CALIFORNIA SOLAR INITIATIVE - THERMAL PROGRAM SOLAR WATER HEATING TOOL KIT FOR COMMERCIAL / INDUSTRIAL CUSTOMERS

Transcription

1 CALIFORNIA SOLAR INITIATIVE - THERMAL PROGRAM SOLAR WATER HEATING TOOL KIT FOR COMMERCIAL / INDUSTRIAL CUSTOMERS

2 TABLE OF CONTENTS INTRODUCTION Why Solar Water Heating? Is Solar Water Heating Right for Your Business? 1 2 REBATES & INCENTIVES What is the California Solar Initiative (CSI)-Thermal? Rebate Information How to Calculate Your Rebate Tax Credits, Incentives & Financing Information HOW SOLAR WATER HEATING WORKS Diagram and Description of Basic System Common Commercial Uses 7 8 WORKING WITH A CONTRACTOR How to Choose a Contractor Contractor Requirements Contractor Bid Comparison Form NEXT STEPS What to Do Next 12

3 WHY SOLAR WATER HEATING? Does your business rely on hot water to operate? Did you know there is a way to lower your energy costs to heat your water? Solar water heating works in tandem with your natural gas system to help you and your business save on operating costs through smart, efficient systems. A few of the top benefits of solar water heating are that it: REDUCES THE AMOUNT OF ENERGY PURCHASED to heat water for your business or property. Less energy required is more money going directly to your bottom line. LOWERS THE COST OF HEATING YOUR WATER OR COMMERCIAL SWIMMING POOL by efficiently using power generated by the sun. OPTIMIZES YOUR SPACE HEATING/COOLING AND PROCESS HEATING. Increasing your heating/cooling efficiency will translate into efficiencies in your profits and losses (P&Ls). HELPS YOUR BUSINESS OR PROPERTY BECOME MORE SUSTAINABLE by reducing your overall carbon footprint. It s a win-win situation. This SoCalGas tool kit will walk you through the process of determining whether solar water heating is right for your business, understanding the rebates and incentives, and selecting a system and contractor. 1

4 CASE STUDY IS SOLAR WATER HEATING RIGHT FOR YOUR BUSINESS? Image by Promise Energy Century Housing There are plenty of benefits to switching to solar water heating backed up by natural gas but which are the best uses for your business? These businesses see the most benefit for solar water heating: (Arrowhead Vista Apartments) Apartment Buildings/Homeowner Associations LOCATION Schools/Colleges/Universities San Bernardino, CA Commercial Office Spaces WHY SOLAR WATER HEATING WAS RIGHT FOR THEM: Hotels and Resorts Century Housing implemented solar water heating at Arrowhead Vista apartments which allowed them to reap savings to reinvest into the property for the benefit of their residents. The solar water heating system helps provide hot water for 40 families, while reducing operating costs by about $10,000 per year. $58,555 rebate earned 3,045 therms offset $19.23 cost per therm 24 solar thermal collectors installed 85% natural gas consumption reduction The process to qualify, apply and receive rebates was very simple thanks to the support of our contractor and SoCalGas administration of the program. Manufacturers/Industrial Processors Agricultural/Food Processors Fitness Centers/Gyms/Spas Government Agencies/Nonprofits Is hot water crucial to your business? Uses include: Drinking Food Preparation Washing Laundry Sanitation Personal Hygiene Space Heating/Cooling or Process Heating Commercial and Multifamily Pools -Brian D Andrea Senior Vice President, Housing at Century Housing 2

5 WHAT IS THE CALIFORNIA SOLAR INITIATIVE (CSI)-THERMAL? The California Solar Initiative (CSI) is the solar rebate program for California consumers and businesses that use of one of the state s investor-owned utilities in your case, SoCalGas. The CSI-Thermal program specifically offers rebates of up to $800,000 to multifamily and commercial properties that install qualifying solar water heating systems and up to $500,000 for commercial solar pool heating systems. Your business can qualify for these savings by harnessing the power of the sun and selecting a solar water heating system backed up by natural gas. The program is administered under the auspices of the California Public Utilities Commission.

