DENNIS TOWNSHIP MUNICIPAL BUILDING ENERGY ASSESSMENT ...

DENNIS TOWNSHIP MUNICIPAL BUILDING ENERGY ASSESSMENT   for   NEW JERSEY BOARD OF PUBLIC UTILITIES

CHA PROJECT NO. 22690 July 2011          Prepared by:   

      6 Campus Drive  Parsippany, NJ 07054    (973) 538‐2120   

 

 

TABLE OF CONTENTS  

 

 

 

 

 

 

 

 

 

 

 

 

Page 

1.0

INTRODUCTION & BACKGROUND ………………………………………….…1

2.0

EXECUTIVE SUMMARY ……………………………………………………….…2

3.0

AUDIT METHODOLOGY ………………………………………………………… 5

4.0

EXISTING CONDITIONS ………………………………………………………….6 4.1 Building Description 4.2 Utility Usage 4.3 Building Envelop Characteristics 4.4 HVAC Systems 4.5 Domestic Hot Water 4.6 Temperature Control Systems 4.7 Lighting Systems 4.8 Emergency Power 4.9 Plumbing Systems

5.0

ENERGY BENCHMARKING ………………………………………………………10

6.0

ENERGY CONSERVATION MEASURES ………………………………………..12 6.1 ECM-1 Lighting Replacement with Switched Control 6.2 ECM-2 Lighting Replacement with Motion Sensors 6.3 ECM-3 Replace Domestic Hot Water Systems 6.4 ECM-4 Space Temperature Optimization Program 6.5 ECM-5 Install Demand Controlled Ventilation (Court Room) ECM-6 Install Demand Controlled Ventilation (Community Meeting Room) 6.6 ECM- 7 Increase Attic Insulation R21 to R38 6.7 ECM-8 Photovoltaic (PV) Rooftop Solar Power Generation 10 kW System 6.8 ECM-9 Small Scaled 2.4 kW Wind Power Generation

7.0

PROJECT INCENTIVES ………………………………………………………… 20 7.1 Incentives Overview 7.2 Building Incentives

8.0

ALTERNATIVE ENERGY SCREENING EVALUATION ………….…………23 8.1 8.2 8.3 8.4 8.5 8.6 8.7

9.0

Geothermal Solar Solar Thermal Wind Combined Heat and Power Generation (CHP) Biomass Power Generation Demand Response Curtailment

EPA PORTFOLIO MANAGER …………………………….…………….……..30

 

 

10.0 CONCLUSIONS & RECOMMENDATIONS………………………….………31 10.1 Recommended Energy Conservation Measures 10.2 Energy Conservation Measures not recommended for Implementation

APPENDICES A. B. C. D. E. F. G. H. I. J. K. L. M. N. O. P.

Building Information & Space Usage/Climate Zone 4 Energy Index Recommendation Table Utility Usage Analysis (Electric Supplier/National Gas Supplier Recommendation Table) Project Summary ECM-1 – Lighting Replacement with Switched Controls ECM-2 – Lighting with Occupancy Sensors ECM-3 – Replace Domestic Hot Water Systems ECM-4 – Space Temperature Optimization Program ECM-5 – Demand-Controlled Ventilation (DCV)Court Room ECM-6 - Demand-Controlled Ventilation (DCV) Community Meeting Room ECM-7 - Roof Insulation ECM-8 – Photo Voltaic (PV) Solar Power Generation ECM-9 – Wind Power Generation New Jersey Pay for Performance Incentive Program Solar Thermal Domestic Hot Water Plant EPA Portfolio Manager Equipment Inventory

1.0

INTRODUCTION AND BACKGROUND

CHA, an approved Pay for Performance Partner, conducted a comprehensive energy audit of the Dennis Township Municipal Building. The audit included:            

Documentation of energy sources, including electricity and propane Historical energy source data Energy systems: HVAC Lighting optimization and controls Building envelope Water conservation measures Utility rate and procurement analysis Demand reduction, load shedding/shifting opportunities Alternate energy technologies – distributed and renewables Energy Star Portfolio Manager Ranking Score Energy Use Intensity (EUI) Site/Source Building envelope and HVAC performance - Benchmarked to South NJ (Climate 4) Energy Conservation Guidelines

The primary goal of the energy audit was to identify sources of potential energy and cost savings. The New Jersey’s Clean Energy Program, funded by the New Jersey Board of Public Utilities, supports energy efficiency and sustainability for Municipal and Local Government Energy Audits. Through the support of a utility trust fund, New Jersey is able to assist state and local authorities in reducing energy consumption while increasing comfort. This program supports energy efficiency and sustainability and provides rebate incentives for qualified prescriptive measures including:  

Professional services for investment grade audits Replacement of lights, motors, HVAC systems and other qualifying prescriptive measures

This report identified qualified incentive rebates provided under the New Jersey’s Clean Energy Program, funded by the New Jersey Board of Public Utilities (New Jersey SmartStart program) and the NJ Direct Install Program. For the calendar year of study, the Dennis Township Municipal Building had an annual utility cost of $29,200 including $14,700 electric and $14,500 propane usage. Atlantic City Electric is the provider for electricity and Modern Gas Company for propane gas. Review of electricity bills indicated that the municipal building was charged at the following rates: supply unit cost of $0.123 per kWh; demand unit cost of $12.23 per kW; and blended unit cost of $0.18 per kWh. Electrical usage was generally higher in the summer months when air conditioning equipment was operational. A review of propane gas bills indicated an annual blended unit cost of $2.0 per therm. Water conservation measures were not considered because the building’s water consumption is well water-based and is not utility billed. Septic systems are used for sewer waste. Therefore no ECMs were evaluated for water conservation.

New Jersey BPU – Energy Audits Page 1 of 31  

 

2.0

EXECUTIVE SUMMARY

Recommended Energy Conservation Measures (ECMs) for the Dennis Township Municipal Building are presented in this report section. The following recommended Energy Conservation Measures were evaluated for energy savings potential:       

Lighting upgrades with switched lighting or occupancy controls Replacement of Domestic Hot Water Generator Install Demand Control - Meeting Hall Install Demand Control - Court Room Install Attic Insulation Photovoltaic 10KW ground mounted solar array Wind turbine power generation

Potential annual savings of $3,700 with implementation of the recommended Energy Conservation Measures result in a program payback of 3.9 years. The ECMs identified in this report will allow the building to reduce energy usage and, if pursued, have the opportunity for Dennis Township to qualify for funding through the New Jersey SmartStart Buildings Program and Direct Install Program. For the Municipal Building, the Direct Install Program brings the simple payback of all measures from about 9.0 years, to approximately 4.0 years. If approved for the maximum $50,000 in funds through the Energy Efficiency and Conservation Block Grant, Dennis Township would receive funding for the total project implementation costs of $14,400 (With Incentives) excluding ECM-8 “Photovoltaic Power Generation”. A summary of the costs, savings, and paybacks, and return on investment (ROI) for the ECMs are summarized Tables 2A & 2B. Energy Conservation Measure ECM-1

ECM-2

ECM-3 ECM-4

ECM-5

ECM-6

Budgetary Implementation Cost ($)

Approx. Annual Savings ($)

Payback w/o Incentive

Potential Incentive * ($)

ROI

Payback w/ Incentive

14,500

1,900

7.6

5,800

1.0

3.1

22,500

2,050

46.1

15,000

.4

4.4

7,000

360

18.6

300

(.5)

18.6

1,500

600

1.0

900

5.0

1.0

X

6,000

340

7.1

3,600

(0.2)

7.1

X

6,000

720

3.3

3,600

0.8

3.3

X

Lighting Replacement with Switched Control Lighting Replacement with Occupancy Sensors Replace Domestic Hot Water Heater Space Temperature Optimization

Recommended for Implementation (X) (See ECM2)

Demand Control Ventilation – Court Room Demand Control Ventilation – Municipal Meeting Room

 

