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REVIEW OF ENERGY EFFICIENCY ACTIVITIES UNDER THE SA REES SCHEME Review of Energy Efficiency Activities under the SA REES Scheme for 2018-2020 March 2017 Final Report Prepared for the Department of State Development, South Australia Version V3.0 Prepared by Energy Efficient Strategies with Beletich Associates 0 100 200 300 400 500 600 700 800 900 1000 Average Watts Time Power 2 Power 1 Oven Light 2 Light 1

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Page 1: R E V I E W O F E N E R G Y E F F I C I E N C Y A C T I V ... · R E V I E W O F E N E R G Y E F F I C I E N C Y A C T I V I T I E S UNDER T H E S A R E E S S C H E M E R Final Report,

R E V I E W O F E N E R G Y E F F I C I E N C Y A C T I V I T I E S U N D E R T H E S A R E E S S C H E M E

R Final Report, Prepared for DSD by EES and BA – March 2017 i

Review of Energy Efficiency Activities under the SA REES Scheme for 2018-2020

March 2017

Final Report

Prepared for the

Department of State

Development, South

Australia

Version V3.0

Prepared by Energy Efficient Strategies

with Beletich Associates

0

100

200

300

400

500

600

700

800

900

1000

Ave

rage

Wat

ts

Time

Power 2

Power 1

Oven

Light 2

Light 1

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Review of Energy Efficiency Activities under the SA REES Scheme Report prepared for: Department of State Development, South Australia Report Authors: Lloyd Harrington, Energy Efficient Strategies Robert Foster, Energy Efficient Strategies Steven Beletich, Beletich Associates Final Report, 9 March 2017 Disclaimer:

The views, conclusions and recommendations expressed in this report are those of Energy Efficient Strategies. While reasonable efforts have been made to ensure that the contents of this publication are factually correct, Energy Efficient Strategies gives no warranty regarding its accuracy, completeness, currency or suitability for any particular purpose and to the extent permitted by law, does not accept any liability for loss or damages incurred as a result of reliance placed upon the content of this publication. This publication is provided on the basis that all persons accessing it undertake responsibility for assessing the relevance and accuracy of its content. The scope of work for this project and our expertise are in energy savings. Some activities may require installation of complex equipment. Some activities are undertaken in difficult circumstances. While the authors have taken due care to review and nominate specifications on safety, DSD and ESCOSA should seek advice from the appropriate SA Government Departments on the safety and EMC requirements that should apply to each activity, including products and their installation. The authors take no responsibility for operational decisions on issues regarding product safety and occupational health and safety matters within REES.

Project leaders: Energy Efficient Strategies, PO Box 515, Warragul VIC 3820 Telephone: (03) 5626 6333 www.energyefficient.com.au

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Executive Summary

The Retailer Energy Efficiency Scheme (REES) has been operating in South

Australia since 2009. REES is a South Australian Government initiative that

requires larger energy providers to help households and businesses to save

energy. This includes offering energy audits and energy efficiency activities such

as installing energy efficient light globes and stand-by power controllers.

The Department of State Development in South Australia (DSD) requested a

quotation to undertake a technical review of selected REES energy efficiency

activities for the period 2018 to 2020. The scope of works for this project was to

undertake the following tasks for the extended scheme:

1. Review selected currently approved activities under the REES and where

necessary propose amendments to the activities. The scope for review

included:

HC2A Install an Efficient New Reverse Cycle Air-conditioner (Non Ducted) ; Residential Only

HC2B Install an Efficient New Reverse Cycle Air-conditioner (Ducted) ; Residential Only

L1 Install CFL or LED General Purpose Lamp; Residential Only L2A,B Install LED Downlight Lamp Replacement or LED Downlight

Luminaire; Residential Only L2A - ELV Downlight Lamp Replacement L2B - LED Downlight Luminaire Replacement

APP1A Purchase high efficiency new refrigerator or refrigerator/freezer; Residential or Commercial

APP1D Purchase a high efficiency new clothes dryer APP1F Purchase a high efficiency new television; Residential or

Commercial APP2 Remove and Dispose of an Unwanted Refrigerator or Freezer;

Residential or Commercial

2. Assess selected new activities for inclusion in the scheme and where

considered viable determine applicable credits and propose suitable

specifications. The scope for review included:

IHD1 Install a device to allow engagement of household with energy usage and cost at time of use (In Home Display)

RDC1 Install High Efficiency Refrigerated Display Cabinets HC2C Replace and remove an existing inefficient air conditioner and

replace with an efficient new reverse cycle air conditioner APP1G Dispose of an old primary refrigerator/freezer and purchase an

energy efficient replacement refrigerator/freezer

During the consultation process it was agreed with DSD that the proposed new

activity HC2C could be integrated into the existing activity HC2A and the

proposed new activity APP1G could be integrated into the pre-existing activities

APP1A and APP2.

