Big Savings for Clean Generation Part III

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Discuss the relative strengths of common distributed generation technologies: photovoltaic, solar thermal and fuel cells. Participants will learn the true costs and benefits of a wide range of distributed generation technologies and how they compliment energy-efficiency measures.

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Big Savings for Clean Generation Part III

  1. 1. Greening Your World…
  2. 2. Vision: Creating a Sustainable Energy Future • Areas of Focus • Energy Efficiency • Renewable Energy • Green Building • Climate Change • Transportation 22
  3. 3. CCSE Services • Cash Incentives • Educational Workshops • Resource & Tool Lending Libraries • Technical Assistance • Technology Display Center • Distributed Generation Assessment Services • Carbon Impact Assessment and Management • Technical and Policy support for Local Governments 33
  4. 4. Trash Disposal Compostables Recycle 44
  5. 5. Housekeeping• Online Registration is the best way to guarantee a spot• Restrooms• Phones Off• Shhhh. . . Quiet in Hallway• Sign-in Sheets & Evaluations 55
  6. 6. CCSE DisclaimerWorkshops are provided as a public service with theunderstanding that the California Center for Sustainable Energymakes no warranties, either expressed or implied, concerningthe accuracy, completeness, reliability, or suitability of theinformation.The California Center for Sustainable Energy does notendorse any particular product, manufacturer or servicementioned and does not represent that any goods or servicesare fit for any purpose or use. 66
  7. 7. Power Play Part 2 Overview• Strategies for Savings: • Retro-Commissioning • Retrofits• Plans for Production • Solar PV • Fuel Cells 77
  8. 8. Do what makes economic $ense• Energy Efficiency • Lower first costs • Quick payback • High Net Present Value• Distributed Generation • Producing energy onsite • Positive Net Present Value 88
  9. 9. The Business Plan• Conduct Energy Audit • Energy Audits itemize areas of potential savings. • A third party consultant will give you a fresh set of eyes and ideas, and can tailor your audit to maximize rebates from IOU programs.• Apply for IOU Programs • Californian Investor Owned Utilities (IOU) have comprehensive rebate programs that will pay for portions of your Energy Efficiency upgrades. • Certain programs subsidize energy audits (TA/TI) and others provide cash rebates.• Research Payment Options • Utilities and investors have varying financing and ownership packages available. 99
  10. 10. Energy Efficiency• More energy to core services• Reliable and stable energy supply• Onsite generation takes higher load• Most cost effective way to meet green goals and mandates 1010
  11. 11. The Power and Payback of EE• Retrofitting old lights & ballasts can save 32W per fixture.• At $0.10/kWh, that’s $14 per fixture per year.• Installation was estimated at $43/fixture (parts and labor)• Could receive a $9.80 rebate through Energy Savings Bid.• Simple ROI (without federal tax credit): 42% • F40-T12CW with standard magnetic ballast (92W) • Conversion to F32-T8 RE70 Electric I.S. ballast (59W) 1111
  12. 12. Distributed Generation• Onsite Energy Production• Supplements Energy Efficiency• High profile environmental statement 1212
  13. 13. Strategy for Savings:Retro-Commissioning (RCx)• Retro-Commissioning is a systematic process for improving an existing buildings performance.• It involves rigorous investigation to identify low cost operational improvements to obtain comfort and energy savings.• Works with utility incentive programs and Retrofits 1313
  14. 14. Retro-Commissioning (RCx) Pre commissioned Retrcocommissioned building building 1414
  15. 15. Retro-Commissioning:What to Expect? 1515
  16. 16. Retro-Commissioning:What to Expect?• Data release/screening inspection• Contract to join RCx program• A kickoff meeting• Investigation and assessment of building (Audit)• Savings measures and paybacks are documented• Owner installs contractually obligated measures• Program pays owner incentives• Building is Energy Star benchmarked 12 mo. later 1616
  17. 17. Retro-Commissioning Summary• Costs: $0.13-$0.45/sq ft• Savings • Energy: $0.11-$0.72/sq ft • Non-energy: $0.10-$0.45/sq ft• Data from California Commissioning Guide • http://www.cacx.org/resources/documents/CA_Commis sioning_Guide_Existing.pdf 1717
  18. 18. Strategies for Savings: Retrofits• Replace old systems with new• Enhance controls• Increased efficiency generates savings 1818
