Funding Energy Efficiency With Rebates & Incentives Kim

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Funding Energy Efficiency With Rebates & Incentives Kim

  1. 1. Funding Energy Efficiency with Rebates & Incentives<br />
  2. 2. <ul><li>Ross Cowan</li></ul>Director of Sales & Business Development<br /><ul><li>Kim Collins</li></ul>National Account Manager<br />2<br />
  3. 3. Agenda<br /><ul><li>Utility Rebates & Incentives
  4. 4. The Rebate Capture Process
  5. 5. Options for Rebate Capture
  6. 6. Outsourcing?
  7. 7. Case Studies – Retrofit & New Construction
  8. 8. About RealWinWin
  9. 9. How it works…
  10. 10. Q & A, Discuss Initiatives</li></ul>3<br />
  11. 11. Utility Rebates and Incentives<br /><ul><li>Ratepayer funded programs:
  12. 12. Mandated by PUC’s & implemented by EDC’s
  13. 13. Ratepayer relief as energy prices rise
  14. 14. T&D bottlenecks
  15. 15. Public perception</li></ul>4<br />
  16. 16. 5<br />Utility Rebates and Incentives<br /><ul><li>Estimated $7.5 billion budgeted in the US and Canada for 2010 (gas and electric)
  17. 17. U.S. Electric & Gas - $6.6 billion (up 24%)
  18. 18. U.S. Electric & Gas – $4.6 billion spent in 2009
  19. 19. C&I - 39% of budgets and 67% of savings
  20. 20. +400 well established programs in the U.S. alone</li></ul>CEE, State of the Efficiency Program Industry, 2009 Expenditures, Impacts & budgets 12/10/2010 <br />
  21. 21. 6<br />Utility Rebates and Incentives<br /><ul><li>California ($1.5B) and New York ($0.6B) = 39%
  22. 22. FL, MA, NJ, OH and PA ($1.2B) = 22%
  23. 23. WA, CT, TX, IA, IL, MD, MN, PacNW, WI, AZ and OR ($1.2B) = 22%
  24. 24. Remaining (26) states ($1.0B) = 18%</li></ul>CEE, Energy Efficiency Programs and Evaluation, August 2011<br />
  25. 25. 7<br />Utility Rebates and Incentives (electric) – Q1 2011<br />
  26. 26. Payouts are substantial:<br /><ul><li>10% or more of the equipment cost
  27. 27. 50% of the total installed project
  28. 28. Buy down paybacks to 2 years or less
  29. 29. Reward improvement over local code</li></ul>8<br />Utility Rebates and Incentives<br />
  30. 30. Prescriptive Incentives<br /><ul><li>Pre-determined savings and incentive levels
  31. 31. Simple non-interactive equipment upgrades
  32. 32. Typically provided for tried and true energy-efficiency measures
  33. 33. Paid out at $$ per ton, horsepower, lamp, etc</li></ul>9<br />Utility Rebates and Incentives<br />
  34. 34. Custom Incentives<br /><ul><li>Incentives are determined on a case-by-case basis and are paid per unit energy saved (kWh and/or kW)
  35. 35. Based on the incremental costs and the peak demand savings value of high efficiency equipment compared to the performance of existing equipment.
  36. 36. Typically evaluated Total Resource Cost (TRC) Test
  37. 37. Often required to “prove” results through M&V</li></ul>10<br />Utility Rebates and Incentives<br />
  38. 38. Typical Programs<br /><ul><li>Lighting re-lamp/re-ballast
  39. 39. Fixture replacements
  40. 40. CFLs, LEDs, T8’s, T5’s
  41. 41. Metal Halide, Exit Signs, etc.