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UPDATE OF SELECTED EXISTING ACTIVITIES The following table summarises the key findings of this study in relation to recommended amendments to be undertaken to the existing activities covered within the scope of this study:

HC2A - Install an

Efficient New Reverse Cycle Air-conditioner (Non Ducted) ; Residential Only

Eligibility Requirements – Expanded to include:

Early retirement of a pre-existing AC – Priority group household only

Replacement of a pre-existing resistance electric heater

Replacement of any other type or a new installation (no pre-condition) Installed product requirements

Minimum ACOP increased from 3.75 to 4.0 Deemed Savings Format

Varied from a formula to a set of simplified lookup tables Changes to Baseline Assumptions

ACOP Raised from 3.5 to 3.7.

Min AEER requirement of 3.5 added Changes to Other Assumptions

Assumed product lifetime increased from 10 to 12 years

Free rider discount of 0.9 removed

HC2B - Install an

Efficient New Reverse Cycle Air-conditioner (Ducted) ; Residential Only

Eligibility Requirements – Expanded to include:

Replacement of a pre-existing fixed resistance electric heater – panel type

Replacement of a pre-existing fixed resistance electric heater – slab type

Replacement of any other type or a new installation (no pre-condition) Installed product requirements

Minimum ACOP increased from 3.5 to 3.7

Permit the installation of multi-split systems (previously not permitted) Deemed Savings Format

Varied from a formula to a set of simplified lookup tables Changes to Baseline Assumptions

ACOP Raised from 3.35 to 3.6

Min AEER requirement of 3.4 added Changes to Other Assumptions

Assumed product lifetime increased from 10 to 13 years

Free rider discount of 0.9 removed

L1 - Install CFL or

LED General Purpose Lamp; Residential Only

Eligibility Requirements – Revised as follows:

Upper limit in terms of lamp power removed

Lower limit of lamp power reduced to 25W Installed product requirements

LED technology only now eligible

Replacement lamp must have an equivalent light output to that of the replaced lamp

Warm white and cool white options must be available

“Directional” and “non-directional” are now defined terms

The IEA-E tier 2 standard was adopted for the “standard efficiency target”

The IEA-E tier 3 standard was adopted for the “high efficiency target” Deemed Savings Format

Two tiered table format retained but with separate tables for products with a minimum 10,000 hours life and a minimum 15,000 hour life

Changes to Baseline Assumptions

Assumptions regarding what type of lamp the incumbent lamp would have been replaced with have been amended as follows:

o Non-directional: 50% CFL/LED and 50% halogen. o Directional: 40% LED, 40% Incandescent and 20% CFL.

Changes to Other Assumptions

Additional credit for products with a high power factor was considered but ultimately rejected due to lack of evidence of savings actually realised.

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L2A,B - Install

LED Downlight Lamp Replacement or LED Downlight Luminaire; Residential Only

Eligibility Requirements – Unchanged Installed product requirements

Minimum efficacy requirement raised to 85 lumens/W

Minimum light output requirement lowered to 400 lumens, however-

Replacement lamp must have an equivalent light output to that of the replaced lamp

Minimum beam angle of 40 degrees specified

Warm white and cool white options must be available

The IEA-E tier 2 standard was adopted for the “standard efficiency target”

The IEA-E tier 3 standard was adopted for the “high efficiency target” Deemed Savings Format

Two tiered table format retained but with separate tables for products with a minimum 10,000 hours life and a minimum 15,000 hour life

Changes to Baseline Assumptions

Assumptions regarding what type of lamp the incumbent lamp would have been replaced with have been amended as follows:

o 70% LED and 30% halogen. Changes to Other Assumptions Additional credit for products with a high power factor was considered but ultimately rejected due to lack of evidence of savings actually realised.

APP1A - Purchase high efficiency new refrigerator or refrigerator/freezer; Residential or Commercial

Eligibility Requirements – Unchanged Installed product requirements - Unchanged Deemed Savings Format

Varied from a formula basis to a set of simplified lookup tables based on the star rating of the product and its gross (internal) volume.

Changes to Baseline Assumptions - Nil Changes to Other Assumptions

Free rider discount of 0.9 removed

APP1D - Purchase a high efficiency new clothes dryer

Eligibility Requirements – Unchanged Installed product requirements

Limit on the minimum rated dryer capacity (5kg) reduced to 3kg

Prohibition on the eligibility of combination washer-dryers removed Deemed Savings Format

Varied from a formula basis to a set of simplified lookup tables based on the star rating of the product and its rated capacity (kg).

Changes to Baseline Assumptions - Nil Changes to Other Assumptions

Assumed uses per annum increased from 60 to 78

Assumed product life increased from 10 to 12 years

Free rider discount of 0.9 removed

APP1F - Purchase a high efficiency new television; Residential or Commercial

Eligibility Requirements – Unchanged Installed product requirements

Minimum qualification threshold set at 7 stars

Energy cap of 242.2 kWh/year set (= 130cm TV rated at six stars) Deemed Savings Format

Varied from a formula basis to a set of simplified lookup tables based on the star rating of the product and its screen size (diagonal cm).

