Duke Energy Indiana Smart $aver Incentive...
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Transcript of Duke Energy Indiana Smart $aver Incentive...
Duke Energy Indiana
Smart $aver® Incentive Program 2012 Program Expansion
Energizing Indiana
Commercial and Industrial Prescriptive
Incentive Program
2012 Program Introduction
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
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
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 - http://energizingindiana.com/programs/co
mmercial-industrial-rebates/
Smart $aver® Incentives + Energizing Indiana C&I Incentives
4
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 – http://www.duke-energy.com/indiana-large-
business/smart-saver/smart-saver-
incentive-program-customer.asp
►Custom Incentives – http://www.duke-energy.com/indiana-
large-business/smart-saver/smart-saver-
custom-incentive-program.asp
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,
2012. Average increase of 1.6% for
commercial and industrial customers.
• True-ups (estimates to actuals) will occur in
2013 & 2014.
• 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
Duke Energy Indiana
Smart $aver® Incentive Program
PRESCRIPTIVE
Carol Burwick
Program Manager,
Smart $aver Prescriptive Incentive
Smart $aver® Prescriptive Incentive Program
7
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)
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: Email: [email protected]
Fax: 866-908-4921
Mail: Duke Energy
Smart $aver Incentive Program
431 Charmany Drive
Madison, WI 53719
8
Incentive Applications can be found on the Duke Energy website www.duke-energy.com/indiana-large-business/smart-saver/smart-saver-incentive-program-customer.asp
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)
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Every application has the phone number that customers can call for help: 866-380-9580 , or you may contact your account manager
Duke Energy Indiana
Smart $aver® Incentive Program
CUSTOM
Cory Gordon
Program Manager,
Smart $aver Custom Incentives
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)
14
Smart $aver Custom Incentives cover the unique and low-volume measures that Smart $aver Prescriptive Incentives do not
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: Email: [email protected]
Fax: 866-908-4921
15
Incentive Applications can be found on the Duke Energy website http://www.duke-energy.com/indiana-large-business/smart-saver/smart-saver-custom-incentive-program.asp
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
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
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
Smart $aver® Custom Incentive – General Timeline
20
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
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
21 *Note that peak impact may differ for offices and schools
Smart $aver® Energy Assessments
• Available through the Business Services Newsline.
• The Facility Assessment Wizard provides recommendations tailored to the customer’s business or industry.
Online Assessment – No Charge
• Customer is provided a worksheet questionnaire for collecting facility information followed by a phone-based 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.
Off-Site Assessment – No Charge
• 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
On-Site Assessment – Fee Charged
22
Customer Successes with the Smart $aver® Program
23 www.duke-energy.com/indiana-large-
business/energy-efficiency/in-case-studies.asp
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.
• Residential Home Energy Assessments
• Income Qualified Weatherization
• School Programs
• Residential Lighting
• Commercial & Industrial Prescriptive Rebates
Programs
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.
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.
Energizing Indiana
In just the first few years, we can save enough energy to power more than 100,000 homes for twelve months!
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.
Commercial & Industrial Prescriptive Rebates
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.
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.
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.
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
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
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
Federal / State Tax Credits May be Available
45
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 90.1-2001.
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, 2013.
Details available at www.energystar.gov. Check with your contractor or accountant to see if
your project will qualify.
Check www.in.gov/oed/index.htm for grants and Stimulus Money