Utility Rebates & Incentives   Part of Ecova’s Energy Game Plan Series October 13, 2011 8:30am PST
<ul><li>What Incentives Are Available? </li></ul><ul><li>Why Are Utilities On Board? </li></ul><ul><li>Why Should You Care...
<ul><li>Rebates </li></ul><ul><li>Loan and Tax Financing </li></ul><ul><li>Tax Credits </li></ul><ul><li>What Types of Inc...
<ul><li>30% of energy used in buildings  is inefficient or unnecessary </li></ul><ul><li>$30 in energy costs can be  saved...
<ul><li>Instructed to </li></ul><ul><ul><li>Governing bodies </li></ul></ul><ul><ul><li>Stakeholders  </li></ul></ul><ul><...
<ul><li>More Opportunity Than Ever! </li></ul>
<ul><li>Prescriptive </li></ul><ul><ul><li>New construction </li></ul></ul><ul><ul><li>Equipment upgrades and retrofits </...
<ul><li>Building Envelope </li></ul><ul><li>Windows </li></ul><ul><li>Doors </li></ul><ul><li>Leakage sealing </li></ul><u...
<ul><li>Each Utility Program is Unique </li></ul>Replacing T12 fixture with a T8 fixture $30 parts / $40 labor Utility Mea...
<ul><li>Rebates are Useful for Pilot Programs </li></ul>Rank Utility Incentive Payback  Period OK N/A No incentive 3 years...
<ul><li>Vending machine controls:  </li></ul><ul><li>Turn off lights and refrigeration when possible </li></ul><ul><li>Som...
<ul><li>Increased profits </li></ul><ul><li>Risk mitigation </li></ul><ul><li>Reduced Operational & Maintenance expenses  ...
<ul><li>Many requirements vary based on measure </li></ul><ul><li>Can be overwhelming for multi-site operators </li></ul><...
<ul><li>Build a Rebate / Incentive Strategy </li></ul><ul><li>Where are my facilities?  </li></ul><ul><li>What does my cap...
<ul><li>Stay organized </li></ul><ul><li>Evaluate and prioritize incentives and opportunities </li></ul><ul><li>Vendor con...
<ul><li>Still evolving </li></ul><ul><li>Utilities still learning what works  </li></ul><ul><li>Better feedback loops </li...
<ul><li>Direct Support </li></ul><ul><ul><li>Vendor assistance </li></ul></ul><ul><ul><li>Rebate processing firms </li></u...
<ul><li>Utilities offer $ billions for energy efficiency improvements </li></ul><ul><li>Many activities and technologies a...
<ul><li>Ecova Educational Webinar Series </li></ul><ul><li>Carbon Management </li></ul><ul><li>Thursday, November 10 th  a...
<ul><li>Q&A </li></ul>
<ul><li>Thank you for joining  </li></ul><ul><li>us today! </li></ul>
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UTILITY REBATES AND INCENTIVES

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Each year utilities, government agencies and other sources, make large amounts of money available to help businesses pay for energy and water efficiency improvements. Ecova invites you to view this brief, educational webinar that will cover the basics of utility rebates and incentives:

• Challenges uncovering incentives and understanding them
• Key factors driving incentive programs
• Highlight ways to match programs with projects

www.ecova.com

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  • 30% of energy used in commercial, industrial, and institutional buildings is used inefficiently or unnecessarily $20 billion would be saved if commercial, industrial, and institutional facilities improved the efficiency of their buildings by 10% $30 or more in energy costs can be saved over the lifetime of one compact fluorescent bulb
  • Counter intuitive for utilities to want to lower revenue, balancing costs and revenue and stabilizing profit. Very much a risk reward, internally to utilities and externally to ?, shared benefits, stabalize rates, bills AND capital investments, lowering the cost to produce and provide power Increasing demand and more frequent grid reliability concerns Avoid costly generation, transmission, and distribution systems Investments in Demand Side Management is growing rapidly Helps level demand and improves power plant efficiency Slows the increasing rise in energy costs Regulatory drivers favor increased investment in efficiency American Recovery &amp; Reinvestment Act 27 states have pending or adopted Energy Efficiency Resource Standards that establish long term, fixed efficiency savings targets States set aside $4.3B for ratepayer funded programs in 2009
  • The utility rebates are an excellent way to reduce the overall cost of purchasing more energy efficient products. Not only do companies save money over time by reducing long-term electrical costs, now some companies may be eligible for immediate savings from local utility rebates when they purchase energy-efficient equipment. Currently, energy efficiency rebates are only offered by specific electrical utilities in limited geographical areas. Programs and requirements change frequently.
  • Kitchen Equipment: Some utilities, such as SDG&amp;E, have efficiency centers that house prototype kitchens. Commercial clients can come in and cook their recipes on cutting edge ENERGY STAR equipment so they are comfortable with the equipment before they buy. (The equipment is loaned from the manufacturers to keep costs low)
  • Each utility program calculates energy savings differently. Some include installation cost and others do not. Typically, smaller utilities will agree to pay based on the cost of the project or how much energy savings the project brings them the first year (Lompoc/Alameda). Utilities with more experience may set rebates for specific equipment types and include constraints (e.g. efficiency &gt;80% reflectivity &gt;85%). Utilities that are concerned with peak demand will mitigate the issue by incenting a reduced load during certain times of the day or seasons SRP).
  • For clients who want to pilot new energy efficient measures, it is ideal to find a location where it will be cheapest. Window films are an inexpensive way to reduce energy loss through glass Rebates make the decision on where to start even easier
  • Increased Profits : Investment in cost-effective energy-efficient products and services can lower electric bills and enhance corporate profitability. Investments in efficiency technologies typically have a payback period of 1 to 8 years Risk Reduction : Energy efficiency enhances electric system reliability (helps avoid black-outs) by reducing the amount of electricity that has to be transported across congested transmission and distribution lines. Increased Asset Value : Energy efficiency upgrades bring long-term benefits as asset value typically increases by an estimated $3 for every $1 invested in energy efficiency
  • Centralized management Budget authority Design Implementation Information
  • Mutual benefit, util.s will help customers use less
  • Transcript of "UTILITY REBATES AND INCENTIVES"

