, when they are covered by warranty.Traditionally, because of evaporation of the metal filament due to high temperature operation andsusceptibility to damage by vibration or mechanical shock, incandescent filament lamps of alltypes have been the weakest link in any luminaire. Being regarded as expendable items, lampshave certainly been the most frequently replaced part of any fixture. This will be less true of CFLtorchieres where, in some cases, the lamp will last for the useful life of the fixture.Incandescent lamps in the sizes used in torchieres have a relatively short life being rated for 750hours or about half a year of average torchiere use. The T3 halogen lamp used in torchieres arerated for 2,000 hours or about 1.4 years of average torchiere use. Compact fluorescent lamps ofthe type being use in CFL torchieres have a rated average life of 10,000 hours or 6.9 years ofaverage torchiere service.1.5POWER QUALITYAll fluorescent lighting emits some electromagnetic energy, which may cause interference withother electronic equipment. Such incidents can normally be resolved by slightly increasing thedistance between the offending items.9

Higher wattage compact fluorescent lamps, which are being used in torchieres, are not selfballasted (integral) or connected by means of a ballast adapter (modular). Rather, the electronicballasts for these lamps are separately mounted in the torchiere fixture (dedicated), and may becharacterized by low power factor - approximately 64%, and 33% total harmonic distortion(THD), or high power factor - above 90%, and less than 20% THD.Ref: phtml?Category 100072&Part CUL-2DThe low power factor versions should cause no problems in limited residential applications. Thehigh power factor, low THD version is certainly to be preferred in commercial or institutionalapplications where significant quantities of fixtures may be used in one building.One fixture was found to be supplied with a 13 watt screw-in CFL, with advice on the carton thatan incandescent A-line lamp up to 100 watts may be used instead if desired. Electronically selfballasted (integral) CFLs are low power factor (50%) units and can have significant current waveform distortion. Some manufacturers list the total THD for their units as 170%. Use of these unitsin significant quantities in commercial/industrial applications may cause power quality problems.In residential applications such problems are not likely to materialize.Ref: igate746.html)1.6HEALTH AND SAFETYSafety has been a very large issue with halogen torchieres. Halogen torchieres have been thecause of many building fires, loss of human life, and some litigation in the United States. InCanada, the Offices of the Fire Marshall of both Ontario and B.C. have issued warning bulletinsand Saint Mary’s University in Halifax, NS, has banned the use of halogen torchieres anywhereon campus.The main reasons for the safety concerns are: The double-ended halogen lamps typically included with torchieres were rated at 300 to 600watts of power, which corresponded to filament operating temperatures of 750 F to 1100 F higher than the combustion temperature of paper, cloth, wood, plastic and many othercommon household materials. Their lamps were prone to catastrophic failure if handled improperly during installation,which occasionally caused hot quartz fragments to scatter onto adjacent combustibles. The torchiere design, with an open bowl elevated above eye level and tall enough to be neardraperies and hanging plants, allowed combustible materials to come in close contact with thehot halogen lamp. The torchiere design was somewhat more top-heavy and unstable than other floor lamps,increasing the risk that children, pets, strong winds through open windows or evenearthquakes could tip over the fixtures and bring the hot halogen lamp in close proximity tocombustible materials.Responding to these incidents and several lawsuits, manufacturers began to fit a wire mesh guardover the top of the reflector. While this reduced the risk of burns to inadvertently inserted fingers,it was not fully effective in preventing material close to the reflector from reaching its ignitiontemperature.10

