Multifamily Energy Retrofit-Saving Money and Getting your Energy Company to pay for it


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Multifamily Energy Retrofit-Saving Money and Getting your Energy Company to pay for it

David Hepinstall, Executive Director, Association for Energy Affordability

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Multifamily Energy Retrofit-Saving Money and Getting your Energy Company to pay for it

  1. 1. Con Edison MultifamilyEnergy Efficiency Programs
  2. 2. Multifamily Energy Efficiency RetrofitHow to Make Your Building More Energy Efficient and Get Incentives from Con Edison to Help Pay for It presentation by David Hepinstall, Executive Director Association for Energy Affordability, Inc. Con Edison Implementation Contractor 212-279-3903 direct 1-877-634-9443 or 2
  3. 3. Introduction• Con Edison’s Multi-Family Energy Efficiency Program is an Energy Efficiency Portfolio Standard ( gy y (EEPS) p g ) program approved by the NYS Public Services Commission (PSC)• This presentation will provide – Overview of the Con Edison Program Guidelines – Description of steps in the process, from building owner application through receipt of i th h i t f incentives f i t ll ti of program eligible ti for installation f li ibl measures – Identification of the incentive amounts available for implementing eligible measures – Case studies of completed projects 3
  4. 4. Advantages of the Con EdisonMulti-Family Energy Efficiency PM lti F il E Effi i Program• The program gives owners flexibility to choose among approved measures, selecting those that fit their operating budget, green goals, and other investment goals for each property. p p y• Unlike many energy efficiency programs, there is no requirement to achieve a minimum amount of energy savings in order to participate.• If you install an approved cost effective measure in an eligible building using a participating contractor, you are entitled to the incentive. 4
  5. 5. Overview of Con Edison Multi-familyEnergy Efficiency Program• An EEPS program targeted to multi-family buildings in Con Edison s Edison’s Electric and Gas territory in NYC and Westchester County• Building Eligibility – 5 to 75 Unit Buildings – SBC paying Con Edison Customer • Con Edison electric customer – NYC (except part of Far Rockaway) and Westchester – Eligible for ONLY electric measures • C Edi Con Edison fifirm gas f heating and/or DHW for h i d/ – Eligible for both electric measures and measures producing therm savings 5
  6. 6. Eligibility, continued– Owners and property managers of • rent-controlled rent-stabilized market-rate rentals rent-controlled, rent-stabilized, • affordable housing • co-ops, and condos co ops,– No conflict with other SBC funded program (e.g. NYSERDA) Cannot pay for the same measure from 2 different SBC funded programs 6
  7. 7. We will discuss:• The streamlined process for participating in this Con Edison program• Which of your buildings are eligible for incentives• How you can learn which measures are right for your building.• Why you should act now to access these financial incentives from Con Edison 7
  8. 8. Property Managers – 3 things building ownersand real estate investors want: • To optimize the income and cash flow they receive from their properties. This program helps you manage energy usage, a key component of operating costs. • To reduce the risks and burdens of resident complaints. High performance systems reduce complaints, so building staff can operate the building systems proactively for everyone’s comfort, not reactively. • To satisfy other legal requirements (rent regulations, sanitation, basic building services like heat) – For multifamily buildings over more than 50,000 sf, this now includes benchmarking their energy use, and taking action to audit and improve the energy efficiency of buildings as required by NYC’s Greener, Greater Buildings Law in the coming years. 8
  9. 9. Real Estate Owners/Investors – Energy efficiency upgrades are a dependable, non-speculative way to improve the cash flow situation in your buildings by managing operating costs effectively during what is still a down market. These investments make the asset more profitable, whether your time horizons are long term or short term term. – As the multifamily market in NYC area improves, if you decide to sell, upgrades that strengthen cash flow will improve your building financials f prospective customers, or free up money for additional fi i l for ti t f f dditi l investments in the property. 9
  10. 10. Affordable housing managers anddevelopersd l• More dependable cash flows can help you maintain affordable rent l t levels t serve your tenants and your organizational goals – l to t t d i ti l l including green goals – better.• Tenant relations: Increase tenants’ comfort and help them save tenants money on utilities with the program’s free in-unit measures.• If your building is master-metered, your bottom line will benefit directly from the in-unit measures. 10
