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8/3/2019 GCEA Market Study Presentation - OKI (20120224)
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Energy Efficiency Market Studyfor Greater CincinnatiOKI Regional Planning Forum
February 24, 2012
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A genda
Energy A lliance Overview
The Market Study
Where A re We Now?
Call to A ction
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ENERGY ALLIANCE
OVERVIEW
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A bout Us
Non-profit 501c 3 organizationPrivate Public partnership
Energy Efficiency/Renewable EnergyServicesEducation/OutreachProject Management
FinancingMarket Focus
ResidentialNon-profit Commercial
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Mission Statement
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The Energy Alliances mission is to facilitate investment inenergy efficiency for homeowners, non-profit organizations, and commercial buildings owners through
outreach and education, project management, and financing solutions.
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Why Energy Efficiency?The First FuelJob creation/retentionCost savingsSelf-financing/ROIReduce dependence on foreign oilIncreased comfort
Preservation of building stockGreenhouse gas emission reductionImproved air quality
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Public/Private Partnership
Greater Cincinnati FoundationEnergy Efficiency & Conservation Block Grant Hamilton County, OH
City of Cincinnati, OH Kenton County, KY Boone County, KY Campbell County, KY City of Covington, KY City of Florence, KYDepartment of Energy Better BuildingsNeighborhood Program 1 of 41 recipients nationwide
$17m,3
-yr grant 7
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DOE Better BuildingsNeighborhood Program
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Residential Program DesignHome Performance with Energy Star Program
Customer Engagement Energy A lliance marketing Contractor marketing
Request assessment through web portal $50 energy assessment ($400 value)A udit delivered, entered into CompassCustomer invests in home energy upgrade 3 5% retrofit cash incentive 6.99% unsecured, 10-year loan, up to $20,000
(3 .99% in N. KY)Quality assurancePayment to contractor & customer
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Residential Case Study
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Job Cost $5,005
Energy Alliance Incentives 1751.75
Total $3,253
Energy Reduc tio n 30%Annual Savings $651
Tot al Savings 20 year life $13,000
Estim ated Payback 5 years
Type of Im prove m en ts Air Sealing, Duct Sealing, FloorAbove Unconditioned Space
With a 10 year loan, customer would pay $ 3 8/month totaling$45 3 for the year vs. projected annual utility savings of $651 =
$198 cash positive each year!
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Residential ProductionEnergy A ssessments: over 1,200Retrofits: 500
A verage retrofit cost: $8,400
Project financing: over $ 3 00,000approvedEconomic impact: $4.5m
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Customer, Heather CurlessCincinnati Resident andOwner of Greener Stock
The audit was very educational (and eyeopening). My primary interest in doing theupgrades were for comfort and energy/cost savings. Also as a green business owner, I felt it necessary to "walk the talk. ~ Heather Curless
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Commercial Program DesignMarket Focus Smaller non-profits Private schools/churches Public schools Municipal buildings
Program Design 50% cost match for energy assessments 15% cash incentives for retrofits Design-build & performance contracting Low-interest extended term loan (Jan. 2012)
$673 K projects completed, $7m pipeline
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St A ntoninus, Cincinnati
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Case Study: Mt. Washington UnitedMethodist Church Project
Mount Washington Methodist Church was the firstorganization that benefitted from the Energy A lliances building assessment expertise andreceived funding to support their $40,200 totalimprovement project.
Replaced:125 light fixtures with more T-8 fluorescent bulbs12 year old boiler with 96% efficient new boiler Exchanged outdated air conditioner equipment
Reduced:
A nnual lighting electricity usage by 3 5%A nnual heating use by 25%A nnual cooling use by 25%
Mount Washington UMC will save an average of $8,000 per year over the life of the installedequipment.
13
Children playing at MountWashington Methodist Church,December 15, 2010
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T HE MARKE T S TUD Y
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Efficiency is the CheapestEnergy Resource
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0
2
4
6
8
1 0
1 2
1 4
1 6
18
20
EnergyEfficiency
Wind Biomass Natural GasCombined
Cycle
PulverizedCoal*
Nuclear Coal IGCC Solar PV
R a n g e o
f L e v e l
i z e d
C o s t s
( c e n
t s p e r
k W h )
*N otes: All data from Lazard 2009. High-end range of advanced pulverized coal includes 90% carbon capture and compression. All data from Lazard (2009)
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Efficiency is Low Risk & HighReturn
Because efficiency is cheap, a switch to it fromgeneration sources produces a high returnBuilding sciences and technologies areadvanced, as a result energy savings can bepredicted reliably
16S ource: Ehrhardt-Martinez and Laitner 2008
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Four-County MarketCharacterization
Residential market = 140,000 households Single-family detached, owner-occupied,
income > 200% of poverty, in four-county area 20% or greater energy savings fromweatherization alone
Non-profit market = 470 buildings Over 25,000 square feet, Occupied or owned
by non-profits
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Loan terms analyzed
6.99% unsecured loan, 7 year term $400 in incentives from Duke Energy for
residential participantsFor 2012 and 201 3 only Direct measure incentive payment of 15%
from Energy A lliance & 10% from federal taxcredits (res. only)
Incentive of $150 for residential and 50% for non-profit toward energy assessment costs
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Residential Program
Average Household$4,3 50 in energy
improvements
A nnual payments $500-$800 (depending onincentive level)Positive cash flow in first
year of loanA verage annual positivecash flow of $500 over 18 years.