X

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ECM-7 ECM-8 ECM-9

Increase Attic Ventilation Photovoltaic (PV) Power Generation

5,000

430

11.6

0

80,000

2,300

>25

4,900

34,000

940

>25

15400

-

1.6

11.6

-

Wind Power Generation

8.6 -

(1.0)

(See Note1)

19.8

TABLE 2A * Incentive shown is the maximum amount potentially available per the NJ SmartStart or Direct Install Programs. Note 1: While the payback period with incentives is within the parameters for recommended measures, further investigation of possible installation locations, required system maintenance, and ground mounted installation costs need to be developed prior to consideration for implementation. See report section 8.2.1 and Appendix K. Dennis Township should also pursue alternative funding under the Solar Power Service Provider (SPPA) program as outlined in Section 8.2.2

Table 2B represents the overall ECM program implementation cost, savings, payback and ROI: Annual Utility Savings Budgetary Electricity

Propane Gas

Implementation Cost ($)

kW

kWh

Therms

ECM-2: Lighting/occupancy Sensors

22,500

7.6

15,500

0

ECM-4: Space Temp. Optimization

1,500

0

2,450

79

ECM-5 – DCV Court Room

6,000

0

380

140

ECM-6 – DCV Community Meeting Room

6,000

0

2750

220

Program Totals

36,000

7.6

22,080

439

ECM-ID

ECM-ID ECM-2

Implementation Cost with Incentives

Payback without Incentives

Payback with Incentives

Total Savings

Potential Incentives

$

$

$

Years

Years

2,050

13,500

9,000

11.02

4.4

 

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ECM-4

600

900

600

2.5

1.0

ECM-5

340

3,600

2,400

17.6

7.1

ECM-6

720

3,600

2,400

8.3

3.3

3,710

21,600

14,400

9.7

3.90

Program Totals

Useful Life ECM-ID

Projected Life Savings

ROI

Years

kWh/Kw

Therms

ECM-2

0.4

15

232,500/7.6

0

30,750

ECM-4

5.0

15

36,750

1,185

9,000

ECM-5

0.2

15

5,700

2,100

5,100

ECM-6

0.8

15

41,250

3,300

10,800

316,200

6,600

55,650

Program Totals

$

TABLE 2B

 

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3.0

AUDIT METHODOLOGY

Data collection included the following:         

Photographs and field notes Specific information regarding the type of construction, building envelope, glass, air infiltration and other pertinent envelope factors Inventory of mechanical systems, condition, and remaining useful life Inventory of energy consuming devices and usage patterns List of building components that will be useful in future budget planning and to prioritize implementation of targeted energy performance enhancements Interviews with the Facility Director and building occupants Room-by-room lighting inventory Units of consumption obtained from Dennis Township Business Office, as well as history of the last 12 months’ usage from Atlantic City Electric and Modern Gas utility bills Collected data was entered into the Trace Energy Analysis Program to effectively analyze how the building is performing, and recommendations developed to reduce energy consumption and costs

 

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4.0

EXISTING CONDITIONS

4.1

Building Description

The Township of Dennis Municipal Building is an 8,500 net square foot, single story facility constructed in 1996. In 2004, an HVAC system upgrade added AHU-5 for the office court clerk and conference room. The offices and support areas operate approximately 2,500 hours per year, 8:00 AM – 5:00 PM, Monday through Friday. Space utilization is as follows: 

Municipal Office and Support Offices: 5,200 SF, current occupancy 10 people, design occupancy 50 occupants (100 SF/person)



Court Room: 1,400 SF, current occupancy (Municipal Court has been moved to another location) Design occupancy 200 people.



Community Room: 1,600 SF, current occupancy, 30 to 50 people during community meetings, Boy Scout/Girl Scout meetings etc. , design occupancy 200 people)



Restrooms and miscellaneous areas (Telecommunication closet, vestibule, mechanical equipment room): 300 SF

4.2

Utility Usage

Utilities include electricity, propane gas, and potable water. Electricity is delivered by Atlantic City Electric; propane gas by Modern Gas. Potable water is provided by well water and is not utility billed. For the calendar year, electrical usage was 81,700 kWh at a cost of approximately $14,700. A review of electricity bills indicated that the Municipal Building was charged at the following rates: supply unit cost of $0.123 per kWh; demand unit cost $12.23 per kW; and blended unit cost of $0.180 per kWh. Electrical usage was generally higher in the summer months when air conditioning equipment was operational. See Appendix B. Propane gas-fired equipment, including AHU-1, 2, 3, 4 and 5; propane fired duct heaters; and the hot water generator consumed approximately 8,050 gallons of propane gas at an annual cost of $14,500. The blended annual cost for propane was $1.80/gallon representing an annual rate of $2.0 per therm. Propane gas delivery is on a spot delivery basis; therefore, no monthly consumption patterns are provided. Appendix B contains the detailed utility analysis. Third party suppliers of electricity and propane gas are procurement options for Dennis Township to consider. A list of approved electrical and propane gas energy commodity suppliers is provided in Appendix B. 4.3

Building Envelope Characteristics

4.3.1

Front façade: (West) Exterior walls are constructed with: 4” brick, 6” batt insulation 1/2” gypsum board (50%) 5/4” x 12” cedar siding, ¾” plywood, 6” insulation, 1/2” gypsum board (50%)

The west side of the community room and court room is stucco finish over block wall  

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Side façade: (North, South, East) Exterior walls are constructed with: Vinyl Siding , ¾” plywood, ½” gypsum board, 6” batt , gypsum board Roof construction is asphalt shingles, ¾” plywood deck Ceiling construction is lay-in ceiling tiles with R-19 insulation in the attic floor and truss design in the office areas of the building Glass is 5/8: double glazed Exterior doors are insulated steel 4.4

HVAC Systems

Air handlers AHU-1 through AHU-5 are mounted on the attic floor trusses. The units consist of a DX coil for air conditioning with remote condensing units and propane gas furnaces for space heating. AHU-1 through AHU-5 heating and cooling system characteristics are summarized in the tables below:

System ID

SF SERVICE AREA

ROOM SERVICE AREA

Cooling Capacity DX Coil (MBH)

Heating Capacity Gas Duct Furnace (MBH)

Supply Air CFM

Outside Air CFM

1500

Community Meeting Room

75

50

3,000

500

AHU-2

3000

Offices

150

80

3,000

750

AHU-3

1600

Court Room

80

50

2,500

600

AHU-4

1400

Offices

60

50

1,000

250

600

Judge/Court Clerk/Conference Room

30

40

1,010

315

AHU-1

AHU-5

AHU-1 to AHU-5 Data The building’s exhaust air requirements are provided by exhaust fans as summarized below: Exhaust Fans EF-1A& EF-2B

Exhaust Air CFM

Remarks

2,200

Thermostat controlled @ 80°F

 

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(Attic Fans) EF-1

100

Men’s Restroom

EF-2

100

Ladies Restroom

EF-3

50

Judge’s Restroom

EF-4

100

Men’s Restroom

EF-5

100

Ladies Restroom Exhaust Fan Data

Total Cooling System ID

Capacity (MBH)

Sensible Cooling Capacity

EER

Service

CU-1

75

55

12

AHU-1

CU-2

150

110

12

AHU-2

CU-3

80

60

12

AHU-3

CU-4

70

50

12

AHU-4

CU-5

30

22

12

AHU-5

AHU 1 through AHU-5Condensing Unit Schedule  The air handlers, outside air condensers, duct fired heaters, DX cooling coils, and exhaust fans are well maintained. The vestibule is heated with a wall mounted 3 kW electric heater with self-contained thermostat. The telephone/Ethernet room is air conditioned with a Sanyo 9,000 BTU split DX system. 4.5

Domestic Hot Water

An AO Smith 65 gallon propane gas fired hot water heater, located in the Mechanical Equipment Room (MER), provides the building’s restrooms hot water requirements. System capacity is 50,000 BTU/hr input with a system efficiency of 80%. 4.6

Temperature Control Systems

Thermostat settings for the building’s air handlers is as follows:

