Peachtree Rebate Report_January 2016

1

Peachtree Associates Group

Peachtree Associates Group LLC 312 Crosstown Road • Suite 203 Peachtree City, GA 30269 www.peachtreeassociates.us

January 2016

2016 Utility Rebate Update Prepared by: Dan O’Neal, Principal

2 © 2016 Peachtree Associates Group

Rebate Report Outline

What are rebates and incentives?

Latest information concerning utility rebates and incentives and trends impacting energy-efficiency.

What’s eligible for rebate and incentive programs?

Challenges pursuing rebates and incentives.

Peachtree solutions.

Summary and next steps.

Helping You Make the Business Case for Energy Efficiency Investments


Rebates and Incentives Defined

Rebates are a monetary reward for purchasing and installing high efficiency equipment.

Incentives are funds provided upfront to influence a decision to purchase and install high efficiency equipment vs. standard efficiency equipment.

When Utility companies are tasked with meeting the growing demand of energy consumption, to avoid costly infrastructure investment, companies are opting to investing in energy efficiency programs to promote energy conservation. The majority of rebate and incentive programs are funded by utility ratepayers, and charged as a line item on utility invoices for the purpose of promoting energy efficiency.


Types of Rebates and Incentives

Prescriptive are a monetary reward for purchasing and installing high efficiency equipment for a broad range of specific, predetermined measures.

Custom are funds provided upfront to influence a decision to purchase and install high efficiency equipment vs. standard efficiency equipment for projects that require site-specific assessment and cost analysis (not eligible normally for prescriptive rebates). Whole Building are rebates offered for deep energy retrofits (comprehensive, whole-building analysis, and construction process) that use integrative design standards to maximize energy savings.


Utility Rebate and Incentives Trends

From 2008-2012 there was 80% growth in total electric and gas energy efficiency program spending. During 2013 total spending grew to $7.7 billion, a 7% increase and 2014 is estimated to have grown by 10% to $8.5 billion. Electric focused programs remain over 85% of total expenditures.


Projected Growth in EE Spending (Gas & Electric)

EE expenditures increases to $10.0B in 2025 in the medium case scenario-

(low: $6.5B, higher $15.6B);

Equates to an average growth of 5%/yr in medium case scenario -

(low: 2%/yr, high: 8%/yr);

Electric programs continue to outpace gas programs based on overall opportunity in U.S.

Investments in Energy Efficiency (EE) Programs will grow:

Leveraging rebate programs in combination with a total energy and sustainability management

initiative remains the most effective approach

Projected Utility Customer Funding for Electric and Gas EE Programs


Projected Growth for Utility DSM* EE Programs

NOE spending has grown rapidly as states look to capture all cost-effective potential;

The West remains flat reflecting declining potential after significant initial efforts;

Gas programs increasing but require increases in prices to dramatically expand EE offerings.

Investments in Energy Efficiency (EE) Programs different by region and type:

* Demand Side Management (DSM) includes energy efficiency and demand response activities which act to reduce consumption.

Projected Customer Funding for Electric EE Programs (% of utility revenues)

Projected Natural Gas EE Program Spending (% of utility revenues)


State Energy Efficiency Trends

According to the American Council for an Energy-Efficient Economy, 2015 marked a tipping point for energy efficiency. State policies are increasingly encouraging utilities to invest in cost-effective efficiency, prompting them to adopt new business models that align their interests with those of customers. Utilities across the U.S. invested more than $7 billion in energy efficiency over the past year. The following chart assesses those states that have made the biggest impacts during the past year.


Different Structures Driving EE Programs

This map shows how the commercial lighting rebate climate has changed since 2009. As states and utilities struggle to meet electric demand, more and more energy comprehensive efficiency programs are being developed in order to help curb energy usage. Lamp rebates are averaging $8/per while fixture rebates range from $25 to $75/per.

Investments in Energy Efficiency (EE) Programs differing by structure:

Programs are shifting focus from product-based approaches (i.e. installing an efficient water heater) to more Comprehensive deep-savings approaches by conducting whole-building or system retrofits.

Segment-specific programs based on industry segment are becoming widespread (i.e.) multifamily;

Products such as lighting, HVAC and refrigeration continue to be key focuses in addition to water usage due to payback.

Currently 72% of the U.S. is covered by an active lighting rebate program

2009

2014


Variation in Climate Zones Impact EE Programs

Windows, insulation and water initiatives continue to grow in the West & Southwest as a means to temper cooling and ventilation needs plus shortages;

Electric EE programs tend to be lucrative in more humid areas due to the cooling stress on the grids with mechanical equipment;

Gas programs in the NOE are more numerous due to usage and seasonality swings.

Investments in Energy Efficiency (EE) Programs follow climates:

New sustainability practices are addressing the entire building envelope

in the design and development of properties and structures to create a

long-term value for stakeholders


Challenges Pursuing Rebates and Incentives

Programs can be complex and vary widely between states and each utility within each state;

Funding availability is limited and programs can be terminated at any time;

Application requirements are resource intensive;

Offerings change frequently based on new technologies and building trends.

Peachtree navigates the complexity of rebate and incentive processing so that you can focus on your core functions.


Typical Equipment Eligible

High-Efficiency Tank Type Water Heaters

Heating and Cooling Systems, Variable Frequency Drives and Controls

Energy-Efficient Window Systems & Insulation Measures

Instantaneous Gas Hot Water Heaters

Low-Flow Plumbing Fixtures

High-Efficient Gas-Fired Boilers

LED and Fluorescent Bulbs and Fixtures

Energy Star® Commercial Cooking Equipment


Peachtree Solutions

Identify available rebate opportunities based on approved projects;

Prioritize available rebate projects based on identified efficiency opportunities and financial return;

Complete all pre-approval requirements, manage, and track the entire application process through successful completion;

Receive payments, validate, and remit “net” checks;

Prepare reports detailing opportunities, status, and securements to-date.


Summary and Next Steps

Rebates and incentives can offset a significant portion of the incremental expense between standard efficient equipment and a higher efficiency option;

Each Utility and program has different standards, guidelines, deadlines, and requirements which vary widely between states and each utility within each state;

Peachtree can help secure available rebates and incentives that can cover as much as 35 percent or more of qualifying projects costs in all types of facilities including commercial, industrial, multifamily, healthcare among many others.

Let us show you what we can secure for you by being an expert on you!

15

A Partnership to Achieve Your Financial and Sustainability Goals

Peachtree Associates Group, Inc. 312 Crosstown Road • Suite 203 Peachtree City, GA 30269 www.peachtreeassociates.us Dan O’Neal (678) 994-9712 • [email protected]

Peachtree Associates Group

http://www.peachtreeassociates.com/

Documents

Peachtree Rebate Report_January 2016