  11. 11. But what if you are a Broker? – The multifamily market is improving – but • prices are low • many buildings and apartment units compete for investors’ dollars. – An energy efficient building saves money on operating costs each month – this is a selling point whether you are selling individual coop or condo units or rental properties. – Making your customers (or the property management firms they employ) aware of Con Edison incentives is one way you can show them that your service adds value to their properties. 11
  12. 12. Scope of the Multi-Family Program• Includes both common area and in-unit measures designed to produce therm or kWh savings supporting NYS EEPS g g g goals.• Incentives for installation of measures that meet the PSC’s Total Resource Cost (TRC) test, as confirmed by the guidelines i id li issued b th PSC d by the PSC.• Incentives are paid only for completed work.• Over $22 million available for measures installed prior to December 2011, under the current program. Great opportunity to g incentives in all y pp y get your eligible p p g properties.• Over 800 Buildings with over 30,000 units expected in order to achieve savings goals. 12
  13. 13. Program Incentives• Building owners can receive specified incentives for various p g program eligible measures g• Financial incentives for – Central system gas measures – Common area electric – In-unit measures (See detailed list of measures and incentive amounts below)• Program success determined by savings achieved, so g y g , incentives tied to work completed 13
  14. 14. The most attractive incentives to savemoney and energy d – If the building is heated by Con Edison gas (firm gas account), or is electrically heated, it may qualify for • An energy management system with an incentive as high as $20,000. These systems generate dependable savings by delivering co s s e e e s of ea g or cooling. Co o ab e e a s don’t o consistent levels o heating o coo g Comfortable tenants do throw open the windows in mid winter because their apartments are not overheated • Valuable incentives for heating system upgrades and insulation g y pg – All eligible buildings • High efficiency lighting and occupancy sensors in hallways, stairwells, laundry areas, b l d basement storage and equipment rooms. V t t d i t Very good d incentives for bi-level lighting. • Encourage full participation by residents to get in-unit measures, esp. in buildings with master metered electric accounts . b ildi ith t t d l ti t 14
  16. 16. Building Application Process• Call our Multi-Family InfoLine at 1-877-634-9443 or• Download an application on our website htttp://• Submit a signed “Owner Application/Participation Agreement” for a single property (Form 100-1a) , or• Submit a signed Portfolio Application for a set of buildings from the same owner (Form 100-1b).• AEA will confirm building eligibility and assign an account manager (if not already involved). 16
  17. 17. How do I Schedule the Energy Survey?• Call our InfoLine (1-877-634-9443). An assigned account manager will contact you you.• Schedule a convenient time for Common Area and In-Unit survey. survey• Promote maximum tenant participation.• Auditors will collect data on the following: - HVAC equipment - Lighting - Building Shell 17
  18. 18. What do I Gain from the Surveys?• Free In-Unit Direct Installs: - CFLs smart strips, showerheads faucet aerators CFLs, strips showerheads, aerators.Common Area Survey Report containing: - Description of building conditions - Recommendations for energy efficiency upgrades - Scope of Work table showing measure costs, savings, and Con Edison incentivesAEA account managers will review energy efficiency upgrade incentives and contractor selection options with you. 18
  19. 19. Measure Implementation and Incentive Payment Process P tP1. An owner receives and reviews results of survey.2. Owner agrees to proceed with work and signs a proposed Scope of Work/Owner Agreement confirming the measures to be done.3. Incentives are payable to the owner and/or contractor only upon “confirmation of completion” of installation of measure(s) by a participating contractor.4.4 Measures can be phased but are all subject to100% inspection by the program team.5. AEA submits incentive payment requests to Con Edison for completed work that meets all program guidelines.6. Incentive checks will be issued by AEA (or Con Edison) monthly, p pursuant to p g program rules, once measure is reported as completed. , p p 19