  42. 42. Case Lighting
  43. 43. Night Shades
  44. 44. Refrigeration
  45. 45. Occupancy Sensors
  46. 46. Motors, ECMs, Pumps
  47. 47. Variable Frequency Drives
  48. 48. Controls</li></ul>11<br />Utility Rebates and Incentives<br /><ul><li>Energy Management Systems
  49. 49. HVAC (RTUs, Chillers)
  50. 50. Heat Pumps (Air/Water)
  51. 51. Vending Misers
  52. 52. Exterior Signage
  53. 53. Cooking/Food Equipment
  54. 54. Custom applications
  55. 55. Energy Recovery
  56. 56. Demand Control Ventilation
  57. 57. Daylighting
  58. 58. Building Envelope</li></li></ul><li>The Rebate Capture Process<br /><ul><li>Qualifying/Screening/Estimating
  59. 59. Prototype/Drawings
  60. 60. Savings Calculations
  61. 61. Preliminary Application
  62. 62. Initial Negotiations
  63. 63. Pre-approval/Reserve Funds
  64. 64. Pre- and Post- Site Visits
  65. 65. Construction
  66. 66. Data/Document collection
  67. 67. Final Calcs/Negotiations
  68. 68. Final Application
  69. 69. Verification/Expediting</li></ul>“Requirements, regulations, <br />red tape, rejections…”<br />12<br />
  70. 70. 13<br />The Rebate Capture Process<br />Detail-driven process<br /><ul><li>Complicated by geographical requirements and procedures
  71. 71. Lack of consistency, no standards</li></ul>Knowledge and diligence increases receipts<br /><ul><li>Knowing which program to file
  72. 72. Understanding funding levels and timing req’s
  73. 73. Having a relationship with the utility</li></li></ul><li>Options for Rebate Capture<br />Use in-house resources to find/file for rebates<br /><ul><li>Local utilities and account reps
  74. 74. Published summaries
  75. 75. Online databases
  76. 76. www.dsireusa.org
  77. 77. Do you have the expertise and </li></ul> time to file rebates?<br /><ul><li>At what cost until proficiency is achieved?</li></ul>14<br />
  78. 78. Depend on vendors to find/capture the money<br /><ul><li>Do vendors have the expertise, time and incentive to maximize?
  79. 79. What about new construction?
  80. 80. What about complex ‘custom’ projects?
  81. 81. Pre-approvals? Expediting?
  82. 82. May outsource to 3rd party</li></ul>What does a good job look like?<br />“I received $200k” … “You should have received twice that amount!!!”<br />15<br />Options for Rebate Capture<br />
  83. 83. Use a 3rd-party rebate administrator<br /><ul><li>Centralized energy management approach
  84. 84. Centralized reporting
  85. 85. Commitment to energy efficiency
  86. 86. Staff capability, know-how and experience
  87. 87. Incentive to capture and maximize all opportunities</li></ul>16<br />Options for Rebate Capture<br />
  88. 88. 17<br />Why and When to Outsource<br /><ul><li>Broad portfolio of locations across many geographies
  89. 89. Multiple technologies/solutions considered
  90. 90. Various project types
  91. 91. Tight deadlines
  92. 92. National vendor relationships in place
  93. 93. Limited resources, both staff and time
  94. 94. Dedication to energy-, staff-, and capital-efficiency</li></li></ul><li>18<br />Case Studies<br />Retrofits<br />
  95. 95. 19<br />Regional Grocery Chain<br />Freezer Door Replacements (2010)<br /><ul><li>Moved to low/zero energy doors
  96. 96. 19 locations received rebates of $148,200
  97. 97. Several capped at 50% of installed cost
  98. 98. Rebates offset 35% of rebate eligible project costs
  99. 99. Ongoing project for 2011 & 2012</li></li></ul><li>20<br />Quick Service Restaurant<br />Interior LED retrofit (2009 – 2010)<br /><ul><li>More than 5,000 N. America locations involved
  100. 100. LED technology untested by utilities
  101. 101. Little to no existing/formal programs
  102. 102. Negotiated incentives for +2,500 locations, most custom or performance based
  103. 103. Net proceeds exceeded $1 million to QSR
  104. 104. Rebates offset 10%+ of project cost</li></li></ul><li>21<br />Convenience Store <br />Refrigerated Display Case LEDs, etc (2010)<br /><ul><li>Approximately 6,000 N. America locations
  105. 105. Projects included refrigerated case door lighting, exterior wall washes, exterior pole lamps
  106. 106. Most programs using “Qualified Product List” format
  107. 107. Negotiated incentives for 65% of the locations and successfully achieved product listing/acceptance with many programs.
