custom rebates help fund efficiency investments
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Join Ecova and Verizon to learn how rebates and incentives can work for you.TRANSCRIPT
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Custom Rebates Help Fund CapEx Efficiency InvestmentsFebruary 13, 2014
Presenters: Mike Bailey PE, Director Facility Engineering and Kyle Barton, Senior Energy Rebate Analyst with EcovaRobert Brimicombe, Corporate Technology with Verizon
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Agenda
Energy Efficiency Opportunity
What Are Rebates & Utility Programs?
Trends in Energy Efficiency Rebates
Eligible Technologies
Energy Rebate Management Process
Challenges
Ecova Solutions
Summary
Q&A
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Energy Efficiency?
According to the DOE $180 billion annually is spent on energy in commercial buildings
LEDs save 80% or more of the energy and last 10X longer – typical 12-18 month payback after rebate
$37 billionwould be saved each year with
improved energy efficienciesfor commercial buildings
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Data Centers Are Hidden Energy Hogs
Data CenterTotal Office
BuildingData Center as % of Building Total
Area 3,000 sq ft 350,000 sq ft 0.8%
Average Monthly Real Demand
189 kW 1,889 kW 10%
Average Monthly Consumption
140,000 kWh 701,300 kWh 20%
Energy Survey of 21 Story Office Building
– Typical mix of open and private office
Evaluated Energy Use of Internal Data Center / Computer Rooms
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Data Centers – Large Potential Savings
Established and proven technologies and design approach have resulted in over 80% demonstrated energy savings
Requires paradigm shift and close coordination
– IT Management
– Facilities
– Finance
Key Opportunities
- Equipment refresh
- IT Virtualization
- Outside air cooling
- Cloud computing
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What is a Rebate?
An incentive (or 'rebate') is financial assistance provided to customers to help offset the incremental costs of installing an energy efficiency measure
Mandated by:
– Legislation & Regulation
Why:
- Lowest cost resource
- Public service
- Customer relations
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More Opportunity Than Ever
Projected Utility Customer Funding for Electric & Gas EE Programs
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Typical Rebate Programs
Prescriptive / Standard
– What is it?
• Equipment upgrades and retrofits
• Common measures such as lighting
Custom
– What is it?
• Complex or unique
• New and emerging technologies
• Measurement & verification coordination
New Construction
– Based on how much more efficient the technologies are above local building codes
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Utility Measure Rebate
Utility #1 Standard Lighting $15-$140 per fixture
Utility #2 Custom Lighting $0.05/kWh + $50/kW saved
Utility #3 T5/T8 Lamp & Ballast $10 - $100 per bulb
Utility #4 Lamp Only Upgrades $0.025/watt saved
T12 lighting rebates/incentives are being phased out.
Funding may be limited and bonuses could be available.
Each Utility Program is Unique
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A Few Typical Eligible Technologies
Building Envelope Whole Building
Approach Windows Roofs Insulation
HVAC Heat Pumps A/C units High-Efficiency Gas Variable Frequency
Drives Controls
Lighting Fluorescent LED Automatic Sensors Parking Lots Industrial & Office
Kitchen Equipment Refrigeration Holding Cabinets Fryers Combo Ovens Griddles Steamers Ice machines
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Verizon’s Facility & Capital Project Types
Verizon Communications: GFE&C Network Technology
Central Office and Data Center facilities – 1500+ Network locations
– Telecom data center/server room controls
– Building EMS/BMS systems
– Rectifiers
– VFDs
– HVAC replacements
• Large and Small scale
Wireless: Retail Locations
– Lighting (interior & exterior)
– HVAC replacement
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Capturing Verizon’s Rebates
Internal Rebate Management:
– Global Facilities Engineering & Construction – Network Technology
– Property Management Groups
– Global Real Estate Working Groups
• New York & Washington DC Telecom Controls
• EMS & HVAC
– Internal Rebate Availability Program
External Rebate Resourced:
– Telecom Projects Outside of NY & DC
• Controls (2013-14)
• Rectifiers (2014)
• HVAC Related (2014)
• Retroactive Rebates (2014)
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Verizon-Ecova Rebate Partnership
Rebate Processing
– Rebate Prioritization
– Completing Utility Documents for Pre-approval & Final Submittal
– Utility Advocacy to Justify Energy Savings & Address Free Ridership Issues
– Organize & Complete Utility Measurement & Verification Requirements
– Onsite Utility Verification Coordination
– Check Disbursement
Reporting
– Regular Progress Reports
– Rebate Availability From Approved List of Projects
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Meeting Corporate Goals: Return On Investment
Corporate Strategy– Prospective projects needs to have a simple payback of 3 or less years
– $1 million in utility rebates
Telecom Control Rebates– The typical custom rebate ROI was calculated between 15 to 30% of
the total installation cost (up to 50% in some cases)
– Rebate checks ranged in between $5K to $100K
– Actual first year kWh savings ranged in between 73K to 1.1 Million
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Lessons Learned
Varies Greatly by Utility & Project
– Rebate capped at 50% of project costs - First Energy Ohio
– Unable to claim interactive savings - California
– Rebate rate is based on entire potential portfolio rather than specific project (up to $0.18 per kWh saved) - Massachusetts
– Rebate amount is based upon estimated savings rather than actual system performance - Seattle
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Lessons Learned cont…
Typically utilities need to build the case that they have influenced the project prior to implementation
Documentation of the existing equipment is key to the rebate process
Texas has strict Measurement & Verification utility requirements
Newly installed technology can conflict with existing systems
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Challenges Pursuing Incentives
Can be overwhelming for multi-site operators
Program implementation vary by state, utility and measure type
Offerings change frequently
– New technologies roll out
– Funding availability limited
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Overcoming the Challenges
Where are my facilities? What does my capital budget look like? Are energy audits needed to identify efficiency opportunities? What projects are feasible?
Build a Rebate / Incentive Strategy
Pre approval processes Timing of inspections Rebate paperwork deadlines
Does Timeliness Matter for My Initiatives?
Who pays the utility bills? Is the facility leased or owned?
What Other Factors Are There?
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How Can Ecova Help You?
Customizable Solutions
Incentive Opportunity Research
– Project prioritization based on return
Engineering Services
– Energy and water site audits
– Custom project evaluation
Project Incentive Analysis & Processing
– Strategic and Tactical approaches
– Budgeted capital improvement projects
– Centralized tracking and reporting
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Summary
Identification & Fulfillment of Energy Rebates through a Centralized Service
Take the Time-intensive Administrative Tasks Off Your Plate & Report Back on Savings
Why Ecova?
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Upcoming Ecova Webinars
INSIDE ENERGY & SUSTAINABILITY• Accelerating ROI with Real Time and Historic Data – 2.26.14 at
11am PST• 2014 Energy Survey – 3.6.14 at 11am PST• Energy Market Intelligence: What’s Happening Q1 – 3.11.14 at
1pm PST
DIAL IN THE SAVINGS SERIES• 3 Telecom Power Moves to Rock 2014 Savings & Performance –
2.19.14 at 11am PST
Questions, comments, suggestions? [email protected]
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Q&A
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Thank you!