Changes to Baseline Assumptions

Fixed baseline set to 5.5 star performance level Changes to Other Assumptions

Free rider discount of 0.9 removed

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APP2 - Remove

and Dispose of an Unwanted Refrigerator or Freezer; Residential or Commercial

Eligibility Requirements – Unchanged Installed product requirements - Unchanged Deemed Savings Format

Credits revised to be a per unit removed basis

Categories amended to cover: o Primary or Secondary types o Pre 1996 (R12 refrigerant) and 1996 onwards o Single door <1150mm (groups 2 and 3) o Single door ≥ 1150mm (group 1) o Two door (groups 4, 5T, 5B and 5S) o Freezer Only (groups 6U, 6C and 7) o Priority group households or other than priority group

households Changes to Baseline Assumptions

Nil Changes to Other Assumptions

Free rider discount of 0.9 removed

Rebound discount factor of 0.98 removed

Compliance discount factor of 0.9 removed

PROPOSED NEW ACTIVITIES This study found that both of the proposed new activities (In home displays and refrigerated display cabinets) met the requirements of the ministerial protocol and as such could be included within the scheme starting 2018. The following table summarises the findings of this study into appropriate specifications to be used for these proposed new activities:

IHD1 – In Home

display Units (Residential Only)

Ministerial Protocol Alignment - Yes Eligibility Requirements

Aligns with VEET – All residential households eligible Installed product requirements

Matches requirements within the VEET scheme Deemed Savings Format

Simple credit per installation (6.1 GJ) Baseline Assumptions

Baseline assumes no IHD present Other Assumptions

Household electricity use equals SA state average (5145 kWh/annum)

Activities savings as a % of energy consumption equals 6.6% (based on VEET)

Assumed product lifetime equals 5 year

No other discounts applied

RDC1 - Install

High Efficiency Refrigerated Display Cabinets

Ministerial Protocol Alignment - Yes Eligibility Requirements

All commercial properties eligible

Remote units are excluded (i.e. only covers self-contained units) Installed product requirements

Generally matches requirements within other schemes

Minimum performance requirement equals the “High Efficiency” standard as prescribed in AS 1731.14

Deemed Savings Format

Simple credit per installation.

Credit varies according to the type of Refrigerated Display Cabinet Baseline Assumptions

