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Slide 1

Delivering On Our Promise

Sustainable Solutions to Achieve OurClimate and Economic Goals

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AgendaRethinking Our ApproachStrategies for Carbon ReductionDisconnect Between Strategy and PolicyDelivering Market TransformationFrom Theory to PracticePathways to Success

Efficiency First Sustainable Spaces

Efficiency First, Washington DCRepresenting Americas Home Performance WorkforceNon-Profit Trade Association 400 Member CompaniesActive at National and State LevelSupporting a performance based market for residential energy efficiency retrofitting.

For More Information: www.efficiencyfirst.org

Efficiency First Sustainable Spaces

Carbon Saved: The Metric that MattersCARBON is the metric.Focus on PERFORMANCE and measurable results.The MARKET will innovate and deliver.

Efficiency First Sustainable Spaces

What is Americas Largest Source ofCarbon Emissions?IndustrialBuildingsTransportation

ResidentialBuildings21%

PassengerCars11.5%

Carbon Dioxide Emissions From Fossil Fuel Combustionhttp://www.pewcenteronthestates.org/uploadedFiles/Climate%20Change%20101,%20Technological%20Solutions.pdfhttp://www.pewclimate.org/docUploads/ustransp.pdf

Efficiency First Sustainable Spaces

What Does Achieving our Goals Look Like?Growth Curve to Retrofit 128MM Homes By 2030

10,000,000 Homes / yr.Home Performance 5MWeatherization (WAP) 3MMultifamily 1.5M

250,000 Homes / yr.Retrofit 128MM Homes By 2030http://www.barackobama.com/pdf/factsheet_energy_speech_080308.pdf

Efficiency First Sustainable Spaces

2030 Goal:25% Reduction in Residential Energy

CLIMATE: Equivalent to taking of all passenger cars off the road

JOBS: 1.25 million direct contracting jobs

ENERGY: Save as much energy as US imports yearly from Saudi Arabia

COMMUNITY:Keep energy dollars local and create an annuity

Efficiency First Sustainable Spaces

State of the Contracting Industry146,600 jobs have been lost in the residential building construction industry between April 2008 and 2009. Housing starts were down 12.8 percent last month from March [2009], to an annual pace of 458,000.

New home construction fell to its lowest pace on record in April

- New York Times, May 2009http://www.nytimes.com/2009/05/20/business/economy/20econ.html?_r=1&scp=2&sq=housing%20starts&st=cse http://www.businessexaminer.com/blog/8232nonresidential-construction-job-loss-slows/

Efficiency First Sustainable Spaces

Home Performance ContractingSustainable: Jobs in Home Performance do not require endless subsidies.Leveraged: Government subsidies stimulate private sector investment.Market-Based: Leverage business as the engine to achieve rapid growth.

A market-based* whole-house approach to retrofit existing homes for energy, health and comfort.*WAP or Low Income Weatherization serves the market up to 200% of poverty.

Efficiency First Sustainable Spaces

Achieving Market-Based Success

Efficiency First Sustainable Spaces

Over the past five years, we have come to the conclusion that these are the most important qualities in determining a successful business model in the home performance industry:Service: Are we solving real problems for our customers?Public Good: Are we saving energy and reducing residential carbon emissionsSustainability: Did we make a profit while conducting quality work?Scalability: Can we grow our business and the industry to meet future demand?

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What Is Home Performance?Audit

Solution

Retrofit

Commissioning

Quality Assurance

Efficiency First Sustainable Spaces

Retrofitting Loading Order

InsulationAir SealingDuct SealingLightingAppliancesWater ConservationPlug LoadsBehavior

HeatingAir ConditioningVentilationWater Heating

Solar PVSolar ThermalWindWater Catchment

Efficiency First Sustainable Spaces

Section 1Rethinking Our Approach

ProductsAutomobile Performance

?1Miles PerGallon 60

Performance2

Efficiency First Sustainable Spaces

If your goal is efficiency with cars, you dont specify the parts with carsNot about the exhaust systemWe dont judge a car by its parts14

