CONSUMERS ENERGY BUSINESS SOLUTIONS PROGRAM

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1 CONSUMERS ENERGY BUSINESS SOLUTIONS PROGRAM 2015 Incentive Catalog HELPING MICHIGAN BUSINESSES SAVE ENERGY. THAT S OUR PROMISE. December 2014

2 Table of Contents About This Program 1 Variable Frequency Drives 19 Prescriptive Incentives 1 Compressed Air 22 Custom incentives 1 Miscellaneous Electric 27 New Construction Program 2 HVAC and Heating Equipment 31 Agriculture Program 2 Domestic Water Heaters 35 Compressed Air Program 3 Building Automation Systems 36 Buy Michigan Bonus 3 Advanced Air Distribution & Energy Recovery 42 Multiple Bonus 3 Laboratory 45 How to Apply 4 Tune-up/Maintenance 48 Customer Eligibility 4 Kitchen/Refrigeration/Laundry 50 Program Dates 4 Building Envelope & Insulation 55 Project Requirements 4 Pipe & Ductwork Insulation 58 Equipment Specifications 4 Agricultural 60 Incentive Caps And Limits Customer Limits 5 5 Custom Other Offerings Prescriptive Incentive Caps 5 Building Operator Certification 68 Custom Incentive Caps & Calculation 5 Smart Buildings 68 New Construction Incentive Caps 6 Building Performance with ENERGY STAR 68 Application Process Documentation Requirements 6 6 Industrial Energy Management Appendix List of s 7 Lighting & Lighting Controls 10

3 NEED HELP? Call (877) or Our team is ready to help you with any questions you may have. Helping Michigan Businesses Save Energy. That s our Promise.

4 1 About This Program The Consumers Energy Business Solutions Program is a comprehensive suite of energy efficiency programs created to assist commercial and industrial businesses increase their energy optimization, lower their energy usage, and lower their cost of operation. A wide variety of energy efficiency rebates are available to help business owners reduce the initial cost of installing new energy efficient equipment in their facilities. An overview of the various program offerings is summarized below. The sections that follow provide detailed information on the actual incentives and specific program details related to each of the various offerings. Application forms for all programs are available on the Consumers Energy web site: ConsumersEnergy.com/mybusiness. All applicants are urged to download and review the Policies and Procedures Manual located online. Prescriptive Incentives These incentives are available for energy efficiency equipment upgrades and improvements including categories such as: Lighting/ Electrical, Mechanical, Kitchen/Refrigeration and Building Envelope. Incentives are paid based on either quantity, size or the efficiency of the equipment. Incentives are provided for qualified equipment commonly installed in a retrofit or equipment replacement situation. The total calculated incentive cannot exceed 75 percent of the project cost (as described on page 5 in Prescriptive Project Incentive Caps). Full details of the measures and equipment specifications are detailed in this catalog. Custom Incentives These incentives are available to customers for less common or more complex energy saving measures installed in qualified retrofit and equipment replacement projects that are not covered by the prescriptive incentive portion of the program. Custom incentives are paid based on the first- year energy savings (kwh or MCF). Applicants have the option to apply for a custom incentive for projects that involve an integrated solution with both prescriptive and custom incentives. Custom incentives include measures that result in a reduction in electric and/or natural gas energy usage because of an improvement in system efficiency (i.e., a net decrease in energy use without a reduction in the level of service). The applicant must provide sufficient technical information, equipment performance data, operating assumptions, measurements and calculations to support the energy savings estimates. The decision as to whether or not an improvement is eligible for a custom incentive is within the sole discretion of Consumers Energy. Examples of custom projects include, but are not limited to, the following: Process improvements Water-side economizer Process exhaust heat recovery Constant volume to variable volume water Variable-speed control on motors (greater than 250) Upgrade of a refrigeration compressor Complex air compressor improvements Tank insulation

5 2 New Construction Program The New Construction Program provides an array of electric and natural gas incentives for commercial and/or industrial customers who design and construct their facilities with energy-efficient equipment that exceeds standard building practices. Through early involvement in new construction or major renovation projects the program team can assist in design decisions to impact the overall building energy efficiency. Program staff will provide an engineering review of projects that are currently in the design stages to target financial incentive opportunities for customers and design teams. The program works with design professionals to influence prospective building owners and developers to construct high-performance buildings that provide improved energy efficiency, systems performance and comfort. Incentives can be pursued through either a Prescriptive/Custom application or a Whole Building Design application. Incentive Options: Prescriptive/Custom Application Customers can choose from a prescriptive assortment of measures with set incentives Incentives available for only the facility owner Whole Building Design Application Performance energy modeling analysis demonstrating significant improvement in the proposed building design compared to the program baseline standard Incentives available for both the facility owner and design team Eligibility: Projects must result in a facility improvement with a permanent reduction in electrical (kwh) and/or natural gas (MCF) energy usage above baseline practices The project MUST be in the design phase when submitting the pre-notification application The new construction/major renovation project must meet one of the following definitions: New building projects wherein no structure or site footprint presently exists Addition or expansion of an existing building or site footprint Major tenant improvements that change the use of the space Agriculture Program The Agriculture Program assists Michigan farmers, growers and producers by offering incentives for the completion of energy efficiency audits and projects. This program will incentivize the customer portion of an MSU/REAP energy audit payment for a USDA Tier II audit. The Consumers Energy Business Solutions team will review the results of the audit to provide guidance to the customer on applying for Prescriptive or Custom incentives. Who can participate: Customers on a commercial rate code or a residential farm rate code Customers installing measures at a full-time agricultural operation What we provide: Audit incentive for completion of MSU/REAP USDA Tier II energy audit Evaluation of audit results Prescriptive or Custom incentives through the Consumers Energy Business Solutions Program Details of the incentives are available through Consumers Energy Business Solutions (CEBS) Energy Efficiency Program catalog & incentive application form Helping Michigan Businesses Save Energy. That s our Promise.

