Experiences from the Field: Statewide Energy Efficiency
Experiences from the Field: Statewide Energy Efficiency Programs Tom Rooney TRC Energy Services
NH Pay for Performance Program Funded by the NH PUC’s Greenhouse Gas Reduction Fund EBC New Hampshire Chapter
April 27, 2012
TRC Energy Services • Design and Manage Energy Efficiency Programs for C&I and Multifamily Markets • Clients include: – – – –
NH Public Utilities Commission NH Office of Energy & Planning NH Housing Finance Authority NJ Office of Clean Energy
– – – –
NYSERDA Southern California Edison Pennsylvania Power & Light Starwood Hotels
NH PUC Sustainable Energy Division
Program Players
TRC Energy Services Program Manager
Program Partners Energy Efficiency Professionals
Participants Owners, developers, managers
What is the Pay for Performance Program? • Promotes comprehensive, whole-building energy efficiency projects in large facilities • Energy reductions of at least 15% for whole facility • Services provided by Program Partners • Performance-based incentives • Selected by ACEEE as one of best State-Led Energy Efficiency Programs in the US in 2010
Higher Savings
Get paid up to $340,000
Higher Incentives Save at least 15% of your energy cost
Energy Reduction Plan • Comprehensive energy audit (ASHRAE Level 3) • ENERGY STAR Benchmarking • Building simulation model, with utility bill calibration • Financing Plan & Construction Schedule • Must be completed by approved P4P Partner
Financial Incentives
Incentive # 1 Up to $40,000 paid, on approval of Energy Reduction Plan
(Modeling Approach)
Incentive # 2 Program participants are paid three times on the following payment schedule:
Payment of up to $240,000
Incentive # 3 Final payment of up to $60,000 Incentives #2 and #3 cannot exceed 50% of the total project cost.
Flexible Approach • All types of energy saving measures are eligible • Incentives paid for reductions in electricity, natural gas, oil, and propane • Typical projects include: – – – –
Heating Systems Cooling Systems Building Controls Lighting & Controls
– – – –
Insulation Heat Recovery Air Sealing CHP
Incentive Schedule Incentive #1 – Energy Reduction Plan $0.10 – 0.18 / sf Based on Building Size – Max of $40,000
Incentive # 2 – Measure Installation (Minimum Performance Target of 15%)
$0.22 per projected kWh saved $22.00 per projected MMBTU saved Incentive # 3 – Post Construction Benchmarking (Minimum Performance Target of 15%)
$0.08 per actual kWh saved $8.00 per actual MMBTU saved 10
Incentives 2 and 3 combined cannot exceed 50% of total project cost.
Sample Incentive Calculation Project Data • Building Size: • Project Cost: • Estimated Savings: • Actual Savings:
150,000 sq. ft. $500,000 23% (400,000 kWh & 1,100 MMBTU) 23%
Sample Incentive Calculation Total Incentives Incentive #1 = $ 22,500 Incentive #2 = $ 112,200 Incentive #3 = $ 40,800 $ 175,500 P4P incentives cover 35% of project cost.
Alternate Approach • Simplified Energy Analysis, no modeling required • Must include at least two distinct energy efficiency measures • Minimum savings of 50,000 kWh or 500 MMBTU • No minimum % savings requirement 13
Alternate Approach Streamlined Process – Reduced Incentives Incentive Schedule Energy Assessment
$0.05 per square foot
Electric Incentives
$0.16 per projected kWh saved
Thermal Incentives
$16.00 per projected MMBTU saved
14
NH Energy Efficiency Infrastructure • Open network of 27 Partner firms developing and managing projects • Monthly calls and training opportunities
15
P4P Partner Distribution Partners by Firm Type Energy Engineering / Construction 11%
ESCO 14%
Architecture / Engineering 29%
Energy Consulting 46%
16
P4P Program Partners • • • • • • • • • • • • • • 17
Acadia Engineers & Constructors Aramark Bluestone Energy Services Bonhag Associates Celtic Energy CHA Consulting CSI Engineering Energy & Resource Solutions Energy Efficient Investments ESCO Energy Services GDS Associates Harriman Honeywell Integrated Building Energy Assoc.