 

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Heating Setpoints

Cooling Setpoints

Occupied/Unoccupied

Occupied/Unoccupied °F

System ID

Service Area

AHU-1

Community Room

70/65

74/78

Room usage on an as-needed basis

AHU-2

Offices

70/68

74/78

Occupied 8 hrs/day 5 days per week

AHU-3

Court Room

70/68

74/78

Currently not utilized

AHU-4

Offices

70/68

74/80

Occupied 8 hrs/day 5 days per week

AHU-5

Judge/Court Clerk/Conference Room

70/68

74/80

Room currently not occupied

4.7

Remarks

Lighting Systems

The majority of lighting fixtures have T-12 fluorescent lamps. Fixtures are (2 x 4) 4-lamp T12, (1 x 4) 2lamp fixtures, and (2 x2) U-lamp fixtures. The T-12 lighting fixtures have magnetic ballasts and are manually controlled by wall switches. In addition, exit signs have PL lamps. Exterior lighting fixtures are wall mounted metal halide for site security lighting and 75 watt PAR lamps in the vestibule and front entrance. 4.8

Emergency Power

Emergency backup power is provided by a Katolight propane gas fired generator which is pad mounted and located behind the building within a metal enclosure. Access was not provided to obtain nameplate data. Building electrical drawings show that the emergency generator serves essential power including emergency lighting. The building is provided with 208 volt/3 phase power. 4.9

Plumbing Systems

All plumbing fixtures are standard flow typical for the 1990s, and in good condition. More water-efficient flush valves and faucets could be installed to reduce water usage. However, since the complex uses wellwater supplied at no charge, there are no monetary benefits from reduced water usage. Therefore, ECMs for water conservation were not evaluated.  

 

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5.0

ENERGY BENCHMARKING

The Municipal Building energy consumption and costs were compared to several benchmarks including:    

US Department of Energy Star Energy performance rating establish by Portfolio Manger - Scale 0 to 100% Energy Use Intensity (EUI) building’s overall fuel consumption: (BTU/SF) Cost of Energy per Square Foot (Utility Costs/SF) Building Envelope and HVAC Performance - benchmarked to South NJ (Climate 4) Energy Conservation Guidelines (Appendix A)

Energy Star is a benchmarking program offered by the US Dept. of Energy. It collects data for specific geographic regions and compares the results. If a building maintains a 75 rating or higher, it can receive recognition as an EnergyStar compliant building. The Energy Star rating for the Municipal Building was evaluated by the Portfolio Manager software program. See Section 9.0 and Appendix O. The Municipal Building Site/Source EUI index was determined as follows: Annual Electric (kWh)

Annual Electric (kBTU)

Annual Propane (Gallons)

Annual Propane (kBTU)

81,700

278,800

8,050

736,600

Building SF

TOTAL kBTU

BTU/SF

8,500

1,015,400

119,000

Energy Use Intensity (EUI) - Site Energy Conversion Factors: 1 kWh = 3,412 BTUs 1 gallon propane = 91,500 BTU (American Gas Association) Electricity Costs: 18.3 ¢/kWh Propane Costs: $2.0/therm Annual Electric (kWh)

Annual Electric (kBTU)

Annual Propane (Gallons)

Annual Propane (kBTU)

81,700

931,100

8050

744,000

Total kBTU

Building SF

BTU/SF

1,675,100

8,500

197,000

Energy Use Intensity (EUI) - Source Energy

 

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Fuel Type

Source-Site Ratio

Electricity (Grid Purchase)

3.340

Propane

1.01

Source-Site Ratios for Portfolio Manager Fuels (Pre-ECM Implementation) When primary energy is consumed on site, the conversion to source energy must account for losses incurred in the storage, transport, and delivery of fuel to the building. When secondary energy is consumed on site, the conversion must account for losses incurred in the production, transmission, and delivery to the site. The factors used to restate primary and secondary energy in terms of the total equivalent source energy units are known as the source-site ratios. At a source EUI of 197,000 BTU/SF, the Municipal Building’s EUI is higher than benchmark values of 75,000 to 193,000 BTU/SF. See Appendix A. For the calendar year, the Municipal Building had annual utility costs of approximately $29,200: [$14,700 for Electricity + $14,500 for Propane Gas] Total Utility Costs per Square Foot = $29,200/ 8,500 SF = $3.44 $/SF The Municipal Building Source EUI post implementation index was determined as follows: Annual Electric (kWh)

Annual Electric (kBTU)

Annual Propane (Gallons)

Annual Propane (kBTU)

59,620

679,000

2,500

231,000

Building SF

TOTAL kBTU

BTU/SF

8,500

910,000

107,000

Energy Use Intensity (EUI) - Source Energy The Municipal Building has projected annual utility costs savings of $3,700 [Post Implementation Excluding Solar] Total Utility Costs per square foot = $25,500/ 8,500 SF = $3.0 $/SF [Post Implementation] At 107,0000 BTU/SF the Municipal Building Energy Use Intensity (EUI) is within the range of typical office buildings.

 

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6.0

ENERGY CONSERVATION MEASURES

6.1

ECM -1 Lighting Upgrades – Switched Lighting Control

A comprehensive room-by-room lighting fixture survey was conducted, which included the existing number of fixtures, locations, and wattages. The survey is summarized in a spreadsheet in Appendix D. Table 6A includes the recommended lighting fixtures retrofit measures that were identified to utilize more efficient lighting and provide electrical energy savings. Existing Fixture Type

Recommended Retrofit

2 x 4 ft - 4 lamp T12

Retrofit to: 2 x 4 ft 2-lamp T8 (4ft) with reflector

1 X 4 ft - 2 lamp T12

Retrofit to: 1 lamp T8 with reflector

75 watt PAR lamp

Replace with: 9 watt LED Par 20

None Presently

Install: Desk Task Light 9 watt LED (10 Office Desks) TABLE 6A

Energy savings for this measure were calculated by comparing the existing and proposed fixture wattages to estimated time of operation. The difference between energy requirements resulted in a total annual savings of 14,400 kWh with an electrical demand reduction of approximately 7.6 kW. Supporting calculations, including assumptions for lighting hours and annual energy usage for each fixture, are provided in Appendix D. The comprehensive lighting survey determined that lighting in several areas such as restrooms, offices, court room and community room are manually switch controlled and do not utilize occupancy sensors. To conform to ASHRAE 90.1 standards and recommendations of Climate Zone 4 energy standards, occupancy sensors are recommended for all switch lighting control fixtures, see ECM-2. Desktop task LED lighting is recommended for the 10 offices. The implementation cost and savings related this ECM are presented in Appendix D and summarized below: ECM-1 Lighting Replacements with Switch Control Annual Utility Savings Budgetary Implementation Cost $ 14,500

Total Savings Electricity kW kWh 7.6

14,400

Propane Gas Therms

$

0

1,900

ROI

1.0

Potential Incentives*

Implementation Cost with Incentives

Payback (without Incentive)

Payback (with Incentive)

$

$

Years

Years

8,700

5,800

7.6

3.1

* Incentive shown is per the New Jersey Direct Install Program. (60% funding) See section 7.0 for other incentive opportunities. 15 Year Projected life savings result in 216,000 Kwh, 114 kW, and $28,500 Implementation of ECM-2 is recommended with occupancy sensors

 

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6.2

ECM-2 Lighting Replacements with Occupancy Sensors

The implementation cost and savings related this ECM are presented in Appendix E and summarized below: ECM-2 Lighting Replacements with Occupancy Sensors Annual Utility Savings Budgetary Implementation Costs $ 22,500

Total Savings Electricity kW kWh 7.6

15,500

Propane Gas Therms

$

0

2,100

ROI

0.4

Potential Incentives*

Implementation Cost with Incentives

Payback (without Incentive)

Payback (with Incentive)

$

$

Years

Years

13,500

9,000

10.7

4.3

* Incentive shown is per the New Jersey Direct Install Program. (60% funding) See section 7.0 for other incentive opportunities.