6 3 Compressed Air Program The Compressed Air Program is designed to provide special incentives to industrial customers with compressed air systems installed in their facilities. The program gives customers the opportunity to examine their system efficiency through Compressed Air Energy Audits, as well as to provide them with financial incentives for energy efficiency improvements to their systems. A variety of prescriptive measures are available, and customers who have projects not listed can apply for custom incentives. Details of the incentives are available through the Consumers Energy Business Solutions (CEBS) Energy Efficiency program catalog and incentive application form. Buy Michigan Bonus Customers who use Michigan Made products in their energy-saving projects may be eligible for an additional bonus incentive. This bonus is only for full unit replacements, not retrofit projects. An affidavit from the manufacturer attesting the product s eligibility is required. For more information about this bonus, go to: ConsumersEnergy.com/mybusiness Multiple Bonus The Multiple Bonus program offers an additional bonus incentive on the total application incentive when a customer submits a single application containing measures in more than one category. Categories are defined as: Lighting, VFDs, Compressed Air, Advanced Air Distribution & Energy Recovery, Domestic Water Heating, Building Automation Controls, Laboratory, Tune Up/Maintenance, Kitchen/ Refrigeration/Laundry, Building Envelope, Pipe & Ductwork, Insulation, Agricultural, and Custom. Deep dive energy efficiency projects help the customer to realize a more significant reduction in energy usage, as well as promote a variety of energy efficiency measures across an entire facility. Bonus measure eligibility: Customers must submit a single application with energy efficiency projects in more than one category Customer final applications submitted from December 1, 2014 through November 30, 2015 may be eligible to participate in the program To qualify for the bonus, no single category of incentives may be valued at more than 75 percent of the total sum of incentives on the application. For more information about this bonus, see the program application.

7 4 How to Apply Customer Eligibility To participate in any Consumers Energy Business Solutions Program, customers must be a commercial and/or industrial customer of Consumers Energy. Residential Agricultural customers qualify for Agricultural measures. Qualified incentives must be installed at facilities served by Consumers Energy, and projects must result in an improvement in energy efficiency. Equipment must meet the specifications as explained in this catalog and also as set forth in the program application. For each site there must be at least one meter that is on an eligible rate schedule. Program Effective Dates The Business Solutions Program offers incentives for the 2015 program year until funds are exhausted or until December 31, 2015, whichever comes first. All projects must be completed and final applications received no later than November 30, 2015, to be eligible for the 2015 program incentives. Project Requirements The Business Solutions Program includes the following project requirements: Projects must involve a facility improvement that results in a permanent reduction in electrical and/or gas energy usage (kwh and/or MCF) Any measures installed at a facility must be sustainable and provide 100 percent of the energy benefits as stated in the application for a period of five years or for the life of the product, whichever is less. If the customer ceases to be a delivery service customer of Consumers Energy or removes the equipment or systems at any time during the five-year period or the life of the product, the customer may be required to return a prorated amount of incentive funds to Consumers Energy The Business Solutions team reserves the right to inspect all projects to verify compliance with the program rules and verify the accuracy of project documentation. This may include pre and or post inspections, data collection, and interviews. The customer must allow access to records and installation sites for a period of three years after receipt of incentive payment New Construction projects MUST be in the design phase when submitting the pre-notification application. Final project eligibility is at the discretion of Consumers Energy Business Solutions program personnel To qualify under the New Construction Program, your new construction/major renovation project must meet the following definition: New building projects wherein no structure or site footprint presently exists: addition or expansion of an existing building or site footprint; major tenant improvements that change the use of the space; or energy load is added Projects that are NOT eligible for an incentives include the following: Fuel switching (e.g. electric to gas or gas to electric)* Changes in operational and/or maintenance practices or simple control modifications not involving capital costs On-site electricity generation Projects that involve peak-shifting (and not kwh savings) Projects involving renewable energy T12 Lighting retrofits to standard T8 fluorescent lighting in 4-foot and 8-foot lamps applications LED Lighting that is not ENERGY STAR approved or listed by DesignLights Consortium (DLC) *May be eligible under the self-direct program, if overall BTU/hr. are reduced at that facility. Equipment Specifications This catalog provides the equipment specifications for the measures eligible for incentives. All equipment must be recycled/disposed of according to state, federal and local regulations. Information about the requirements for the State of Michigan can be found at the Michigan Department of Environmental Quality Web site: Helping Michigan Businesses Save Energy. That s our Promise.