    1. 1. Utility Rebates & Incentives Part of Ecova’s Energy Game Plan Series October 13, 2011 8:30am PST
    2. 2. <ul><li>What Incentives Are Available? </li></ul><ul><li>Why Are Utilities On Board? </li></ul><ul><li>Why Should You Care? </li></ul><ul><li>A Few Typical Eligible Technologies </li></ul><ul><li>Rebate Examples </li></ul><ul><li>Challenges & Managing the Process </li></ul><ul><li>Finding Assistance </li></ul><ul><li>Summary </li></ul><ul><li>Q&A </li></ul><ul><li>Agenda </li></ul>
    3. 3. <ul><li>Rebates </li></ul><ul><li>Loan and Tax Financing </li></ul><ul><li>Tax Credits </li></ul><ul><li>What Types of Incentives are Available? </li></ul>
    4. 4. <ul><li>30% of energy used in buildings is inefficient or unnecessary </li></ul><ul><li>$30 in energy costs can be saved over the lifetime of one compact fluorescent bulb </li></ul><ul><li>Energy Efficiency? </li></ul><ul><ul><li>$20 billion would be saved with improved energy efficiencies </li></ul></ul>
    5. 5. <ul><li>Instructed to </li></ul><ul><ul><li>Governing bodies </li></ul></ul><ul><ul><li>Stakeholders </li></ul></ul><ul><li>Self-benefitting </li></ul><ul><ul><li>Stabilizes profit </li></ul></ul><ul><ul><li>Avoids costly investments </li></ul></ul><ul><li>Why are Utilities on Board? </li></ul>
    6. 6. <ul><li>More Opportunity Than Ever! </li></ul>
    7. 7. <ul><li>Prescriptive </li></ul><ul><ul><li>New construction </li></ul></ul><ul><ul><li>Equipment upgrades and retrofits </li></ul></ul><ul><ul><li>Commissioning, retro or continuous commissioning </li></ul></ul><ul><li>Custom </li></ul><ul><ul><li>Identification of energy savings opportunity </li></ul></ul><ul><ul><li>Completion of utility’s custom incentive form </li></ul></ul><ul><ul><li>Audit, approval and measurement & verification </li></ul></ul><ul><li>Typical Incentive Programs </li></ul>
    8. 8. <ul><li>Building Envelope </li></ul><ul><li>Windows </li></ul><ul><li>Doors </li></ul><ul><li>Leakage sealing </li></ul><ul><li>LEED Qualification </li></ul><ul><li>Custom Projects </li></ul><ul><li>A Few Typical Eligible Technologies </li></ul><ul><li>HVAC </li></ul><ul><li>Heat pumps </li></ul><ul><li>A/C units </li></ul><ul><li>Chillers </li></ul><ul><li>Boilers </li></ul><ul><li>Tune ups </li></ul><ul><li>Lighting </li></ul><ul><li>Parking lots </li></ul><ul><li>Industrial </li></ul><ul><li>Office </li></ul><ul><li>Automatic sensors </li></ul><ul><li>CFLs/LEDs </li></ul><ul><li>Kitchen Equipment </li></ul><ul><li>Fryers </li></ul><ul><li>Combo Ovens </li></ul><ul><li>Refrigeration </li></ul><ul><li>Griddles </li></ul><ul><li>Steamers </li></ul>
    9. 9. <ul><li>Each Utility Program is Unique </li></ul>Replacing T12 fixture with a T8 fixture $30 parts / $40 labor Utility Measure Rebate Lompoc 30% project cost $21 Alameda $0.10/annual kWh saved $25 ConEdison T12 to T8 retrofit $20 Salt River $300/kW demand $19
    10. 10. <ul><li>Rebates are Useful for Pilot Programs </li></ul>Rank Utility Incentive Payback Period OK N/A No incentive 3 years Good Modesto $0.75/sq ft  2.5 years Better PG&E $1.35/sq ft  2 years Best Roseville $4.00/sq ft 7 months
    11. 11. <ul><li>Vending machine controls: </li></ul><ul><li>Turn off lights and refrigeration when possible </li></ul><ul><li>Some Rebates are Direct Install Programs </li></ul>No Rebate Riverside Public Utilities Upfront Cost $180 FREE Annual Savings $150 $150 5 Year Savings $520 $750