  108. 108. Offset ~16% of the capital cost</li></li></ul><li>22<br />National Telecom Company<br />Multiple Initiatives(2010 - 2013 )<br /><ul><li>Lighting retrofits (T12-T8), occupancy sensors, and upgrading air handling systems in hundreds of central offices nationwide
  109. 109. Upgrading air handling on thousands of cell sites nationwide, expecting energy savings of 30%+
  110. 110. Expecting to offset ~10% to 20% of the capital cost across all projects</li></li></ul><li>23<br />Big Box Retailer<br />VFDs on Air Handlers (2008-2011)<br /><ul><li>Average location 90k SF with 9 RTUs
  111. 111. 325 locations recd/receiving $2.1 million
  112. 112. $5.5 million capital costs
  113. 113. Customer reported HVAC energy savings of 52%
  114. 114. Rebates offset ~ 41% of total project costs</li></li></ul><li>24<br />National Senior Living Operator <br />Lighting / Relamping Retrofit (2010)<br /><ul><li>232 locations involved (30k – 800k SF)
  115. 115. 156 locations (67%) received rebates of $750k
  116. 116. Approximately $6 million in capital costs
  117. 117. 10.7 million kWh annual energy savings
  118. 118. Offset ~ 11% of total project costs
  119. 119. Offset ~ 17% of “rebate-eligible” project costs</li></li></ul><li>25<br />Case Studies<br />New Construction<br />
  120. 120. 26<br />Regional Grocery Chain<br />New Construction / Major Reno’s<br /><ul><li>Average 56,000 square feet
  121. 121. Average incentive expected to be ~ $18,000
  122. 122. Average incentive of $0.32/SF
  123. 123. Technologies included:
  124. 124. HVAC, Lighting, Food Equipment, High Efficiency Cases, Evap Fan Motors, LED Case Lighting, Low/Zero Energy Doors
  125. 125. Possible measures to add (with help from Vendors):
  126. 126. Compressor Racks & Condensers
  127. 127. Desiccant HVAC Units</li></li></ul><li>27<br />National Retail Pharmacy<br />New Construction<br /><ul><li>Average 12,500 square feet
  128. 128. 184 locations received rebates of $683k
  129. 129. Average incentive of $3,700
  130. 130. Average incentive of $0.29/SF
  131. 131. Technologies included
  132. 132. HVAC, Lighting, </li></ul> Refrigeration and Signage<br />
  133. 133. 28<br />National Medium Box Retailer<br />New Construction<br /><ul><li>Average 30,000 square feet
  134. 134. 82 locations received rebates of $580k
  135. 135. Average incentive of $7,000
  136. 136. Average incentive of $0.24/SF
  137. 137. Technologies included HVAC and Lighting</li></li></ul><li>29<br />National Big Box Retailer<br />New Construction<br /><ul><li>Average 100,000 square feet
  138. 138. Average incentive of $28,300
  139. 139. Average incentive of $0.28/SF
  140. 140. 36 locations received rebates of > $1 million
  141. 141. Technologies included HVAC, Lighting, Food Equipment and Refrigeration</li></li></ul><li>About RealWinWin<br />Industry’s leading provider<br /><ul><li>65 active national retail accounts
  142. 142. Dozens of vendor, service provider and manufacturer relationships
  143. 143. All 50 States and Canada
  144. 144. All technologies covered (lighting, HVAC, refrigeration, motors, drives, custom, etc)
  145. 145. All types of projects (new con, retrofit, reno, etc)</li></ul>30<br />
  146. 146. <ul><li>In 2010 alone:
  147. 147. Screened more than 22,000 projects
  148. 148. Filed ~ 10,000 individual rebate applications in 47 U.S States and 4 Canadian Provinces
  149. 149. 2011 YTD:
  150. 150. Screened more than 18,000 projects
  151. 151. Expecting +/- 8,000 individual rebates</li></ul>31<br />About RealWinWin<br />
  152. 152. <ul><li>Superior reputation with utilities
  153. 153. Clients own/operate over 2 billion square feet
  154. 154. Paid for performance ONLY, success-fee
  155. 155. Energy Conservation first and foremost
  156. 156. Broad range of engineering talent (~50% staff)