8 5 Incentive Caps And Limits Incentives are subject to limits in order to encourage equitable distribution of the funds among as many Consumers Energy customers as possible. Incentive caps are annual, and are calculated based upon which program year the incentive is paid to the customer. Customer Limits The amount of incentives a facility or customer can receive is limited. A facility is defined as contiguous property for which a single customer is responsible for paying the Consumers Energy electricity and/or natural gas bill. A customer is defined as the organization under which the company (or companies) are owned or operated, regardless of who is responsible for paying the bill. Program year incentive limits are per facility for custom incentives as shown below. Prescriptive Incentives 100 percent of the calculated incentive up to $200,000 per facility 50 percent of the calculated incentive above $200,000 per facility 75 percent of the total project cost Custom Incentives 100 percent of the calculated incentive up to $200,000 per facility 50 percent of the calculated incentive above $200,000 per facility 50 percent of the total project cost Customer Incentive Limit $1,000,000 across all facilities per customer Large Gas Customers $100,000 per facility (>100,000 MCF/yr. usage) (Only applies to gas incentives) Prescriptive Incentive Caps The amount of a prescriptive incentive cannot exceed 75 percent of the cost of the project. Project costs may include the labor necessary to install the measure, and costs related with the disposal of the removed equipment. Internal labor costs may not be included in the total project cost. The customer is responsible for providing sufficient documentation to validate the project costs. Manufacturer, vendor, distributor, trade ally or contractor provided incentives (credits, deductions, refunds, etc) must be subtracted from the total installation costs. Prescriptive Incentives 100 percent of the calculated incentive up to $200,000 per facility 50 percent of the calculated incentive above $200,000 per facility 75 percent of the installation cost Custom Incentive Caps & Calculation For custom projects, project incentives cannot exceed 50 percent of the total custom project cost for purchasing and installing energy efficiency measures. The project cap applies to the whole project. Internal customer labor costs cannot be included in the total project cost. Consumers Energy reserves the right to apply this cap to individual custom measures when measure costs are significantly higher than typical costs seen in this program. Manufacturer, vendor, distributor, trade ally or contractor provided incentives (credits, deductions, refunds, etc) must be subtracted from the total installation costs. The payback period for Custom Incentives has to be between one and eight years. The total calculated incentive cannot exceed 50 percent of the measure cost Payback period is calculated with the following equation: Simple Payback Period = Cost (Annual kwh Saved x Electricity Rate) + (Annual MCF Saved x Natural Gas Rate) The Incremental Cost (IMC) is the cost of implementing a measure; less any costs that would have been incurred by the applicant to achieve all of the project benefits, other than those resulting in the incented energy savings. The IMC can either be the incremental equipment cost or the full cost of a measure; and is determined by the cost basis. The cost basis is derived from the type of measure in the application (retrofit, replace on burnout, or new) and (b) whether the measure is displacing existing technology, being installed in absence of any existing technology, or is an alternative to a competing technology. In general, new construction and replace on burnout measures

9 6 use the incremental equipment cost as the IMC. For retrofit measures, the full cost is typically used as the IMC such as in the case where a customer installs a new technology such as an LED exit sign in place of an existing incandescent exit sign. Custom Incentives 100 percent of the calculated incentive up to $200,000 per facility 50 percent of the calculated incentive above $200,000 per facility, 50 percent of the installation cost. New Construction Incentive Caps New Construction projects are subject to the same customer caps and limits, prescriptive incentive caps, and custom incentive caps set forth above. Not all prescriptive measures are eligible for participation in the New Construction program. Eligible measures are identified in the program application and the measure specifications. Application Process The application process is described in Section 1 of the application which is available online at the Consumers Energy website. If you have questions regarding the program or the application please contact the program team at: or (877) for assistance. consumersenergybusinesssolutions@cmsenergy.com Documentation Requirements Pre-Notification Application Please review the Incentive Catalog to identify the supporting documentation that must be submitted with the incentive(s) you are applying for. This may include, but is not limited to, equipment specifications, floor plans, lighting schedules and custom project calculations Before submitting your pre-notification application, make sure you have completed the following: Include all required information in the applicant information and measure worksheet sections of the application Verify that all required supporting documentation and new equipment specifications are included Make copies of all documentation for your records Final Application Detailed invoices and supporting documentation must be legible and submitted with your application within 60 days of the project completion date. Invoices and/or proof of purchase must include all of the following information: Invoice number and date Vendor name and address Itemized list of specific equipment, including model number, manufacturer, price and quantity Customer name and address Total cost of the of purchase Please allow six to eight weeks to receive your incentive check. Incentives cannot be processed for payment until the complete application and all required documentation is received and approved. Please carefully read the Terms and Conditions. Before submitting your application, make sure you have completed the following. Any missing information will delay the processing of your application. Include all required information in the applicant information, final application and measure worksheet section of the application Make sure your final application is signed Verify all required invoices, supporting documentation and equipment specification are included Make copies of all documentation for your records Helping Michigan Businesses Save Energy. That s our Promise.

