Lennox - Experts & Thought Leaders

Lennox Residential HVAC, a trusted home comfort solutions and energy-efficiency innovator since 1895, announced the latest addition to its industry-renowned Dave Lennox Signature® Collection with the launch of the SL25KCV Air Conditioner, the most precise and efficient air conditioner available.  A recent survey found that 81% of homeowners consider the installation of high-efficiency HVAC equipment to be either extremely or very important to them due to potential savings, with 91% reporting lower monthly bills as the most appealing advantage. Lennox SL25KCV Air Conditioner The Lennox SL25KCV Air Conditioner delivers an unmatched efficiency rating of up to 26.00 SEER2 (Seasonal Energy Efficiency Ratio 2) and can help lower energy bills while keeping the home cool and quiet. Additionally, its Precise Comfort® technology finely tunes and adjusts cooling output in tiny increments to perfectly match energy use, effortlessly meeting homeowners’ desire to help the planet and their wallets.  HFC refrigerants The intro of the SL25KCV Air Conditioner precedes an upcoming industry-wide growth in unity with the AIM actThe introduction of the SL25KCV Air Conditioner precedes an upcoming industry-wide transition, in accordance with the American Innovation and Manufacturing  (AIM) Act and U.S. Environmental Protection Agency (EPA), to phase down high-hydrofluorocarbon (HFC) refrigerants by using low global warming potential (GWP) alternatives.  This change will take place on January 1, 2025. With substantially lower GWP than previous refrigerants, the launch of the SL25KCV Air Conditioner complies with updated EPA regulations and is formulated to provide peace of mind for years to come. 2025 Compliant Refrigerants As part of its relentless pursuit of staying ahead of industry standards, Lennox updated its entire product lineup to use 2025 Compliant Refrigerants and will continue rolling those products out over the next several months. "As the industry transitions to low GWP refrigerants, Lennox is introducing products that meet and exceed regulatory requirements, supporting both sustainability and operational efficiency," said Prakash Bedapudi, Chief Technology Officer at Lennox. S40 Smart Thermostat SL25KCV Air Conditioner’s digital touch features maximize exact control when paired with a thermostat Prakash Bedapudi adds: "The SL25KCV exemplifies our commitment to providing innovative, high-performance HVAC solutions that deliver industry-renowned energy efficiency for homeowners and advance our efforts toward a sustainable future."  In addition to its groundbreaking 26.00 SEER2 rating, the SL25KCV Air Conditioner’s digital communication features maximize accurate control when paired with the S40 Smart Thermostat. Sensors in the equipment make diagnosing issues seamless for dealers, while automatic system adjustments accurately maintain temperature, humidity, and air quality levels for homeowners. SilentComfort™ technology Thanks to SilentComfort™ technology and the air conditioner’s variable-speed compressor, the unit can achieve a whisper-quiet operation as low as 58 dB or the sound of a microwave. Additionally, Quantum™ Coil technology and premium quality materials like the composite unit base and top and galvanized steel cabinet prevent corrosion and deliver peace of mind. 

AtmosZero, the company on a mission to decarbonize steam, announced that former industrial heating, ventilation, and air conditioning (HVAC) executive, Michael Schwartz, has joined its Board of Directors.  Michael Schwartz assumes this role as AtmosZero scales manufacturing for its Boiler 2.0 technology globally and continues to expand its reach into new applications and sectors. Prior roles of Schwartz Schwartz served as the President and CEO of DAA, a subsidiary of Daikin Industries, Ltd Michael Schwartz brings unparalleled experience in the commercial HVAC industry and a proven track record in growing profitable businesses through global brand development, channel management, product innovation, and acquisitions. Most recently, Schwartz served as the President and CEO of Daikin Applied Americas (DAA), a subsidiary of Daikin Industries, Ltd. Under his leadership, DAA increased its revenue by 300 percent, doubled its employee count, and successfully transformed the company beyond an equipment manufacturer to a solutions provider focused on software and systems integration. Boiler 2.0 technology “Steam accounts for nearly eight percent of global greenhouse gas emissions. To tackle a challenge of this scale, we need the brightest minds in the industry, and we’re thrilled to welcome Michael to our Board of Directors,” said Addison Stark, CEO of AtmosZero. Addison Stark adds, “He is one of the most respected and accomplished executives in the industry and his guidance will be invaluable as we deploy our Boiler 2.0 technology worldwide.” Cost-effective steam solution “This is a pivotal moment for the industry and the need for a cost-effective steam solution in industrial, commercial, and district applications is undeniable,” said Michael Schwartz.  Michael Schwartz adds, “AtmosZero has reimagined the boiler room with its groundbreaking Boiler 2.0 technology and revolutionized how steam is produced. Together, we have a unique opportunity to scale globally and transition customers to a decarbonized and efficient steam solution.” Schwartz leadership positions  Before DAA, Michael Schwartz held multiple leadership positions at Lennox International Before DAA, Michael Schwartz held multiple leadership positions at Lennox International, including President and COO of Worldwide Refrigeration and North American Distributed Products.  Schwartz previously served on the Daikin and the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) Board of Directors. He is a graduate of Iowa State University with a B.S. in Mechanical Engineering. BizWest’s Technology IQ Award Earlier this year, AtmosZero contributed to the Colorado Energy Office’s Roadmap 2.0 for Decarbonization and spoke about the current state of climate capital at The White House. Additionally, AtmosZero was recognized with BizWest’s Technology IQ Award and was named a finalist for New York’s Empire Technology Prize to help advance low-carbon solutions for tall commercial and multifamily buildings.

