Energizing Indiana Commercial and Industrial Prescriptive Incentive Program

Transcription

1 Duke Energy Indiana Smart $aver Incentive Program 2012 Program Expansion Energizing Indiana Commercial and Industrial Prescriptive Incentive Program 2012 Program Introduction

2 Overview of New Energy Efficiency Programs in Indiana Duke Energy s Smart $aver Prescriptive Incentive Program Carol Burwick, Program Manager Duke Energy s Smart $aver Custom Incentive Program & Smart $aver Incentive Program Cory Gordon, Program Manager Energizing Indiana s Commercial and Industrial Prescriptive Rebate Program Jay Boser, Client Relationship Manager Matt Itce, Commercial/Industrial Trade Ally Coordinator

3 Smart $aver Programs Who is eligible? Smart $aver Incentives are now available to all Duke Energy Indiana business customers Prior to recent program enhancements, Smart $aver incentives were limited to businesses falling under the 500 kw threshold. What is offered? Smart $aver Prescriptive program offers pre-determined, fixed incentives for common energy efficiency equipment. Smart $aver Custom program offers incentives for emerging technologies and atypical energy efficiency equipment that produce measurable kw and/or kwh savings. Smart $aver Energy Assessment program offers online, phone and on-site audits to help identify energy savings opportunities. 3

4 Smart $aver Incentives + Energizing Indiana C&I Incentives Energizing Indiana (EI) United effort by the Indiana Utility Regulatory Commission, participating utilities, and state consumer organizations to offer energy efficiency programs that bring savings to communities across the state. Note: Utilities must achieve an annual savings goal of 2 percent within 10 years, with annual increasing savings targets, for years one through nine. C&I Incentives - mmercial-industrial-rebates/ Smart Saver Complements EI program with additional prescriptive and custom incentives for facilities in the Duke Energy Indiana service territory. Note: The order approved on Mar. 21, 2012, is in effect for three years. It allows the company to recover program costs and lost revenues. Prescriptive Incentives Custom Incentives 4

5 Energy Efficiency Rider Energy Efficiency Rider (66A) covers cost of Smart $aver and Energizing Indiana programs. Rider took effect beginning in April will remain at the same rate through Dec. 31, Average increase of 1.6% for commercial and industrial customers. True-ups (estimates to actuals) will occur in 2013 & Rider costs are based on estimates of: program costs, M&V costs, and lost revenue. There is no opt-out provision. Rider does not include Demand Response program, PowerShare. 5

6 Duke Energy Indiana Smart $aver Incentive Program PRESCRIPTIVE Carol Burwick Program Manager, Smart $aver Prescriptive Incentive

7 Smart $aver Prescriptive Incentive Program Prescriptive Technology Groups Lighting (LEDs, Induction, CFL specialty bulbs, Fluorescents, etc.) Chillers (Air-Cooled Chillers, Thermal Storage) Chiller Tune-ups (Maintenance on existing chillers) HVAC (Rooftop & Unitary Units, Programmable Thermostats) Food Service (ENERGY STAR equip, ECMs, Door Gaskets, etc.) Process (Air Compressors w/ ASD, Nozzles, Barrel Wraps, etc.) Pumps (Up to 20 hp) 7

8 Applying for Smart $aver Prescriptive Incentives Always Include: Completed, signed application(s) Equipment Invoice(s) Equipment spec sheets ARI sheets (HVAC only) Submit one of three ways: Fax: Mail: Duke Energy Smart $aver Incentive Program 431 Charmany Drive Madison, WI Incentive Applications can be found on the Duke Energy website 8

9 Applying for Smart $aver Prescriptive Incentives Common Causes for Delays or Rejections Multiple account numbers listed on one application Include only one account number per application. Inconsistent information provided Account number provided does not match the address where the installation took place Model numbers on the application do not match those on the spec sheet and/or invoice Quantities on the invoices do not match quantity noted on the application Incomplete application Did not submit all required documentation (i.e., spec sheets, itemized invoice, ARI sheet) Every application has the phone number that customers can call for help: , or you may contact your account manager 9