10 7 List of s Light-Emitting Diode (LED) Retrofits LED Lamp Replacing Incandescent Lamp Compact Fluorescent Lights (CFL) Screw-In CFL Lamps Exit Signs, Retrofit or Replacement LED, T1, or Electroluminescent Exit Signs Lighting Retrofits Standard Linear Fluorescent Retrofit High-Performance () Linear Fluorescent Retrofit Reduced-Wattage (RW) Linear Fluorescent Retrofit Permanent Lamp Removal Permanent Lamp Removal Linear LED Tube Lights Linear LED Tube Lights Variable Frequency Drives on Computer Room Air Condition s Well Pump VFD Integrated Variable Speed Motor (ECM) for Furnace, UV, FC, Light Duty AHU (Up to 7.5 ) Compressed Air Energy Audit Compressed Air Energy Audit Compressed Air Correct Sized Air Compressors VSD Air Compressor (50-300) VSD Air Compressor (less than 50 ) Variable Displacement (VD) Air Compressor Two-Stage Rotary Screw Air Compressor Refrigerated Cycling Air Dryer Thermal Mass, VSD or Lighting Retrofit Fixtures Exterior Induction Lighting Exterior LED Lighting Parking Garage Induction Lighting Parking Garage LED Lighting Interior Induction Lighting Interior LED Lighting Probe Start to Pulse Start Metal Halide New Fixture or Retrofit LED Screw-In Replacing HID Fixture CFL Replacing HID Fixture Exterior Linear Fluorescent Lighting T12 to T5 Fluorescent Retrofit Signage Light Retrofit New Fixtures New RW T8, T8, or T5 Fluorescent Fixtures Lighting Controls Lighting Occupancy Sensors Interior Lighting Occupancy and Daylight Sensor Control Central Lighting Controls Daylight Sensor Controls Interior Stairwell Lighting Controls Exterior Multi-Step Dimming Occupancy Sensors Exterior Multi-Step Dimming Timer Controls Non-Defined Lighting Lumens per Watt Improvement Energy Conservation Improvement New Construction Lighting Specification Variable Frequency Drives Variable Frequency Drives on HVAC Fans, HVAC Pumps Variable Frequency Drives for Process Pumps or Fans Variable Frequency Drives for Process Fixed (Non- Dynamic) Pump Speed Control Digital Scroll Heated Blower Purge Desiccant Compressed Air Dryer Compressed Air Desiccant Dryer, Dewpoint Sensor Control Heat of Compression Air Dryer Low-Pressure Drop Air Filter Zero-Loss Condensate Drain Electric Motors replacing Pneumatic Motors Compressed Air Engineered Nozzle Compressed Air Pressure Flow Controllers Compressed Air Outdoor Air Intake Air Compressor Waste Heat Recovery Compressed Air Storage Tank Miscellaneous Electric Industrial Electric Smart Battery Charging Stations Barrel Wrap Insulation for Injection Molding and Extruders Welders - Inverter Style Power Management Intelligent Surge Protector Network Power Management Software Beverage Vending Machine Controllers Drinking Water Cooler Misers Snack Vending Machine Miser Engine Block Heater Controls Cogged V-Belt Drives Cogged V-Belt Drives Transformers Low Voltage Dry-Type Distribution Transformers Medium Voltage Dry-Type Distribution Transformers Liquid Immersed Distribution Transformers HVAC & Heating Equipment Air Conditioning Systems

11 8 ary (i.e., RTU) and Split Air Conditioning Systems and Heat Pumps Package Terminal Air Conditioner or Heat Pump (PTAC/ PT) Ductless Air Conditioning or Heat Pump Systems High-Efficiency Computer Room Air Conditioning Computer Room Air Conditioning Glycol Economizer Air-Side Economizer For CRAC or Telecom Applications Industrial Fans High-Volume, Low-Speed Fans Destratification Fans Chillers Air- and Water-Cooled Chillers Heating Boilers Demand Control Ventilation Demand Control Ventilation Boiler Controls Optimized Boiler Plant Sequencing Modulating Burner Control Boiler Oxygen Trim Control Linkageless Boiler Controls Water Reset Control Retrofit Enhanced Snow Melt Controls Advanced Air Distribution & Energy Recovery Advanced Air Distribution Systems Constant Volume AHU to VAV AHU Constant Volume AHU to Hydronic Heat Pump Process Ventilation Reduction High-Efficiency HVAC Hydronic Boiler Steam or Process Boilers High-Efficiency HVAC Steam, Process Steam, or Process Hydronic Boiler High-Efficiency Pool Water Heater Furnace/ Heater Type High-Efficiency Furnace or Heater Direct Fired Makeup Air Handling Infrared Heaters Domestic Water Heaters High-Efficiency Domestic Water Heater Boiler High-Efficiency Gas Fired Tank Style Water Heater Heat Pump Domestic Water Heater Tankless Water Heater Building Automation Systems ary Controls Programmable Thermostat Hotel Guest Room Occupancy Sensor (Natural Gas Heat) Hotel Guest Room Occupancy Sensor (Electric Heat) Web-Based Programmable Thermostat Centralized Building Automation Systems Web-Based Building Automation System Building Automation System for Manufacturering HVAC Fans Hydronic HVAC Pump Control Critical Zone Supply Air Reset Control Strategy Air-Side Economizer Optimal Start/Stop on AHU Occupancy Sensor Control for HVAC System Chiller Controls Chilled Water Reset Retrofit Process Ventilation Reduction Energy Recovery Enthalpy Wheel Energy Recovery s Fixed-Plate Air-to-Air Energy Recovery s Boiler Efficiency Improvements Boiler Stack Economizer Steam Boiler Make Up Water Pre-Heat Automatic Boiler Blow-Down Reduction Refrigeration Waste Heat Recovery Laboratory s Auto-Sash Closer Reduced/Optimized Air Change Per Hour (ACH) Rate Sash Stops Lab Fume-Hood Ventilation Reduction (Sash Location) Occupancy Sensor with VAV Hood Low-Flow Hood with VAV Hood High-Performance HEPA Filter High-Performance Non-HEPA Filter Tune-Up / Maintenance Boiler Tune-Up Space Heating Boiler Tune-Up Process Boiler Tune-Up Process Burner Tune-Up Domestic Water Heater Tune-Up Furnace Tune-Up Forced Air Gas Furnace or Rooftop (RTU) Tune-Up Chiller Tune-Up Chiller Tune-Up Steam Trap Repairs Steam Trap Repair or Replacement Kitchen / Refrigeration / Laundry Helping Michigan Businesses Save Energy. That s our Promise.

