Determine Your Own Future1

Determine Your Own Future

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Connecticut Energy Efficiency Fundand Connecticut Clean Energy Fund

Rebate Program Review• Introduction: Joe Swift / Supervisor CL&P Res. C&LM

• Connecticut Energy Efficiency Fund Program

• Central AC and Heat Pump Rebate: Mark Patrick Foley / CL&P

• Gas Utilities HWH Rebate

• Federal ENERGY STAR ® Tax Incentives

• OPM Recovery Fund Rebate: Patrick Burns / UI

• Ductless AC/HP Rebates: Thomas Ziobron / CL&P

• Connecticut Energy Efficiency Fund Geothermal Performance Rebate: Mark Patrick Foley / CL&P

• Connecticut Clean Energy Fund Recovery Fund Geothermal Rebates: David Ljungquist / CCEF

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The “Cleanest” Energy

• The cleanest, cheapest, greenest form of energy is energy that is conserved

• Although you do not have control over rates, you do have influence over how high efficiency HVAC equipment is presented to your customers

• Make the time and effort to consider energy-efficient equipment rebates

• Many little changes can add up to big changes that will improve performance, energy costs and the environment

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Connecticut Energy Efficiency Fund

• Created in 1998 by the Connecticut State Legislature

• Programs are funded by a $0.003/kWh surcharge on electric customers’ bills

• Programs are administered by the State’s electric utilities

• $4 benefit for every $1 invested!

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Connecticut Energy Efficiency Fund Goals

• Advancing the efficient use of energy at home and at work

• Reducing air pollution and other negative environmental impacts

• Promoting economic development and energy security

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• Energy Efficiency Fund programs mitigate adverse environmental effects by reducing energy demand and energy use in Connecticut

• Energy reductions mean fewer hours of operation for less-efficient power plants

• Cutting back plant operation time reduces emissions of air pollutants and greenhouse gases

Connecticut Energy Efficiency Fund

Environmental Benefits

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Energy Usage Has Changed• In 1917, most electricity was used for lighting, with the

average annual CL&P bill ≈ 247 kWh

• Over the last 100 years, our homes have grown in size and now have many more items that use electricity

• Average annual CL&P bill today is ≈ 8,000 kWh! • How do we reverse this trend?

Thousands of kWh per Household

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1940 1950 1960 1970 1980 1990 2000

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Where is the value?• Rebates assist your customers to reach higher

efficiency equipment• Home envelopes should be improved or meet higher

energy standards prior to rebates• Lowering energy use is the most cost-effective means

of providing customers with available generated energy• Decreases the need to add more power to the grid

while new forms of alternative, clean energy can be developed

• HES assessment can assist the designer to provide more accuracy in sizing the HVAC equipment

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Connecticut Energy Efficiency Fund HVAC Rebates

HVAC Rebate

Must meet ENERGY STAR minimums

Must be listed in the AHRI web site directory and be a matched set

(www.ahridirectory.org)

This rebate may be DOUBLED if the customer participates in a

Home Energy Solutions assessment PRIOR to the installation, and purchases

within 45 days of the HES service! (www.cl-p.com or www.uinet.com)

For new and replacement systems only!

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Package Terminal HPFor Home Energy Solutions

participants onlyCan be done in multi-family applications

BTU and above MINIMUM EFFICIENCY FOR INCENTIVE PER UNIT

• 8,000 BTU or Below 12.5 EER1 – 3.0 COP2 $150.00

• 8,100 BTU to 10,000 BTU 12.0 EER – 2.9 COP $150.00

• 10,100 BTU to 12,000 BTU 11.5 EER – 2.9 COP $150.00

• 12,100 BTU to 13,000 BTU 11.0 EER – 2.9 COP $150.00

• 13,100 10.0 EER – 2.8 COP $150.00

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Connecticut Energy Efficiency Fund Ducted HVAC Rebate Minimum Efficiencies