In May 1996, Underwriters’ Laboratories (UL) issued a bulletin to manufacturers instructing that,in order to continue using the UL listing mark, the product must be revised to use lamps of notmore than 300 watts; use a guard or lamp containment barrier made of glass in accordance withUL 153; and carry a label indicating that lamp replacements should be 300 watts maximum. The300 and 500 watt tubular halogen lamps were the same physical size, which made it possible forthe larger lamp to be substituted by the consumer. In December of 2003 there was a furtherrevision to UL 153. The Canadian Standards Association (CSA) issued a Certification Notice tomanufacturers of portable luminaires, bringing their standard to agreement with UL 153, effectiveApril 10, 2004. Their Certification Notice, which is attached as Appendix E, revises the definitionof a torchiere and describes the requirement for guarding of the incandescent lamps used undercertain conditions in torchieres or be subject to the “Abnormal Operation Test”, which previouslyapplied only to halogen torchieres.In some situations consumers install halogen A-line lamps in torchieres specified for standardincandescent lamps only. Since halogen A-line lamps have an outer glass envelope surroundingthe quartz tube, their surface temperature is similar to an equivalent incandescent lamp.1.7ENVIRONMENTAL IMPACTCFLs contain mercury in very small quantities (approximately 5 milligrams per lamp). In spite ofthis, CFLs are still the environmentally responsible choice in residential lighting. Each CFL usesonly 25% of the energy used by its incandescent equivalent and lasts 5 – 10 times longer. Theseenergy savings and longer life conserve natural resources and reduce loads on the residentialwaste stream and landfills.One of the primary sources of mercury release into the environment is the combustion of fossilfuels. If the energy saved by the residential application of CFLs displaces fossil fuels burned in athermal generating station, then an overall reduction in mercury release could result.Ref: thEdition.pdfAs the residential use of CFLs increases, it will be desirable to find ways to properly dispose ofused CFLs to minimize the environmental impact. Since the cost of recycling CFLs is currentlyvery high, authorities may be tempted to apply a disposal charge to the purchase price, similar tothat applied to tires, motor oil, filters and car batteries in some Canadian jurisdictions. Such acharge would likely have a negative environmental impact, in that it would encourage theconsumer to continue the use of incandescent lighting.From a global warming perspective, and again assuming that the energy savings displace fuelburned in a thermal plant, then an annual 62 640 tonnes reduction in CO2 emissions is possible,based on the mid-range of torchiere replacements calculated in the Market Analysis section.1.8FUNCTIONAL IMPACT OF ENERGY EFFICIENCYTraditionally, consumers have preferred incandescent filament lamps for residential use. This isdue to the warm appearance of the light and its high colour rendering index (CRI). The low CRIof older fluorescent lamps, while accepted for its relative energy efficiency incommercial/industrial applications, was not all that appealing in a residential situation. In additionto this, a small proportion of the population has sensitivity to the 120 Hz flicker present inmagnetically ballasted fluorescents. These barriers to the residential use of fluorescent lightinghave been largely removed by the higher CRIs given by improved lamp phosphor mixes and the11

high frequency lamp operation afforded by electronic ballasts. These improvements have not yetbeen widely recognized by residential consumers.There are many tangible changes that will result from the use of this technology. The table belowprovides a quick comparison of halogen, incandescent and compact fluorescent torchieres.Cost per yearPower consumptionLamp temperatureLamp efficiency (lm/W)Lamp life (hours)Lamp LumensHalogen 26.20300-500 watts700–1100 F19-211,000-2,0005,900-11,000Incandescent 13.14100-300 watts300-400oF16-18750-1,0001,700-5,700CFL 6.5755-75 watts100–200 F60-708,000-10,0003,400-4,600Energy efficiency initiatives have direct benefits for customers by saving energy andmoney. There are cross effects to such measures that relate to energy savings such as theloss of heat due to less lighting which needs to be made up in the winter season by theheating system and by the cooling system in the summer season. Some examples of thisand other cross effects are listed below: reduced CO2 or other greenhouse gas emissions from decreased demand forelectricity generation improved summer comfort, since all energy used in lighting is ultimately dissipatedas heat. The lower wattage CFLs would provide additional electric energy savings inair conditioned homes through the reduced cooling load. reduced disposal of old lamps from longer life will provide an environmental benefit increased economic opportunities for Canadian manufacturers and suppliers.12