12 9 Commercial Kitchen Equipment Commercial Conveyor Ovens Flexible Batch Broilers Steam Cookers Hot Holding Cabinet, Full Size (ENERGY STAR) Pre-Rinse Sprayers Up to 1.6 gpm (Gas Water Heater) Commercial Kitchen Ventilation Control Temperature and Optical Sensor on Exhaust Refrigeration Equipment & Lighting Energy-Efficient Ice Machines LED Lighting for Refrigeration Cases Occupancy Sensors for LED Refrigeration Case Lighting Refrigeration Light Reduction Refrigeration Controls Anti-Sweat Heater Controls Process Steam Pipe Insulation Process Steam Pipe Condensate Insulation Electric Domestic Hot Water Pipe Insulation Refrigerant Lines Ductwork Insulation in Non-Conditioned Spaces Agricultural Farm Energy Audit Grain Dryers Grain Storage Temperature & Moisture Management Controller Greenhouse Heat Curtains IR Film Replacing Existing IR Film Greenhouse Environmental Controls Greenhouse In-Floor Heating System Circulation, Exhaust or Ventilation Fans Evaporator Fan Demand Controls Floating Head Pressure Control Refrigeration Motors Walk-In and Case Cooler/Freezer Electronically Commutated (EC) Motors Walk-In Cooler Evaporator Motor Reduction Refrigeration Insulation Night Covers New Reach-in Refrigerated Case Door, Medium Temp New Reach-in Refrigerated Case Door, Low Temp Strip Curtains Door Gasket Seals Laundry Laundry Ozone-Generation System Clothes Washers Dishwashers Dishwashers Building Envelope & Insulation Wall Insulation General Requirements for Roof Insulation Flat Roof Insulation Attic Roof Insulation Window Reduction Window High-Performance Film Truck Loading Dock Door Seals Pool Covers Automatic High Speed Doors Pipe & Ductwork Insulation Pipe Insulation Hydronic Space Heating or Steam Space Heating (unconditioned space), Steam Condensate Space heating Natural Gas Domestic Hot Water Pipe Insulation High-Volume Low-Speed Fans (HVLS) Fan Thermostat Controller Variable Speed Drives on Agricultural Irrigation Systems Variable Speed Drives on Golf Course Irrigation Systems Sprinkler to Drip Irrigation Low-Pressure Sprinkler Nozzle Low-Energy Livestock Waterer Scroll Compressor for Dairy Refrigeration Variable Speed Controller for Vacuum Pump Variable Speed Drives on Milk Pump with Existing or New Milk Pre-Cooler Milk Pre-Cooler & Heat Exchanger Chiller Savings Water Pre-Heat Heat Exchanger (Heat Recover Tank) Dairy Refrigeration Tune-Up LED Grow Lights Long-Day Lighting System Retrofit VFD for Agricultural Fans and Pumps 2015 Custom Specifications Process Improvement Guidelines Other Offerings Building Operator Certification Smart Buildings Building Performance with ENERGY STAR Industrial Energy Management Appendix

13 10 Lighting & Lighting Control Light-Emitting Diode (LED) Retrofits All LED products, excluding exit signs, must be listed as an approved product for their specific purpose by ENERGY STAR or the Design Lights Consortium. Fixture wattage as listed within application must include any applicable ballast or other required operating device. These incentives are not available for LED lamps discounted by any utility company and purchased at retail stores participating in the LED discount program. Incentives for LED lamps purchased from those retailers are included in the discounted price. (Discounted LEDs are identified at point of purchase). LED PAR Replacing Halogen PAR Lamp CFL - Screw-In (30W or less) CFL - Screw-In (31W to 115W) CFL - Dimmable or 3-Way Screw-In CFL Lamps Screw-in CFLs must be approved by ENERGY STAR CFLs must replace existing incandescent lamps Interior fixtures only Incentive is based on wattage of CFL Exit Signs, Retrofit or Replacement Lamp Lamp Lamp LED MR16 Replacing Halogen MR16 LED A-Series Replacing Incandescent A-Series LED Candelabra or Globe Replacing Incandescent Candelabra or Globe LED BR-Series Replacing Incandescent BR-Series LED Lamp Replacing Incandescent Lamp Lamp Lamp Lamp Lamp Available for both screw-in or plug-in style bulbs used as replacements for incandescent lamps in interior applications Rebates are based on the replacement of incandescent lamps rated up to 100 watts Lamp must be approved by ENERGY STAR Compact Fluorescent Lights (CFL) These incentives are not available for CFLs discounted by any utility company and purchased at retail stores participating in the CFL discount program. Incentives for CFLs purchased from those retailers are included in the discounted price. (Discounted CFLs are identified at point of purchase). LED, T1, or Electroluminescent Exit Signs LED, T1, or Electroluminescent Exit Signs Fixture High-efficiency exit sign must replace or retrofit an existing incandescent exit sign Electroluminescent, T1, and LED exit signs are eligible for this incentive Non-electrified and remote exit signs are not eligible All new exit signs or retrofit exit signs must be UL or ETL listed, have a minimum warranty of 5 years, and have input wattages up to 2.5W/face or up to 5W/sign If the exit sign installed includes emergency lights, the corresponding model without emergency lights must meet the required 2.5 W/face or up to 5W/sign Helping Michigan Businesses Save Energy. That s our Promise.

