State Incentives for Energy Efficiency Commercial and Industrial New Jersey Board of Public Utilities Office of Clean Energy Mona L. Mosser Bureau of Energy Efficiency

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State Incentives for Energy Efficiency Commercial and Industrial New Jersey Board of Public Utilities Office of Clean Energy Mona L. Mosser Bureau of Energy Efficiency

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Title: State Incentives for Energy Efficiency Commercial and Industrial New Jersey Board of Public Utilities Office of Clean Energy Mona L. Mosser Bureau of Energy Efficiency


1
State Incentives for Energy EfficiencyCommercial
and IndustrialNew Jersey Board of Public
UtilitiesOffice of Clean EnergyMona L.
MosserBureau of Energy Efficiency
2
Electric Discount and Energy Competition Act of
1999 (EDECA)
  • Eliminated traditional retail monopolies
  • Consumers can select an energy supplier
  • Lower rates are expected over time due to
    competition
  • Immediate and increasing discounts implemented

3
Energy Efficiency Energy technologies can mean
buildings that are more
  • Energy Efficient
  • Reliable
  • Cost-effective and
  • Environmentally Friendly

4
Energy Efficiency Programs Commercial and
Industrial
  • Marketed as New Jersey SmartStart Buildings, is
    the umbrella name for four individual programs
    for targeted market segments
  • Commercial New Construction
  • Commercial Retrofit
  • Abbott School
  • Non-Abbott Schools

5
  • The programs are designed to
  • Capture lost opportunities for energy efficiency
    savings that occur during customer-initiated
    construction events (i.e., when customers
    normally construct buildings or buy equipment).
  • Achieve market transformation by helping
    customers, designers and specifiers to make
    energy efficient equipment specification,
    building /system design, lighting design, and
    commissioning standard parts of their business
    practices.
  • Stimulate small commercial customer investments
    in energy efficiency measures.
  • Help facilitate effective implementation of New
    Jerseys new commercial code and future upgrades
    to that code.

6
Program Offerings and Customer Incentives
  • Prescriptive Efficiency Measure Rebates that
    provide fixed incentives for energy efficiency
    measures.
  • Custom Measure Incentives for more complex and
    aggressive custom efficiency measures.
  • Multiple Measure Incentives for the installation
    of multiple eligible gas and electric energy
    efficiency measures (i.e., two or more of the
    following equipment types lighting equipment
    and controls, unitary HVAC, chillers, electric
    and gas space heating, gas water heating, motors,
    and/or variable speed drives).

7
Program Offerings and Customer Incentives
(contd)
  • Technical Assistance and oversight to help
    customers evaluate energy efficiency options,
    utilize program offerings and services, and
    effectively use performance-contracted services.
  • Energy Code Technical Support, to assist customer
    and trade ally understanding of the requirements
    of the states new commercial energy code.

8
Commercial New Construction Program
  • Incentives for new construction projects are
    available only for projects in State designated
    Smart Growth area
  • Design Incentives and Support, including building
    simulation, to architects and engineers to
    consider and use integrated design approaches
    that provide additional, synergistic energy
    savings.

9
Commercial Retrofit
  • Chiller Optimization
  • Lighting Remodeling Design
  • Compressed Air
  • Financial incentives are provided for a) the
    technical studies on a cost shared basis and b)
    for qualified equipment

10
Commercial Retrofit (contd)
  • Financial incentives are provided for
  • Technical studies on a cost shared basis and
  • For qualified equipment.

11
Farm Facts
  • Nationwide, the agricultural sector accounts for
    about three percent of total electricity use
  • Energy expenses are a significant portion of the
    farm budget, accounting for up to 10 percent of
    costs
  • Since operating margins, especially for small
    farms, are typically well under 10 percent,
    energy costs can have an impact on the survival
    of many small farms

12
Benefits of Energy Efficiency
  • Energy efficiency reduces consumption, which
    reduces bills.
  • Reduces the need for costly electric grid
    upgrades, keeps wholesale price of power down.
  • Energy efficiency promotes job creation.
  • Energy efficiency can reduce the high cost of
    renewable energy.

13
August 14,2003 Blackout
14
Program Delivery
  • The CI Program is currently delivered by the
    States seven natural gas and electric utilities.
  • In 2004, the CI program manager(s) for each of
    the program target segments will implement the
    program consistent with
  • program design
  • program eligibility requirements
  • equipment baselines and efficiency standards
  • incentive levels, for both the core program
    offerings and the specialized program paths

15
Areas of Focus
  • Pumps
  • Motors
  • Lighting
  • HVAC
  • Operating Procedures
  • Green Energy
  • Billing Errors

16
ECO 8 Raritan Millstone High Lift 8 and 9
Pump and Motor Replacement and VFD installation
  • Economics (with VFD installation and 14/15
    engine shut down savings from ECO 24) 
  • Implementation Costs 842,000
  • Annual Cost Savings 384,000
  • Simple Payback 2.2 years
  • Economics (with Pump and Motor Replacement only)
  • Implementation Costs 460,095
  • Annual Cost Savings 110,000
  • Simple Payback 4.2 years

17
Lighting Retrofit
  • Implementation Costs
  • 21,160
  • Annual Cost Savings
  • 7,900
  • Simple Payback
  • 2.7 years
  • Conversion of old T12 fixtures to T8 fixtures

18
Combined Heat Power Program
On July 27, 2004 the New Jersey Board of Public
Utilities approved the funding level of 5
million for the Office of Clean Energys Combined
Heat and Power (CHP) Program
19
CHP INCENTIVE PROGRAM TECHNOLOGY AND INCENTIVE
LEVELS
Eligible Technology Incentive(/Watt) (Up To 1 MW) Maximum of Project Cost Minimum System Size
Level 1 ?Fuel cells operating on non-renewable fuel 2.50/W 40 None
Level 2 ?Micro Turbines ?Internal Combustion Engines - Gas Turbines 1.00/W 30 None
Level 3 ?Heat Recovery or Other Mechanical Recovery Electric Generation Equipment 0.50/W 30 None
20
Contacts
  • mona.mosser_at_bpu.state.nj.us
  • www.bpu.state.nj.us
  • www.njcep.com
  • http//www.njsmartstartbuildings.com
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