    12. 12. <ul><li>Increased profits </li></ul><ul><li>Risk mitigation </li></ul><ul><li>Reduced Operational & Maintenance expenses </li></ul><ul><li>Increased customer and employee comfort and satisfaction </li></ul><ul><li>Increased asset value of your facility </li></ul><ul><li>Environmental stewardship </li></ul><ul><li>Why Should You Care? </li></ul>
    13. 13. <ul><li>Many requirements vary based on measure </li></ul><ul><li>Can be overwhelming for multi-site operators </li></ul><ul><li>Multiple program providers at the local, state and utility levels </li></ul><ul><li>Application requirements </li></ul><ul><li>Offerings are constantly changing each year </li></ul><ul><ul><li>New technologies roll out </li></ul></ul><ul><ul><li>Small window for action </li></ul></ul><ul><li>Challenges Pursuing Incentives </li></ul>
    14. 14. <ul><li>Build a Rebate / Incentive Strategy </li></ul><ul><li>Where are my facilities? </li></ul><ul><li>What does my capital budget look like? </li></ul><ul><li>What projects/ECMs would be feasible? </li></ul><ul><li>What are the facilities/technologies that will be strong investments? </li></ul><ul><li>Does timeliness matter for my initiatives? </li></ul><ul><ul><li>Pre- & Post-Installation Inspections </li></ul></ul><ul><ul><li>Rebate Deadlines/Windows </li></ul></ul><ul><ul><li>Timeline for paperwork and audits </li></ul></ul><ul><li>What other factors are there? </li></ul><ul><ul><li>Do I own the facility my site is located in? </li></ul></ul><ul><ul><li>Include all costs of the rebate process (inspections, metering, etc) </li></ul></ul><ul><li>Overcoming the Challenges </li></ul>
    15. 15. <ul><li>Stay organized </li></ul><ul><li>Evaluate and prioritize incentives and opportunities </li></ul><ul><li>Vendor contacts – lighting, HVAC, EMS, contractors, other </li></ul><ul><li>Coordinate budgets, projects, locations, specs: </li></ul><ul><ul><li>Submit application </li></ul></ul><ul><li>Complete paperwork </li></ul><ul><li>Organize pre and post-inspections as required </li></ul><ul><li>Be prepared for Q&A from Utility </li></ul><ul><li>Managing the Process </li></ul>
    16. 16. <ul><li>Still evolving </li></ul><ul><li>Utilities still learning what works </li></ul><ul><li>Better feedback loops </li></ul><ul><li>Ongoing change </li></ul><ul><li>Lasting partnerships </li></ul><ul><li>What the Future Will Bring? </li></ul>
    17. 17. <ul><li>Direct Support </li></ul><ul><ul><li>Vendor assistance </li></ul></ul><ul><ul><li>Rebate processing firms </li></ul></ul><ul><li>Research </li></ul><ul><ul><li>Database of State Incentives for Renewables & Efficiency (www.dsireusa.org) </li></ul></ul><ul><ul><li>Multiple Utility websites (www.everylittlebit.com/EfficiencyAvenue.aspx) </li></ul></ul><ul><li>Finding Assistance </li></ul>
    18. 18. <ul><li>Utilities offer $ billions for energy efficiency improvements </li></ul><ul><li>Many activities and technologies are eligible </li></ul><ul><li>Incentives can be complicated and time consuming to pursue </li></ul><ul><li>Successful programs start with a plan! </li></ul><ul><li>Summary </li></ul>
    19. 19. <ul><li>Ecova Educational Webinar Series </li></ul><ul><li>Carbon Management </li></ul><ul><li>Thursday, November 10 th at 8:30am PST </li></ul><ul><ul><li>Taming the TEM Beast! </li></ul></ul><ul><ul><li>Wednesday, October 19 th at 8:30am PST </li></ul></ul><ul><ul><li>For more information, email us at: [email_address] </li></ul></ul>
    20. 20. <ul><li>Q&A </li></ul>
    21. 21. <ul><li>Thank you for joining </li></ul><ul><li>us today! </li></ul>

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