14 11 Lighting Retrofits For all Lighting Retrofits: Manufacturer s specification sheet must accompany the application form Both the lamp and ballast must meet the specifications in order to qualify for an incentive For all 4-foot T8 equipment, all lamps and ballasts installed must be Consortium for Energy Efficiency (CEE) (www. cee1. org) approved as High-Performance or reduced wattage. A list of qualified and RW lamps and ballasts may be found at Standard Linear Fluorescent Retrofit 2-foot T12 to T8 or T5 (with ballast) 3-foot T12 to T8 or T5 (with ballast) High-Performance () and Reduced-Wattage (RW) Linear Fluorescent Retrofit 4-foot T12 to or RW T8 (with ballast) 4-foot Standard T8 or RW T8 (with ballast) 8-foot T12 to Two (2) 4-foot T8 or RW 8-foot T12 HO to Two (2) 4-foot T8 or RW Standard Linear Fluorescent Retrofit Lamp Lamp Lamp Lamp 8-foot Lamp Replaced 8-foot Lamp Replaced Available for existing 2-foot and 3-foot replacing existing T12 lamps and magnetic ballasts The new lamp color rendering index (CRI) must be at least 80 The electronic ballast must be high-frequency (at least 20 khz), UL listed, and warranted against defects for a minimum of five years Ballast must have a power factor (PF) at least 0.90 Ballasts must have total harmonic discharge (THD) up to 32 percent at full output High-Performance () Linear Fluorescent Retrofit Available for replacing existing T12 lamps and magnetic ballasts with high-performance T8 lamps and electronic ballasts Replacement of existing T8/T5 lamps and/or fixtures is not eligible for this incentive Reduced-Wattage (RW) Linear Fluorescent Retrofit Available for replacing T12 systems with T8 reduced-wattage lamp and electronic ballast systems Incentives are available when retrofitting 32W T8 lamps with reduced wattage T8 lamps when electronic ballast is already present Permanent Lamp Removal Permanent Lamp Removal T8 or T12 2-foot Lamp Removal (combined with retrofit) T8 or T12 3-foot Lamp Removal (combined with retrofit) T8 or T12 4-foot Lamp Removal (combined with retrofit) T8 or T12 8-foot Lamp Removal (combined with retrofit) Lamp Removed Lamp Removed Lamp Removed Lamp Removed Permanent Lamp Removal Available for the permanent removal of existing fluorescent lamps Permanent lamp removal is the net reduction in the quantity of lamps after an incentive project is completed Customers are responsible for determining whether or not to use reflectors in combination with lamp removal in order to maintain adequate lighting levels. Light retrofits are expected to meet the Illuminating Engineering Society of North America (IESNA) recommended light levels Unused lamps, lamp holders, and ballasts must be permanently removed from the fixture and disposed of in accordance with local regulations This incentive is applicable when retrofitting from T12 or T8 lamps to or RW T8 lamps or linear LED tube lights. Removal of lamps from a T12 fixture that is not retrofitted with T8 lamps or linear LED or T8 tube lights is not eligible for this or RW

15 12 Linear LED Tube Lights 2-foot T12 to 2-foot LED Tube Light 2-foot T8 to 2-foot LED Tube Light 4-foot T12 to 4-foot LED Tube Light 4-foot T8 to 4-foot LED Tube Light 8-foot T12 to Two 4-foot LED Tube Light 8-foot T12 to One 8-foot LED Tube Light 8-foot T8 to Two 4-foot LED Tube Lights 8-foot T8 to One 8-foot LED Tube Light Lamp Lamp Lamp Lamp Lamp Lamp Lamp Lamp Linear LED Tube Lights Linear LED tube lights must be retrofitting existing interior T8 or T12 linear fluorescent lamps. Any existing T12 fixture ballast must be removed or permanently disabled Linear LED tube lights must be Design Light Consortium certified for linear replacement lamps New fixtures utilizing LED tube lamps does NOT qualify Lighting Retrofit Fixtures New Fixture s Exterior Induction Lighting Exterior LED Lighting Parking Garage Induction Light Parking Garage LED Lighting Interior Induction Lighting Interior LED Lighting (High Bay 18-foot) Interior LED Lighting (Low Bay < 18-foot) Probe Start to Pulse Start Metal Halide New Fixture LED Screw-In Replacing HID Fixture CFL Replacing HID Fixture Exterior Linear Fluorescent Lighting Retrofit T12 to T5 Fluorescent Retrofit Watt Reduced Watt Reduced Watt Reduced Watt Reduced Watt Reduced Watt Reduced Watt Reduced Watt Reduced Watt Reduced Watt Reduced Watt Reduced Watt Reduced Exterior Induction Lighting Available for exterior applications for replacing existing highintensity discharge fixtures or incandescent (over 250 watts) with induction fixtures Applicable to exterior fixtures that are on a minimum of 11 hours per day For induction fixtures or retrofit kits, the following minimum requirements must be met: Minimum fixture initial efficacy of 70 lumens/watt Minimum average rated life of 100,000 hours Minimum CRI of 80 Minimum warranty of 5 years Exterior LED Lighting Available for exterior applications for replacing existing highintensity discharge fixtures or incandescent (over 250 watts) with LED fixtures Applicable to exterior fixtures that are on a minimum of 11 hours per day Linear LED tube light retrofits or new fixtures do not qualify for this incentive The new fixture or retrofit kit must be approved by Design Lights Consortium Parking Garage Induction Lighting Available for parking garage applications for replacing existing high-intensity discharge fixtures or incandescent (over 250 watts) with induction fixtures Applicable to parking garage fixtures that are on approximately 20 hours a day For induction fixtures or retrofit kits, the following minimum requirements must be met: Minimum fixture initial efficacy of 70 lumens/watt Minimum average rated life of 100,000 hours Minimum CRI of 80 Minimum warranty of 5 years Signage Lighting Retrofit Probe Start to Pulse Start Metal Halide Lamp & Ballast Replacement Watt Reduced Watt Reduced Helping Michigan Businesses Save Energy. That s our Promise.