Home PerformanceProducts

?1

Home EnergyRating System85

Performance2

Efficiency First Sustainable Spaces

For a house we have all of these products, air conditioners, insulation, windows, radiant barrier. What are all of these different products one off?Just like with a car,The EPA used to specify specific scrubbers, but then they started to specify emissions. When they did emissions, they 15

System Performance: Heating Building Load - Stop Energy Leaks - Improvement: 20% - 40%

Delivery- Fix Leaky Ducts- Improvement: 30% - 50%

Behavior - Set Your Stat - Improvement: 5% - 10%

Equipment - Efficiency / Size - Improvement: 10% - 15%

Whole House vs. Products Savings

Whole House Solution:30% - 50% (Ducts, Insulation, Behavior, 40K BTU 90% Furnace)

High Efficiency Furnace:10% - 15% (100K BTU 96% Furnace)

Performance - Efficiency - Health - Comfort

Efficiency First Sustainable Spaces

1990 Clean Air ActPre 1990, EPA required emission scrubbers on smoke stacks.Clean Air Act (1990) sets emission performance standards and trading system.

1990SO2 Results: Emissions reduction Market innovation

Efficiency First Sustainable Spaces

Automatically created cost effective solutionsRemoves government from having to pick winnersTechnology neutral

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We should be getting the savings were paying forPerformance is Fiscal Responsibility

Efficiency First Sustainable Spaces

Product Rebates Dont DeliverProduct Rebate Results: Screw-in CFLsExpected vs. Realized GWh Savings46% Less SavingsJanuary 2006 June 2008, California Public Utilities CommissionCalifornias Residential Energy Efficiency PortfolioCFL subsidies account for > 80% of residential energy efficiency savings. CFL subsidies will not be an allowable program after 2012.75MM rebated units, only 46MM verified installed.

Efficiency First Sustainable Spaces

What is all the fuss about retrofitting, why cant we just put on solar panels?Reduce Then Produce

Efficiency First Sustainable Spaces

The Firepower of the Lowly Caulk Gun Wall Street Journal

http://online.wsj.com/article/SB123629700922046051.htmlCost Per Ton of Carbon Abatement

Efficiency First Sustainable Spaces

When the money saved by renewable energy and energy efficiency more than pay for the capital and maintenance costs over a given period.

Based on a McKinsey report that focused on all of the different carbon reduction measures.Building efficiency is so cost effective, that in a very short period of time you are making money on that investment. Every year after that, your savings exceed the amount of money that you spent. Therefore you are making more money than you spent.This is vs. the more cost effective measures, where you find that they cost more to reduce carbon. They are clean, but they cost you more.We will need the alternative options at some point because you can only go so deep on energy efficiency.Presentation brand template6/11/2009 2:04 PMversion 121

Cost Effective Hybrid Model

Lighting Retrofit

40% Better Lighting Quality Reduced Lighting Maintenance Costs Improved Energy Management

Solar Electric

675kW Solar SystemThe Moscone Center - San Francisco, CAHybrid EE + RE Project

New Efficient T-5 Old Incandescent

Efficiency First Sustainable Spaces

Use municipal solar bond to finance solar electric system

Hurdle: Solar bond requires immediate cost-effectiveness

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Moscone Center: Retrofit SummarySavings / Yr

Energy Reduction

Payback Period

Cost

Energy Efficiency$540,0004,500,000 kWh6 Years$3.2 MMSolar$99,000 825,000 kWh 42 Years$4.2 MM

$639,000 Annual utility bill savings$429,000 Annual debt service costs (20 year bond at 5.5%)

$210,000 ANNUAL NET SAVINGShttp://www.votesolar.org/moscone.html 5,325,000 kWh$639,00012 Years$7.4 MMHybrid

Efficiency First Sustainable Spaces

Annual Solar Generation: 825,000 kWhAnnual Efficiency Savings: 4,500,000 kWh

Annual Bill Savings: $639,000Annual Debt Service: ($429,000)

Annual Total Savings: $210,000

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Reduce Then Produce

http://globalghgcostcurve.bymckinsey.com/

Efficiency First Sustainable Spaces

Level the playing field and unleash the market.