  19. 19. Investor Owned Utility Programs• TA/TI: Technical Assistance with Technology Incentives (Demand Response)• Energy Savings Bid (Large Scale Energy Efficiency)*• Energy Efficiency Business Incentives (Energy Efficiency)*• Energy Efficiency Business Rebates (line item change outs)*• 3rd Party: RCx Retro-Commissioning (SDG&E territory only)• On Bill Financing (Special Financing for EE upgrades)• *Participation in these programs requires Energy Star Benchmarking 1919
  20. 20. Benchmarking Overview• Compares energy performance of similar buildings nationwide• Scale (1-100) shows % of buildings your building outperforms• Allows access to utility incentives, Energy Star label, and possible LEED certification requirements 2020
  21. 21. Benchmarking: What to Expect?• Benchmarking Application Supplement • Determines eligibility• Gather Building Data • Meter/account numbers • Building use• Data Entry: Online Benchmarking Tool• Can be Combined with an Audit 2121
  22. 22. Energy Audit Process: TA/TI• Contact Contracting Engineer• Negotiate proposal/obtain utility authorization• Site Audit: itemizes demand response opportunities and documents savings potential.• Customer Review and approval• TI request/agreement with utility• TI Installation, Implementation, Test and Approval 2222
  23. 23. Demand Response: Overview• Utility asks rate payers to use less power.• Rate payers can agree to shed a certain amount when the utility needs help. • Example: turn thermostat up for a few hours. • Example: turn off some lights in the afternoon.• Utility will pay to help set up controls.• Utility provides monthly payments based on how much your facility can shed. 2323
  24. 24. Energy (kWh) vs Demand (kW) • What is “demand”? • Measuring demand means monitoring and recording the maximum average instantaneous energy need for every 15 minute interval within each billing period (kW). • The maximum rate of energy use a consumer needs available at all times. 2424
  25. 25. Energy (kWh) vs Demand (kW) • What is “energy”? • Cumulative electricity consumed over a period of time (kWh) known as “energy” charges. • For the electric industry, energy is the quantity of kilowatt-hours (kWh) supplied or consumed by a customer. It is the product of power in watts and the time during which the power was used. • 1 kW of demand for 1 hour = 1 kWh 2525
  26. 26. Energy Efficiency: Overview• Incentives paid based on verified annual energy savings from retrofit. • Generally requires pre install and post install inspections• Participation in Energy Efficiency Programs can qualify project for special financing.• Many incentive programs require Energy Star Benchmarking. 2626
  27. 27. Energy Audit Process: Retrofit• Contact Contracting Engineer.• Negotiate proposal.• Site Audit: itemizes energy efficiency opportunities and documents savings potential.• Receive report detailing: • Retrofit line items. • Financial case/paybacks. • Investor Owner Utilities (IOU) incentive submissions.• Utility Pre inspection• Installation and Savings! 2727
  28. 28. Energy Efficiency Business Rebates• Simpler line item replacements• Each item has a fixed rebate • For a complete list of eligible items see: http://www.sdge.com/documents/business/savi ngs/express/EEProductCatalog.pdf• Maximum incentive per meter: $350,000 2828
  29. 29. Rebate Catalogue example 2929
  30. 30. Energy Efficiency Business RebatesExample: Exterior Lighting• Base Case: • 250W High Pressure Sodium Lights • Wall packs around building exterior• Replacement Case: • 60W induction bulbs 3030
  31. 31. Energy Efficiency Business RebatesExample: Exterior Lighting• Induction Bulbs • 60W per fixture • Last 8-10 years depending on ballast • $430/fixture • $50/fixture rebate • 100 total fixtures 3131
  32. 32. Energy Efficiency Business RebatesExample: Exterior Lighting• 55,000 kW savings per year• $1,900/year average nominal cash flow• $7,500 Net Present Value• Utilized On Bill Financing 3232
  33. 33. Energy Efficiency Business Incentives• Incentives are paid on kWh, Therm savings • CEC sponsored estimation software predicts savings • Engineering calculation supplement software• Two incentive methods: • Measured (higher rebate to offset tracking costs) • Calculated• Narrower scope of options 3333
  34. 34. Energy Efficiency Business Incentives• $0.05 per annual kWh saved in lighting• $0.15 per annual kWh saved in compressor equipment (A/C)• $0.09 per annual kWh saved through other means• $100/peak kW demand reduction• $1.00 per annual Therm saved• 10% additional incentive for monitoring• Maximum incentive = 50% project cost 3434
  35. 35. Energy Savings Bid• $0.10 per annual kWh saved• $0.20 per annual kWh saved in compressor equipment (A/C)• $0.80 per annual Therm saved• Maximum incentive = project cost 3535
  36. 36. Energy Savings Bid• Designed for larger scale projects• Savings minimums: • 500,000 kWh/year OR • 25,000 Therms/year• Can combine projects into one application• Only for non-res. sites & operable equipment 3636
