2016 DTE Energy Efficiency Program for Business

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1 2016 DTE Energy Efficiency Program for Business 1

2 Mark Atkinson Energy Advisor 2

3 Safety First Exits Restrooms Other site features 3

4 Agenda Program Overview Program Incentives School Opportunities 2016 Program Catalog and Application Special Offers Designated Trade Allies 4

5 Program Overview 5

6 Program Overview Program funding Michigan Public Act 295 (2008): statewide Energy Optimization Surcharge added to all ratepayers bills to: Help customers save energy, manage costs. Help reduce generation, offset new capacity. This surcharge is rebated through the program as cash incentives that: Target specific energy-saving equipment and technologies. Encourage energy-efficiency building and systems design. 6

7 Program Overview Since 2009: More than $127 million in cash incentives has been paid to Michigan business customers. More than 41,000 projects have been completed. *As of December

8 Program Overview For a customer to receive incentives Qualified measures must be installed at facilities served by DTE Energy. Projects must involve a capital investment that results in an improvement in energy efficiency of a system or building. The equipment installed must be new and meet the specifications spelled out in the Catalog. For each site, there must be at least one meter that is on an eligible rate schedule. You must be in good standing with DTE Energy and not be a Residential or Multifamily customer. 8

9 Program Overview These do not qualify for an incentive Customers who self-direct (and have opted out of the program) Load shifting/demand limiting projects. Renewable energy projects. Power quality improvements. Fuel switching projects. On-site electricity generation. Changes in operational and/or maintenance practices or simple control modifications that do NOT involve capital costs. 9

10 Program Overview The Program Timeline 10

11 Program Overview The Program Timeline 11

12 Program Incentives 12

13 Program Incentives Three types of program incentives Prescriptive Custom New Construction Major Renovation Predetermined measures and incentives for the installation of various energy efficient improvements. Incentives typically average 20% to 50% of the incremental cost. Capital investment projects that increase energy efficiency and are NOT eligible for a Prescriptive Incentive may qualify as a Custom Measure. Custom Incentives are determined on a case-by-case basis and are paid per unit energy saved (ex: $0.07/kWh and/or $4/Mcf). New facilities/major renovations of existing facilities or change of use projects. Adding load. 13

14 Program Incentives Prescriptive Project Reservations Reservation Applications set aside funds for your project to ensure availability when your project is completed and you submit your Final Application. Here are our guidelines: Reservation Applications are not required for most Prescriptive projects, BUT they are highly recommended. A Reservation Application is required for certain measures: check the Application for details. Custom A Reservation Application is required for all Custom projects. New Construction Major Renovation A Reservation Application is encouraged for all New Construction and Major Renovation projects. If you submit a Reservation Application, do NOT start your project until you receive a Reservation Letter!* *Could take 4-6 weeks to receive the letter 14

15 Program Incentives Prescriptive Prescriptive Pre-determined measures with specific energy savings and cash incentives o Categories include: Lighting HVAC Electric Miscellaneous Electric Process Electric Food Service Electric HVAC Gas Hot Water & Laundry Insulation Process Gas Boiler/Furnace Tune-up Food Service Gas 15

16 Program Incentives Prescriptive Natural Gas project example K-12 School Replaced six aging space heating boilers with high efficiency models. Total project cost... Total incentives... Project cost after incentives Total Mcf saved/yr... $300,000 $26,600 $273,

17 Program Incentives Custom Custom Incentives Capital investment projects that increase energy efficiency and are NOT eligible for a Prescriptive Incentive may qualify as a Custom Measure. Custom Incentives are determined on a case-by-case basis and are paid per unit energy saved (ex: $0.07/kWh and/or $4/Mcf). o Examples include: Heat recovery Lighting retrofits not 1 for 1 17

18 Program Incentives Custom Natural Gas project example K-12 School Energy Recovery on Rooftops & Vertical Unit Ventilation Total project cost... $75,800 Total incentives... $19,790 Project cost after incentives... $56,010 Total Mcf saved/yr... 3,958 Simple payback years 18

