REBNY NYC Benchmarking Seminar: NYSERDA Commercial Incentive Programs: Commercial Buildings
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REBNY NYC Benchmarking Seminar: NYSERDA Commercial Incentive Programs: Commercial Buildings



Scott Kessler, NYSERDA

Scott Kessler, NYSERDA

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 REBNY NYC Benchmarking Seminar: NYSERDA Commercial Incentive Programs: Commercial Buildings REBNY NYC Benchmarking Seminar: NYSERDA Commercial Incentive Programs: Commercial Buildings Presentation Transcript

  • NYSERDA Assistance in GGBP  Compliance Scott Kessler NYSERDA Project Manager NYSERDA Project Manager January 28, 20111
  • What is NYSERDA? What is NYSERDA? • Public benefit corporation Public benefit corporation  • Primarily funded by System Benefits  Charge on electric and natural gas bills Charge on electric and natural gas bills Mission Statement Advance innovative energy solutions in ways that  gy y improve New York’s economy and environment. NYSERDAs Vision StatementTo serve as a catalyst – advancing energy innovation and To serve as a catalyst advancing energy innovation and technology, transforming New York’s economy, empowering people to choose clean and efficient energy  as part of their everyday lives 2
  • System Benefits Charge (SBC) System Benefits Charge (SBC)• Regulatory Order of the NYS Public Service  Commission• NYSERDA ‐ state‐wide administrator• Public purpose goals: energy efficiency,  cleaner environment cleaner environment3
  • Energy Efficiency Portfolio Standard (EEPS) E Effi i P tf li St d d (EEPS) •New gas funding •Additional electric funding •Additional electric funding •Benchmarking and Operations  Efficiency Program •Industrial and Process Efficiency •Industrial and Process Efficiency •Including Data Centers •Additional utility based incentive •Additional utility‐based incentive  programs4
  • Focus on Commercial Real Estate F C i lR lE t t Drive portfolios to  Provide benchmarking  invest in energy  tools and support  efficiency using  efficiency using sector‐specific needs  NYSERDA programs Identify poor  Track improvement  performing properties  f i i against 2015/2030 and  i 2015/2030 d for program support NYSERDA goals5
  • Why Invest in Sustainability? Wh IWhy Invest in Sustainability? t i S t i bilit ? Increase rent / decrease vacancy Enhance green image Decrease operating costs Comply with government mandates6
  • Rent Spreads : Class A & B Office Space Rent Spreads : Class A & B Office Space Class A Rent Class B RentSource: “Office Market Trends New York City, Grubb & Ellis, Q2 2008. 7
  • A Comprehensive Approach to Strategic Investments AC h i A h t St t i I t t Portfolio‐wide  approach h Improved  Improved NOI Improved  Targeted  efficiency investments8
  • Focus CRE Participation F CRE P ti i tiOwners in Program: 32% of NYC Market g 139 M SF Participating*  p g of which: 59.5 M SF Benchmarked Portion of NYC Market Portion of NYC Market Benchmarked 14.0% Energy Audit 2.6% Lease Analysis 2.0% *Not including additional 2M SF in NY State,  of which 1 M SF benchmarked of which 1 M SF benchmarked 9
  • Focus CRE Lease Analysis Tool F CRE L A l i T l FOCUS CRE LEASE ANALYSIS REPORT D t t t•Demonstrates costs and  d One New York Avenue Project and Building Overview Project Tenant Opex Clause Breakdown By Rentable Building Area Vacancyreturns according to  2.6% Number of Measures 6 Cost of Measure Net of Subsidies Fixed Factor $ 2,888,110 and Grants Subsidies and Grants $ 163,139 Escalatable - Capex Passthrough Annual Cost Savings $ 478,046 Escalatable - No Capexeach lease hl 97.4% 97 4% Owner Financial Results Annual Owner Cash Flow 10 Year Composition of Owner Cash Flow•Present value of future  $600 Current Escalatable $500 7.9% Leases $400 Fixed Factor Leases Thousands $300 Electric Rent Inclusion 31.1%savings as well as time  i ll ti $200 Capex Passthrough 57.5% 57 5% T $100 Vacancies 3.5% $0 New Escalatable Leases Yearframes for ROI Returns* Metric Net Present Value Savings Increased Asset Value 3 Year 5 Year $ (2,020,310) $ (1,472,736) $ $ 1,170,406 $ 1,316,322 $ 10 Year 315,301 5,345,705 Simple Recovery Metric Savings Only 3 Year 7% 5 Year 14% 10 Year 85% F t t d•For tenants and owners Total Net Present Value $ (850,000) $ (155,000) $ 5,660,000 Savings and Capex 27% 47% 128% Internal Rate of Return -10% 2% 20% Passthrough Return on Capital -29% -5% 196% * Net Present Value, Internal Rate of Return, and Return on Capital include the capitalized value of cash flow during the last year of each term in their calculations.•Publicly Available Tenant Financial Results Returns Metric Net Present Value $ 3 Year 525,000 $ 5 Year 860,000 $ 10 Year 1,135,000 Implementation Contractor for NYSERDAs Focus on  Commercial Real Estate Program: HR&A Advisors, Inc. For more information, call 1‐866‐NYSERDA, or email:  FocusCRE@nyserda.org10