15 Year Projected life savings result in 232,500 kWh, 114 KW and $30,750   Lighting replacement with occupancy sensors ECM-2 is recommended. This ECM will bring the Municipal Building lighting system into compliance to AHSRAE 90.1 criteria. 6.3

ECM-3 Replace Domestic Hot Water Heater

Domestic hot water (DHW) for the building is generated by a 65 gallon AO Smith 50,000 Btuh propane gas-fired water heater. During idle periods, the hot water unit must maintain the tank water temperature to the setting of the aquastat, presently set at 120°F. Thermal energy required to maintain the 65 gallon temperature setpoint during times of zero demand is known as standby losses. This measure evaluated replacing the existing DHW heater with a tankless, propane gas-fired, condensing hot water (HW) heater to eliminate standby losses and produce DHW more efficiently. According to the U.S. Department of Energy, 2.5% of stored capacity is lost every hour during HW heater standby. This value was applied to the total volume of the existing DHW heater storage tank to determine the annual standby losses. Proposed efficiency was based on the Takagi Flash TM-50 tankless, condensing hot water heater. Capacity is 380,000 BTU LP, thermal efficiency 82%, and GPM 0.5 to 14.5. It was calculated that 130 therms would be saved per year with implementation of this ECM. A more detailed hot water demand analysis may be necessary to verify proper sizing. The new water heater will require gas and water piping modifications, venting, and electrical connections. The implementation cost and savings related to this ECM are presented in Appendix F and summarized as follows:

 

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ECM- 3 Replace Domestic Hot Water Heater Annual Utility Savings Budgetary Implementation Costs

Total Savings Electricity kW kWh

$ 7,000

0

0

Propane Gas Therms

$

180

400

ROI

Potential Incentives*

Implementation Cost with Incentives

Payback (without Incentive)

Payback (with Incentive)

$

$

Years

Years

300

6,700

17.5

16.8

(0.5)

60

* Incentive shown is per the New Jersey Smart Start Program, Gas Water Heating Application. Basis $300 per tankless hot water heater. See section 7.0 for other incentive opportunities.

10 Year Projected life savings results in 1,300 therms and $2,600. This measure is not recommended for implementation. Payback greater than 10 years. 6.4

ECM -4 Space Temperature Optimization Program

The building’s existing temperature control for AHU-1 through AHU-5 have setpoints for heating and cooling that are set manually by season. Existing heating and cooling setpoints based on after hours space utilization and community room night and weekend utilization provide opportunities for energy savings. It is projected that energy savings can be realized by installing a web accessible, programmable thermostat (Ecobee or approved equal) and a control system to monitor outside air (OA) temperature for each air handler. Below 60°F, the DX air conditioning compressor would be locked out for space cooling. Above 65°F, the gas duct furnaces would be locked out for space heating. A deadband temperature range of approximately 10°F, between 65°F and 55°F, would be implemented as an energy control scheme. Adaptive control to monitor outside temperature and correlation with required indoor temperature would be provided for occupant comfort. Occupied setpoints of 70°F for heating and 74°F for cooling, and unoccupied temperature setpoints of 60°F for heating and 78°F for cooling would be programmed into the building’s temperature control system. The adaptive control sequence would provide morning warm-up (heating season) and morning cool down (cooling season) to achieve occupied temperatures between unoccupied and occupied time periods. It is estimated that 2 degrees of heating (set-down) and 2 degrees of cooling (set-up) can be saved. To calculate the energy savings from implementation of a space temperature optimization program, the TRACE energy analysis program was used. The TRACE Alternate 1 (Existing Conditions) model was developed based on existing system conditions including wall, glass, and ceiling construction; people density; outside air ventilation requirements and infiltration factors; occupancy schedulers; and internal lighting loads based on implementation of the ECM-2 lighting program. This methodology establishes the interdependency of the ECM-2 lighting reduction to ECM- 4 temperature optimization program. Cape May County, NJ weather data was used in the energy analysis and the following AHSRAE design conditions were in the calculations:

 

 

Winter Design Drybulb

Summer Design Drybulb

Summer Design Wetbulb

13.6°F

88.6°F

73.6°F

   

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The implementation cost and savings related to this ECM are presented in Appendix G and summarized as follows: ECM-4 Space Temperature Optimization Program Annual Utility Savings Budgetary Implementation Costs

Total Savings Electricity kW kWh

$ 1,500

0

2,450

Propane Gas Therms

$

80

600

ROI

Potential Incentives*

Implementation Cost with Incentives

Payback (without Incentive)

Payback (with Incentive)

$

$

Years

Years

900

600

2.5

1.0

5.0

* Incentive shown is per the New Jersey Direct Install Program. (60% funding) See section 7.0 for other incentive opportunities.

15 Year Projected life savings result in 36,750 kWh, 1185 therms, and $9,500. This ECM is recommended for Implementation 6.5

ECM-5 & ECM-6 Install Demand Control Ventilation

The meeting room and the court room HVAC requirement is provided by air handlers AHU-1 and AHU3. Each unit has a supply design cfm of 8,000 and minimum OA of 500 cfm. Each unit’s maximum outdoor air is 750 cfm. Table 4.1 summarizes the ventilation data for the two units.

System ID AHU-1 AHU-3

SF SERVICE AREA

Cooling Capacity

ROOM SERVICE AREA

DX Coil (MBH)

Heating Capacity Gas Duct Furnace (MBH)

Supply Air CFM

Outside Air CFM

1,500

Community Room

75

50

3,000

500

1,600

Court Room

80

50

2,500

600

Existing Outside Air (CFM)

Outside Air (CF) with Demand Control Ventilation

AHU-1

500

250

AHU-3

600

300

Table 6.5-1 Community and Court Room Ventilation Data Demand control ventilation (DCV) is a strategy that adjusts the quantity of OA supplied to a zone based on the number of occupants and the ventilation rate required to provide adequate indoor air quality. The HVAC systems are design for the maximum number of occupants in a space; however, these spaces are rarely used to full capacity. Since the court room and meeting room have highly variable occupancy, a  

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significant amount of heating and cooling energy can be saved by supplying the required amount of ventilation air to satisfy the requirements at lower occupancy density levels. A control strategy for implementing DCV is to install carbon dioxide (CO2) sensors that measure concentrations and vary the volume of OA accordingly. When the court room and community meeting occupancy increases, CO2 concentrations increase, providing a signal to the HVAC system, and OA volumes will increase. For spaces served by an air handler with highly variable occupancy, DCV saves energy and helps control moisture and mold by reducing the quantity of humid OA when it is not needed for ventilation. CO2 sensors are proposed for each unit at 5 foot space height level (human breathing zone) and in the return air ducts. These sensors must be periodically calibrated to maintain accuracy. Based on occupancy and space utilization, it was determined that the average required amount of OA can be reduced as shown in Table 6.5-1. Implementation of this measure requires installation of OA damper controls on the two AHUs serving the court room and community room and installing CO2 sensors in the conditioned space and within the return air ducts. Upgrades to the OA damper actuators are required and Direct Digital Control (DDC) system to modulate the OA damper position based on the CO2 readings. Savings for this measure will result from reduced OA rates during occupied hours. The implementation cost and savings for ECM-5 are presented in Appendix H and summarized as follows: ECM-5 Demand-Controlled Ventilation (Court Room) Annual Utility Savings Budgetary Implementation Costs

Total Savings Electricity

ROI

Potential Incentives*

Implementation Cost with Incentives

Payback (without Incentive)

Payback (with Incentive)

Years

Years

20.0

8.0

Propane Gas

$

kW

kWh

Therms

$

6,000

0

380

140

300

$

$ (0.2)

3,600

2,400

* Incentive shown is per the New Jersey Direct Install Program. (60% funding) See section 7.0 for other incentive opportunities.