Budderfly, the preferred sustainability partner for commercial businesses with repeatable footprints, is partnering with trade schools nationwide to address the persistent lack of qualified “high-tech” skilled labor in the HVAC/R industry. The partnership will focus on training energy technicians, with Budderfly investing in state-of-the-art energy technologies, including heat pumps, ultra-high-performance HVAC units, and advanced HVAC control systems. The trade schools will deliver hands-on training, unlocking an accelerated path to growth and helping build a skilled workforce for the clean energy economy. Next generation of workers "Concerted efforts must be put toward workforce development if we are to sustain a clean energy economy. Our company is growing at a rapid pace, and we are constantly running into challenges to keep up with volume and demand due to a lack of skilled equipment installers,” said Al Subbloie, chief executive officer and founder of Budderfly. “Partnering with trade schools to educate and train the next generation of workers on the latest technology will overcome this barrier, not just for us, but for the industry as a whole. We look forward to preparing the next generation of workers for long, thriving careers.” Demand for skilled HVAC technicians Demand for skilled HVAC technicians will grow by 6% annually through 2032 According to the Bureau of Labor Statistics, an aging workforce and insufficient recruitment efforts have led to a 50% decrease in the number of certified HVAC technicians over the past decade. As the built environment takes additional steps to decarbonize, demand for skilled HVAC technicians will grow by 6% annually through 2032, adding nearly 40,000 new jobs each year. With access to more sophisticated technologies through Budderfly, and its equipment partners like Fujitsu, Carrier, Lennox, and others, trade and technical schools across the country can level up their teaching capabilities. Benefits of energy-efficient technologies “Partnering with Budderfly is a transformative opportunity for our students,” said Jennifer Nunes, National Director of Career Services at Lincoln Tech in Connecticut. “Trade schools don’t always have access to the latest or most innovative technologies and we often have to train students using outdated equipment. Through our partnership with Budderfly, we can better train our students and ensure that they are job-ready and equipped to deliver high-quality work from day one.” “A skilled workforce is essential to maximize the benefits of energy-efficient technologies and to meaningfully reduce carbon emissions,” said Tomokazu Hosoi, president of Fujitsu General America, one of Budderfly’s preferred equipment providers. “Initiatives like this partnership with trade schools are crucial in helping develop the expertise needed to operate and maintain these advanced solutions effectively and for a long time.” Most advanced skills Budderfly delivers Energy as a Service (EaaS) solutions to more than 6,200 customer sites across the United States. Investing in a well-trained workforce, equipped with the most advanced skills to install and service complex energy technologies, is essential to reduce the number of unfilled jobs in its pipeline and accelerate growth. Budderfly is now accepting applications from trade schools and experienced HVAC technicians to join its dedicated network of energy technicians.