10 Navigating the Duke Energy Website 10

11 Navigating the Duke Energy Website 11

12 Navigating the Duke Energy Website Technology Pages 12

13 Duke Energy Indiana Smart $aver Incentive Program CUSTOM Cory Gordon Program Manager, Smart $aver Custom Incentives

14 Smart $aver Custom Incentive Program Custom Incentive - Any energy efficiency measure may be eligible if that measure Reduces electrical demand (kw), and/or Saves electrical energy (kwh) Custom vs. Prescriptive - Primary differences: Custom incentives must be approved in advance of the project Payment of incentive takes 1-2 weeks after final paperwork submitted (vs. Prescriptive - 3 business days) Smart $aver Custom Incentives cover the unique and low-volume measures that Smart $aver Prescriptive Incentives do not 14

15 Applying for Smart $aver Custom Incentives Always Include: Completed, signed application (part I) Completed application worksheet (part II) Equipment spec sheets Energy Modeling and/or additional calculations Cost proposals Submit by: Fax: Incentive Applications can be found on the Duke Energy website 15

16 Applying for Smart $aver Custom Incentives Common reasons a Custom approval is delayed or rejected Electric demand and/or energy reductions must be well-documented with auditable calculations. Applications and worksheets are often submitted with only partial information or insufficient data Dialogue with the customer or vendor who performed the calculations (sometimes takes many weeks) Customer signatures are required for the application to be reviewed. 16

17 Smart $aver Custom Incentive Program Examples of projects eligible for Custom Incentives Non-prescriptive Lighting measures Thermal Envelope (roof and wall insulation, upgrades to windows and doors, etc). Demand Control Ventilation systems Energy Management/Building Automation systems Energy saving process upgrades Retro-commissioning Total renovation of existing buildings Examples that are NOT eligible for Custom Incentives Renewable energy generation projects, including Solar PV Eliminating electric loads, or moving to another facility Replacing electric loads with another fuel source (fuel switching) Measures that are not sustainable over time Replacement VFDs Peak shaving using on-site generation 17

18 Smart $aver Custom Incentive Program New Construction / Expansion / Major Renovation Projects are eligible provided that they: Are more efficient than applicable standard / code Have simple payback greater than 1 year Common Examples Lighting EMS Building Envelope Process Equipment Compare proposed design to applicable standard Incremental cost Energy savings 18

19 Navigating the Website 19

20 Smart $aver Custom Incentive General Timeline Step 1 Customer or trade ally completes the Custom Application and provides energy calculations Step 2 Duke Energy evaluates the application and communicates incentive amount (can take 4 to 6 weeks - sooner in many cases) Step 3 Following installation, customer requests incentive payment and Duke Energy pays (installation time + 10 days for payment) Step 4 Duke Energy performs measurement and verification (within a few months after installation) * Measurement & Verification is performed on a portion of all installations; Pre-measurement is sometimes requested prior to equipment installation, if time allows 20

21 Smart Saver Custom Incentive Recently Approved Project Example: Energy Management System (EMS) Project: Hotel HVAC EMS (400,000 sq ft - conditioned) Temperature set-point limits Unoccupied setbacks Central EMS portal & control Expected Results: 500,000+ kwh Impact; 200+ Peak kw Impact* Customer Cost $135,000 Estimated Annual Energy Savings $ 46,000 Custom Incentive $ 68,000 Simple Payback with Incentive 1.5 years *Note that peak impact may differ for offices and schools 21

22 Smart $aver Energy Assessments Online Assessment No Charge Available through the Business Services Newsline. The Facility Assessment Wizard provides recommendations tailored to the customer s business or industry. Off-Site Assessment No Charge Customer is provided a worksheet questionnaire for collecting facility information followed by a phonebased interview (typically one - two hrs). At the conclusion of the interview, the customer, assessor and Duke Energy decide if an on-site assessment is warranted. If not, the assessor prepares a report and reviews the recommendations with the customer. On-Site Assessment Fee Charged Scope of assessment is tailored to your specific needs Duke Energy pays 50% up to $5,000 per facility Technology-specific & other targeted offerings available Data is gathered and measurements are taken on-site The assessor compiles a report and submits to Duke Energy for review The report is presented for review and a meeting is scheduled to step through the findings 22

23 Customer Successes with the Smart $aver Program 23

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25 Who We Are & What We Do Energizing Indiana is a united effort by participating utilities and residents to promote energy efficiency and bring savings to communities across the state. With programs for homes, schools, businesses and commercial facilities, we provide the education and tools needed to improve efficiency and conserve energy. Energizing Indiana programs are funded by utility rates and there are no separate fees to participate.