19 Program Incentives New Construction Major Renovation New Construction/Major Renovation: New facilities/major renovations of existing facilities/change of use. Adding load. Incentives are offered in three areas: LEED Design Review Assistance: $1,500 for LEED project certification. Systems Approach: Pre-determined measures designed to optimize efficiency of individual systems. LEED Whole Building Approach: Based on LEED certification. Three levels of incentives based on four LEED certification levels. 19

20 Program Incentives New Construction Major Renovation LEED Whole Building Approach: University Campus LEED Gold Certification Total project cost... Total incentives... Total kwh saved/yr... Total Mcf saved/yr... LEED Points for EA1... Total LEED Points $185 million $83, ,000 12, Points 71/100 Points 20

21 School Opportunities 21

22 School Opportunities Savings Possibilities: Electric Equipment/Technology Savings Exterior HID to LED Up to 75% LED Lights and Lamps Up to 75% Compact Fluorescent Lamps (CFLs) 70% to 80% Occupancy Sensors 15% to 35% LED Exit Signs Up to 85% Computer Equipment Up to 30% Beverage Vending Machine Controls 50% Food Service Refrigerators/Freezers Up to 35% Ice Machines 15% to 20% Sources: ENERGY STAR, U.S. DOE, Industry Studies, ASHRAE 22

23 School Opportunities Savings Possibilities: Gas Equipment/Technology Savings Programmable Thermostat 15% to 35% Demand Control Ventilation 25% to 40% Boiler Replacement Up to 10% Boiler Tune-Up Up to 20% Infrared Heater Up to 30% Pool Heater Up to 30% Gymnasium Destratification Fans 20% to 30% Food Service Steam Cookers/Ovens 30% to 40% Fryers/Griddles 15% to 30% Sources: ENERGY STAR, U.S. DOE, Industry Studies, ASHRAE 23

24 School Opportunities Actual Case Study: Electric Livonia Public Schools Replaced high school s gym lights, swapping out 400W HIDs for 32W fluorescent high bay fixtures with occupancy sensors Energy Saving Electric Project New Technology Program Incentives kwh Savings High-Bay Fixtures/Sensors $8, ,575 LED Lights/Sensors $10, ,985 Total $18, ,470 24

25 School Opportunities Actual Case Study: Gas Kentwood Public Schools Replaced outdated boilers with more efficient models and installed boiler and HVAC controls Energy Saving Electric Project New Technology High-Efficiency Boiler Replacement Program Incentives Mcf Savings $25,000 3,704 Boiler/HVAC Controls $25,000 5,263 Total $50,000 8,967 25

26 2016 Program Catalog and Applications 26

27 2016 Program Catalog and Applications Program Catalog Includes specifications and details for every Prescriptive incentive measure. Includes specifications and details on how to submit a Custom project. Use it as a desktop reference for all your projects. 27

28 2016 Program Catalog and Applications There are five prescriptive electric measure categories: Lighting Miscellaneous Process Food Service/Refrigeration HVAC There are six prescriptive gas measure categories: HVAC Insulation Process Hot Water & Laundry Boiler/Furnace Tune-up Food Service If a project involves measures from at least two of the measure categories and no single category is more than 75% of the total value of the Application, the customer may qualify for a 20% Multi-Measure bonus on the entire Application. 28

29 2016 Program Catalog and Applications Measures marked with MM are measures that may qualify for the Multi-Measure Bonus on a project with both electric and natural gas. 29

30 2016 Program Catalog and Applications Multi-Measure Bonus Example Project Gas-Electric Project Summary Incentive Percentageof Incentive Savings:* kwh Lighting $1, % 321,202 HVAC Electric $1, % 298,372 HVAC Gas $2, % Incentives $4, , Multi-Measure Bonus $938 Total Incentives $5,628 Mcf *First-year savings estimated 30

31 2016 Program Catalog and Applications Specifications Detailed specifications for every prescriptive measure offered under the 2016 Program. 31

32 2016 Program Catalog and Applications Program Application Use it as a: Reservation Application and a Final Application NOTE: Funds must be reserved for all custom projects and for certain prescriptive measures. We encourage you to submit a Reservation Application for all prescriptive projects. 32