Technology Neutrality

Efficiency First Sustainable Spaces

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Meet Our HomeownersCity: Lafayette, CA

Concerns: High energy billsDaughter has asthmaDrafty/cold in the winter

Savings

Health

Climate

Comfort

Efficiency First Sustainable Spaces

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Meet Their HomeAge:1958Size: 2,200 ft2Annual Electric: $1,115Annual Gas: $1,013Carbon Emissions: 8.6 Tons/Year

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Infiltration:3405 CFM50 (.68 ACHnat)Attic Insulation:R 6.4 Fiberglass Batt (low quality)Wall Insulation:No InsulationFloor Insulation:No Insulation Duct Leakage:25%

Efficiency First Sustainable Spaces

Lets talk about what we currently focus on which are incentives that focus primarily on solar. Then lets compare that model to one that focuses on a combination of ee and solar27

Option 1: Efficiency RetrofitEnergy Efficiency Retrofit25% Reduction in Electricity54% Reduction in Natural GasImproved Health and Comfort

Work Scope

Duct SealingAir SealingAttic InsulationWall InsulationLighting RetrofitEnergy Star Refrigerator40% Reduction in Energy Bills

Efficiency First Sustainable Spaces

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Option 2: Solar ElectricSolar Electric System73% Reduction in Electricity0% Reduction in Natural GasNo Health or Comfort ImprovementPeak Load Reduction

Work Scope

3.5 kW Solar PV40% Reduction in Energy Bills

Efficiency First Sustainable Spaces

Annual Savings: $825 $825

CO2 Reduction:2.7 tons 3.6 tons

Total Cost: $28,000 $10,800

Simple Payback:33.9 yrs 13.6 yrs What is the Real Cost?

60% Less

33% More3.5 kW Solar Electric

Energy Efficiency Retrofit

60% Faster* Based on carbon abatement achieved over 20 years.

Efficiency First Sustainable Spaces

A Ton of Carbon is a Ton of CarbonTotal Cost:$28,000$10,800Cost to Client:$13,300 $10,168Rebates / Incentives: $14,700$632

Annual Savings:$825 $825CO2 Reduction:2.7 tons3.4 tons

*Rebate / Ton of C0 2$246 $9SolarRetrofithttp://www.spur.org/publications/library/report/critical_cooling

Efficiency First Sustainable Spaces

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Why Do We Value Carbon Abatement fromRenewables More than Efficiency?

Its the METER that MATTERS!

Efficiency First Sustainable Spaces

Section 2Strategies for Carbon Reduction

California Energy Commission (CEC):Loading Orderhttp://www.energy.ca.gov/2005publications/CEC-400-2005-043/CEC-400-2005-043.PDFEnergy EfficiencyDemand ResponseRenewable ResourcesDistributed Generation

HighLowPriorityPriority for use of Public Good Charges

Efficiency First Sustainable Spaces

This is the overarching measure that determines how public good money should be spentOrder that rate payer money should be spentThe loading order consists of decreasing electricity demand by increasing energy efficiency and demand responseCalifornia Energy Commission, 2003 Energy Action Plan

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California Solar InitiativeBy January 1, 2008, the commission shall require reasonable and costeffective energy efficiency improvements in existing buildings as a condition of providing incentives for eligible solar energy systems

- CEC Guidelines for CA Solar Incentive Programshttp://www.cleanenergystates.org/library/Reports/CEC-300-2007-012-CMF_Guidelines_CA_Solar_Incentive_Programs_Dec2007.pdf

Efficiency First Sustainable Spaces

http://www.cleanenergystates.org/library/Reports/CEC-300-2007-012-CMF_Guidelines_CA_Solar_Incentive_Programs_Dec2007.pdf

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California AB32: Global Warming Solutions ActEstablish a statewide GHG emissions cap for 2020, based on 1990 emission levels.