6 REBATE INFORMATION Through the CSI-Thermal Program, California is rewarding businesses that invest in solar water heating systems by increasing the rebates available. Businesses can take advantage of these rebates through December 31, 2017, or until the rebate money runs out. As participation increases, less money will be offered per rebate. HOW MUCH IS MY REBATE? The CSI-Thermal Program is offering up to $800,000 in qualifying rebates to businesses that install solar water heating systems. Your actual rebate will depend on how many therms your system is expected to save annually. Therms are the standard rate of measurement for natural gas. For 2016, the rebate is calculated at $25 per therm saved for SoCalGas business customers 1. Your contractor is responsible for calculating the rebate and submitting the application. Ask your contractor about choosing the best size and type of solar water heating system for your business. MAXIMUM REBATE AMOUNTS A maximum of one commercial incentive will be allowed per solar water heating system, not to exceed $800,000 for natural gas-displacing systems $500,000 for solar pool heating for commercial/ multifamily properties The total incentives for multiple systems on one site cannot exceed the $800,000 incentive maximum 1 At the request of the CPUC, on April 15, 2016, SoCalGas, filed an Advice Letter to modify the CSI-Thermal natural gas budget to encourage an increase in program participation in SoCalGas service territory by the end of The filing included changes in the CSI Thermal handbook that are temporary and only apply to installations in SoCalGas service territory. These changes entail (1) reallocating Step 3 and Step 4 SoCalGas single family and multifamily/commercial general market funds to Step 1; (2) increasing the rebate rates in SoCalGas service territory only for general market single family and multifamily commercial applications; and (3) removing the 50% rebate cap for solar pool applications in SoCalGas service territory. There will be no changes to the low-income program. Low income projects will apply under the low income program but will receive the temporary higher incentive rate. The new Single Family Step 1 incentive is $70/therm and the new Multifamily/Commercial Step 1 incentive level is $25/therm. This funding shift will take effect on April 15, 2016, the date of this filing and will expire on December 31, In order to be eligible under this temporary rebate structure, final building permits will have to be dated between April 15, 2016 and December 31, 2016 (inclusive). Applicants will have until February 28, 2017 to submit the Incentive Claim Form in order to receive the higher incentive. Applications submitted outside of this timeframe will receive the existing step level rates. 4

7 CASE STUDY HOW TO CALCULATE YOUR REBATE While your maximum rebate for installing solar water heating could be up to $800,000, your actual amount will depend on the amount of therms your business is expected to save annually and will be calculated by your contractor 2. Gerding Edlen (512 Rose) LOCATION Venice, CA WHY SOLAR WATER HEATING WAS RIGHT FOR THEM: Certified LEED Platinum, 512 Rose is setting the bar for mixed-use buildings looking to lower their footprint. 512 Rose s commitment to sustainability plays out in its solar water heating system that helps provide hot water to 70 residential and five retail units, and the community herb garden that provides fresh food for residents. $57,549 rebate earned 4,489 therms offset 32 solar thermal collectors installed Solar hot water is a very applicable strategy for multifamily buildings from both a cost/benefit and environmental impact perspective. The system will provide an impressive three-quarters of the building s annual hot water needs. It s a great complement to the rest of the building s efficient mechanical systems. -Renee Loveland Sustainability Manager at Gerding Edlen (Developer) Several factors are involved to determine your therm savings and rebate amount: INCENTIVE RATE X ANNUAL ENERGY SAVINGS X SURFACE ORIENTATION FACTOR X SHADE FACTOR = REBATE AMOUNT The easiest way to understand your rebate calculation is that the more hot water your business expects to use, the bigger the rebate you will receive for your solar water heating system. For more information and an incentive calculator, visit the CSI-Thermal website: csithermal.com/calculator/commercial/. 2 In order to receive the higher SoCalGas Step 1 incentive rate of $12.50/therm, systems must be installed between April 15, 2016, and December 31, 2016 (inclusive), which will be determined by final permit sign-off date. Complete Incentive Claim packages must be submitted by February 28, If an application reserved at the temporary rate does not receive a final permit sign of by December 31, 2016, or submit a complete Incentive Claim package by February 28, 2017, that application will revert to the statewide Step 1 rate (i.e., $10.10/therm). 5