  37. 37. Energy Savings Bid Upgrade example• Add Variable Frequency Drives to fans• Upgrade 2 chillers from 6 EER to 18 EER• Make lighting 10% more efficient: • T8 32W to T8 28W conversion.• Same operations & schedules 3737
  38. 38. Electricity Savings Retrofit 3838
  39. 39. Gas Savings Retrofit 3939
  40. 40. Retrofit Upgrade Costs• 2 new chillers: $1,000,000 (design, parts, labor)• Variable Frequency Drives for fans $5,000• New Lights $279,500 4040
  41. 41. Retrofit Upgrade Savings• 690,000 kWh (28%)• -364 Therms (-1%) • More efficient lighting produces less heat• $229,000 incentive from ESB• $317,000 incentive from ESB and EEBR• $490,000 Net Present Value 4141
  42. 42. Energy Planning• Operations & Maintenance (O&M) • Behavioral Changes and Scheduling Improves $$$ Savings • Not directly tied to hardware efficiency upgrade • Example: scheduling maintenance during off-peak hours.• Energy Efficiency (EE) • High annual operating hours = Best $$$ savings opportunities• Energy Efficiency + Distributed Generation (DG) • Improved Environmental Bottom Line and Additional $$$ Savings • Mandates and tenants are demanding a greater level of green features. • EE should always be addressed before DG. 4242
  43. 43. Distributed Generation• California Solar Initiative (CSI) • Solar PV• CSI Solar Thermal • Solar Water Heating• Self Generation Incentive Program (SGIP) • Wind • Fuel Cell 4343
  44. 44. Distributed Generation Benefits• Energy Costs Reduction• Allows access to different tariffs• USGBC LEED Points• Reduces peak demand and energy use• Increases energy security• Very public statement to going green 4444
  45. 45. Tariffs• Commercial customers pay for: • Energy (kWh) • Demand (kW)• Prices can vary • Time of day • Amount of use• Tariffs govern how we pay the bill • AL-TOU • DG-R 4545
  46. 46. California Solar Initiative (CSI)• Provides Cash Rebates • Expected Performance Based Buy Down EPBB • Based on size for small systems (1-30kW) • Performance Based Incentive (PBI) • Based on production• May require an energy efficiency audit• Incentive decreases over time 4646
  47. 47. Solar Power: 75kW DC example• Install a 75kW DC solar PV roof system.• Switch to DG-R Tariff.• Simulation makes assumptions about: • Weather • Efficiency • 25 year equipment life• Cost is assumed to be $390,000 • $6.50/Watt AC • 6.75% interest rate 4747
  48. 48. Utility Rate Escalation• Historically around 3.4%.• May experience high price volatility.• Impacts distributed generation cash flows 4848
  49. 49. 75kW DC Solar PV Impacts• Allows access to advantageous DG-R tariff • Tariff changes NPV from -$12,000 to $250,000• Reduces yearly electric bill by $46,000 on average• Qualifies for MACRS and ITC tax benefits• $24,000/year average nominal cash flow• NPV: $250,000 4949
  50. 50. Self Generation Incentive Program• Funds Fuel Cells, Wind and Advanced Energy Storage• Minimum size 30kW 5050
  51. 51. Commercial Fuel Cells• Produce electricity and heat through an electro-chemical process• Always on, good for base loads• Use Natural Gas• Recovers heat for domestic water use 5151
  52. 52. 60 kW Fuel Cell Example• 60 kW natural gas Fuel Cells• 5 kW Clear Edge units • Scalable Solution • Example will work for similar sized Fuel Cells• Total cost installed: $558,000• Replace catalysts every 5 years• 15 year equipment life 5252
  53. 53. Fuel Cell Incentives• Eligible for Federal Tax Credit• May receive CA state rebate• May qualify for DG-R tariff• Heat recovery supplements domestic water 5353
  54. 54. Fuel Cell Impacts• Allows access to DG-R tariff • Tariff changes NPV from $358,000 to $603,000• Avoids $103,000 on average in electricity costs• Increased natural gas bill: $27,000 average• $60,000/year average nominal cash flow• NPV: $603,000 5454
  55. 55. The Complete Package• Facility consumes minimum amount of energy for maximum comfort/efficiency.• Distributed generation provides clean power and access to special tariffs.• Benchmark your building• IOU programs increase ROI.• Special financing available. 5555
  56. 56. Additional Resources• Energycenter.org• DSIREUSA.org• Potentially Free Audits • http://energycenter.org/index.php/incentive- programs/technical-assistance-technology-incentives-tati• Utility Programs: • http://www.sdge.com/business/rebatesincentives/ 5656
  57. 57. Energy Advisory ServiceEmpowering clients with objective informationand sound analysis to green your bottom lineWe provide feasibility consulting for a variety of needs: • Energy Efficiency (New/Retrofit) • Renewable Energy Projects (DG/Utility Scale) • LEED, Energy Star, HERS VerificationsContact: • , 858.244.1177 5757

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