16 13 Parking Garage LED Lighting Available for parking garage applications for replacing existing high-intensity discharge fixtures or incandescent (over 250 watts) with LED fixtures Applicable to parking garage fixtures that are on approximately 20 hours a day The new fixture or retrofit kit must be qualified by Design Lights Consortium Interior Induction Lighting The new lighting fixture must either be a permanently-wired lamp retrofit or a completely new fixture New fixtures must replace or retrofit existing incandescent, mercury vapor, T12 fluorescent, standard metal halide or high-pressure sodium fixture in interior installations New product must have Minimum efficacy of 80 lumens/watt CRI of at least 80 Minimum lifespan of at least 100,000 hours 5 year warranty Interior LED Lighting The new lighting fixture must either be a permanently-wired lamp retrofit or a completely new fixture New fixtures must replace or retrofit existing incandescent, mercury vapor, T12 fluorescent, standard metal halide or high-pressure sodium fixture in interior installations New product must be qualified by Design Lights Consortium Fixture wattage as listed within application must include any applicable driver or other operating device Fixtures installed 18-foot or higher are considered "High Bay" Probe Start to Pulse Start Metal Halide New Fixture or Retrofit To qualify for this measure, a metal halide fixture utilizing a probe-start lamp and ballast must be either retrofitted or replaced with a metal halide fixture utilizing a pulse-start lamp and ballast Lamps must be reduced in wattage, have a minimum efficacy of 50 lumens per watt and have a CRI of 70 or above Ceramic metal halide lamp and pulse start (or electronic) ballast retrofits qualify for the incentive LED Screw-In Replacing HID Fixture Existing HID lamps must be equal to or less than a nominal 400 W lamp The retrofit must be permanently wired around the existing ballast and in full compliance with the authorities having jurisdiction LED lamp must be ENERGY STAR approved Available for both interior or exterior applications CFL Replacing HID Fixture The existing metal halide or mercury vapor lamps (highpressure sodium lamps do not qualify) must be equal to or less than a nominal 400W lamp The existing light fixture can either be retrofitted or replaced with a completely new fixture The retrofit shall be permanently-wired around the existing ballast and in full compliance with the authorities having jurisdiction Multiple-lamp CFL assemblies do qualify for this incentive The new CFL must be ENERGY STAR rated Exterior Linear Fluorescent Lighting To qualify for this incentive, the existing incandescent, T12 fluorescent, metal halide, mercury vapor, low-pressure sodium or high pressure sodium fixtures must be replaced with new linear T8 or T5 fixtures in an exterior setting For all 4-foot T8 equipment, all lamps and ballasts installed must be CEE approved as High-Performance or Reduced Wattage T8 equipment for fixtures featuring 4-foot lamps that are not approved by CEE as or RW does not qualify All ballasts must be high frequency (at least 20kHz), UL listed and warranted against defects for five years All ballasts must feature a power factor at least 0.90 T5 lamps must have a CRI at least 80 T5 ballasts for 4-foot lamps must have a total harmonic discharge of up to 20 percent at full power output For 2-foot and 3-foot lamps, ballasts must have a total harmonic discharge of up to 32 percent at full output If specification sheets showing total fixture wattage are not included with the final application, the default fixture wattages provided in tables 1 a-c will be used instead Fixtures featuring 8-foot T8 lamps do not qualify for a rebate

17 14 T12 to T5 Fluorescent Retrofit Must be retrofitting T12 fluorescent lighting systems with either T5 or T5 HO fluorescent retrofit lighting systems New T5 equipment must meet specifications for new T5 equipment as stated by the new T8/T5 interior fluorescent fixture measure Signage Light Retrofit To qualify for this incentive, the existing incandescent, T12 fluorescent or neon fixture must either be replaced with a permanently wired lamp retrofit or a completely new LED fixture This measure is intended for the replacement or retrofit of: interior-lit roadway/walkway signage, canopy decorative/ security lighting or permanently-wired neon lighting All incentivized fixtures or kits must be approved by ENERGY STAR or Design Lights Consortium, if applicable to that type of light. For fixture types that are not approved by either certifying body, the new fixture must feature: an efficacy of 70 lumens per Watt, a 50,000 hour lifespan, and a 5-year warranty A fixture that is on continuously 24/7 would qualify for the continuous operation incentive A fixture that does not operate continuously, but at least 10 hours per day would qualify at the commercial hours incentive New fixtures featuring linear LED tube lights do not qualify for this incentive New Fixtures New RW T8, T8, or T5 Fluorescent Fixtures This incentive consists of replacing one or more existing lighting systems featuring incandescent, T12 fluorescent, metal halide, mercury vapor, low-pressure sodium or high pressure sodium fixtures with new T8 or T5 fixtures For all 4-foot T8 equipment, all lamps and ballasts installed must be CEE approved as High-Performance or Reduced Watts. Replacement of existing T5/T8 lamps and or fixtures is not eligible All ballasts must be: High frequency (at least 20 khz) Warranted against defects for 5 years Feature a power factor of at least 0.90 T5 lamps must have a CRI of at least 80 T5 ballasts for 4-foot lamps must have a total harmonic discharge of up to 20 percent at full power output For 2-foot and 3-foot lamps, ballasts must have a THD of up to 32 percent at full output If specification sheets showing total fixture wattage are not included with the final application, the default fixture wattages provided in tables 1a-c will be used instead Incentives for new RW T8 or T8 or T5 fixtures are limited to no more than $25 per lamp or $0.30 per watt reduced, whichever is less Fixtures featuring 8-foot T8 lamps do not qualify for a rebate Lighting Controls Lighting schedules must be submitted with the final application in order to receive the incentive. Interior Lighting Occupancy Sensors Interior Lighting Occupancy Sensor Interior Lighting Occupancy & Daylight Sensor Control Central Lighting Controls Daylight Sensor Controls Interior Stairwell Lighting Controls Exterior Multi-Step Dimming Occupancy Sensor Exterior Multi-Step Dimming Timer Controls Watt Controlled Sensor Watt Controlled Watt Controlled Watt Controlled Watt Controlled Watt Controlled Lighting Occupancy Sensors For areas larger than 10,000 ft 2, lighting schedules must be submitted with the final application All sensors must be hard wired or wireless battery powered or wireless, self-powered passive infrared and/or ultrasonic detectors that control interior lighting fixtures only The inventory of the controlled fixtures must be submitted with the final application for the watts-controlled option Cannot be combined with central lighting or daylight controls Magnetic ballasts are ineligible for this incentive Helping Michigan Businesses Save Energy. That s our Promise.

