The Effects of Varying Incentive Levels on Energy Efficiency Program Participation Small Business

Transcription

1 The Effects of Varying Incentive Levels on Energy Efficiency Program Participation Small Business Rachel L. Seraspe, PE Willdan Energy Solutions October 16, 2014

2 Agenda Introduction Discussion Questions Con Edison Small Business Direct Install (SBDI) Program Willdan Energy Solutions About the Data Analysis & Results Barriers to Participation

3 Introduction Benefits of reducing energy use Programs assists homeowners & business owners in lowering energy usage and utility bills More cost effective than the alternative Programs have different out of pocket costs for the customer Comparing customer participation rates to different incentive levels

4 Discussion Questions What are participation rates when an incentive is available? Are certain customers more likely to implement projects than others? What are the typical measures implemented at different businesses? Does the measure mix have an impact? What are customer participation rates at different incentive levels? Is there a tipping point in the incentive at which the customer is compelled to more forward? What are the barriers to customer participation? Next steps?

5 Con Edison Small Business Direct Install (SBDI) Program Benefits Free energy efficiency survey of the site Customized recommendations Available to customers in New York City & Westchester County Incentives For certain upgrades, customer pays only 30% of cost Con Ed pays contractor directly up to 70% of remaining cost No waiting on rebates

6 Willdan Group Willdan Energy Solutions Energy services and consulting firm Work with Con Ed through SBDI Implementation Contractor Subcontractor recruitment and training Marketing, outreach and sales Engineering oversight Billing, invoicing and financial oversight Data tracking, analysis and reporting

7 About the Data EEPS II: July December 2015 Program is on-going Effect on data and results Small business customers 110 kw or less average demand Incentive Levels Prescriptive program Up to 70% incentive for most measures Incremental measures Special programs with higher incentive levels

8 Overall Participation Rates Timing of report Sales cycle Expect rates to increase towards end of program

9 Measure Mix & Electric End Uses for Offices and Retail

10 Why Do Food Stores Have Higher Participation Levels? Lighting approx. 50% Refrigeration 41% Refrigeration uses about twothirds of electric energy at a typical grocery store Implement energy saving refrigeration measures for the largest impact

11 Participation Levels at Varying Incentive Rates

12 Is There a Tipping Point?

13 Barriers to Participation The New York factor skepticism What s the catch? Are you going to bill me later? Competing with ESCOs Electric deregulation Trade off between value & quality Misconception must give up quality to go green Biggest hurdle If utilities generate revenue from electric consumption, how can they be in favor of reducing my energy usage?

14 Next Steps Participation rate increases significantly when the incentive is 100% Can we bridge the gap between what the customer can afford and a free project? Financing is difficult for this sector Overcoming barriers to participation Depends on salesman speaking to customer Educate consumers why energy efficiency is a win-win for everyone

15 Questions Questions? Contact: Rachel L. Seraspe, PE Program Manager (212)

16 Connecticut Green Bank C-PACE: A financing tool for building owners

17 Energy Challenge in Connecticut High Cost CT has THE highest cost for electricity in the "lower 48" Old, Energy Inefficient Building Stock CT has some of the oldest and most energy inefficient building stock Need for "Cleaner / Cheaper" Energy Sources Programs that will diversify our energy mix into renewable/clean power "More Reliable" Grid 5 major storms in 2 years with widespread outages 2

18 C-PACE In 90 Seconds 3

19 C-PACE Addresses Key Barriers Lack of funding? Near term plan to sell? Insufficient payback/roi? Split incentives? Uncertain savings/technical expertise? 100% upfront, 20 year financing Tax obligation fixed to property Positive cash flow in year 1 Assessment/savings pass to tenants Technical underwriting / SIR>1 4

20 Case Study: Comprehensive Energy Efficiency Location: 855 Main Street, Bridgeport, CT Building Type: Large Office (>50,000 SF) Building Size: 112,000 Square Feet Total Project Cost: $2,462,000 Utility Incentives: $469,317 C-PACE Financing: $1,992,683 Term: 20 Years Annual Interest Rate: 5.5% Annual C-PACE Assessment: $166,563 Annual Energy Cost Savings: $241,900 Lifetime Energy Cost Savings: $6,047,504 Annual Energy Savings: 6,650,053 kbtu

21 Case Study: Non profits Location: 319 Barnum Avenue, Bridgeport CT Building Type: House of Worship Building Size: 10,600 Square Feet Total Project Cost: $53,087 Hartford West Hartford Bridgeport Incentives: $3,460 UI incentive (*boiler Norwalk only) Simsbury Stamford C-PACE Financing: $49,627 Stratford Southbury Term: 10 Years Annual Interest Rate: 5% Annual C-PACE Assessment: $6,506 Annual Energy Cost Savings: $13,678 Lifetime Energy Cost Savings: $136,776 Annual Energy Savings: 241 MMBtu

22 Case Study: Solar with ZRECs Location: 29 Trefoil Drive, Trumbull CT Building Type: Recreation Building Size: 108,000 Square Feet Total Project Cost: $1,001,298 Incentives: ZREC C-PACE Financing: $1,001,298 Term: 20 Years Annual Interest Rate: 5.5% Hartford West Hartford Bridgeport Norwalk Simsbury Stamford Stratford Southbury Annual C-PACE Assessment: $83,171 Annual Energy Cost Savings: $91,678 Lifetime Energy Cost Savings: $1,833,569 Annual Energy Savings: 341,853 kwh

23 Snapshot of Year 1 $40 million in deals approved ; $25 million closed Sold initial $30M+ portfolio through bid process (closed 5/15/2014) 95 towns on board = 83% of the CT market eligible 200+ contractors trained 20 qualified capital providers 100 Projects in Pipeline = over $70M 23 mortgage lenders have provided consent

24 CEFIA Capital Partners

25 C-PACE Greentech Media 10

26 Genevieve Sherman Assistant Director, C-PACE Connecticut Green Bank