Local governments: 15% reductions in GHG by 2020.

http://www.arb.ca.gov/cc/factsheets/ab32factsheet.pdf

Efficiency First Sustainable Spaces

Adopt mandatory reporting rules for significant sources of greenhouse gases by January 1, 2008. Adopt a plan by January 1, 2009 indicating how emission reductions will be achieved from significant GHG sources via regulations, market mechanisms and other actions. Adopt regulations by January 1, 2011 to achieve the maximum technologically feasible and cost-effective reductions in GHGs, including provisions for using both market mechanisms and alternative compliance mechanisms. Convene an Environmental Justice Advisory Committee and an Economic and Technology Advancement Advisory Committee to advise ARB. Ensure public notice and opportunity for comment for all ARB actions. Prior to imposing any mandates or authorizing market mechanisms, requires ARB to evaluate several factors, including but not limited to: impacts on Californias economy, the environment, and public health; equity between regulated entities; electricity reliability, conformance with other environmental laws, and to ensure that the rules do not disproportionately impact low-income communities. Adopt a list of discrete, early action measures by July 1, 2007 that can be implemented before January 1, 2010 and adopt such measures. 36

California Air Resource Board (CARB): AB32 Implementation Plan

Increased Building Efficiency and Appliance Standard

26.4 Million Metric Tons

California Solar Initiative

2.1 Million Metric Tons12Xhttp://www.arb.ca.gov/cc/cc.htm

Efficiency First Sustainable Spaces

Proposing a package of strategies for cutting the states greenhouse gas emissions to 1990 levels by 202037

California Public Utility Commission: Long Term EE Strategic Planhttp://docs.cpuc.ca.gov/efile/RULINGS/85173.htm

CPUC Existing Home Retrofitting Goal

40% energy reduction in existing homes energy use by 20201MM Homes Per Year125K Retrofitting Jobs$13+ Billion / Year

Source: California Public Utilities Commission

Efficiency First Sustainable Spaces

CA Energy Efficiency Strategic Plan Existing Residential Goals (from CPUC presentation by Michael Wheeler)By 2020:25% of existing single family homes have a 70% decrease in purchased energy from 2008 levels75% of existing single family homes have a 30% decrease in purchased energy from 2008 levels100% of existing multi-family homes have a 40% decrease in purchased energy from 2008 levels

By 2015:On average, existing homes will have a 20% decrease in purchased energy from 2008 levels

[The Goal] is to reach all existing homes and maximize their energy efficiency potential through delivery of a comprehensive package of cost-effective, whole-house energy efficiency retrofit measures.California Public Utilities Commission (CPUC), Long Term EE Strategic Plan

California Public Utility Commission is a state agency that regulates privately held utilities.

Goal #2: Home buyers and renvoators will implement a whole-house approach to energyConsumption that will guide their purchase and use of existing and new homes, home equipment (eg. HVAC systems), household appliances, and plug load amenities.

The overall objective of Goal 2 is to reach allexisting homes and maximize their energyefficiency potential through delivery of acomprehensive package of cost-effective,whole-house energy efficiency retrofitmeasuresincluding building shell upgrades,high-efficiency HVAC units, and emerging deepenergy reduction initiatives withcomprehensive audits, installation services andattractive financing. This can be achievedthrough parallel and coordinated initiativesamong utility programs, market mechanisms,and state and local government policies.

The IOUs currently offer a wide range of energyefficiency programs for existing homes, includingaudits, efficient appliance rebates, lightingprograms, and consumer education. This Planenvisions a refocusing of these programs tomove from a widget based approach to awhole house approach to program delivery tooffer comprehensive packages of audits,demand side management options and tools,rebates and financing options, and installationservices.

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Section 3Disconnect Between Strategy and Policy

Plans vs. RealityStrategies get it right:Set the end goalFocus on performance not product

Policies get it wrong:Focus on product incentivesMisaligned incentives when compared to results

Efficiency First Sustainable Spaces

We have established that if we care about cost effective results, our policies will reward the solution that reduces carbon emissions at the least cost to the public. 40

Stimulus Tax Credit30% Capped @ $1500(No Labor Included)30% Capped @ $1500(Labor Included)30% Uncapped(Labor Included)Average Credit (Dollars)http://www.sustainablespaces.com/stimulus.pdf

Efficiency First Sustainable Spaces

Home Specs:

2500 sqft

1100 sqft attic insulation (+ air sealing which is not covered) @ $0.81 sqft with 30% rebate capped @ $1500 = $270