15 Year Projected life savings result in 5,700 kWh, 2100 therms, and $5,100. The payback for this measure is limited due to the hours of utilization. ECM-5 is recommended for Implementation The implementation cost and savings for ECM – 6 are presented in Appendix I and summarized as follows:

 

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ECM-6 Demand-Controlled Ventilation (Community Meeting Room) Annual Utility Savings Budgetary Implementation Costs

Total Savings Electricity

ROI

Potential Incentives*

Implementation Cost with Incentives

Payback (without Incentive)

Payback (with Incentive)

Years

Years

8.6

3.4

Propane Gas

$

kW

kWh

Therms

$

6,000

0

2,750

220

700

$

$ 0.8

3,600

2,400

* Incentive shown is per the New Jersey Direct Install Program. (60% funding) See section 7.0 for other incentive opportunities.

15 Year Projected life savings result in 41,250 kWh, 3,300 therms, and $10,800 ECM-6 is recommended for implementation 6.6

ECM-7 Increased Attic Insulation

The ceiling construction of the Municipal Building consists of a truss structure that provides an attic space between the acoustical ceiling tiles and the roof. Presently, R-19 batt insulation is installed between the truss joists. This ECM assessed increasing the thermal performance of the attic insulation with an additional 6” layer of R-19 insulation. This will bring the attic insulation to an R-38 and in compliance to Climate Zone 4 Recommended Table of energy efficiency recommendations. To calculate the energy savings due to implementation of increased attic insulation, the TRACE energy analysis program was used. The Municipal Building’s TRACE Alternate 1 model was developed based on existing system conditions including wall, glass, and ceiling construction, people density, outside air ventilation requirements and infiltration factors, occupancy scheduler, and internal lighting loads. This methodology establishes the interdependency of the ECM-2 lighting reduction, the ECM-4 temperature optimization program. The implementation cost and savings related to this ECM are presented in Appendix J and summarized as follows: ECM-7 Increased Attic Insulation Annual Utility Savings Budgetary Implementation Costs

Total Savings Electricity

ROI

Potential Incentives*

Implementation Cost with Incentives

Payback (without Incentive)

Payback (with Incentive)

Years

Years

12.5

12.5

Propane Gas

$

kW

kWh

Therms

$

5,000

0

590

160

400

$

$ 0.2

0

NA

* There is no incentive available through the New Jersey Smart Start or Direct Install Programs for this ECM. See section 7.0 for other incentive opportunities.

ECM-7 not recommended for implementation. Payback greater than 10 years.

 

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6.7

ECM-8 Photovoltaic (PV) Rooftop Solar Power Generation 10 kW System

This ECM is developed in Section 8.2.1 with supporting calculations in Appendix K. While the payback period is within the parameters for recommended measures, further investigation of possible installation locations, required system maintenance, and ground mounted installation costs are need to be developed prior to consideration for implementation. Ground-mounted solar systems typically require additional racking and mounting equipment, which increases the cost of the solar ray installation. Usable space on the Municipal Building property to accommodate a ground-mounted solar energy system must be established. Ground-mounted solar energy systems have added costs for supporting structures and trenching. Trenching is required to bury electrical wiring that runs from the solar panels to the place of utility interconnect. Unforeseen added costs for a ground mounted solar array could be substantial. ECM-8 Photovoltaic (PV) Rooftop Solar Power Generation – 10 kW System Annual Utility Savings Total Savings

Budgetary Cost Electricity $

kW

kWh

80,000

0

12,503

Propane Gas Therms 0

Total $ 2,300

$ 2,300

New Jersey Renewable Energy Incentive*

New Jersey Renewable SREC**

$

$ 7,500

Payback (without incentive)

Payback (with incentives)

Years

Years

>25

8.6

6,100

*Incentive based on New Jersey Renewable Energy Program for non-residential applications of $ .75 per watt of installed capacity ** Estimated Solar Renewable Energy Certificate Program (SREC) for 15 years at $487/1000 kWh Note 1: Total annual savings Kwh ($2,300) + Annual SREC Credits ($6100) = Total Annual Cost Savings ($8,400) Implementation Costs after incentives = $80,000 - $7,500 = $72,500 ECM-8 requires a more detailed site analysis and development of implementation costs before this ECM can be recommended for implementation.

6. 8 ECM-9 Small Scaled 2.4 kW Wind Turbine Power Generation At the request of Dennis Township, CHA evaluated a small scaled wind turbine option for the township. This ECM’s supporting calculations are in Appendix L. While the payback period is within the parameters for recommended measures, further investigation of possible installation locations, required system maintenance, ground mounted tower location and required acreage need to be developed prior to consideration for implementation. Obtaining site annual wind speed for the proposed location and local ordinance for tower height would be required. 

Development of this ECM required the following analysis:  Determination of Average Wind Speed – Miles Per Hour (mph)  Select Wind Turbine for Evaluation  Determine Implementation Costs Based on Skystream 2.4 kW Turbine

 

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 

Determine Wind Power Incentives Determine 2.4 wind power energy savings based on a 2.4 Kw wind turbine

The 2.4 kW Wind Turbine ECM Measure payback analysis is summarized as follows (See Appendix L):  

ECM-9 Small Scaled 2.4 kW Wind Power Generation Budgetary Implementation Cost

Annual Utility Savings Electricity

Federal Incentive Tax Credit

NJ State REIP Incentive

Total Potential Incentives *

Implementation Cost with Incentive

Payback (without Incentive)

Payback (with Incentive)

ROI

Total

$

kW

kWh

$

$

$

$

$

Years

Years

34,000

2.4

4,800

940

N/A

15,400

15,400

18,600

˃20.0

20.0

*

*Incentive shown: Federal Tax Credit based on 30% funding of project implementation costs (Dennis Township not eligible for Federal Tax benefit since it is not a tax based facility.

New Jersey Renewable Energy Incentive Program (REIP) wind system production rebate @ $3.20 per kWh Total annual Savings = 4,800 kWh * .123 $/kWh = ($590) + 2.4 kW * $12.23/kW * 12 months = ($350) = $590 + $350 = $940/yr. (Dennis Township does not qualify for the 30% Federal Funding since it not a taxed basis facility) Assumption: Wind system will provide 2.4 kW savings for 12 months of the year (maximum annual savings) Measure not recommended. Payback greater than 10 years.  

 

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7.0

PROJECT INCENTIVES

7.1

Incentives Overview

7.1.1

New Jersey Pay For Performance Program

The Municipal Building will be eligible for incentives from the New Jersey Office of Clean Energy. The most significant incentives will be from the New Jersey Pay for Performance (P4P) Program. The P4P program is designed for qualified energy conservation projects in facilities whose demand in any of the preceding 12 months exceeds 200 kW. However, the 200 kW/month average minimum has been waived for buildings owned by local governments or municipalities and non-profit organizations. Facilities that meet this criterion must also achieve a minimum performance target of 15% energy reduction by using the EPA Portfolio Manager benchmarking tool before and after implementation of the measure(s). If the participant is a municipal electric company customer, and a customer of a regulated gas New Jersey Utility, only gas measures will be eligible under the Program. American Recovery and Reinvestment Act (ARRA) funding, when available, may allow oil, propane and municipal electric customers to be eligible for the P4P Program. Available incentives are as follows: Incentive #1: Energy Reduction Plan This incentive is designed to offset the cost of services associated with the development of the Energy Reduction Plan (ERP). The standard incentive pays $0.10 per square foot, up to a maximum of $50,000, not to exceed 50% of facility annual energy cost, paid after approval of application. For building audits funded by the New Jersey Board of Public Utilities, which receive an initial 100% incentive toward performance of the energy audit, facilities are only eligible for an additional $0.05 per square foot, up to a maximum of $25,000, rather than the standard incentive noted above. Incentive #2: Installation of Recommended Measures This incentive is based on projected energy saving and designed to pay up to 60% of the total performance-based incentive. Base incentives deliver $0.11/kWh and $1.10/therm not to exceed 30% of total project cost. Incentive #3: Post-Construction Benchmarking Report This incentive is paid after acceptance of a report proving energy savings over one year utilizing the Environmental Protection Agency (EPA) Portfolio Manager benchmarking tool. Incentive #3 base incentives deliver $0.07/kWh and $0.70/therm not to exceed 20% of total project cost. 7.1.2

New Jersey Smart Start Program

For this program, prescriptive incentives for energy conservation measures are calculated on an individual basis utilizing the 2011 New Jersey Smart Start incentive program. This program provides incentives dependent upon mechanical and electrical equipment. If applicable, incentives from this program are reflected in the ECM summaries and attached appendices. If the building qualifies and enters into the New Jersey Pay for Performance Program, all energy savings will be included in the total building energy reduction, and savings will be applied towards the Pay for Performance incentive. A project is not applicable for both New Jersey incentive programs.  