Baseline assumes standard efficiency as defined in AS 1731.14 Other Assumptions

Assume 20% free riders

Assumed product lifetime equals 8 year

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Table of Contents

1 Project Overview 11

1.1 Background 11

1.2 Aim of this study 11

1.3 Scope of this Study 12

1.4 Project Methodology 13

1.5 Structure of this Report 16

1.6 Acknowledgements 16

2 Review of Pre-Existing Activities 17

2.1 Overview 17

2.2 HC2A: New Reverse Cycle Air-conditioner (Non Ducted) 18

2.3 HC2B: New Reverse Cycle Air-conditioner (Ducted) 29

2.4 L1: Install CFL or LED General Purpose Lamp 39

2.5 L2A and 2B: Install LED Downlight 49

2.6 APP1A: Purchase high efficiency new refrigerator/ freezer 59

2.7 APP1D: Purchase a high efficiency new clothes dryer 68

2.8 APP1F: Purchase a high efficiency new television 75

2.9 APP2: Remove and Dispose of an Unwanted Refrigerator or Freezer 86

3 Review of Proposed New Activities 94

3.1 Overview 94

3.2 IHD1: In Home display Units (Residential Only) 95

3.3 RDC1: Install High Efficiency Refrigerated Display Cabinets 100

3.4 APP1G: Remove and replace a Primary Refrigerator/Freezer 106

4 Adjustment Factors 107

4.1 Overview 107

4.2 Allowance for Transmission/Distribution System Losses 107

4.3 Enhanced credits for priority group households 109

5 Credit Calculation Method 110

5.1 Overview 110

5.2 Existing Activities 110

5.3 New Activities 125

6 Specifications – Updated / New 128

7 References 154

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List of Tables Table 1: Existing REES Activities 12 Table 2: Proposed New REES Activities 12 Table 3: Comparison of Various Energy Efficiency Schemes – install an efficient new room air-conditioner (REES – HC2A) 20 Table 4: Summary of qualification and baselines for HC2A 26 Table 5: Review of Underlying Key Assumptions (room space conditioners) 27 Table 6: Comparison of Various Energy Efficiency Schemes – Install a New Reverse Cycle Air-conditioner (Ducted) (REES – HC2B) 30 Table 7: Summary of qualification and baselines for HC2B 36 Table 8: Review of Underlying Key Assumptions (central space conditioners) 37 Table 9: CFL or LED General Purpose Lamp Replacement Activity 39 Table 10: Comparison of Various Energy Efficiency Schemes – Install CFL or LED General Purpose Lamp (REES – L1) 40 Table 11: Minimum lamp Efficacy threshold requirement by VEET Efficiency Category (Lumens/W) 43 Table 12: Current REES Assumptions – Replacement Non-directional Lamps 47 Table 13: Current REES Assumptions – Replacement Directional Lamps 47 Table 14: IEA - 4E efficacy tiers (November 2016) 47 Table 15: Review of Underlying Key Assumptions (General Purpose Lamps) 48 Table 16: Install an LED Downlight Activity 49 Table 17: Comparison of Various Energy Efficiency Schemes – Install LED Downlight (REES – 2A & 2B) 50 Table 18: IEA - 4E efficacy tiers (November 2016) 57 Table 19: Review of Underlying Key Assumptions (space conditioners) 58 Table 20: Comparison of Various Energy Efficiency Schemes – Purchase a high Efficiency Refrigerator or Refrigerator/Freezer (REES – APP1A) 60 Table 21: Review of Underlying Key Assumptions (Refrigerators) 67 Table 22: Comparison of Various Energy Efficiency Schemes – Purchase a high Efficiency New Clothes Dryer (REES – APP1D) 69 Table 23: Review of Underlying Key Assumptions (Refrigerators) 73 Table 24: Comparison of Various Energy Efficiency Schemes – Purchase a high Efficiency Television (REES – APP1F) 76 Table 25: Review of Underlying Key Assumptions (Televisions) 84 Table 26: CFL or LED General Purpose Lamp Replacement Activity 86 Table 27: Comparison of Various Energy Efficiency Schemes – Remove and Dispose of an Unwanted Refrigerator or Freezer (REES – APP2) 87 Table 28: Current Baseline Assumptions: Removal and Disposal of Unwanted Refrigerator/Freezer 91 Table 29: Review of Underlying Key Assumptions (Refrigerator/Freezer Removal) 92 Table 30: Alignment with REES General Principles – In Home Displays 95 Table 31: Activity Alignment with REES Specific Principles – In Home Displays 95 Table 32: Comparison of Various Energy Efficiency Schemes – Install a HE Refrigerated Display Cabinet 97 Table 33: Alignment with REES General Principles - High Efficiency RDCs 100 Table 34: Activity Alignment with REES Specific Principles – High Efficiency RDCs 100 Table 35: Comparison of Various Energy Efficiency Schemes – Install a HE Refrigerated Display Cabinet 102 Table 36: Factors Impacting on Realised Savings - RDCs 105 Table 37: Activity HC2A - Variables for calculation of default savings factors 111 Table 38: Activity HC2A – Normalised Energy Savings Tables (2 climates, 3 options) 111 Table 39: Activity HC2A - Variables for calculation of default savings factors 113

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Table 40: Activity HC2B – Normalised Energy Savings Tables (2 climates, 3 options) 114 Table 41: Default Saving Factors for Non-Directional Lamps 116 Table 42: Default Saving Factors for Directional Lamps 116 Table 43: Default saving factors for LED downlights 117 Table 44: Assumed values by Group for refrigerator savings tables 118 Table 45: Default savings factors in GJ for Group 1 refrigerators 119 Table 46: Default savings factors in GJ for Group 4, 5T, 5B and 5S refrigerators 119 Table 47: Default savings factors in GJ for clothes dryers 120 Table 48: Default savings factors in GJ for televisions 122 Table 49: Assumed gross volume of appliance by type and vintage 123 Table 50: Default savings factors in GJ for Dispose of an Unwanted Refrigerator or Freezer 124 Table 51: Default Savings Factors for In Home Display Units 125 Table 52: Default Savings Factors - Refrigerated Display Cabinets 127

List of Figures Figure 1: Schematic of energy savings from air conditioner early retirement ........... 24 Figure 2: Share of reverse cycle for electric heating in SA ...................................... 25 Figure 3: Distribution of refrigerator registration in Australia by 0.1 stars ................. 66 Figure 4: Share of television registrations by technology by year ............................ 81 Figure 5: Average screen size of television registrations by technology by year ...... 81 Figure 6: Average star rating index of television registrations by technology by year82 Figure 7: Average CEC (energy) of television registrations by technology by year .. 82 Figure 8: Distribution of Star Rating Index for all registrations by year ..................... 83 Figure 9: South Australian Distribution Loss Factors 2016-17 (AEMO 2016) ......... 108

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General Abbreviations ABC Automatic Brightness Control (Televisions) ABCB Australian Building Codes Board AC Air conditioner Activity A defined set of requirements and actions under REES that

result in energy savings, in accordance with the relevant specification

AEMO Australian Energy Market Operator AS Australian Standard BA Beletich and Associates CEC Comparative Energy Consumption (energy on a label) CER Clean Energy Regulator CFL Compact Fluorescent Light COP Coefficient of Performance (air conditioner heating) CRI Colour Rendering Index (lighting) DCCEE Department of Climate Change and Energy Efficiency Department (The) See DSD DMITRE Department for Manufacturing, Innovation, Trade, Resources

and Energy, South Australia (now DSD) DRET Department of Resources, Energy and Tourism (Federal) DSD Department of State Development, SA (formerly DMITRE) EER Energy Efficiency Ratio (air conditioner cooling) EES Energy Efficient Strategies P/L EEIS Energy Efficiency (Cost of Living) Improvement Scheme