1 High Efficiency Furnace and Duct Sealing: $7,400 @ 30%rebate capped at $1500 = $1,500

3.5 kWh solar @ $8500 / kWh with 30% uncapped rebate = $8,925

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California State Rebates $0.15 / sqft$300 / unit$1.40 / W Average Rebate (Dollars)http://dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=CA

Efficiency First Sustainable Spaces

Home Specs:

2200 sqft

1100 sqft attic insulation (+ air sealing which is not covered) @ $0.15 / sqft rebate = $165

1 Furnace: $300 rebate for 94AFUE and higher furnace

3.5 kWh solar @ ~$1.40 / watt = $4900

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Cost-EffectivenessAnnual Rate of Return (%)

Efficiency First Sustainable Spaces

Insulation / Airsealing: $3260 labor and materials30% reduction in load (20% gas / 10% electric)$1,115 annual electric$1,013 annual gassavings = $32410% annual payback

96 AFUE Furnace / Duct Seal: $7400 install (labor and materials) 50% gas usage from heating ~ 362 thermsAnnual : 362 therms @ $1.40 per therm = $506.80 16% reduction by replacing 80% efficient with 96% efficiency furnace = $81 annually 30% reduction of gas usage with sealed ducts is 217 therms @ $1.40 = $304 2% annual payback

Solar: 3.5 kWh solar @ $8500 / kWh = $29,750 $1,115 annual savings 4% annual payback

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Local JobsLabor as % of Project Cost

Efficiency First Sustainable Spaces

Insulation / Airsealing: 1100sqftMaterials: $1,125Labor: $2,135Percentage = Labor / Total = 65%

96AFUE Furnace and Duct SealingMaterials: $3,320Labor: $1,950Percentage = Labor / Total = 37%

3.5 kWh Solar SystemMaterials: $25,287Labor: $4,500Percentage = Labor / Total = 15%

* Solar panels are 60% of the cost - they're mostly made up of pure silicon, which is expensive and takes a long time to make. * The inverter makes up about 10% of the cost * All the other parts, like wires and racking, is about 15% of the cost * Labor is also about 15% of the cost Link: http://www.sunrunhome.com/learn_about_solar/cost_of_solar/

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Misaligned Priorities?

Incentives

Effectiveness

Efficiency First Sustainable Spaces

How are these policies being implemented locally?

Efficiency First Sustainable Spaces

San Francisco Climate Action PlanReducing overall greenhouse gas emissions to 20% below 1990 levels by 2012

http://sfenvironment.org/downloads/library/climateactionplan.pdf

19% Residential

Efficiency First Sustainable Spaces

Solar Incentive as Disincentive for EE90% energy efficiencyCreated a city level incentive for solarThe market for EE and Solar are the same marketplace when you benefit one side of the equation, you are unintentionally dis-incentivizing the other

Incentives programs encourage investments in energy efficiency by lowering the consumers cost of implementing energy efficiency actions. Incentives can take the form of direct rebates to customers or manufacturers, low-interest loans, or payments to customers or energy services companies for delivered energy savings. -SF Climate Action, pg 3-19

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San Francisco Climate Action Plan

Residential Reduction Goals from Energy EfficiencyCombined Reduction Goals from Renewables

85% of SFs residential climate goalsdelivered through Energy Efficiency

Efficiency

Solarhttp://sfenvironment.org/downloads/library/climateactionplan.pdf

Efficiency First Sustainable Spaces

This is solar in general, even if we had x amount of stuff was residential its 90% energy efficiencyWhat is san Francisco doing 6,000 for residential? Energy efficiency is second to none If you put a solar system in SF, what does it do? What is the implementation plan SF solar incentive disincentivizes EE.Incentive amount 60% plus or greaterIn San Francisco we are killing the energy efficiency when it is 90% of solution

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San Francisco ImplementationSF - Solar Energy Incentive Program $6,000 Residential City Solar Incentive Plus: $1.50 Watt CA Rebates and Federal Tax Credits 30%

SF Residential Energy Efficiency Program No Incentives

http://www.sfenvironment.org/downloads/library/solarincentives.pdf2 kW Solar System in San FranciscoPublic Contribution: 70%

Efficiency First Sustainable Spaces

6000 + SF not only incentivizing the wrong stuff, but by doing so, they are dis-incentivizing everything else

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One Market Incentives favoring renewables disincentivizes energy efficiency.