• • • • • • • • • • • • •
Johnson Controls LighTec Lime Energy MJ Welty & Associates NH Manufacturing Ext. Partnership Schneider Electric Siemens Sparkhawk Group Strategic Energy Group Trane Turner Building Science Twin State Engineering Weston & Sampson
P4P Projects College/ University 29%
Commercial & Industrial 29% 18
Municipal/ Government 21%
K-12 Schools 21%
Average P4P Project Metrics (based on reviewed Energy Reduction Plans)
19
Annual Electricity Savings
Annual Fuel Savings
Projected Total P4P Incentive
203,000 kWh
1,540 MMBtu
$125,000 Total Incentive
Case Study Manchester City Hall
20
NH Pay for Performance
PLAN
BUILD
SAVE
Tom Rooney Technical Director TRC Energy Services 603-766-1913 [email protected] www.nhp4p.com
NH Pay for Performance Program Funded by the NH PUC’s Greenhouse Gas Reduction Fund EBC New Hampshire Chapter
April 27, 2012
TRC Energy Services • Design and Manage Energy Efficiency Programs for C&I and Multifamily Markets • Clients include: – – – –
NH Public Utilities Commission NH Office of Energy & Planning NH Housing Finance Authority NJ Office of Clean Energy
– – – –
NYSERDA Southern California Edison Pennsylvania Power & Light Starwood Hotels
NH PUC Sustainable Energy Division
Program Players
TRC Energy Services Program Manager
Program Partners Energy Efficiency Professionals
Participants Owners, developers, managers
What is the Pay for Performance Program? • Promotes comprehensive, whole-building energy efficiency projects in large facilities • Energy reductions of at least 15% for whole facility • Services provided by Program Partners • Performance-based incentives • Selected by ACEEE as one of best State-Led Energy Efficiency Programs in the US in 2010
Higher Savings
Get paid up to $340,000
Higher Incentives Save at least 15% of your energy cost
Energy Reduction Plan • Comprehensive energy audit (ASHRAE Level 3) • ENERGY STAR Benchmarking • Building simulation model, with utility bill calibration • Financing Plan & Construction Schedule • Must be completed by approved P4P Partner
Financial Incentives
Incentive # 1 Up to $40,000 paid, on approval of Energy Reduction Plan
(Modeling Approach)
Incentive # 2 Program participants are paid three times on the following payment schedule:
Payment of up to $240,000
Incentive # 3 Final payment of up to $60,000 Incentives #2 and #3 cannot exceed 50% of the total project cost.
Flexible Approach • All types of energy saving measures are eligible • Incentives paid for reductions in electricity, natural gas, oil, and propane • Typical projects include: – – – –
Heating Systems Cooling Systems Building Controls Lighting & Controls
– – – –
Insulation Heat Recovery Air Sealing CHP
Incentive Schedule Incentive #1 – Energy Reduction Plan $0.10 – 0.18 / sf Based on Building Size – Max of $40,000
Incentive # 2 – Measure Installation (Minimum Performance Target of 15%)
$0.22 per projected kWh saved $22.00 per projected MMBTU saved Incentive # 3 – Post Construction Benchmarking (Minimum Performance Target of 15%)
$0.08 per actual kWh saved $8.00 per actual MMBTU saved 10
Incentives 2 and 3 combined cannot exceed 50% of total project cost.
Sample Incentive Calculation Project Data • Building Size: • Project Cost: • Estimated Savings: • Actual Savings:
150,000 sq. ft. $500,000 23% (400,000 kWh & 1,100 MMBTU) 23%
Sample Incentive Calculation Total Incentives Incentive #1 = $ 22,500 Incentive #2 = $ 112,200 Incentive #3 = $ 40,800 $ 175,500 P4P incentives cover 35% of project cost.
Alternate Approach • Simplified Energy Analysis, no modeling required • Must include at least two distinct energy efficiency measures • Minimum savings of 50,000 kWh or 500 MMBTU • No minimum % savings requirement 13
Alternate Approach Streamlined Process – Reduced Incentives Incentive Schedule Energy Assessment
$0.05 per square foot
Electric Incentives
$0.16 per projected kWh saved
Thermal Incentives
$16.00 per projected MMBTU saved
14
NH Energy Efficiency Infrastructure • Open network of 27 Partner firms developing and managing projects • Monthly calls and training opportunities
15
P4P Partner Distribution Partners by Firm Type Energy Engineering / Construction 11%
ESCO 14%
Architecture / Engineering 29%
Energy Consulting 46%
16
P4P Program Partners • • • • • • • • • • • • • • 17
Acadia Engineers & Constructors Aramark Bluestone Energy Services Bonhag Associates Celtic Energy CHA Consulting CSI Engineering Energy & Resource Solutions Energy Efficient Investments ESCO Energy Services GDS Associates Harriman Honeywell Integrated Building Energy Assoc.
• • • • • • • • • • • • •
Johnson Controls LighTec Lime Energy MJ Welty & Associates NH Manufacturing Ext. Partnership Schneider Electric Siemens Sparkhawk Group Strategic Energy Group Trane Turner Building Science Twin State Engineering Weston & Sampson
P4P Projects College/ University 29%
Commercial & Industrial 29% 18
Municipal/ Government 21%
K-12 Schools 21%
Average P4P Project Metrics (based on reviewed Energy Reduction Plans)
19
Annual Electricity Savings
Annual Fuel Savings
Projected Total P4P Incentive
203,000 kWh
1,540 MMBtu
$125,000 Total Incentive
Case Study Manchester City Hall
20
NH Pay for Performance
PLAN
BUILD
SAVE
Tom Rooney Technical Director TRC Energy Services 603-766-1913 [email protected] www.nhp4p.com