  • NYSERDA Program Structure NYSERDA P St tProject Project New  New Audit  Audit FlexTech/  FlexTech/Identification/  Construction  Program Technical Energy Study Program Assistance  Program Existing Facilities  E i ti F ilitiProject  ProgramImplementation 11
  • FlexTech Fl T h Objective: Provide customizable, fuel neutral cost‐shared energy studies Objective: Provide customizable fuel neutral cost‐shared energy studies Cost Share  Incentive Cap – 50/50 – energy related related  – Con Edison: $1 000 000 Con Edison: $1,000,000 portion Upstate: $500,000 Areas of Focus Areas of Focus • Feasibility Studies • CHP/Renewables • Energy Master Plans • Load Curtailment • Energy Procurement E P • E Energy Advisor Consulting Ad i C li • (Retro)commissioning Use a NYSERDA Consultant or your own!12
  • Benchmarking and Operations Efficiency Program B h ki dO ti Effi i P h k &•Benchmarking services & on‐site energy assessments y •Performed by FlexTech Consultants •50/50 cost‐share on projects  > $7,000 > $7 000•Additional  services available through FlexTech for more detailed energy Fl T h f d il dstudies and through Existing Facilities for implementation incentives 13
  • Existing Facilities: Performance Based Incentives E i ti F iliti P f B dI ti General: • Incentive is paid on the energy savings over 1 year p gy g y • Cap:   – 50% of project cost, 75% for projects w/ demand response (**consider  project & benefit bundling ), 1 yr. payback project & benefit bundling**), 1 yr. payback – $2 million per site commercial customers – $5 million per site industrial customers • All projects require a detailed engineering analysis to establish  All projects require a detailed engineering analysis to establish savings • Pre and post implementation site inspections • Large projects require M&V  Large projects require M&V • Bonuses for super efficient and innovative equipment $$14
  • Existing Facilities: Performance Based Incentives E i ti F iliti P f B dI tiProgram Component Con Edison Territory UpstateElectric Efficiency $0.16 / kWh $0.12 / kWhGas Efficiency y $ $2.00 / therm / $ $1.50 / therm /Demand Response $200 / kW $100 / kWMonitoring‐Based CxA $0.05 / kWh $0.05 / kWhEnergy / Thermal Storage $600 / kW $300 / kWIndustrial and Process Efficiency $0.16 / kWh $0.12 / kWh $0.10 / kWh +  $0.10 / kWh + Combined Heat and Power $750 / kW $600 / kW $ 2 million facility cap, $5 million for IPE $ 2 million facility cap, $5 million for IPE15
  • Existing Facilities: Prequalified IncentivesE i ti F iliti P lifi d I ti• Applicants can receive $/unit rebates• Easy process – intended for smaller, less complex projects • Apply within 90 days of install• $30,000 cap• Some pre‐qualified Incentives categories: Lighting, HVAC, Motors, Refrigeration & Freezers, VFDs, Gas Efficiency,  Commercial Kitchen Equipment…etc. An example:16
  • New Construction Program N C t ti PObjective• Transform the way buildings are  designed and built gServices• Technical assistance, computer  modeling, commissioning • Incentives for energy efficient  equipment and systems•GGreen Building planning assistance B ildi l i i• Bonus incentives for LEED credits 17
  • Lighting/Submetering Assistance Li hti /S b t i A i t• Commercial Lighting Program – Trained Business Partners available  – All projects receive design QA/QC – List of partners available at p g g g• Lighting incentives available through Existing  Facilities• Incentives for submeters available through Existing  Facilities or FlexTech in certain projects18
  • Other Tools Oth T l• NYSERDA‐funded benchmarking training  g gy available through Association for Energy  Affordability• CUNY Building Performance Lab CUNY Building Performance Lab• Northwrite Energy Information System  Installation19
  • Contact Information C t tI f ti Scott Kessler NYSERDA NYC Office 212.971.5342 x 3022 212 971 5342 x 3022 sbk@nyserda.org20