2 MARKET RESEARCH AND ANALYSIS“The greatest barrier for torchiere lighting is lack of availability of inexpensivedimmable or high/low electronic ballasts.” - Survey respondentThis section provides a comprehensive report on the torchiere research and the penetration of thistechnology across B.C. The numerous players in the market chain are identified and an analysisof the process to deliver a successful technology to market is detailed in the Business Plan andRecommendations.To provide the market research required for this report, a significant amount of data collectionwas required. The bulk of work was done in:developing a contact data base of lighting retailers, including specialty lighting storesand the big box stores, and manufacturers and distributors serving B.C.designing an effective methodology for data collection with all involved players in thelighting supply chain, through a combination of email-based and telephone surveysoffering an incentive to complete the survey. It was approved by the client that this reportcould be made available to all those who participated in the survey.2.1METHODOLOGYJEM Energy used telephone, email and facsimiles to solicit responses to the questionnaires forretailers and manufacturers/distributors. Retailer interviews were all conducted by telephone,except one large big box retailer who requested a copy by email, completed it for all stores inB.C. and returned it by fax. Manufacturers and distributors were sent questionnaires by email,completed them and returned them by email or fax. JEM Energy contacted a total of 69 retailers,14 distributors and 23 manufacturers. The retailers’ stores contacted were comprised of 45specialty lighting stores, 23 contacts in two Home Improvement big box retail chains, plus 1 bigbox head office that responded for all of its B.C. retail stores. A fourth big box retail chain wascontacted but did not respond.JEM Energy developed a substantive contact database to collect the information required. Thiswas accomplished through internet searches and industry contacts.13

2.2QUESTIONNAIREJEM Energy designed two survey instruments, one for retailers in B.C. and one formanufactures/distributors who sold torchieres in B.C. The draft survey questionnaireswere sent to BC Hydro for review and comments. Changes were incorporated and thequestionnaires finalized. The retailer surveys were all conducted by telephone, except onebig box retailer who completed and returned it by email. The intent was for themanufacturer/distributor surveys to be conducted by telephone but, after testing with 3respondents, it became clear it would be more effective to complete on hard copy. Allmanufacturers’ and distributors’ surveys were then emailed or faxed and completedresponses were returned by the same mode. The telephone retailer survey was estimatedto take about 15 minutes to complete for most respondents. The questionnaire wasdesigned to make it as easy as possible for the target audience to respond.2.3SURVEY RESPONSESThe retailers were interviewed the week of February 24. Manufacturers and distributorswere sent their surveys between February 24 and March 9 and requested to return withinone week.A total of 47 retailers (27 specialty, 20 big box,) responded for a response rate of 68%, 6major manufacturers responded for a 26% response rate, and 3 distributors responded fora 21% response rate. Although the number of distributors and manufacturers seems low,it was confirmed they are the larger ones serving the B.C. market.2.4MARKET ANALYSISTorchiere floor lamps are available in designs ranging from a simple tubular pole mounted on abase and supporting a steel dish reflector containing and concealing the lamp, to very ornatepieces of furniture, bordering on art.The wide range of designs, which are priced from 20.00 up to 1,000.00 or more, may beconsidered akin to comparing a bedroom square ceiling fixture with a cut-glass chandelier, andclearly appeal to consumers for similarly diverse reasons.For the purposes of this study, the range of torchieres available may be best considered in threecategories:1. High End Designer FixtureSmaller companies that commonly specialize in residential lighting fixtures only make the highend designer fixtures. They are designed to complement traditional or period styles of interiordecor and appeal to their purchasers on the basis of design and appearance above all other factors.14

They are most often sold in smaller specialist lighting shops that cater exclusively to the high endof the market. They are most likely to use incandescent (type A) lamps as their light source andmay retail from 300.00 to 1000.00, depending on the degree of artistry in their design andconstruction.Included in this category are some equally expensive imported torchieres from Europeanmanufacturers. These may use smaller wattage quartz halogen lamps as their light source.2. Mid-Range FixtureThe mid-range class of fixture is commonly of North American manufacture and is designed incontemporary styles that suit a wider range of interior decors. These use halogen, incandescent orfluorescent lamps as their source of illumination.Several po

halogen A-line lamp(s) in place of the recommended standard incandescent lamp(s). 1.3 ENERGY AND DEMAND SAVINGS POTENTIAL Originally, halogen torchieres used one 120v 500w T3 double-ended tubular quartz lamp. Following the Underwriters’ Laboratories