(ACT) ESC Essential Services Commission of Victoria ESCOSA Essential Services Commission of South Australia ESS Energy Savings Scheme (NSW) GEMS Greenhouse and Energy Minimum Standards (Federal) GJ Giga-Joule (109 Joules) (energy for a specific fuel) GJe Equivalent Giga-Joules (energy for all fuels) GLS General Lighting Service (light bulb – also called general

purpose lamp) HE High Efficiency IHDU In Home Display Unit kWh Kilowatt hour MEPS Minimum Energy Performance Standards NATA National Association of Testing Authorities NZS New Zealand Standard PAEC Projected Annual Energy Consumption – see also CEC PF Power Factor QH Quartz Halogen RDC Refrigerated Display Cabinet RECS Renewable Energy Certificates (also called STCs) (CER) REES Retailer Energy Efficiency Scheme (South Australia) SPC Standby Power Controller boards STC Small Scale Technology Certificates (CER) VEET Victoria Energy Efficiency Target Scheme W Watt

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1 Project Overview

1.1 Background The REES scheme has been operating in South Australia since 2009. The Retailer Energy Efficiency Scheme (REES) is a South Australian Government initiative that requires larger energy providers to help households save energy. Its operation is governed by Part 4 of the Electricity (General) Regulations 2012 and Part 4 of the Gas Regulations 2012. Ahead of the REES continuing from 2018 for another stage, DSD is undertaking work to advise the Minister for Mineral Resources and Energy on the suite of energy efficiency activities that would apply for the period 1 January 2018 to 31 December 2020. In November 2016, Energy Efficient Strategies, with Beletich Associates, were commissioned by DSD to undertake a partial review into the scheme activities in preparation for its continuation in 2018.

1.2 Aim of this study There are two main aims In relation to this study as set out in the project brief (see Appendix 1). These are:

1. To assess where improvements could be made to energy saving factors

and specifications for selected existing activities including:

o Review and, where necessary, propose amendments to the minimum specification for the activity;

o Review and, where necessary propose amendments to the energy saving credits for the activity,

o Provide methodologies and/or deeming values for calculating the energy saving credits.

o Substantiate any proposed amendments to the minimum specifications or energy saving credits with detailed technical analysis.

2. To assess a range of proposed new activities for inclusion into the

approved scheme list, including activities to accelerate uptake of REES

activities in regional and remote SA, and in priority group household

including:

o Review available materials and formulate minimum specification for the activity;

o Review available materials and formulate energy saving credits for the activity,

o Develop methodologies and/or deeming values for calculating the energy saving credits.

o Substantiate the proposed minimum specifications and energy saving credits with detailed technical analysis.

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1.3 Scope of this Study

The scope of the activities covered in this study are summarised in Table 1

(existing activities) and Table 2 (proposed new activities). Blue text covers

additional requirements/directions in relation to specific activities as advised by

Inty Khan of DSD on 5 November 2016.

Table 1: Existing REES Activities

Code Activity Description

HC2A Install an Efficient New Reverse Cycle Air-conditioner (Non Ducted) ; Residential Only Provide simplified table based credits

HC2B Install an Efficient New Reverse Cycle Air-conditioner (Ducted) ; Residential Only Provide simplified table based credits

L1 Install CFL or LED General Purpose Lamp; Residential Only Review savings assumptions CFLs to be deleted

L2A,B Install LED Downlight Lamp Replacement or LED Downlight Luminaire; Residential Only L2A - ELV Downlight Lamp Replacement L2B - LED Downlight Luminaire Replacement Review savings assumptions

APP1A Purchase high efficiency new refrigerator or refrigerator/freezer; Residential or Commercial Provide simplified table based credits

APP1D Purchase a high efficiency new clothes dryer Review savings assumptions

APP1F Purchase a high efficiency new television; Residential or Commercial Provide simplified table based credits

APP2 Remove and Dispose of an Unwanted Refrigerator or Freezer; Residential or Commercial Provide simplified table based credits

Table 2: Proposed New REES Activities

Code Activity Description

IHD1 Install a device to allow engagement of household with energy usage and cost at time of use.

RDC1 Install High Efficiency Refrigerated Display Cabinets

HC2C* Replace and remove an existing inefficient air conditioner and replace with an efficient new reverse cycle air conditioner

APP1G Dispose of an old primary refrigerator/freezer and purchase an energy efficient replacement refrigerator/freezer

*Note: For simplicity and improved harmonisation, the proposed new activity HC2C has been integrated into the existing activity HC2A. For details relating to HC2C refer to sections relating to the review and upgrade of activity HC2A.

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1.4 Project Methodology

The methodology adopted for this study is summarised in the following list of six

tasks undertaken by the authors:

Task 1 – Review Phase – Existing Activities

Task 2 – Review Phase – Proposed New Activities

Task 3 – Review Phase – Adjustment Factors

Task 4 – Review Findings Presentation (“Workshop”)

Task 5 – Develop/Revise Methodologies for Calculating Credits

Task 6 – Develop/Revise Minimum Specifications

The scope of each of the above tasks is detailed in the following subsections.