The idea of Energy as a Service involves shifting the traditional business model from selling energy as a commodity to providing a comprehensive package of goods and services to address a customer’s energy use and management. Rather than selling energy, the approach encompasses complete stewardship of a company’s energy needs in exchange for a monthly fee. Because 40% or so of a company’s typical energy needs are related to heating and cooling systems, implementing Energy as a Service (EaaS) is tied directly to a company’s HVAC systems. heat pumps and HVAC technologies In the EaaS scenario, an outside company pledges to meet a customer’s energy needs at a discount, say 5%, below what they currently pay. By then strategically seeking to lower the customer’s energy costs by more than 5%, the EaaS company uses the extra margin to pay its own costs and to attain a profit. For example, if a customer’s energy costs can be lowered by 30%, the EaaS company retains 25% every month for the term of the agreement, typically 10 years. Any costs associated with providing the service come out of the 25%. In the EaaS scenario, an outside company pledges to meet a customer’s energy needs at a discount Specifically, working to lower energy costs by that much involves an upfront investment in infrastructure, such as heat pumps and HVAC technologies, to lessen energy consumption. The idea is that the profitability of lowering energy costs will offset even a substantial investment over time. Energy-related infrastructure Briefly stated, that is the business model of Budderfly, which assumes management of a company’s energy infrastructure and becomes the “account holder” with the utility. Once an EaaS contract is signed, Budderfly then invests to upgrade the customer’s energy-related infrastructure, including LED lighting, refrigeration, etc., in addition to HVAC. The goal is to decrease energy usage by 30% or more.  Budderfly typically upgrades the variable frequency drive (VFD) When upgrading the infrastructure, Budderfly “owns” any new infrastructure assets for the term of the EaaS agreement, say 10 years, and amortizes the cost over the timespan. At the end of the term, the assets are turned back over to the customer unless they renew the contract. In the HVAC arena, Budderfly typically upgrades the variable frequency drive (VFD), economizers, and other equipment in a rooftop unit or other machinery when it takes on a new customer. Embraces the EaaS scenario EaaS has a direct incentive to invest in the newest technology to slip the client energy usage “Looking at the opportunity to save 5% of their energy costs, many customers think it seems too good to be true,” says Al Subbloie, President, CEO and Founder at Budderfly. The price of the EaaS contract is based on a two-year review of the customer’s utility bill, which creates a baseline against which the 5% discount is provided. On the consumption side, replacing a rooftop unit with a new Lennox, Carrier, or Trane high-efficiency unit can provide 30 to 40% savings in energy usage. When a customer embraces the EaaS scenario, the EaaS company has an immediate incentive to invest in the newest technology to lower the customer’s energy usage. The more they save on energy, the more they earn in profits. EaaS approach In contrast, in a business model involving energy purchased as a commodity, there is little urgency to upgrade the equipment. That explains why so much equipment currently installed is so out-of-date and energy inefficient, says Subbloie. “We did not expect the infrastructure to be so bad,” he says. “I am sharing something the world is not aware of. As long as cool and hot air are coming out of the vents, no one is looking at the energy impact.” In fact, the EaaS approach is a growing factor in decarbonization. “We are a private capital method to save the world,” says Subbloie. “We are aligning capitalism and putting it to use to save the world (from climate change),” he says. Additional investments by Budderfly Budderfly can make a profit on an EaaS contract if it can achieve 30% savings on total energy costs Subbloie says Budderfly can make a profit on an EaaS contract if it can achieve 30% savings on total energy costs. Of the 30%, Budderfly returns 5% typically to the customer and then spends about 15% on capital improvements, amortized over 10 years. Additional investments by Budderfly include 3 to 4% on technology such as thermostats, metering and controls, and data systems. Other costs are to pay Budderfly’s 300 or so employees.  In the refrigeration realm, which might account for 15 or 20% of energy usage, Budderfly deploys controllers (such as KE2 Therm Solutions and NRM) to smartly regulate the compressor operation in refrigeration units. Door alert monitors and upgraded seals avoid any leakage of cool air. Deploying R-290 (propane) refrigerant systems boosts energy efficiency. EaaS strategy When Budderfly deploys solar systems, the cost becomes just another line on the customer’s bill – there is no purchase agreement or lease involved. Budderfly is transparent with the customer in terms of the money they invest in infrastructure and other costs. In addition to providing the customer with the initial 5% discount, Budderfly also typically shares with the customer half of the proceeds of any energy savings they can achieve above 30%. The EaaS strategy is applicable to a variety of markets, but Budderfly is finding initial success in the quick-service restaurant (QSR) market, where repeatable footprints of individual locations make EaaS calculations predictable and scalable. Probably 80% of their business is in casual dining and QSR installations, including 75 or so well-known restaurant brands; they work with large franchisees who operate multiple brands. top-down relationships Budderfly also has firms in healthcare needs, nursing facilities, office buildings, amenity stores Budderfly is also working to establish “top-down” relationships at the restaurants’ corporate level, which has the ability to impose EaaS as a standard throughout its footprint. “As the climate focus becomes more important, a restaurant brand might say to do it everywhere,” says Subbloie. Hotels and motels are another vertical markets amenable to this approach, and Budderfly also has business in healthcare markets, nursing facilities, office buildings, convenience stores, and other retail. They seek to limit each building’s size to 200,000 square feet or less. Regulated and deregulated rates Budderfly has a team that handles the onboarding of new customers, which involves a short, two-page agreement. Their automated system is connected to 500 utilities, and Budderfly tracks all the regulated and deregulated rates. If rates go up, their billing increases, still based on the 5% reduction that is part of the agreement.  