26 Programs Residential Home Energy Assessments Income Qualified Weatherization School Programs Residential Lighting Commercial & Industrial Prescriptive Rebates

27 Community Outreach and Enrichment In an effort to give back to the community, nonprofit organizations in Indiana can enroll in an incentive program. For every member who completes a Home Energy Assessment, the organization will receive $25.

28 Community Outreach and Enrichment Each nonprofit is eligible to earn up to $25,000 per program year. Any requested award amounts in excess of $25,000 will be reviewed on a case-by-case basis. Payments are issued monthly.

29 Energizing Indiana In just the first few years, we can save enough energy to power more than 100,000 homes for twelve months!

30 In The Community

31 Commercial & Industrial Prescriptive Rebates The prescriptive rebate structure is specifically designed to help facility managers and building owners achieve long-term, cost-effective energy savings when installing energy efficient equipment. Upgrades can include: Lighting Variable Frequency Drives (VFDs) and HVAC ENERGY STAR food service equipment Rebates will be provided for one-for-one replacements, retrofits and new installations of qualified equipment. Individual utilities may also offer a variety of incentives, programs and tools to save energy and money by becoming more energy efficient. Encourage each facility to visit their utility s website for additional details.

32 Commercial and Industrial Prescriptive Rebates Objectives: Produce long-term, cost-effective electric savings in the C&I market sector. Encourage vendors and contractors to actively promote and install energy efficient technologies for their C&I customers. Rebates structured to cover a portion of customer s incremental cost of installing prescriptive efficiency measures. Build market-based activity that captures near- and long-term energy and demand savings. Lower electric energy consumption and demand in the C&I market sector.

33 Commercial and Industrial Prescriptive Rebates Assumptions: Consistent state-wide inspection standards. Applications must be received within 60 days of project completion. Program is NOT retroactive. Projects may be self-installed. Rebates >$20K require utility approval. $20K aggregate cap unless approved by utility. All projects >$20K must be inspected. All self-installed projects >$1,000 must be inspected. Rebates may be sent to customer or vendor. All checks $20K and over available to the utility for presentation. Any Trade Ally/Vendor may submit applications.

34 Commercial and Industrial Prescriptive Rebates Eligibility: Qualified measures must be installed at facility within participating utility territory. Equipment must be new. Equipment must meet the specifications defined in the prescriptive rebate program chart and as identified on the program application. Customers must be in good standing (active in the utility s database transfer). Self-installed measures are eligible if they meet all program requirements.

35 Commercial and Industrial Prescriptive Rebates Marketing Assumptions: Target Market All C&I customers Eligibility Customers in participating utility territory Strictly limited to Measures list Active referrals to all utility programs

36 Commercial and Industrial Prescriptive Rebates

37 Commercial and Industrial Prescriptive Rebates

38 Commercial and Industrial Prescriptive Rebates

39 Electric Service Territories

40 Trade Ally Coordinators

41 Call

42 Questions? Carol Burwick Program Manager, Smart $aver Prescriptive Incentives Cory Gordon Program Manager, Smart $aver Custom Incentives and Energy Assessments Jay Boser Client Relationship Manager Energizing Indiana Matt Itce Commercial/Industrial Trade Ally Coordinator Energizing Indiana

43 Appendix

44 Smart $aver Programs Why does Duke Energy incentivize its customers to use less of its product? Reduces the need to build costly new generation facilities Earns a regulated profit* Strengthens our communities by making businesses more profitable Helps attainment of governmental mandates *Duke Energy will only earn incentives on the actual amount of energy saved, as measured and verified by an independent third party. The company s earnings opportunity is capped and tied to the percentage of the target energy savings achieved. 44

45 Federal / State Tax Credits May be Available EPACT (Energy Policy Act) Federal tax credits are available for customers and extended through December 31, 2013 A tax deduction of up to $1.80 per square foot is available to owners or designers of new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. These tax deductions are available for systems placed in service from January 1, 2006 through December 31, Details available at Check with your contractor or accountant to see if your project will qualify. Check for grants and Stimulus Money 45