demystifying new york’s energy efficiency · why? promoting customers to use less energy helps...

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Demystifying New York’s Energy Efficiency Programs November 13, 2017

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Page 1: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Demystifying New York’s Energy Efficiency

Programs

November 13, 2017

Page 2: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Overview and talking points

Why energy efficiency programs

Regulations & Policies

How Programs are evaluated

Protocols

Other Factors

Developing Programs

Process

Requirements

Q and A

Page 3: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Why?

Promoting customers to use less energy

Helps customers manage costs

Reduces carbon footprint

Improves performance

Energy Efficiency Programs

Most cost effective

Promotes job creation

Demand Reduction

Reduces need for utility investment in system upgrade

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Source ACEEE: Energy Efficiency as a Resource (2015)

Page 4: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Regulations & Policies

Public Service Commission (PSC)

Oversees and authorizes rates, investment decisions, & demand-

side management

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Commission orders drive final energy efficiency

program design, incentive, and funding levels

Orders set goals and objectives

Regulatory approval is required for all programs

Costs are covered through rate-payers

Page 5: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Alphabet Soup

EEPS ETIP

REV SBC

RPS CEF

Page 6: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Road to get There

Evaluation

Programs evaluated to ensure accuracy & prudent use of rate-payer funds

Measurement & Verification

Cost Effectiveness Test – Total Resource Cost (TRC)

screened at individual and customer program level

Measures the energy efficiency resource (incentive, program overhead, etc.) against total cost of program (utility and participant)

Expressed as benefit-cost ratio

Ratio of total benefits to total cost over a period of time

Above one; indicates program or measure is beneficial to utility & rate-payer

Deemed savings – Technical Reference Manual (TRM)

Formulas and input values to calculate savings

Report on first year energy savings

Page 7: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Protocol

Technical Reference Manual (TRM)

Formulas and input values to calculate savings

Consistency in savings methodology

And program reporting – first year annual savings

Deemed savings

ISSUES

Retrofit vs. New Construction definition

Building types

Space use types

Prescribed HVAC interactive effects

Control savings factors

Baseline

Split measure life

Effective useful life

Measure life

Page 8: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Other Factors

Codes and Standards

Federal

ASHRAE 90.1-2013

IECC 2015

DOE – Appliance & Equipment Standards

State

New York State Energy Conservation Code

Environmental

EPA

Clean Air Act – Refrigerant Substitutes (SNAP)

Boiler Emissions

Page 9: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Achieve savings goals

Stay within budget

Meet customers needs

Moving beyond equipment replacement

Market transformation

Behavioral change

Technology advancement

Developing Programs

Page 10: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Typical Programs

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Prescriptive

Fixed incentives paid for installation of specific, predetermined energy efficiency measures and equipment.

Eligible equipment must have specified energy efficiency ratings

Examples: Lighting, Lighting Controls, Air Compressors, EMS, Heating and Insulation

Custom

Includes measures not covered under the prescriptive incentives.

Requires a technical analysis of proposed energy measures and associated energy savings to determine incentive amount. Incentives are generally the lesser of:

Up to 50% of the installed cost which includes labor and equipment

$0.131/kWh saved for lighting and $0.197/kWh saved for other technologies

Page 11: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

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Energy Initiative Work Flow

Letter to Customer

For Approval and

Signature

Perform EE

Study if needed

Complete

Tech Review

Customer

Contact

Pre-inspection and

Input Customer Data

Assess Applicable

Incentives and

Advise Customer

Install and/or

Upgrade Equipment

Customer

Documentation for

Completed Work

Post Inspection

Update Appropriate

Data in National Grid

System

Incentive Payment

Approved and Sent

Page 12: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Requirements

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Existing system

Age

Hours of use

Quantity

Type of system(s)

Area system serves

Proposed System

Type – model number(s)

Quantity

Cost – Material & Labor

Qualifications – DLC, Energy Star, AHRI, etc.

Sequence of operation

Additional

Supporting documentation – models, ComCheck, spreadsheet analysis, etc

If addition, renovation, or change of use of building; the existing systems will be code compliant system. Will need incremental costs and savings

Page 13: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Lighting Opportunities

Lighting is the ‘low lying fruit’ in terms of EE spend

visible commodity

necessary cost of doing business

Easy (enough) to calculate savings

relatively + IRR, ROI

Soft values as well (aesthetics, work environment,

corporate friendliness)

Page 14: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Clearinghouses

DLC, Energy Star, CEE, Lighting Design Labs – They’re not the same

Energy Star – EPA

Qualifies lighting products since 1992 – geared toward residential

Rigorous qualification process using industry standards

DLC – The DesignLights Consortium

Drives energy efficiency in the commercial sector

Establishes product quality specifications

Qualified Product List – LED’s and Networked Lighting Controls

Lighting Design Lab - Discontinued

Uses existing specifications – DLC, Energy Star

CEE – Consortium for Energy Efficiency

Fluorescent high efficiency T-8 lamps

Page 15: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

What’s next after lighting?

Technology & Codes continue to improve

LED will become standard

OLED?

Crystal Ball

Page 16: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Still time

Still a ways to go according to DOE

Source DOE Report: Energy Savings forecast of Solid-State Lighting in General Illumination Applications (2016)

Includes, residential, commercial, industrial and outdoor lighting

Residential lighting has the largest quantity of LED’s installed

Low hours

Commercial and Industrial sectors delivers on the greatest amount of savings achieved with LED installations

High hours of operation and high lumen output

Page 17: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Push the Envelope

More Savings Potential with Controls & LED

Source DOE Report: Energy Savings forecast of Solid-State Lighting in General Illumination Applications (2016)

Connected Lighting – LED based lighting system with integrated sensors and controllers that are networked (wired or wireless) which allows the lighting to communicate with each other and transmit data

Applications with greatest impacts include troffers, low and high bay, and outdoor luminaires.

Tuning, dimming, on/off,

Page 18: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

How to Change the Market?

Change the way customers view energy

Energy savings may not be the most important factor

Maintenance

Better productivity

Increased Production

Avoidance of loss

Environmental

Demand Reduction

Doesn’t have to be first costs

Page 19: Demystifying New York’s Energy Efficiency · Why? Promoting customers to use less energy Helps customers manage costs Reduces carbon footprint Improves performance Energy Efficiency

Questions?

THANK YOU!

Amy Dickerson

[email protected]

315-428-3117

Please reach out to your local National Grid Rep for assistance in

applying for incentives

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