19
-100
0
100200
300
400500
600700
800
900
1,000
2 0 0 9
D o l l a r s
Year
2012 Participant
2015 Participant
2020 Participant
Av erage Annu al Net Cha n ge i n Cash Flow
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Nonprofit Program
Average Building$29,000 in energy
improvements~$1,000 positive cash
flow in first year A verage annual positivecash flow of $ 3 ,000 or
more over 17 years.
20
Av erage Annu al Net Cha n ge i n Cash Flow
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2 0 0 9
D o l l a r s
Year
2012 Participant
2015 Participant
2020 Participant
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Impacts Over 20 Years
Participants 69,000 households 460 non-profit buildings
In 203 0 alone: $59.6 million in bill savings, $ 3 7.2million in net consumer savings
21
I nv estme n ts (tho u sa nd s 2009$) 20 10 20 15 2020 202 5 2030New effic iency inves tments 529$ 14,270$ 16,724$ 19,716$ 2 3 ,05 3$
E n ergy Sa v i n gs
Electricity (MWh) 179 49,667 117,591 195,078 267,913
As % of forecasted sales 0.00% 0.49% 1.19% 2.00% 2.77%Natural Gas (MMBtu) 8 3 5 253 ,482 597,559 1,01 3 ,009 1,426,814
As % of forecasted sales 0.00% 1. 33 % 3 .04% 5.02% 6.89%Cost Sa v i n gs (tho u sa nd s 2009$)
Electricity 16$ 5,566$ 14,291$ 25,241$ 3 7,181$Natural Gas 17 3$ 3 ,3 17$ 7,896$ 14,702$ 22,42 3$
Total 189$ 8,882$ 22,187$ 3 9,944$ 59,604$Payme n ts (tho u sa nd s 2009$)
Loan Payments -$ 5,081$ 15,091$ 18,612$ 22, 3 75$
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Employment Impacts
Four-county impacts in20 3 0 ~3 15 net additional job
person-years $1 3 million in additional
wagesIncludes direct, indirectand induced
Construction/manufacturing: 100+net additional jobs for 20 years.
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0
2
4
6
8
10
12
14
16
0
50
100
150
200
250
300
350
400
2010 2015 2020 2025 2030
I n c o m e
( $ M M )
E m p l o y m e n t
Jobs Income
Sector Categories 20 12 20 15 2020 202 5 2030Extractive and Energy Sectors - 3 -14 - 3 0 -46 -59Construction and Manufacturing 122 105 111 119 126Trade and Services 33 3 6 85 166 251Net T otal Jobs 151 1 27 166 23 8 3 17
S ource: DEEPER modeling system
Net I nc reases i n Jobs a nd Wages
Job I mpa c ts by Se c tor
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Other Impacts
Environmental
In 20 3 0 alone, pollution reduction equivalent to energy use of 21,700 homes or 49,000 cars.
Property values Residential: although poorly considered in appraisals, homes
with efficiency improvements can have higher property valuesand improve value of neighboring homes Nonprofit commercial: correlation well established, lower
operating costs can result in better financing, lower premiums,higher occupancy rates, and lower turnover
23
Annual avoidedemissions
(metric tons) 20 10 20 15 2020 202 5 2030 Carbon Dioxide 172 46,660 110,47 3 18 3 ,270 249,817Nitrogen Oxides 0.100 64 151 250 3 41
Sulfur Dioxide 0.0023
06 725 1,203
1,640
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Targeted Marketing
Energy Savings Potential Participation Potential
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Contractor Partnerships
Reactive spaceconditioning and water heating replacement is
large marketSkilled contracting firmsmay help to convertthese transactions into
investments in morecomprehensive energyimprovements
25
Appl iance
Average lif etim e (year s)1
Reg ional Appl iance
sat ura tio n2
Estim ated annual
purcha ses3
G as Furnaces 23.68 70% 14,731Central air conditioners 19.01 75% 19,661Heat pumps 16.24 10% 3,069Hot water heater - electric 13 38% 14,567Hot water heater - gas 13 59% 22,6171. Based on DOE 2010 and DOE 2011a.
2. Based on Duke Energy Ohio 2009 and Duke Energy Kentucky 20093. Based on estimate of 498,342 households for the four-county region from
SimplyMap and the 2005-9 American Community Survey
Fo u r- c o un ty A pplia nc eRepla c eme n t Rates
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Related Policy Opportunities
Local energy use disclosure requirements In place in A ustin, TX and other citiesState savings targets & expanded utilityinvestment OH EE standard: 22% by 2025, utility programs KY some utility programs in place, considering
additional EE policy options
Federal proposed S AV
E A
ct Energy efficiency considered in property valueassessment
DOE Home Energy Score
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WHERE ARE WE NOW?
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What does it take to transformthis market?
A ccess to capitalMarket, educate, and demonstrate
Skilled workforceTechnological innovationGrow & develop local business
Supportive regulatory & policyinfrastructure
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What is our market doing now?
New financing programs withprivate sector investmentMulti-pronged branding &
marketing strategyCincinnati St. partnershipInvestment in web-based tools
Equipment financing,business loansData collection & reporting
29
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Call to A ction
Openness to rethinking this industryA ttract more private capitalExpand business model to engage morecontractorsCollaborate for stronger policyIncreased statewide market activityTell your neighbors, friends, and colleaguesto sign-up!
3 0
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Contact Info
A ndy Holzhauser, CP AExecutive Director Greater Cincinnati Energy A lliance
200 W. 4th St., Suite 600Cincinnati, OH 45202W: 51 3 .621.GCE A (423 2)M: 513 .3 09.7081www.greatercea.orgfacebook.com/greaterceatwitter.com/greatercea