1.4.1 Task 1 - Review Phase – Existing activities

The review of existing activities included the following 5 elements:

1. Review activity database

Interrogation of the database of REES activities over the past few years was

undertaken to help identify those in scope activities that exhibit particularly low

take up rates. Such activities within the project scope will be subject to closer

scrutiny to try and identify any factors that may be limiting the take up rate,

particularly any impediments that might relate to onerous specification and or

installation requirements.

2. Review of approaches taken by other jurisdictions

In addition to reviewing the current REES specifications, existing activity

specifications were compared to those applied in other jurisdictions (NSW,

Victoria and the ACT). Differences in approach were highlighted and an

assessment of the merits of the alternative approaches undertaken.

3. Opportunities for harmonisation

As part of the analysis to be undertaken in element 2 above, consideration was

given to options for greater harmonisation with other jurisdictions, particularly

where such harmonisation offers an improvement over current practice.

4. Review of assumptions

A review was undertaken of the assumptions used in the original 2014 analysis

(Review of Residential Energy Efficiency Activities under the SA REES Scheme).

Assumptions reviewed included those relating to:

The baseline settings

Potential activity performance levels

Other key assumptions underpinning the credit estimates such as:

o Additionality

o Product lifespan

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o Usage factors

o Rebound potential

o Compliance issues

Where warranted, updates to the baseline, performance levels and assumptions

have been proposed for inclusion into the algorithms used for calculating scheme

credits.

5. Review of specification provisions

A review of the current product and installation specifications as developed in the

original 2014 analysis (Review of Residential Energy Efficiency Activities under

the SA REES Scheme) was undertaken with particular attention to what is

current practice in other jurisdictions. Where warranted, updates to product and

installation specifications have been proposed.

1.4.2 Task 2 - Review Phase – Proposed New Activities

The review of new activities included 6 elements as follows:

1. Assess suitability of proposed new activities (ministerial protocol)

Each of the proposed new activities was assessed against the current ministerial

protocol to determine if the proposed activities meet the acceptance criteria.

2. Review of approaches taken by other jurisdictions

Where the proposed new activity is currently undertaken in other jurisdictions the

approach taken in those other jurisdictions was reviewed and their merits or

otherwise assessed in the context of the SA scheme.

3. Opportunities for harmonisation

As part of the analysis to be undertaken in element 2 above, consideration was

given to options for harmonisation with other jurisdictions, particularly where such

harmonisation also represents best practice.

4. Analyse and establish baseline performance

In order that a benefit (credit) can be determined in relation to a new activity it is

a requirement that a baseline performance for that activity first be established.

That is, the performance level that would be expected in the absence of the

particular intervention (activity) under REES. To this end a review of the available

material on current baselines, including baseline assumptions made in other

jurisdictions as applicable and factors such as impending regulatory change that

could impact on the baseline was undertaken.

5. Analyse expected activity performance.

In order that a benefit (credit) can be determined in relation to a new activity the

expected performance or performance range associated with the proposed

activity needs to be determined. The difference between the expected

performance level and the baseline level of performance then forms the basis for

estimating the appropriate level of credit for the particular activity. The analysis

takes into account the latest available market data on the range of and trends in

the expected performance levels from the particular activity. Performance

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assumptions adopted in other jurisdictions as applicable were also taken into

account. In addition the following factors were considered:

Additionality

Product lifespan

Usage factors

Energy service equivalence

Rebound potential

Compliance issues.

1.4.3 Task 3 – Review Phase – Adjustment Factors

For this study, two potential activity credit adjustment factors were considered for

inclusion in the REES scheme. These were:

Impacts of Electrical Network Transmission/Distribution System Losses

Impacts of priority group households.

In theory these factors would serve to increase the available credits available

under the scheme in particular circumstances (e.g. in regional areas of SA or in

relation to priority group households). Refer to Section 4 for the findings in

relation to these factors.

1.4.4 Task 4 - Review Findings Presentation (Workshop)

At the conclusion of the review stage (tasks 1, 2 and 3) a working document was

produced (effectively a draft version of this document) setting out the findings and

recommendations from that stage of the work. The document set out the findings

from the review process and made recommendations in relation to the

completion of the remaining stages of the project i.e. proposed methodologies for

calculating credits and proposed specifications or specification revisions.

Following a review of the working document by DSD and ESCOSA staff, a

workshop was conducted at the office of DSD on 31 January 2017. During the

workshop, participants worked through each activity, the technical background

and the draft recommendations. The feedback from that workshop on the

approach and recommendations was then incorporated into this report.

1.4.5 Task 5 - Develop/Revise Methodologies for Calculating Credits

Based on the findings from the review process (tasks 1, 2 and 3) and the

directions received from the workshop (task 4), the project team developed;

In the case of existing activities; proposed revisions as applicable to the

existing methodologies for calculating credits

In the case of new activities; proposed methods for calculating credits

In developing such methodologies regard was given to:

Current practice

Practice in other jurisdictions

Baseline assumptions

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Expected activity performance levels

Maximising the flexibility of the method to encompass differing

technologies.