  157. 157. Staff fully deployed on Rebate Administration</li></ul>32<br />About RealWinWin<br />
  158. 158. Getting Started<br />Preliminary Screening<br /><ul><li>Review and Discuss Capital Budgets, </li></ul> Project Lists, Construction Schedules<br /><ul><li>Review project data, drawings, schedules, </li></ul> specifications, etc.<br /><ul><li>Discuss timing, savings estimates, specs, SF
  159. 159. Determine and agree on mutual opportunity</li></ul>33<br />
  160. 160. Rolling Out<br /><ul><li>RWW Service Agreement
  161. 161. Roll-out Call
  162. 162. Account Manager
  163. 163. Account Engineer
  164. 164. Vendor Introductions
  165. 165. Bank, Utility and Vendor Authorization Letters </li></ul>34<br />Getting Started<br />
  166. 166. 35<br />Money Flow<br />Net Check Process<br />Customer<br /><ul><li>+/- 80% of Rebate
  167. 167. Copy of the Rebate Check
  168. 168. Paid Invoice</li></ul>RealWinWin<br /><ul><li>+/-20% of Rebate</li></li></ul><li>36<br />Reporting:<br />
  169. 169. Recap:<br /><ul><li>Ratepayer funded ‘utility’ rebate programs
  170. 170. Upwards of $4 billion slotted for C&I projects
  171. 171. Offset 10% or more of the equipment cost
  172. 172. Up to 50% of the total installed project
  173. 173. Timing is crucial!!
  174. 174. Centralized reporting with</li></ul> 100% outcomes<br /><ul><li>Success-Fee motivation</li></ul>37<br />
  175. 175. Exhibit 1 – Summary Scope of Work<br />Screening: Comprehensive screening of projects to identify potential Rebates. <br /><ul><li>Identify Rebates by utility and program
  176. 176. Communicate with Client vendors as required to verify specifications
  177. 177. Provide Client with potential Rebates, energy savings, and payback analyses where applicable.
  178. 178. Enter Capital Projects into RWW Tracking Systems for processing.</li></li></ul><li>Exhibit 1 – Summary Scope of Work (con’t)<br />Filing: Management of Rebate filing requirements and related documentation<br /><ul><li>Coordinate pre-installation inspection (as necessary)
  179. 179. Verify filing approach to ensure maximum Rebate
  180. 180. File necessary pre-construction paperwork
  181. 181. Maintain ongoing communication with owner, contractor/vendor, and Rebate-granting authority(s) to ensure the project is in compliance with guidelines
  182. 182. Coordinate post-installation inspection (as necessary)
  183. 183. File any final paperwork work with targeted utility</li></li></ul><li>Exhibit 1 – Summary Scope of Work (con’t)<br />Expediting – Manage receipt of Rebate payments from utility in a timely manner<br /><ul><li>Obtain final approvals necessary to obtain payment
  184. 184. Track checks pending receipt
  185. 185. Receive and process payments and issue “Net Checks”
  186. 186. Confirm Client receipt of the payment
  187. 187. Present reports of all Client project and related Rebate activity Client each month or as Client requests</li></li></ul><li>Exhibit 1 – Summary Scope of Work (con’t)<br />Eligibility Improvement – Provide structured feedback to Client on standard specifications and rebate eligibility guidelines to lower energy consumption and overall life-cycle cost of equipment. <br /><ul><li>Review of prototype designs to advise on rebate eligibility and energy consumption
  188. 188. Recommend geographies for investment having most generous Rebate programs
  189. 189. Leverage RWW’s vendor/partner relationships to identify alternative approaches to achieving design goals with lower energy consumption
  190. 190. Coordinate with Client vendors to seek alternative approaches to lower energy consumption</li></li></ul><li>Q&A, Open Discussion<br />42<br />Thank You!<br /><ul><li>Ross Cowan, Director of Sales and Business Development
  191. 191. Kim Collins, Nat’l Accounts (215) 732-4480 ext.353</li>

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