8 TAX CREDITS, INCENTIVES & FINANCING INFORMATION In addition to statewide rebates, businesses that invest in solar water heating systems backed up by natural gas can benefit from federal and local tax credits. With energy costs reduced by up to 75 percent, your system will practically pay for itself. TAX CREDITS The federal tax credit for completing a solar water heating system installation by 2019 is 30 percent, with an expected decrease to 26 percent after Local tax credits vary. Consult with your tax specialist to determine which credits your business can use. PERFORMANCE-BASED INCENTIVES PROGRAM (PBI) Incentive applications received for the following end uses will be paid under the PBI program: Space Heating Space Cooling Process Heating Multifamily/Commercial Combination Systems Domestic Hot Water (DHW) Systems > 250 kwth PBI enables the program to calculate incentives based on the amount of energy (therms) actually saved 3. Just like the CSI-Thermal solar water heating rebate itself, payments will be made quarterly over two years. OTHER INCENTIVES You may also qualify for other incentives outside of the CSI-Thermal Program. Visit dsireusa.org to learn about incentives at the local, state and federal levels. FINANCING Investing in solar water heating is no small task, especially for small businesses. Luckily, there are several ways to help finance the installation. For example: Loans through your bank or another third party Leases through solar water heating partners, often through your contractor CaliforniaFirst, a PACE (Property Assessed Clean Energy) program, through your local government, a program that let s you pay the loan back with an additional line item in your annual property tax bill 3 In order to receive the higher SoCalGas Step 1 incentive rate of $12.50/therm, systems must be installed between April 15, 2016, and December 31, 2016 (inclusive), which will be determined by final permit sign-off date. Complete Incentive Claim packages must be submitted by February 28, If an application reserved at the temporary rate does not receive a final permit sign of by December 31, 2016, or submit a complete Incentive Claim package by February 28, 2017, that application will revert to the statewide Step 1 rate (i.e., $10.10/therm). 6

9 HOW SOLAR WATER HEATING WORKS You know how the sun works, but do you know how a solar water heating system uses the sun to heat water? It all starts with the solar thermal collectors on your roof or property that absorb solar energy. This solar energy is used to preheat water in a solar storage tank. When you need it, the preheated hot water flows through your existing water heater or boiler and into your water system. When the sun is not shining, your existing natural gas water heater is there to back-up your solar water heating system. In addition to producing hot water for end use, some systems can use hot water for space heating and cooling. A system of fans or pumps circulate water to create energy and lower costs. HOW ONE KIND OF SOLAR WATER HEATING SYSTEM WORKS 1. A pump circulates a transfer liquid from the tank to the roof. 2. Solar collectors absorb the sun s thermal energy and heat the transfer liquid. 3. The transfer liquid enters a heat exchanger, warming the tank. 4. Hot water flows to your existing boiler or water heater, which provides backup heating when the sun isn t shining. 2. Solar Collectors 1. Heat Transfer Liquid Pump Water Supply 3. Heat Exchanger 4. Conventional Water Heater Solar Storage Tank Water Heater Radiant Floor Heating This is just one example of a solar water heating system. There are many systems to choose from to fit your size, style and business needs. Your contractor can help select the best one for you. 7

10 CASE STUDY COMMON COMMERCIAL USES Solar water heating systems work in tandem wiith natural gas to provide large volumes of hot water to a wide variety of industries. UCLA LOCATION Los Angeles, CA WHY SOLAR WATER HEATING WAS RIGHT FOR THEM: Serving thousands of students, the university looked to solar water heating to create efficiencies for some of the residence and dining halls solar water heating helps provide hot water for an average of 7,000 meals and 5,000 showers daily. 5,000 therms offset 3,600 in annual natural gas savings in just one residence hall 8 solar water heating installations 80% natural gas consumption reduction On a really sunny day, you might actually get so much heat from the sun that you don t have to use the boilers at all and it s actually 100% gas savings. -Nuritz Katz, Chief Sustainability Officer at UCLA Examples of businesses that realize the greatest benefits from solar water heating: APARTMENT BUILDINGS/HOAS Swimming pools, laundry, dishwashing, in-home use SCHOOLS/COLLEGES/UNIVERSITIES Swimming pools, laundry, dining halls, laboratories, community showers, public restrooms, sanitation COMMERCIAL OFFICE SPACES Industrial kitchens, public restrooms, sanitation HOTELS AND RESORTS Swimming pools, laundry, dishwashing, restaurants, sanitation MANUFACTURERS/INDUSTRIAL PROCESSORS Power, sanitation AGRICULTURAL/FOOD PROCESSORS Power, sanitation FITNESS CENTERS/GYMS/SPAS Swimming Pools, Community Showers, Laundry, Sanitation GOVERNMENT AGENCIES/NONPROFITS Laundry, industrial kitchens, public restrooms, sanitation AND MANY MORE 8