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7.1.3

Energy Efficient and Conservation Block Grant

Following is a brief summary of the Energy Efficient and Conservation Block Grant (EECBG) program. The Energy Efficiency and Conservation Block Grant Complete Program Application Package should be consulted for rules and regulations. Additional funding is available to local government entities through the EECBG, a part of New Jersey’s Clean Energy program (NJCEP). The grant is for local government entities only, and can offset the cost of energy reduction implementation to a maximum of $20,000 per building. This program is provided in conjunction with NJCEP funding and any utility incentive programs; the total amount of the three incentives combined cannot exceed 100% of project cost. Funds shall first be provided by NJCEP, followed by the EECBG and any utility incentives available to the customer. The total amount of the incentive shall be determined TRC Solutions, a third party technical consulting firm for the NJCEP. In order to receive EECBG incentives, local governments must not have received a Direct Block Grant from the US Department of Energy. A list of the 512 qualifying municipalities and counties is provided on the NJCEP website. Qualifying municipalities must participate in at least one eligible Commercial & Industrial component of the NJCEP, utility incentive programs, or install building shell measures recommended by the Local Government Energy Audit Program. Eligible conservation programs through NJCEP include:     

Direct Install Pay for Performance NJ SmartStart Buildings for measures recommended by a Local Government Energy Audit (LGEA) or an equivalent audit completed within the last 12 months Applicants may propose to independently install building shell measures recommended by a LGEA or an equivalent audit. The audit must have been completed within the past 12 months. Any eligible utility energy efficiency incentive program

Most facilities owned or leased by an eligible local government within the State of New Jersey are eligible for this grant. Ineligible facilities include casinos or other gambling establishments, aquariums, zoos, golf courses, swimming pools, and any building owned or leased by the United States Federal Government. New construction is also ineligible. 7.1.4

ARRA Initiative “Energy Efficiency Programs through the Clean Energy Program

The American Recovery and Reinvestment Act (ARRA) Initiative is available to New Jersey oil, propane, cooperative and municipal electric customers who do not pay the Societal Benefits Charge. This charge can be seen on any electric bill as the line item “SBC Charge.” Applicants can participate in this program in conjunction with other New Jersey Clean Energy Program initiatives including Pay for Performance, Local Government Energy Audits, and Direct Install programs. Funding for this program is dispersed on a first come, first serve basis until all funds are exhausted. The program does not limit the municipality to a minimum or maximum incentive, and the availability of funding cannot be determined prior to application. If the municipality meets all qualifications, the application must be submitted to TRC Energy Solutions for review. TRC will then determine the amount of the incentive based on projected energy savings of the project. It is important to note that all applications for this incentive must be submitted before implementation of energy conservation measures. Additional information is available on New Jersey’s Clean Energy Program website.  

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7.2

Qualified Building Incentives

7.2.1

New Jersey Pay For Performance Program

Under incentive #1 of the New Jersey Pay for Performance Program, the Municipal Building 10,600 square foot building is eligible for about $530 (@.$05/sf) toward development of an Energy Reduction Plan. When calculating the total amount under Incentives #2 and #3, all energy conservation measures are applicable as the amount received is based on building wide energy improvements. The Municipal Building is eligible to receive monies based as discussed above in section 7.1.1. Incentives available through the NJ P4P program are provided in Appendix M. 7.2.2

New Jersey Smart Start Program

The Municipal Building is eligible for several incentives available under New Jersey Smart Start Programs. Prescriptive measures include:    

High Efficiency Lighting Premium Motors Gas Water Heating HVAC Upgrades

Since incentives cannot be obtained under multiple NJCEP programs, incentives were compared to the Direct Install Program and the highest incentive from other programs was compared for inclusion in the payback calculations. 7.2.3

Energy Efficient and Conservation Block Grant

The Municipal Building is owned by local government which makes it eligible for this incentive. The incentive amount is determined by TRC Solutions and has a maximum value of $50,000. Further information, including the application, can be found at: www.njcleanenergy.com/commercial-industrial/programs/energy-efficiency-and-conservation-blockgrants 7.2.4

Direct Install Program

The Dennis Township Municipal Building is potentially eligible to receive funding from the Direct Install Program. This money can be in addition to incentives from the Energy Efficiency and Conservation Block Grant. The Direct Install program would pay up to 60% of most prescriptive implementation measures. The Direct Install funding has the potential to significantly reduce the payback period of recommended Energy Conservation Measures.  

 

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8.0

ALTERNATIVE ENERGY SCREENING EVALUATION

8.1

Geothermal

Geothermal heat pumps (GHP) transfer heat between the constant temperature of the earth and the building to maintain the building’s interior space conditions. Below the surface of the earth throughout New Jersey the temperature remains in the low 50F range throughout the year. This stable temperature provides a source for heat in the winter and a means to reject excess heat in the summer. With GHP systems, water is circulated between the building and the piping buried in the ground. The ground heat exchanger in a GHP system is made up of a closed or open loop pipe system. Most common is the closed loop in which high density polyethylene pipe is buried horizontally at 4-6 feet deep or vertically at 100 to 400 feet deep. These pipes are filled with an environmentally friendly antifreeze/water solution that acts as a heat exchanger. In the summer, the water picks up heat from the building and moves it to the ground. In the winter the system reverses and fluid picks up heat from the ground and moves it to the building. Heat pumps make collection and transfer of this heat to and from the building possible. The building uses propane –fired. Duct furnaces, and a split system Air-Handling unit with DX cooling to meet the building’s HVAC requirements. The existing HVAC systems of the buildings would need to be fully converted to accommodate a ground source heat pump system. This measure is not recommended. 8.2

Solar

8.2.1

Photovoltaic Rooftop Solar Power Generation

The facility was evaluated for the potential to install rooftop or ground mounted photovoltaic (PV) solar panels for power generation. Present technology incorporates the use of solar cell arrays that produce direct current (DC) electricity. This DC current is converted to alternating current (AC) with the use of an electrical device known as an inverter. The building’s roof has sufficient room to install a solar cell array. A structural analysis would be required to determine if the roof framing could support a cell array. The PVWATTS solar power generation model was utilized to calculate PV power generation. The New Jersey Clean Power Estimator provided by the New Jersey Clean Energy Program is presently being updated; therefore, the site recommended use of the PVWATT solar grid analyzer version 1. The closest city available in the model is Atlantic City, New Jersey and a fixed tilt array type was utilized to calculate energy production. The PVWATT solar power generation model is provided in Appendix K. The State of New Jersey incentives for non-residential PV applications is $.75/watt up to 50 kW of installed PV array. Federal tax credits are also available for renewable energy projects up to 30% of installation cost. Municipalities do not pay federal taxes; therefore, would not be able to utilize the federal tax credit incentive. Installation of (PV) arrays in the state New Jersey will allow the owner to participate in the New Jersey solar renewable energy certificates program (SREC). This is a program that has been set up to allow entities with large amounts of environmentally unfriendly emissions to purchase credits from zero emission (PV) solar-producers. An alternative compliance penalty (ACP) is paid for by the high emission producers and is set each year on a declining scale of 3% per year. One SREC credit is equivalent to 1000 kilowatt hours of PV electrical production; these credits can be traded for period of 15 years from the date of installation. The cost of the ACP penalty for 2009 is $700; this is the amount that must be paid per SERC by the high emission producers. The expected dollar amount that will be paid to the PV  