33 About our Application 2016 Program Catalog and Applications The following items are required to successfully complete your Reservation and Final Applications and receive incentive funding: Application Checklist Customer Information Sheet Prescriptive and/or Custom Incentive Worksheets Final Application Agreement Third-party payment authorization (if applicable) Supporting Information, including W-9, invoices and product specifications 33

34 2016 Program Catalog and Applications Prescriptive projects: There are worksheets for every prescriptive measure. In the interactive PDF Application, calculations are made automatically. Check the Michigan-Made box(es) for measures that meet the bonus criteria. 34

35 2016 Program Catalog and Applications Custom projects: The interactive PDF will: Automatically calculate each item s incentive and total those numbers at the bottom. Automatically account for payback requirements (electric and gas) and the 50% capping limit. Automatically allocate the incentives proportionally to each eligible item for Multi-Measure calculations on Page 6 (you must check the category, such as Lighting ). 35

36 2016 Program Catalog and Applications Electronically submit your Reservation Application and/or your Final Application. Automatically: Your will be launched, Our address will be inserted, The subject line will be entered and Your Application will be attached. At that point, attach any other supporting documentation. $1 $1 Note: check the blue boxes to ensure that your incentives have been entered correctly. 36

37 2016 Program Catalog and Applications About your Final Application: Your Final Application must be submitted within 60 days of project completion, reservation end date or by Nov. 30, 2016 whichever comes first. Failure to include all supporting documentation at the time of submission could result in cancellation of your Application. 37

38 Special Offers 38

39 Special Offers Michigan-Made bonus 15% bonus for certain installed equipment that is 50% manufactured and/or assembled in Michigan (excluding packaging). o Some Prescriptive measures are not eligible. o Custom projects are not eligible. o Look for the check box on the Application next to qualified measures. The Michigan-Made affidavit can be downloaded at: dtetradeally.com 39

40 Special Offers Multi-Measure bonus 20% bonus on multiple categories submitted on the same Application when no single category is more than 75% of the Application. o Our Catalog highlights measures (MM) that appear in both electric and gas that may qualify. This Fact Sheet can be downloaded at: dtetradeally.com 40

41 Special Offers Building Operator Certification Program Program offers tuition reimbursement: o Gas or Electric Certification: $650 o Combined Gas/Electric: $950 Only DTE Energy customers with facilities larger than 50,000 square feet are eligible. Building professional must attend, pass and become certified in Level I or Level II certification course administered by the Midwest Energy Efficiency Alliance (MEEA). (Other conditions apply; see Application for details) This Application can be downloaded at: dtetradeally.com 41

42 Special Offers Financing from Michigan Saves 0% financing on up to $50,000 for up to 36 months 2.99% financing on up to $150,000 for up to 60 months 1.99% financing on up to $150,000 for up to 60 months for municipalities and K-12 schools This Worksheet can be downloaded at: dtetradeally.com 42

43 Designated Trade Allies 43

44 Designated Trade Allies Designated Trade Ally A Designated Trade Ally is a contractor specially trained in how to access our Program and use the Application to maximize the Program s benefits for DTE customers. o They include: Contractors, suppliers, designers and consultants. 44

45 Designated Trade Allies Designated Trade Allies How Customers find a Designated Trade Ally Go to dteenergy.com/findacontractor Click on Energy Efficiency Directory link. 45

46 Designated Designated Trade Allies Trade Allies How Customers find a Designated Trade Ally You can then search by Location (city or ZIP) and Program Type Or You can search by Contractor Name 46

47 Designated Designated Trade Allies Trade Allies How Customers find a Designated Trade Ally Once you narrow your search, you can view a list of contractors in your area 47

48 In Summary Program Overview Program Incentives School Opportunities 2016 Program Catalog and Application Special Offers Designated Trade Allies 48

49 If you have questions, please contact our office Phone: (press option 3) Fax: Website: dteenergy.com/savenow Website: dtetradeally.com : 49

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