MINIMUM EFFICIENCY LEVELS / INCENTIVE SCHEDULE

• AHRI-Rated Unitary Air Conditioning and Split Systems 14.5 SEER / 12 EER3 $500/Unit• AHRI-Rated Central Air Conditioning Packaged Systems 14 SEER / 11 EER $500/Home• AHRI-Rated Air Source Heat Pump Split Systems 14.5 SEER / 12 EER / 8.2 HSPF $500/Unit• AHRI-Rated Air Source Heat Pump Packaged Systems 14 SEER / 11 EER / 8.0 HSPF $500/Home

Ductless & Geothermal Heat Pump Applicationswww.uinet.com or www.cl-p.com or www.goingductless.com/ct

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Residential: Home Energy Solutions

• Energy-saving program for existing homes• Highly-coordinated program administered by Connecticut’s

electric and natural gas utilities • Energy assessment of home provides:

– Blower door guided air sealing– Duct sealing– Direct installed lighting – Water-saving measures– Incentives for replacing old HVAC equipment and appliances,

and insulation upgrades– CHIF low-interest energy loans available– A valuable report for the HVAC designer

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InsulationWhat will the assessment do for the HVAC install?

• We will check insulation levels and may offer rebates for insulation @ .50 /sf. This can be DOUBLED if the work is done within 45 days of the HES service!

• The value of improving the home typically exceeds the cost of upgrading the HVAC equipment

• You should consider adding a home auditor to your team! Home raters can assist with providing a detailed design and suggest improvements

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Gas Utilities High Efficiency Hot Water Heater Rebate

Natural Gas Customers

High Efficiency Indirect Domestic Hot Water Heater $300

Must be connected to an ENERGY STAR qualified boiler @ 85% AFUE

or greater

Tankless Natural Gas Domestic Hot Water Heater $300

82 EF (Energy Factor) or greater Electronic Ignition

www.yankeegas.comwww.cngcorp.com

www.soconngas.com

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Federal Tax IncentivesResidential

GS and Air Heat Pumps, AC, Hot Water Heaters,

Furnaces & Boilers all qualify that meet minimum

efficiency requirements

HVAC 30% up to $1500

HWH + Boilers 30% up to $1500

Geothermal 30% of install cost No Cap!

www.energystar.gov

Federal Tax Incentive /HP• An Advanced Main Air Circulating Fan is an efficient fan, or blower motor

which blows the air that your furnace heats up through the duct system. Requirements• Must use no more than 2% of the furnace's total energy. Note: If the fan is

qualified, but the furnace is not, you will not be able to take 30% off the cost of the entire furnace. Ask your HVAC contractor to break out the cost of the fan in your bill. You can get a 30% tax credit on the cost of the fan alone.

Heat Pump RequirementsSplit Systems:

HSPF ≥ 8.5EER ≥ 12.5SEER ≥ 15

Package systems:HSPF ≥ 8 EER ≥ 12 SEER ≥ 14

Tax Credit includes installation costs

Federal Tax Incentive / AC• The best way to find tax credit eligible CACs is to ask your HVAC Contractor. To verify tax

credit eligibility, ask your HVAC contractor to provide the Manufacturer Certification Statement for the equipment you plan to purchase Or search the Manufacturer's web site.

Air Conditioning RequirementsSplit Systems:

SEER ≥ 16 EER ≥ 13

Package systems:SEER ≥ 14 EER ≥ 12

Tax Credit includes installation costs

Federal Tax Incentives/Boilers• Gas, Propane, or Oil Hot Water Boiler • These are heating units that use water circulated throughout the home

in a system of baseboard heating units, radiators, and/or in-floor radiant tubing

RequirementsAFUE ≥ 90

Tax Credit includes installation costs

Federal Tax Incentives/Furnace

Natural Gas or Propane Furnace

A furnace uses the combustion of fuel and air to create heat. Requirements

AFUE ≥ 95Tax Credit includes installation costs.

Oil Furnace

RequirementsAFUE ≥ 90

Tax Credit includes installation costs

Federal Tax Incentive/Geo• Tax Credit:

– 30% of cost with no upper limit • Expires:

– December 31, 2016 • Details:

– Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.