11 WORKING WITH A CONTRACTOR / HOW TO CHOOSE A CONTRACTOR Now that you ve decided to choose solar water heating for your business, it s time to find a contractor to be your resident expert on all things solar water heating Go to the Go Solar Calfornia website: csithermal.com/eligible_contractors/ for a list of contractors eligible to submit a CSI-Thermal rebate application. Select at least three contractors in your area to interview and ask for bids. Use our Contractor Bid Comparison Form on page 11 to help weigh your options. Interview your contractor candidates. Make sure they have a good idea of your business needs and goals. Request references from each contractor s previous customers. Review the bids. Make sure that the bids are for the same system and include a system warranty. There s more to choosing a contractor than just finding the lowest bid. Some important factors to your decision include: EXPERIENCE How many years has the contractor been in business? REVIEWS Are the contractor s past customers satisfied with results? COVERAGE How strong is the warranty the contractor offers? COST Will the contractor s bid fit into my budget? (Don t forget, there are financing options available.) 9

12 CONTRACTOR REQUIREMENTS To be eligible to install a business solar water heating system and submit your rebate application, a contractor must be licensed by the State of California Contractors State License Board (CSLB). Further, a contractor must have these active licenses: A (Engineer) B (General) C-4 (Boiler, Hot Water Heating and Steam Fitting) C-36 (Plumbing) OR C-46 (Solar) Must have contractors license, and be in accordance with rules and regulations adopted by the CSLB Contractors must also attend a mandatory CSI-Thermal contractor/installer training workshop presented by one of the state s program administrators to be certified in the program. 10

13 CONTRACTOR BID COMPARISON FORM The best contractor to install your solar water heating (SWH) system isn t necessarily the one with the lowest cost. Use the form below to compare at least three bids across several important factors. Verify that your contractor candidates are eligible to assist you with installing your solar water heating system and submitting your rebate application. FACTOR BID #1 BID #2 BID #3 Company Name Main Contact CSI-Thermal Eligible? License Number Years of Experience Number of References Solar Fraction (Percentage of Hot Water Provided by SWH Annually) System Size (Collector Area and Storage) Base System Cost Additional Equipment Costs Monitoring Cost Warranty Cost Estimated Permit Fees Total Cost Estimated Rebate Incentives & Tax Credits Final Cost Expected Annual Energy Savings Contractor Financing Options Warranty Length/Cost 11

14 WHAT TO DO NEXT To start seeing dramatically lower costs, generous rebates and a positive sustainable impact, follow these next steps to get a solar water heating system backed up by natural gas for your business: 1. Determine your hot water needs for your business 2. Talk to contractors about your hot water needs to select the best system for you 3. Review bids for your contractor using our Contractor Bid Comparison Form 4. Look into financing options for solar water heating installations 5. Walk through your rebate application with your preferred contractor 6. See your energy costs drop by up to 75 percent This program is funded by California utility customers and administered by SoCalGas under the auspices of the California Public Utilities Commission. Program funds, including any funds for rebates or incentives, will be allocated on a first-come, first-served basis unit such funds are no longer available. This program may be modified or terminated without prior notice. Actual savings obtained in each instance may vary and will depend on various factors, including geographic location, weather conditions, equipment installed, usage rates and so forth. Completing multiple measures will not necessarily result in cumulative savings. 12