Greening Your World…

22

Vision: Creating a Sustainable Energy Future

• Areas of Focus

• Energy Efficiency

• Renewable Energy

• Green Building

• Climate Change

• Transportation

33

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

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Trash Disposal Compostables

Recycle

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Housekeeping

• Online Registration is the best way to guarantee a spot

• Restrooms

• Phones Off

• Shhhh. . . Quiet in Hallway

• Sign-in Sheets & Evaluations

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CCSE Disclaimer

Workshops are provided as a public service with the

understanding that the California Center for Sustainable Energy

makes no warranties, either expressed or implied, concerning

the accuracy, completeness, reliability, or suitability of the

information.

The California Center for Sustainable Energy does not

endorse any particular product, manufacturer or service

mentioned and does not represent that any goods or services

are fit for any purpose or use.

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Power Play Part 2 Overview

• Strategies for Savings:

• Retro-Commissioning

• Retrofits

• Plans for Production

• Solar PV

• Fuel Cells

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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

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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.

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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

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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)

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Distributed Generation

• Onsite Energy Production

• Supplements' Energy Efficiency

• High profile environmental statement

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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

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Retro-Commissioning (RCx)

Pre commissioned

building

Retrcocommissioned

building

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Retro-Commissioning:

What to Expect?

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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

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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

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Strategies for Savings: Retrofits

• Replace old systems with new

• Enhance controls

• Increased efficiency generates savings

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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

2020

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

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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

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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

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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.

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• 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.

Energy (kWh) vs Demand (kW)

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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

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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.

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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!

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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

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Rebate Catalogue example

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Energy Efficiency Business Rebates

Example: Exterior Lighting

• Base Case:

• 250W High Pressure Sodium Lights

• Wall packs around building exterior

• Replacement Case:

• 60W induction bulbs

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Energy Efficiency Business Rebates

Example: Exterior Lighting

• Induction Bulbs

• 60W per fixture

• Last 8-10 years depending on ballast

• $430/fixture

• $50/fixture rebate

• 100 total fixtures

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Energy Efficiency Business Rebates

Example: Exterior Lighting

• 55,000 kW savings per year

• $1,900/year average nominal cash flow

• $7,500 Net Present Value

• Utilized On Bill Financing

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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

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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

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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

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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

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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

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Electricity Savings Retrofit

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Gas Savings Retrofit

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Retrofit Upgrade Costs

• 2 new chillers: $1,000,000

(design, parts, labor)

• Variable Frequency Drives for fans $5,000

• New Lights $279,500

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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

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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.

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Distributed Generation

• California Solar Initiative (CSI)

• Solar PV

• CSI Solar Thermal

• Solar Water Heating

• Self Generation Incentive Program (SGIP)

• Wind

• Fuel Cell

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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

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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

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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

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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

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Utility Rate Escalation

• Historically around 3.4%.

• May experience high price volatility.

• Impacts distributed generation cash flows

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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

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Self Generation Incentive Program

• Funds Fuel Cells, Wind and Advanced

Energy Storage

• Minimum size 30kW

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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

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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

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Fuel Cell Incentives

• Eligible for Federal Tax Credit

• May receive CA state rebate

• May qualify for DG-R tariff

• Heat recovery supplements domestic water

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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

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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.

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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/

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Energy Advisory Service

Empowering clients with objective information

and sound analysis to green your bottom line

We provide feasibility consulting for a variety of needs:

• Energy Efficiency (New/Retrofit)

• Renewable Energy Projects (DG/Utility Scale)

• LEED, Energy Star, HERS Verifications

Contact:• , 858.244.1177