18 15 Interior Lighting Occupancy and Daylight Sensor Control Available for spaces controlled via both occupancy sensors and daylight sensors Must comply with individual measure specifications Available for automated central control systems with override capabilities in interior spaces Central Lighting Controls Available for automated central control systems with override capabilities in interior spaces The occupants' schedule of operation must be taken into consideration when programming the system Includes time clocks, package programmable relay panels, and complete building automation controls Photo sensors may also be incorporated into the central lighting control system Replacement of existing, functional lighting control systems do not qualify Daylight Sensor Controls Available for daylight sensor controls in spaces with reasonable amounts of sunlight exposure and areas where task lighting is not critical The controls can be on/off, stepped or continuous (dimming) The on/off controller should turn off artificial lighting when the interior illumination meets the desired indoor lighting level The stepped controller generally dims the artificial lighting 50 percent when the interior illumination levels reach 50 percent of the desired lighting levels All types of daylight sensor controls are required to be commissioned in order to ensure proper sensor calibration and energy savings Cannot be combined with occupancy sensors Magnetic ballasts are ineligible for this incentive Lighting within a 15-foot perimeter of a natural light source qualifies Interior Stairwell Lighting Controls Stepped dimming occupancy controls consist of a lighting system that operates at full power and full light output when the space is occupied, then at a reduced power level and reduced light output when non-occupied In order to qualify for this incentive, the occupancy sensor must be installed in an interior stairwell or passageway applications requiring continuous lighting (24 hours a day) by code The occupancy sensor must be hard-wired, it can be a passive infrared or a microwave occupancy sensor and the sensor must reduce the fixture output to use no more than 50 percent of full power Exterior Multi-Step Dimming Occupancy Sensors Stepped dimming occupancy controls consist of an exterior lighting system that operates at full power and full light output when the space is occupied and at a reduced power level and reduced light output when unoccupied. Sensors must control exterior lighting fixtures, must be hardwired, and can be a passive-infrared occupancy sensor or microwave occupancy sensor The sensors must reduce fixture output to use no more than 50 percent of full power Exterior Multi-Step Dimming Timer Controls Stepped dimming timer controls consist of an automatic (digital) lighting system on a building s exterior that operates at full power and full light output during periods of higher traffic and at a reduced power level and reduced light output during periods of lower traffic. The installation of a new time clock system featuring no multistep dimming capabilities does not qualify During low traffic periods, fixture must use no more than 50 percent of a full rated power Fixtures must be at low power at least 5 hours per night Cannot be combined with the Exterior Multi-Step Dimming Occupancy Sensor measure

19 16 Non-Defined Lighting These measures apply to new lighting fixture change-outs and/or retrofits that do not fall into one of the other prescriptive lighting categories offered. A separate Non-Defined Lighting form is required for each area (office, production, office, etc.) receiving the lighting upgrade. These measures are part of a capital investment project that results in energy savings and is not easily reversible. s that include an overall lighting fixture energy efficiency improvement, but not a lumen per watt lamp efficiency improvement, can be submitted as a custom measure. If applicable, all proposed technologies utilized in the non-defined lighting section must meet the requirements for any prescriptive measure featuring those same technologies. Additionally, for technologies that feature certification and/or approval from ENERGY STAR, Design Lights Consortium, or the Consortium for Energy Efficiency, the installed product must be approved by the appropriate certifying body or meet minimum requirements. Installation of T8 equipment that is not approved by CEE as or RW do not qualify for this incentive. Retrofit of existing T12 fluorescent lighting systems with T5 fluorescent lighting systems is not eligible for this incentive. Lumens per Watt Improvement Energy Conservation Improvement Lumens per Watt Improvement kwh kwh The rated mean efficacy of the existing lighting system increases by a minimum of 5 percent and results in the total lighting wattage being reduced. If no mean efficacy is available on the products literature, a degradation factor will be assessed via table 2. The simple payback period must be greater than one year and less than or equal to eight years The incentive cannot exceed 50 percent of the measure cost Energy Conservation Improvement The rated mean efficacy of the existing lighting system changes less than 5 percent and results in the total lighting wattage being reduced. If no mean efficacy is available on the products literature, a degradation factor will be assessed via table 4. The simple payback period must be greater than one year and less than or equal to eight years to receive this incentive The incentive cannot exceed 50 percent of the measure cost Table 1a: Default Wattages for Standard Linear Fluorescent Fixtures Fixture Description Default Fixture Wattage 1 Lamp 2 Lamp 3 Lamp 4 Lamp 4-foot F32 T foot F17 T foot F25 T foot F28 T foot F40 T Table 1b: Default Wattages for High-Output and High-Performance Linear Fluorescent Fixtures Fixture Description 4-foot F32 T8 Ballast 1 Lamp 2 Lamp 3 Lamp 4 Lamp 6 Lamp 8 Lamp F54 T5 HO Helping Michigan Businesses Save Energy. That s our Promise.

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