• Geothermal heat pumps are similar to ordinary heat pumps, but use the ground instead of outside air to provide heating, air conditioning and, in most cases, hot water. Because they use the earth's natural heat, they are among the most efficient and comfortable heating and cooling technologies currently available

Federal Tax Incentives/ GeoRequirements• Closed Loop:

EER ≥ 14.1 COP ≥ 3.3

• Open Loop: EER ≥ 16.2 COP ≥ 3.6

• Direct Expansion: EER ≥ 15 COP ≥ 3.5

• Tax Credit includes installation costs

Federal Tax Incentives/ HW

Gas, Oil, Propane Water Heater Water heating can account for 14%–25%

of the energy consumed in the home Requirements

• Energy Factor ≥ 0.82 OR a thermal efficiency of at least 90%• Tax Credit includes installation costs

Electric Heat Pump Water Heater

Requirements• Energy Factor ≥ 2.0• Tax Credit includes installation costs

Federal Tax Incentive Watch the details!

Lines 3a Through 3c• Also include on lines 3a through 3c any labor costs properly

allocable to the onsite preparation, assembly, or original installation of the property

• Line 3a. Enter the amounts you paid for energy-efficient building property. Energy-efficient building property is any of the following:

– An electric heat pump water heater that yields an energy factor of at least 2.0 in the standard Department of Energy test procedure.

– An electric heat pump that has a heating seasonal performance factor (HSPF) of at least 9, a seasonal energy efficiency rating (SEER) of at least 15, and an energy efficiency rating (EER) of at least 13.

– For property placed in service after February 17, 2009, the property must achieve the highest efficiency tier established by the Consortium for Energy Efficiency (CEE) as in effect on January 1, 2009. However, if you purchased property before June 1, 2009, you can still take the credit if you relied on the manufacturer's certification issued before February 18, 2009, that the property met the standards in effect before February 18, 2009.

– A central air conditioner that achieves the highest efficiency tier that has been established by the CEE as in effect on January 1, 2006.

Federal Tax Incentive Details• For property placed in service after February 17, 2009, the property

must achieve the highest efficiency tier established by the CEE as in effect on January 1, 2009. However, if you purchased property before June 1, 2009, you can still take the credit if you relied on the manufacturer's certification issued before February 18, 2009, that the property met the standards in effect before February 18, 2009.

• A natural gas, propane, or oil water heater that has an energy factor of at least 0.80 or a thermal efficiency of at least 90%.

• For property placed in service after February 17, 2009, the property must have an energy factor of at least 0.82 or a thermal efficiency of at least 90%. However, if you purchased property before June 1, 2009, you can still take the credit if you relied on the manufacturer's certification issued before February 18, 2009, that the property met the standards in effect before February 18, 2009.

• A stove that uses the burning of biomass fuel to heat your home or heat water for your home that has a thermal efficiency rating of at least 75% as measured by using a lower heating value. Biomass fuel is any plant-derived fuel available on a renewable or recurring basis, including agricultural crops and trees, wood and wood waste and residues (including wood pellets), plants (including aquatic plants), grasses, residues, and fibers.

Federal Tax Incentive Details• Line 3b. Enter the amounts you paid for a natural gas,

propane, or oil furnace or hot water boiler that achieves an annual fuel utilization efficiency rate of at least 95.

• For a natural gas, propane, or oil hot water boiler or oil furnace placed in service after February 17, 2009, the annual fuel utilization efficiency rate is reduced to 90.

• Line 3c. Enter the amounts you paid for an advanced main air circulating fan used in a natural gas, propane, or oil furnace that has an annual electricity use of no more than 2% of the total annual energy use of the furnace (as determined in the standard Department of Energy test procedures).

• Manufacturer’s certification. For purposes of taking the credit, you can rely on a manufacturer’s certification in writing that a product is qualified residential energy property. Do not attach the certification to your return. Keep it for your records.

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Questions?

Up next, OPM Recovery Fund RebatesMr. Patrick Burns/ The United

Illuminating Company.