Efficiency First Sustainable Spaces

Section 4Delivering Market Transformation

What it Takes to Scale Home PerformanceIncrease Consumer DemandFinancing IncentivesCatalyze Market TransformationPerformanceStandards

Efficiency First Sustainable Spaces

Achieving Market TransformationIncentivesFinancingStandards

Efficiency First Sustainable Spaces

Performance-Based IncentivesIncentivize Results Reward performance not productsAllow the market to make choicesIncentivesStandardsFinancingTechnology NeutralityStop picking winnersInspire innovation

Efficiency First Sustainable Spaces

What Models Can We Apply?Performance based on before and after Home Energy Rating Score (HERS).

20% minimum improvement in energy performance grants rebate of $3,000.

5% in performance improvement adds $1,000.

IncentivesStandardsFinancingCurrently in US House Climate Bill(Retrofit For Energy and Environmental Performance)http://energycommerce.house.gov/Press_111/20090331/acesa_discussiondraft.pdf

Efficiency First Sustainable Spaces

Households may select a combination of energy efficiency measures, from a prioritized climate-specific list based on average savings, that show an average improvement of a 10% energy savings to receive the incentive (10% = $1000, 20% = $2000). Prescriptive incentives will sunset after 1 year or upon an EPA decision based on results. Households are eligible to receive a $3,000 incentive for a 20% improvement in energy performance of the home. The amount of the incentive would increase with higher performance at a rate of $150 for each 1% improvement. The incentive amount shall not exceed 50% of the total project costs.

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Home Performance FinancingNo upfront costsPaid over long-terms, up to 20 yearsReduced interest rates compared to traditional loansThe retrofit stays with the property and so should the loanStandardsFinancingIncentivesGoals:

Efficiency First Sustainable Spaces

On Property Tax Bill FinancingOn Utility Bill FinancingNational Green BankGreen Mortgage ProductsAggregated ESCO Model

http://www.euci.com/pdf/0409-solar-finance.pdfhttp://www.ci.berkeley.ca.us/ContentDisplay.aspx?id=26580xStandardsFinancingIncentivesWhat Models Can We Apply?

Efficiency First Sustainable Spaces

Home Performance StandardsContractor Accreditation - Building Performance Institute (BPI) All Building Analysts (auditors) CertifiedConstruction Team Lead Trade CertificationYearly review of customer data5% Field Quality Assurance

StandardsIncentivesFinancing

Certified Energy Auditor RESNET Certified RaterBPI Certified Building Analyst

Efficiency First Sustainable Spaces

Section 5From Theory to Practice

Lets Apply the Future ModelHow does a level playing field for energy efficiency influence adoption?

Efficiency First Sustainable Spaces

Energy Efficiency RetrofitHERS Before: 168HERS Post: 121Improvement: 28%

Retrofit

168

121

Efficiency First Sustainable Spaces

Retrofit with Performance IncentivesTotal Cost:$10,800Rebates / Incentives: $4,832Cost to Client:$5,968

Annual Savings (Gas/Elec.):$825CO2 Reduction:3.4 tons

*Rebate / Ton of C0 2 $71Retrofit* Based on carbon abatement achieved over 20 years.

45% Incentive

Efficiency First Sustainable Spaces

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Hybrid Whole-House SolutionEnergy Efficiency Retrofit25% Reduction in Electricity54% Reduction in Natural GasImproved Health and Comfort

2.1 kW Solar Electric SystemReduced from 3.5 kW to 2.1 kW40% Reduction in ElectricityPeak Load Reduction

Work Scope

Duct SealingAir SealingAttic InsulationWall InsulationLighting RetrofitEnergy Star Refrigerator+2.1 kW Solar PV65% Reduction in Energy Bills