Budderfly benefits from its high-volume acquisition of HVAC equipment at lower prices. “We buy a lot of stuff, we have agreements to buy at volume pricing, and we are constantly negotiating to lower the price,” says Subbloie. “We buy the best of the best to achieve the greatest energy-saving outcome, for obvious reasons. We negotiate prices on the expectation that our volume will make it lucrative (for OEMs).” Subbloie says Budderfly is the largest buyer of roof-top units in the country. Energy-efficient HVAC systems Budderfly’s model enables the facility of the latest and most energy-efficient tools In the scenario of buying energy as a commodity, customers have less incentive to proactively replace their HVAC infrastructure with more efficient models. They also may not have the means to invest in capital improvements to achieve better energy efficiency outcomes. In contrast, Budderfly’s model encourages the installation of the latest and most energy-efficient equipment, and that the equipment is fine-tuned and maintained. By pushing the transition to decarbonization based on an old-fashioned business motive (i.e., profit), Budderfly seeks to jump-start the adoption of more energy-efficient HVAC systems on a large scale. “We have an economic model that is sustainable,” says Subbloie. Investment in AI Budderfly also provides customers with abundant data on their energy usage, including submetering architecture that does 20 to 40 measurements per location.  Each point of energy use reports back every five seconds, providing operational data and suggesting a possible investment in artificial intelligence (AI) to make operations even smarter. 

New tax credits and rebates are poised to infuse billions of dollars into the HVAC marketplace in the United States, making a variety of high-efficiency technologies more affordable for consumers and generating additional revenue in the HVAC market for years to come. clean energy investments A new law provides Americans with access to $370 billion for clean energy investments in the form of tax credits, incentives, and rebates to improve energy efficiency. There is also a tax deduction for owners of commercial buildings retrofitted to meet energy-saving goals. In August 2022, President Biden signed the Inflation Reduction Act, which (despite its name) focuses on billions of dollars of spending on climate change and healthcare. Families can take advantage of clean energy and electric vehicle tax credits to save up to $1,200 per year. Energy-Efficient Home Improvement Tax Credit Inflation Reduction Act provides $14,000 in direct consumer rebates for families to buy heat pumps or other home appliances The law renews the Energy-Efficient Home Improvement Tax Credit and increases the credit limit for installing high-efficiency equipment such as heat pumps, central air conditioning systems, furnaces, hot water boilers, etc. The program is extended through 2032. The $1,200 annual cap includes up to $600 for a qualified air conditioner or gas furnace, and up to $2,000 for a qualified heat pump, heat pump water heater, or boiler. There are no income requirements, and the tax credit can be combined with local or utility rebates. In addition, the Inflation Reduction Act provides $14,000 in direct consumer rebates for families to buy heat pumps or other energy-efficient home appliances (contingent on income requirements). High-Efficiency Electric Home Rebate Program The High-Efficiency Electric Home Rebate Program (HEEHRP) provides point-of-sale rebates as high as $8,000 for a space heating or cooling heat pump. It also provides an $840 rebate on a stove, cooktop, range, oven, or heat pump clothes dryer, and $1,750 for a heat pump water heater. An additional rebate is available for non-appliance upgrades such as insulation, air sealing, and ventilation ($1,000). Rebate criteria There are limits to the amount families can receive, based on income and other factors. For example, a rebate cannot exceed 50% of the cost of a qualified project if the family’s annual income is between 80% and 150% of the median income in the area. For lower-income households, 100% of costs are covered. Each family is limited to $14,000 or less in total rebates under the program. Distribution and benefits Rebates will be distributed through state and tribal governments that establish their qualifying programs Rebates will be available beginning in January 2023 and continue through September 2031. Rebates will be distributed through state and tribal governments that establish their qualifying programs. How the rebates are distributed will vary from state to state. The new law will be a boon to manufacturers and installers of high-efficiency products such as variable-speed compressors and heat pumps.  cleaner, cost-effective product solutions "The federal government is making a substantial investment in electrification, which is a significant step to reducing emissions and combatting climate change,” says Alok Maskara, Chief Executive Officer at Lennox International. “As these new programs and incentives become available, we're committed to supporting Lennox dealers as they provide homeowners with cleaner, cost-effective product solutions for their homes." energy security These incentives present consumers with an opportunity to replace any aging, lower-efficiency HVAC systems" “By bolstering current supplies while accelerating the sustainable energy transition, the energy provisions of the Inflation Reduction Act will strengthen energy security and meaningfully reduce emissions, representing an important step towards a better future,” says Katie McGinty, vice president, and chief sustainability officer, Johnson Controls. "The[se] unprecedented incentives present consumers with a compelling opportunity to replace any aging, lower-efficiency HVAC systems with advanced, high-efficiency technology at a fraction of the cost," says Chris Nelson, President, HVAC, Carrier. cost savings with climate-friendly technologies "The cost savings are measurable for both the initial purchase and monthly energy costs as are the environmental benefits. Encouraging this shift to climate-friendly technologies signals an important step forward, and Carrier is committed to doing its part to drive progress." Carrier has launched its new Carrier EcoHome Program, which offers low-rate financing and additional savings on eligible high-efficiency products such as the Infinity series air conditioners and heat pumps.