  New Jersey BPU – Energy Audits Page 23 of 31  

 

producer for 2010 is expected to be $600/SREC credit. Payments that will be received from the PV producer will change from year to year dependent upon supply and demand. Renewable Energy Consultants is a third party SREC broker that has been approved by the New Jersey Clean Energy Program. As stated above there is no definitive way to calculate an exact price that will be received by the PV producer per SREC over the next 15 years. Renewable Energy Consultants estimated an average of $487/ SERC per year and this number was utilized in the cash flow for this report. The Municipal Building had a maximum electricity demand of 80 kW and a minimum of 30 kW, from October 2009 to September 2010. The monthly average over the observed 12 month period was 44 kW. The existing load does not justify the use of the maximum incentive cap of 50 kW of installed PV solar array; therefore, a 10 kW system size was selected for the calculations. An installed cost of $8 per watt or $8,000 per kW of a ground mounted solar array system was used in the calculation analysis based on market demand for PV power generator systems. Other cost considerations will also need to be considered. PV panels have an approximate 20 year life span; however, the inverter device that converts DC electricity to AC has a life span of 10 to 12 years and will need to be replaced multiple times during the useful life of the PV system. The implementation cost and savings related to this ECM are presented in Appendix K and summarized below: Photovoltaic (PV) Rooftop Solar Power Generation – 10 kW System (ECM-8) Annual Utility Savings Budgetary Cost Electricity $

kW

kWh

80,000

0

12,503

Propane Gas Therms 0

Total Savings Total $ 2,300

$ 2,300

New Jersey Renewable Energy Incentive*

New Jersey Renewable SREC**

$

$ 7,500

6,100

Payback (without incentive)

Payback (with incentives)

Years

Years

>25

8.6

*Incentive based on New Jersey Renewable Energy Program for non-residential applications of $ .75 per Watt of installed capacity ** Estimated Solar Renewable Energy Certificate Program (SREC) for 15 years at $487/1000 kWh Note 1: Total annual savings Kwh ($2,300) + Annual SREC Credits ($6100) = Total Annual Cost Savings ($8,400) Implementation Costs after incentives = $80,000 - $7,500 = $72,500

While the payback period is within the parameters for recommended measures, further investigation of possible installation locations, required system maintenance, and ground mounted installation costs are need to be developed prior to consideration for implementation. Ground-mounted solar systems typically require additional racking and mounting equipment, which increases the cost of the solar ray installation. Usable space on the Municipal Building property to accommodate a ground-mounted solar energy system must be established. Ground-mounted solar energy systems have added costs for supporting structures and trenching. Trenching is required to bury electrical wiring that runs from the solar panels to the place of utility interconnect. Unforeseen added costs for a ground mounted solar array could be substantial.

 

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8.2.2

Solar Power Service Provider

An alternative solar implementation option would be to pursue a power purchase agreement performancebased arrangement as a SPPA provider. The SPPA program provides an alternative program for the installation of a viable solar photovoltaic application. Advantages are the fact that it provides the customer with a low or even no upfront cost for the installation. A host customer agrees to have solar panels installed on its property, typically its roof, and signs a long-term contract with the solar services provider to purchase the generated power. The host property can be either owned or leased (note that for leased properties, solar financing works best for customers that have a long-term lease). The purchase price of the generated electricity is typically at or slightly below the retail electric rate the host customer would pay its utility service provider. SPPA rates can be fixed, but they often contain an annual price escalator in the range of one to five percent to account for system efficiency decreases as the system ages and inflation-related costs increases for system operation, monitoring, maintenance, and anticipated increases in the price of grid-delivered electricity. An SPPA is a performance-based arrangement in which the host customer pays only for what the system produces. The term length of most SPPAs can range from six years (i.e., the time by which available tax benefits are fully realized) to as long as 25 years. All associated REC’s, Federal or State Incentives go directly to the solar service provider. The table provided below sums up the advantages and disadvantages for this type of agreement. Benefits & Challenges of SPPAs Benefits for host customer

Challenges for host customer

No upfront capital cost. Predictable energy pricing. No system performance or operating risk. Projects can be cash flow positive from day one. Visibly demonstrable environmental commitment. Potential to make claims about being solar powered (if associated RECs are retained). Potential reduction in carbon footprint (if associated RECs are retained). Potential increase in property value. Support for local economy and job creation.

     

  

8.3





 



More complex negotiations and potentially higher transaction costs than buying PV system outright. Administrative cost of paying two separate electricity bills if system does not meet 100 percent of site’s electric load. Potential increase in property taxes if property value is reassessed. Site lease may limit ability to make changes to property that would affect PV system performance or access to the system. Understand tradeoffs related to REC ownership/sale.

Solar Thermal Hot Water Plant

Active solar thermal systems use solar collectors to gather the sun’s energy to heat water, another fluid, or air. An absorber in the collector converts the sun’s energy into heat. The heat is then transferred by circulating water, antifreeze, or sometimes air to another location for immediate use or storage for later  

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utilization. Applications for active solar thermal energy include providing hot water, heating swimming pools, space heating, and preheating air in residential and commercial buildings. A standard solar hot water system is typically composed of solar collectors, heat storage vessel, piping, circulators, and controls. Systems are typically integrated to work alongside a conventional heating system that provides heat when solar resources are not sufficient. The solar collectors are usually placed on the roof of the building, oriented south, and tilted around the site’s latitude, to maximize the amount of radiation collected on a yearly basis. Several options exist for using active solar thermal systems for space heating. The most common method involves using glazed collectors to heat a liquid held in a storage tank (similar to an active solar hot water system). The most practical system would transfer the heat from the panels to thermal storage tanks and transfer solar produced thermal energy to use for domestic hot water production. DHW is presently produced by a propane fired water heater and, therefore, this measure would offer propane gas savings. Currently, an incentive is not available for installation of thermal solar systems. A Federal tax credit of 30% of installation cost for the thermal applications is available; however, the Dennis Township does not pay Federal taxes and, therefore, would not benefit from this program. The implementation cost and savings related to this ECM are presented in Appendix N and summarized below: Solar Thermal Domestic Hot Water Plant Annual Utility Savings Budgetary Cost Electricity

Propane Gas

Total

Total Savings

New Jersey Renewable Energy Incentive

Payback (without incentive)

Payback (with incentive)

$

kW

kWh

Therms

$

$

$

Years

Years

12,200

0

0

70

100

100

NA

>25

>25

No incentive is available in New Jersey at this time.

This measure is not recommended. Payback greater than 10 years. 8.4

Wind

Small wind turbines use a horizontal axis propeller, or rotor, to capture the kinetic energy of the wind and convert it into rotary motion to drive a generator which usually is designed specifically for the wind turbine. The rotor consists of two or three blades, usually made from wood or fiberglass. These materials give the turbine the needed strength and flexibility, and have the added advantage of not interfering with television signals. The structural backbone of the wind turbine is the mainframe, and includes the sliprings that connect the wind turbine, which rotates as it points into changing wind directions, and the fixed tower wiring. The tail aligns the rotor into the wind. To avoid turbulence and capture greater wind energy, turbines are mounted on towers. Turbines should be mounted at least 30 feet above any structure or propane feature within 300 feet of the installation. Smaller turbines can utilize shorter towers. For example, a 250-watt turbine may be mounted on a 30-50 foot tower, while a 10 kW turbine will usually need a tower of 80-120 feet. Tower designs include tubular or latticed, guyed or self-supporting. Wind turbine manufacturers also provide towers.  

