PG&E s Incentive Programs. Don Fantz P.E. Energy Solutions Manager Agriculture and Food Processing Customer Energy Solutions PG&E August 2011

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1 PG&E s Incentive Programs Don Fantz P.E. Energy Solutions Manager Agriculture and Food Processing Customer Energy Solutions PG&E August 2011

2 PG&E and Energy Efficiency PG&E has been providing energy efficiency programs for over 30 years. Energy efficiency programs are far more cost effective to meet energy demand than building new generation or the spot market.

3 KWh What are the Utility s Interests? (energy conservation/paper PP) 14,000 12,000 10,000 8,000 6,000 4,000 2, US CA Western Europe

4 PG&E and Energy Efficiency, cont. Energy efficiency is the fastest way to reduce greenhouse gas emissions, and PG&E is committed to being environmental leaders in this arena. PG&E s profits are decoupled from our volume of gas and electric sales, so there is no corporate dis-incentive. Customer satisfaction: Customers benefit from lower bills, better buildings and live/work environments, and can be more competitive on operating expenses.

5 Savings By Design New Construction Program Supports high-performance building design and construction Also available for major renovations and remodels Design Assistance provided during building design phase Industrial projects are eligible Contact us early in project design for best results! Capped at 75% of incremental project cost (50% for Ag- Industrial) Up to $500,000 owner incentives per project based on building performance

6 PG&E Rebates vs. Incentives Rebates are the fastest and easiest way to get cash back for common energy efficiency retrofits Hundreds of pre-determined rebates are available in different equipment categories Rebate checks are mailed in 4-6 weeks tesincentives/

7 Customized Retrofit Incentive Programs Non-Residential Retrofit For customized projects not available on the rebate catalog Standard incentive rates paid per kwh or therm reduced PG&E will pay up to 50% of project implementation cost for retrofits and the incentive can go to facility owner or owner s project sponsor (ie, vendor) Calculation support is available. Important! PG&E needs to pre-approve your project and do a pre-inspection of your existing equipment

8 Incentives gsrebates/rebatesincentives/ This page has many resources, downloadable applications, statewide manual, minimum equipment information, calculation software, etc. Businesses that install energy-saving equipment are rewarded with cash payments, based on the actual annual kwh or therm savings that are achieved.

9 Incentives continued 2011 Incentives Rates Retrofit or New Construction (NC) Lighting $0.05 / kwh Other $0.09 /kwh AC&R I $0.15 / kwh AC&R II $0.09 / kwh (not applicable for NC) Natural Gas $1.00 / therm All Measures $100 / Peak KW Capped at 50% of project cost

10 ACR I $.15/kwh High-efficiency chillers replacements Packaged air conditioners and heat pumps in PG&E and SDG&E service territories (>760,000 Btu/hr or 63.3 tons) Variable Speed Drive installations on existing air conditioning or refrigeration compressor motors. Air conditioning complete subsystem replacements (evaporative condensers, air-cooled condensers, cooling towers, or compressors) Refrigeration complete subsystem replacements (condensers, evaporators, cooling towers, or compressors) Constant air volume to variable air volume conversions Chiller heat reclaim Evaporative cooling unit installations Evaporative pre-cooling unit installations Indirect evaporative cooling (single stage and dual stage) Heat transfer (including heat pumps) to heat sinks, such as ground source cooling in airconditioned buildings A/C compressor replacements Data center free cooling Refrigeration floating head controller installations

11 ACR II $.09/kwh Controls and energy management systems for HVAC or refrigeration equipment Variable speed drives on fans (including supply fans, exhaust fans, and cooling tower fans) Variable speed drives on pump motors (including chilled water and cooling tower pumps) Fan, pump, and/or motor replacements Refrigeration evaporator fan controls Insulating chilled water, condenser water, or refrigerant pipes Insulating cool air ducts Insulating storage tanks Demand control ventilation installation (CO2 sensors) Installation of high-speed cold storage doors Air Conditioner air-side or water-side economizer installations on units not already equipped with a 100% economizer Building shell improvements Cooling tower upgrades Refrigerated case doors

12 Natural Gas Savings Incentives Natural Gas Measures $1.00 / Therm Thermal Oxidizers Boiler or furnace replacements Boiler heat recovery Boiler economizers

13 Retrocommissioning (RCx) Program Retrocommissioning (RCx) is a systematic process for identifying less-than-optimal performance in a facility s existing equipment and control systems and making necessary repairs or enhancements to save energy and cost. Whereas retrofitting involves replacing outdated equipment, RCx focuses on improving the efficiency of what is already in place. Incentives are paid directly to the customer based on energy savings at the rate of $0.09/kWh, $1.00/therm, and $100/onpeak kw*, capped at 50% of the measure cost. In addition to the incentive, PG&E will provide diagnostic, engineering and cost estimating resources to identify and analyze potential energy saving projects from retrocommissioning measures.

14 Demand Response gsrebates/demandresponse/ PG&E's demand response programs are designed to enable customers to contribute to energy load reduction during times of peak demand. Most PG&E demand response programs also offer financial incentives for load reduction during times of peak demand.

15 Demand Response continued Difference between Customer Energy Efficiency measures and Demand Response? Demand Response is a temporary KW reduction in facility operations. Example - allowing temporary temperature rise in refrigerated space to temporarily reduce KW usage. Contact your PG&E representative or call BCC at

16 PG&E Third Party programs 46 PG&E Third Party Programs developed and specialized to assist our customers' efforts towards saving energy available in our local area. These programs have been designed to meet the unique needs of our diverse customer base, and offer a range of services to support customers in their energy-efficiency efforts. Agriculture, Industrial, Commercial, Health Care, Hospitality, Local Government, Education, Residential gysavingsrebates/partnersandtradepros/eeis/search/third _party_programs_fs.pdf

17 PG&E Third Party programs Industry-specific expertise that can provide customized energy management solutions. Facility energy audits, engineering services and technical design assistance. Installation of energy efficiency equipment, at low or no cost. Application facilitation and support services of customer rebates and incentives upon installation of energy-efficiency solutions. Services to facilitate and sustain long-term optimization of energy savings, such as employee training and post-installation quality control. Information on other energy management program offerings, funding options or assistance accessing funds.

18 Environmental Benefits Reduction in power plants Help in air quality efforts Reduced carbon footprint With energy efficiency a kwh or btu that was previously consumed is permanently removed!

19 Economic benefits of PG&E s incentive programs! Local jobs (new construction and retrofit) Help local companies remain competitive and assist organizations by reducing energy costs Help increase product quality Provided about $68 million in incentives in 2009/2010 to Fresno/Bakersfield/Merced areas Provides energy expertise Finally- On Bill Financing (OBF) 0% interest 5yr payback after incentives

20 Steps to Success Important! PG&E needs to pre-approve your project and do a preinspection of your existing equipment PG&E s Pacific Energy Center (SF) for training (also local training) PG&E energy efficiency programs are here to stay! Contact your local PG&E rep. You can call the General Business number

21 Thank you! Questions?