As the Internet of Things (IoT) has evolved, the need has become obvious for stronger unity among brands and ecosystems to enable products within smart environments to work together more easily. Working to serve that need is the Zigbee Alliance, which seeks to promote collaboration in the Internet of Things by creating, evolving, and promoting universal open standards that enable all objects to connect and interact. Their effort took off when Amazon, Apple, Google and the Zigbee Alliance announced an industry working group in December 2019 to take the “best of market” technologies from leading smart home standards, portfolios and ecosystems and to develop a “super spec” that will be open, inclusive and a significant industry shift in the smart home market. smart home automation system “Zigbee Alliance has been for a while now working on openness and interoperability, which has led us to the Project Connected Home over IP (CHIP), which is looking to unify the environment, under one technology, one certification program and one logo,” says Chris LaPré, Zigbee Alliance’s IoT Solutions Architect. “It really does fuel IoT possibilities, whether in HVAC or any other sectors.” There is a stronger need for unity, which is why we are developing Project Connected Home over IP" Project CHIP is a royalty-free connectivity standard that unifies brands and ecosystems into a single smart home automation system that operates any other technology based on Internet Protocol (IP). The intent is to simplify product development for device manufacturers, broaden consumer choice, and to ensure easy discoverability, deployment and engagement to fuel connected living. unifies that environment “We have noticed that, as the IoT has evolved, there is a stronger need for unity, which is why we are developing Project Connected Home over IP,” says Jon Harros, Zigbee Alliance’s Director of Certification and Testing Programs. “It fits with the Zigbee Alliance’s goal to unify systems, and to focus on everyone using the same application at the top. It unifies that environment, whether you are integrating your system with Amazon Echo devices or connecting to Google Home.” Participating in development of Project CHIP are 125 companies of various types from around the world working together with more than 1,100 of their experts serving across sub-committees to formulate specifications and fine-tune the project. Although the technology is being developed for the home market, the specifications have been formulated with an eye toward expanding into the commercial market in the future. home system technologies Development of open, interoperable systems provides greater freedom for consumers to choose among the many technology choices on the market, without being tied to a single brand or ecosystem. Zigbee Alliance certifications and memberships span the globe, with roughly a third in Europe, a third in North America and a third in Asia. Involvement in Europe is slightly higher than the other regions. Alliance members represent manufacturing sites all over the world. Project CHIP is a newer initiative of the Zigbee Alliance, which previously developed Zigbee Pro to enable home system technologies to operate using IEEE 802.15.4 wireless signals on the 2.4GHz radio band over a self-healing true mesh network. The original Zigbee protocol is used for many applications around the world, including HVAC. smart temperature devices HVAC developers who have specific use cases should have a look at the work of the alliance Members of the Zigbee Alliance include HVAC companies such as Lennox, Stelpro and Belimo, among others. Carrier is a recent company that has joined the Zigbee Alliance. Smart thermostats, including the popular Ecobee, have used the Zigbee protocol. More than 100 different devices have been certified as thermostats or smart temperature devices.  Harros urges other HVAC companies to become more involved with the Alliance. “We want them to come and have a look to see what we are doing and get involved,” he says. “This is where the work is being done as we unify the environment and bring together all the devices and ecosystems to work together.” HVAC developers who have specific use cases should have a look at the work of the alliance, he adds. certification transfer program Among the strengths of the Zigbee Alliance are years of experience certifying products, which includes testing them and confirming that they comply with the promoted specifications and functionality. The specifications are open standards that are developed in cooperation with all the companies that are Zigbee Alliance members. Another route is the certification transfer program, in which a company chooses a certified white-label product, becomes a member of the Alliance, and then rebrands the product while retaining the certification. “It helps them get products on the market quickly while they build their own knowledge base,” says Harros. "All our work is focused on standardizing the behavior and functionality of products and making sure everyone is following the same standard to get interoperability,” says Harros. “Members all contribute to the standards.”