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The New Jersey Clean Energy Program for small wind installations has designated numerous preapproved wind turbines for installation in the State of New Jersey. Incentives for wind turbine installations are based on kilowatt hours saved in the first year. Systems sized under 16,000 kWh per year of production will receive a $3.20 per kWh incentive. Systems producing over 16,000 kWh will receive $51,200 for the first 16,000 kWh of production with an additional $0.50 per kWh up to a maximum cap of 750,000 kWh per year. Federal tax credits are also available for renewable energy projects up to 30% of installation cost for systems less than 100 kW. However, as noted previously, municipalities do not pay federal taxes and is, therefore, not eligible for the tax credit incentive. The most important part of any small wind generation project is the mean annual wind speed at the height of which the turbine will be installed. The Municipal Building sits on a rural lot and has open space for a tower. However, the map indicates a mean annual wind speed of 12 miles per hour in the Dennis Township area. Wind speed maps are included in Appendix L. The 2.4 kW Wind Turbine ECM payback analysis is summarized in the table below:

ECM-9 Small Scaled 2.4 kW Wind Turbine Generation Budgetary Implementation Cost

Annual Utility Savings Electricity

Federal Incentive Tax Credit

NJ State REIP Incentive

Total Potential Incentives *

Implementation Cost with Incentive

Payback (without Incentive)

Payback (with Incentive)

ROI

Total

$

kW

kWh

$

$

$

$

$

Years

Years

34,000

2.4

4,800

940

N/A

15,400

15,400

18,600

˃20

20.0

(*)

*Incentive shown: Federal Tax Credit based on 30% funding of project implementation costs New Jersey Renewable Energy Incentive Program (REIP) wind system production rebate @ $3.20 per kWh

Total annual Savings = 4,800 kWh * .123 $/kWh = ($590) + 2.4 kW * $12.23/kW * 12 months = ($350) = $590 + $350 = $940/yr Assumption: Wind system will provide 2.4 kW savings for 12 months of the year (annual maximum) 25 Year Savings: 60 kW, 240,000 kWh, $23,500 savings/yr. This measure is not recommended; payback over 10 years. 8.5

Combined Heat and Power Generation (CHP)

Combined heat and power, cogeneration, is self-production of electricity on-site with beneficial recovery of the heat byproduct from the electrical generator. Common CHP equipment includes reciprocating engine-driven, micro turbines, steam turbines, and fuel cells. Typical CHP customers include industrial, commercial, institutional, educational institutions, and multifamily residential facilities. CHP systems that are commercially viable at the present time are sized approximately 50 kW and above, with numerous options in blocks grouped around 300 kW, 800 kW, 1,200 kW and larger. Typically, CHP systems are used to produce a portion of the electricity needed by a facility some or all of the time, with the balance of electric needs satisfied by purchase from the grid.

 

  New Jersey BPU – Energy Audits Page 27 of 31  

 

Any proposed CHP project will need to consider many factors, such as existing system load, use of thermal energy produced, system size, propane gas fuel availability, and proposed plant location. The Dennis Township Municipal Building has insignificant need for electrical generation and the ability to use thermal byproduct is not possible since the thermal usage of the building is propane fired. Thermal energy produced by the CHP plant cannot be utilized. This measure is not recommended. 8.6

Biomass Power Generation

Biomass power generation is a process in which waste organic materials are used to produce electricity or thermal energy. These materials would otherwise be sent to the landfill or expelled to the atmosphere. To participate in NJCEP's Customer On-Site Renewable Energy program, participants must install an on-site sustainable biomass or fuel cell energy generation system. Incentives for bio-power installations are available to support up to 1MW-dc of rated capacity. *Class I organic residues are eligible for funding through the NJCEP CORE program. Class I wastes include the following renewable supply of organic material:  

Wood wastes not adulterated with chemicals, glues or adhesives Agricultural residues (corn stover, rice hulls or nut shells, manures, poultry litter, horse manure, etc) and/or methane gases from landfills  Food wastes  Municipal tree trimming and grass clipping wastes  Paper and cardboard wastes  Non adulterated construction wood wastes, pallets The NJDEP evaluates biomass resources not identified in the RPS. Examples of eligible facilities for a CORE incentive include:     

Digestion of sewage sludge Landfill gas facilities Combustion of wood wastes to steam turbine Gasification of wood wastes to reciprocating engine Gasification or pyrolysis of bio-solid wastes to generation equipment

 from NJOCE Website This measure is not recommended due to of noise issues and because the building does not have a steady waste stream to fuel the power generation system. Additionally, purchasing this system and performing modifications to the existing HVAC and electrical systems would greatly outweigh the savings over the life of the equipment. 8.7

Demand Response Curtailment

Presently, electricity is delivered by Atlantic City Electric, which receives the electricity from regional power grid RFC. PSE&G is the regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia including the State of New Jersey. Utility Curtailment is an agreement with the Atlantic City Electric regional transmission organization and an approved Curtailment Service Provider (CSP) to shed electrical load by either turning major equipment     New Jersey BPU – Energy Audits Page 28 of 31  

 

off or energizing all or part of a facility utilizing an emergency generator; therefore, reducing the electrical demand on the utility grid. This program is to benefit the utility company during high demand periods and Atlantic City Electric offers incentives to the CSP to participate in this program. Enrolling in the program will require program participants to drop electrical load or turn on emergency generators during high electrical demand conditions or during emergencies. Part of the program also will require that program participants reduce their required load or run emergency generators with notice to test the system. An Atlantic City Electric pre-approved CSP will require a minimum of 100 kW of load reduction to participate in any curtailment program. The Dennis Township Municipal Building had a monthly average electricity demand of 44.0 kW and a maximum demand of 80.0 kW from October 2009 to September 2010. This measure is not recommended because the facility does not have adequate load to meet the required minimum load reduction.  

 

  New Jersey BPU – Energy Audits Page 29 of 31  

 

9.0

EPA PORTFOLIO MANAGER

The United States Environmental Protection Agency (EPA) is a federal agency in charge of regulating environment waste and policy in the United States. The EPA has released the EPA Portfolio Manager for public use. The program is designed to allow property owners and managers to share, compare and improve upon their facility’s energy consumption. Inputting such parameters as electricity, heating fuel, building characteristics and location into the website based program generates an energy rating score out of 100. Once an account is registered, monthly utility data can be entered to track the savings progress and retrieve an updated energy rating score on a monthly basis. The EPA Portfolio Manager did not generate an energy rating score for this building because the building type is not eligible for an Energy Star rating. A full EPA Energy Star Portfolio Manager Report is located in Appendix O. The user name and password has been provided to Glenn O. Clarke, Dennis Township Chief Financial Officer.

 

  New Jersey BPU – Energy Audits Page 30 of 31  

 

10.0

CONCLUSIONS AND RECOMMENDATIONS

The energy audit conducted by CHA for the Dennis Township Municipal Building identified potential ECMs that will produce energy and operational cost savings. The identified annual savings have the potential to realize an approximate savings of $3,700 with associated implementation costs of $14,400 with incentives. Total annual savings are illustrated in Table 10A. TABLE 10A  Total Annual Energy Costs ($)

Annual $/SF Costs

BTU/SF

Pre-Implementation

29,200

3.4

119,000

Post Implementation

25,500

3.0

107,000

Energy Cost Reduction Program

 

  New Jersey BPU – Energy Audits Page 31 of 31  

 

Dennis Township Location Building owner Program user Company Comments

BY Dataset name

Municipal Building

CHA ECM4 Space Temperature Optimization

CHA, INC. C:\Documents and Settings\3847\My Documents\TRACE 700 Projects\SENIOR CENTER 8.TRC

Calculation time TRACE@700 version Location Latitude Longitude Time Zone Elevation Barometric pressure

8760 Atlantic City, NJ deg 39.5 74.6 deg 5 0 ft 30.1 in. Hg

Air density Air specific heat Density-specific heat product Latent heat factor Enthalpy factor Summer design dry bulb Summer design wet bulb Winter design dry bulb Summer clearness number Winter clearness number Summer ground reflectance Winter ground reflectance Carbon Dioxide Level Design simulation period Cooling load methodology Heating load methodology

January - December TETD-TAI UATD

comprehensive building analysis software from Trano