Efficiency First Sustainable Spaces

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Value Engineered Hybrid SolutionTotal Cost: $10,800 $17,000 $27,800Rebates / Incentives: $4,832* $7,300 $12,132Cost to Client: $5,968 $9,700 $15,668

Annual Savings: $825 $550 $1,375CO2 Reduction: 3.4 tons 1.8 tons 5.2 tons

Rebate / Ton of C0 2 $71 $280 $121SolarRetrofit*Includes potential rebates from REEP incentive plus existing State rebates.Hybrid

Efficiency First Sustainable Spaces

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5.0 tons$1,37512.4 Years$15,668HybridThe Whole-House Hybrid HomeSavings / Yr

Carbon Reduction

Simple Payback

Cost

Energy Efficiency$8253.4 tons7.2 Years$5,968Solar$5501.6 tons21.5 Years$9,700

6.3 Years

13.6 Years

9.7 YearsPayback withRate Increase

Savings

Health

Comfort

Climate

Efficiency First Sustainable Spaces

Annual Solar Generation: 825,000 kWhAnnual Efficiency Savings: 4,500,000 kWh

Annual Bill Savings: $639,000Annual Debt Service: ($429,000)

Annual Total Savings: $210,000

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Finance for Immediate Savings $15,688 financed at 6% over 20 years

Year: 1 10 20 Monthly Payment: $112 $112$112 Monthly Savings: $117 $159$230* Based on Electric Rate increase of 4% per year, and Gas rate increase of 6%.$12,970 Total utility bill savings: $39,850 Total cost of loan (20 years at 6%): $26,880

NET SAVINGS: $12,970

Efficiency First Sustainable Spaces

Section 6Pathways to Success

Creating the Future Model Using the market to achieve scale and transformation

Efficiency First Sustainable Spaces

Tier 3: Prescriptive Measures

List of MeasuresInsulationWindowsSolarHVACGeneral ContractorPick from list of eligible measuresMust combine measures to achieve 20% average savings or greaterLower level of incentiveProgram sunsets after 12 months

Efficiency First Sustainable Spaces

Tier 2: Third Party Rater

HERS RatingHERS RatingBPI AnalystBPI AnalystThird Party HERS Rater Work scope generated through softwareTest-in / Test-outRetrofittingSpecialty trade contractorsHome Performance Contractor Any General Contractor must become accredited within 6 months of taking first incentive.

InsulationWindowsSolarHVACGeneral Contractor(Accredited After 6 Months)Test-InHERS RatingTest-OutHERS Rating

Efficiency First Sustainable Spaces

BPI AccreditedHome Performance ContractorTier 1: Home PerformanceTest-InBPI AnalystTest-OutBPI AnalystPerformance-Based SolutionsBPI Accredited Contractor / StaffQuality Assurance

Home Performance ContractorBPI Accredited

Efficiency First Sustainable Spaces

Pathways to Success

Performance

HERS RatingHERS RatingBPI AnalystBPI AnalystInsulationWindowsSolarHVACGeneral Contractor(Accredited After 6 Months)Test-InHERS RatingTest-OutHERS RatingBPI AccreditedHome Performance ContractorTest-InBPI AnalystTest-OutBPI AnalystHome Performance ContractorBPI Accredited

List of MeasuresInsulationWindowsSolarHVACGeneral ContractorSunsets After 12 Months

Prescriptive

Efficiency First Sustainable Spaces

The Time To Act Is Now!Change the way we talk about efficiency from products to systems.Start incentivizing our success in terms of results and measure performance.Fix the imbalances in the market.Set in place the foundation for a the American Home Performance Retrofitting Industry.

Efficiency First Sustainable Spaces

A Foundation for Home PerformanceLevel the playing fieldMake it easy to say yesDrain the swamp

Efficiency First Sustainable Spaces

Delivering On Our PromiseSustainable Local JOBSCost Effective CARBON AbatementSignificant Homeowner SAVINGSEffective Use of STIMULUS

Seize this opportunity to achieve our climate and economic goals

Efficiency First Sustainable Spaces

Delivering On Our Promise

Sustainable Solutions to Achieve OurClimate and Economic Goals

For More Information: www.efficiencyfirst.org

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