  20. 20. Installing the Measures:Participating C tP ti i ti Contractors t• The current list of participating contractors can be found at• If you have your own preferred contractor, refer the principals of th fi to AEA’s b i f orientation t program i i l f the firm t AEA’ brief i t ti to rules and requirements to become an approved contractor.• Contractor Orientations are held the 2nd Tuesday of each month at the AEA Training Center, 105 Bruckner Blvd, Bronx, NY 10454. (Contact to sign up for a contractor orientation session). 20
  21. 21. MFEE Efficiency Measures 21
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  25. 25. Case Study 1Manhattan, Recent ConstructionCon Edison MFEEP In-ProgressSurvey Findings:- 5 Residential stories, 61 units- Masonry & framing, insulated walls and roof- Effi i t lamps and fixtures, but lights are on Efficient l d fi t b t li ht when unoccupied!- Poor boiler controls- No pipe insulationEstimated T t l C t t OE ti t d Total Cost to Owner: $9,315 $9 315Con Edison MFEEP Incentive: $14,905First Year Energy Savings: $4,519 Annua l  El ectri ci ty  Annua l   Fi rs t Yea r  Sa vi ngs  (1) Es t.  ConEd  Es t. Tota l   Es t. Energy Cons erva ti on  Owners   Cons umpti on Dema nd  Energy  Mea s ure  MFEEP  Si mpl e  Owners   Mea s ure El ectri c Ga s Cos t (kWh) (kW) Sa vi ngs   Cos t Incenti ve Pa yba ck  Si mpl e  CA Li ghti ng 643 0.1 ‐ $161 ‐ $425 $114 $311 2.6 1.9 Moti on Sens ors 426 0.1 ‐ $107 ‐ $625 $250 $375 5.9 3.5 Bi ‐Level  Fi xtures 3366 0.1 ‐ $842 ‐ $8,100 $4,050 $4,050 9.6 4.8Ins ul a ti ng HTG Pi pes ‐ ‐ 303 ‐ $424 $200 $120 $80 0.5 0.2Ins ul a ti ng DHW Pi pes ‐ ‐ 243 ‐ $340 $380 $228 $152 1.1 0.4Energy Ma na gement  ‐ ‐ Sys tem 1,889 ‐ $2,645 $14,489 $10,142 $4,347 5.5 1.6 25
  26. 26. Case Study 2 Bronx, Walk Up Con Edison MFEEP Complete Survey Findings: - 5 Stories, 66 Units - Masonry construction -U i Uninsulated roof cavity l t d f it - T12 lighting fixtures - Atmospheric heating boilers - Poor pipe insulation Estimated T t l C t t O E ti t d Total Cost to Owner: $92,108 $92 108 Con Edison MFEEP Incentive: $36,185 First Year Energy Savings: $11,505 Annua l  El ectri ci ty  Annua l   Fi rs t Yea r   Es t.  ConEd  Es t.  Es t. Tota l   Es t.  Energy Cons erva ti on  gy Owners   Cons umption Dema nd  Energy  E Mea M s ure  MFEEP  MFEEP Sta d d St nda rd  Si mple  O l Owners   Mea s ure El ectric Ga s Cos t (kWh) (kW) Sa vi ngs   Cos t Incenti ve to High  Pa yba ck  Si mpl e  CA Li ghting 17,794 2.5 ‐ $4,449  ‐ $9,300  $2,108  $7,192  ‐ 2.1 1.6 Motion Sens ors 556 0.2 ‐ $139  ‐ $800  $300  $500  ‐ 5.8 3.6 Condens ing Boil er ‐ ‐ 2,460 ‐ $3,444  $106,470  $30,000  $76,470  $39,780  11.6 2.8 Ins ul a te HTG Pi pes ‐ ‐ 55 ‐ $77  $40  $25  $15  ‐ 0.5 0.2 Ins ula te DHW Pipes ‐ ‐ 14 ‐ $20  $50  $30  $20  ‐ 2.6 1 Ins ula te Roof Ca vi ty ‐ ‐ 2,410 ‐ $3,374  $11,633  $3,722  $7,911  ‐ 3.4 2.3Notes:(1) Savings and analysis is based on an average rate for natural gas of $1 40 per therm and a blended rate for electricity consumption of $0 25 per kWh $1.40 $0.25 kWh. 26(2) Estimated total simple payback and owners simple payback are based on the payback of the incremental cost of upgrading to a higher efficiency replacement unit versus a standardefficiency unit, not the total cost.
  27. 27. Case Study 3Manhattan, Walk-upCon Edison MFEEP In-ProgressSurvey Findings:- 4 Residential stories, 8 Units- Masonry construction- P l sealed d Poorly l d doors- Old and magnetically ballasted fixtures- Poor pipe insulation- No boiler controlsEstimated T t l C t t OE ti t d Total Cost to Owner: $1,136 $1 136Con Edison MFEEP Incentive: $1,604First Year Energy Savings: $554 Annua l  El ectri ci ty  Annua l   Fi rs t Yea r   Es t.  ConEd  Es t. Tota l   Es t. Energy Cons erva ti on  Owners   Cons umpti on Dema nd  Energy  Mea s ure  MFEEP  Si mpl e  Owners   Mea s ure El ectri c Ga s Cos t (kWh) (kW) Sa vi ngs   Cos t Incenti ve Pa yba ck  Si mpl e  CA Li ghti ng 1,397 0.02 ‐ $349 ‐ $1,200 $260 $940 3.4 2.7Ins ul a te DHW Pi pes ‐ ‐ 100 ‐ $140 $490 $294 $196 3.5 1.4 27
  28. 28. Leverage your own and other people’smoney NOW• Besides leveraging your own investment in energy and bill savings measures by acting now, it is possible to leverage other resources when permitted (e.g., the federal Weatherization Assistance Program) g )• The SBC payments on your utility bills help to create the funding for this program.• Get started now and take full advantage of the program incentives available from Con Edison in 2011. 28
  29. 29. THE GREEN TEAM CONTACT SUMMARY Green Team Call Center: 1-877-870-6118• Oil to Gas Conversion 1-800-643-1289 or• Residential programs 1-800-430-9505 or• Small Business – Direct Install 1-888-945-5326 or• Commercial programs 1-877-797-6347 1 877 797 6347 or www coned com/energyefficiency• Multi-Family Program 1-877-634-9443 or www aeanyc org/conedmultifamily 29
  30. 30. QUESTIONS? 30