1.4.6 Task 6 - Develop/Revise Minimum Specifications

Based on the findings from the review process (tasks 1, 2 and 3) and the

directions received from the workshop (task 4) the project team:

In the case of existing activities; proposed revisions as applicable to the

eligibility, product and installation specifications

In the case of new activities; proposed suitable eligibility, product and

installation specifications.

In developing such methodologies regard was given to:

Current practice

Practice in other jurisdictions

Relevant Standards and Codes

Maximising the flexibility of the activity by adopting performance rather

than prescriptive specifications wherever practical.

1.5 Structure of this Report This report comprises seven main sections as follows: 1 Project Overview 2 Review of Pre-Existing Activities 3 Review of Proposed New Activities 4 Adjustment Factors 5 Credit Calculation Method 6 Specifications – Updated / New 7 References

1.6 Acknowledgements This study was undertaken by Energy Efficient Strategies (Victoria) with important contributions from Beletich Associates (NSW). A number of organisations were contacted during the project and their cooperation and assistance is gratefully acknowledged. These include:

Ian McNicol of Sustainability Victoria;

Staff of DSD in South Australia.

Grant Cox of SA Power Networks

Staff of ESCOSA in South Australia. The authors would like to thank the project manager, Inty Khan of DSD, for his guidance and direction throughout the project.

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2 Review of Pre-Existing Activities

2.1 Overview This section includes a review of selected pre-existing activities currently available under the REES scheme. The activities nominated by DSD for review were:

HC2A: Install an Efficient New Reverse Cycle Air-conditioner (Non Ducted) ; Residential Only

HC2B: Install an Efficient New Reverse Cycle Air-conditioner (Ducted) ; Residential Only

L1: Install CFL or LED General Purpose Lamp; Residential Only

L2A: ELV Downlight Lamp Replacement

L2B: LED Downlight Luminaire Replacement

APP1A: Purchase high efficiency new refrigerator or refrigerator/freezer; Residential or Commercial

APP1D: Purchase a high efficiency new clothes dryer

APP1F: Purchase a high efficiency new television; Residential or Commercial

APP2: Remove and Dispose of an Unwanted Refrigerator or Freezer; Residential or Commercial

The review process undertaken separately for each of the above activities includes:

A review of the REES activity database

A review of the approaches to similar activities in other jurisdictions

An examination of opportunities for harmonisation

A review of the current assumptions that underlie the activities estimate of credit including baselines

A review of the current specification provisions. The comparison of current SA regulations with those current in other jurisdictions relied on the following publications that were understood to be current at the commencement of this project in November 2016:

SA – Electricity Act 1997 and Gas Act 1997 - The Retailer Energy Efficiency Scheme - Minimum Specifications for Energy Efficiency Activities as published in the South Australian Government Gazette as published on 18 December 2014 (P 6791 – 6845)

NSW – Energy Saving Scheme Rule of 2009 effective from 30 September 2016. Includes Energy Savings Scheme (Amendment No.1) Rule 2016 and Energy Savings Scheme (Amendment No.2) Rule 2016. Also, the draft ESS rule changes as published in November 2016.

VIC – Victorian Energy Efficient Target Regulations 2008 – Version no. 17 published April 2016 (more recent proposed changes to activities in VEET were also examined)

ACT - Energy Efficiency (Cost of Living) Improvement (Eligible Activities) Determination 2015 (No. 2) published in January 2015 and the draft Energy Efficiency (Cost of Living) Improvement (Eligible Activities) Determination 2016 expected to be published in January 2017.

The following subsections detail the outcomes from the review process.

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2.2 HC2A: New Reverse Cycle Air-conditioner (Non Ducted)

2.2.1 REVIEW OF ACTIVITY DATABASE

The available data from the REES activity database dating back to 2009 for this activity indicates that there has been no uptake of this activity since the commencement for the program. One theory regarding the poor uptake of this activity is that the formula based approach used to determine credits, whilst highly flexible and accurate, serves as a barrier to less technically adept stakeholders. An alternative approach using a simple tabular format for the credits is explored in this review.

2.2.2 REVIEW OF OTHER JURISDICTIONS, HARMONISATION

Table 3 summarises the current key parameters of the REES scheme as well as the schemes currently operating in the ACT (EEIS), NSW (ESS) and Victoria (VEET) for this activity. In the case of the ACT scheme the text in black reflects the current regulations and the text in red reflects changes that are expected to be introduced to the current regulations starting in 2017 (these changes were out for comment at the time of commencement of this study). Struck through black text under the ACT indicates that the proposed new regulations would supersede this particular aspect of the current regulations. Reviewing the various schemes with an eye to improved harmonisation with schemes outside SA (and improved specification generally), the following observations/recommendations are made: Eligibility Requirements: At present, there are effectively no pre-conditions in SA in relation to this activity. The installation can either be as a new unit or a replacement unit replacing any form of pre-existing heater. The baseline is calculated as the difference between a new average market product and the selected high efficiency product (i.e. the efficiency of any existing heater is not considered in the calculation, so the savings are necessarily modest). In the ACT, the draft new regulations provide differing credits that are tailored to the type of installation, in particular the type of equipment being replaced. Victoria uses a similar approach in relation to ducted gas heater installations and also the replacement of fixed electric heating systems. A new activity (HC2C) that specifically targets replacement of existing heating systems in priority group households with a reverse cycle non ducted air-conditioner has been proposed for inclusion in the REES scheme by DSD as part of this study. In the interests of harmonisation and simplicity it is recommended that rather than creating a new activity (i.e. HC2C) that this activity (HC2A) simply be modified to allow for a range of differing pre-conditions, as is the current proposal for adoption in the ACT. Depending on the type of pre-existing heater (or in some cases no pre-existing heater is assumed) a different baseline is assumed and a different REES Savings Factor would be applicable. Pre-condition or baseline options (based on those adopted in other jurisdictions) could include:

Replacement of a pre-existing air-conditioner (assumed to have stock average performance at the time of installation)

Replacement of a pre-existing fixed resistance electric heater

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Replacement of a pre-existing fixed non-ducted gas heater. This is an option in the ACT where they expect to achieve greenhouse gas intensities for electricity close to zero i.e. far superior to gas – however, this activity has limited application in other jurisdictions at this stage until the emissions intensity of electricity falls to be a comparable level to gas. During the workshop phase DSD considered this option but concluded that inclusion of this option was not warranted at this stage

Installation of a new reverse cycle air-conditioner (non-ducted) without pre-condition in relation to type of existing equipment if any. This could include the replacement of any other type of fixed heater or a new installation (no existing system is specified).

Recommendation (Eligibility Requirements): Combine existing activity HC2A with proposed new activity HC2C utilizing a range of pre-condition options (i.e. types of pre-existing heater units to be replaced). These could include:

Replacement (early retirement) of a pre-existing air-conditioner (stock average) in priority group households only

Replacement of a pre-existing fixed resistance electric heater

Installation of a new reverse cycle air-conditioner (non-ducted) without pre-condition in relation to type of existing equipment. (this option equates to current provisions of this activity)

Installed Product Requirements: Generally REES provisions align well with other jurisdictions except that most other jurisdictions now set a minimum performance standard of ACOP = 4.0 rather than 3.75. More discussion on this issue is included in the section on baselines below.

Recommendation (Installed Product Requirements): Review the current minimum performance requirement setting of 3.75 and unless otherwise indicated adopt a minimum ACOP requirement of 4.0.

Deemed Savings (Format): The current format used in the REES scheme is a formula based approach based on an average sized stock standard dwelling in South Australia which is very accurate in terms of accounting for the performance rating of the unit (ACOP) but does not account for different capacity units (assumes an average size of approximately 4.5 kW). The other jurisdictions use tables of credits based on various ranges of capacity and performance1. The “table” approach is understood to be favoured by a significant proportion of the third party contractors. DSD have also indicated a preference for the inclusion of table based deemed savings factors. These could be included as an addition to the formula or as a replacement, although retaining both could prove confusing. Tables could either be based on:

The installed units energy performance (Heating and Cooling) as applicable to an average sized dwelling (i.e. the current approach used in SA)

the installed units energy performance (Heating and Cooling) used as a multiplier to the units rated capacity (i.e. as per the NSW approach)

both the star rating and a set of predefined capacity ranges (as per the VIC and current ACT approach)

1 Note: The ACT in its draft legislation update for 2017 proposes to adopt a formula approach

that accounts for both the unit’s capacity and its performance level.

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Table 3: Comparison of Various Energy Efficiency Schemes – install an efficient new room air-conditioner (REES – HC2A)

Parameters EEIS ESS VEET REES

Included in scheme? Yes Yes Yes Yes

Working Title Install high efficiency space air-to-air heat pump (type of heater replaced not specified)

Install a high efficient air-conditioner Space air to air heat pump Install an efficient new reverse cycle air conditioner (non-ducted)

Activity Reference Number Part 2.5 To be Part 2.3 in the revised regs.

D4 Schedule 10 HC2A

Required pre-condition Residential Premise installing a high efficiency air to air heat pump (room space heater) with a minimum annual coefficient of performance (ACOP) of 4.0

No existing air conditioner is fixed in place that provides cooling and/or heating to the conditioned space

Installing a space air to air heat pump that complies with the criteria specified in Part A of Schedule 10.

Any residential household in South Australia where the installed product requirements and minimum installation requirements can be met. This can include new or replacement systems

Limitation on replacements Nil Nil Nil

Performance requirements Complies with MEPS is more efficient than the equipment it replaces; achieves a minimum (ACOP) of 4.0 has a minimum rated output heating capacity of 2 kW (H1 condition) Maximum output = 10kW

1. The unit must be assigned a minimum star rating for cooling and heating (3.0 - 10 stars depending on type)

1. Complies with MEPS 2. Minimum annual coefficient of performance (ACOP) of 4 3. Minimum rated output heating capacity of 2 kW at H1 condition 4. Is listed on the ESC register.

1. SRI of ≥ 3.0 stars for both heating and cooling under AS/NZS3823.2 (2013) (ACOP and AEER at rated capacity of ≥3.75 2. rated cooling output not exceeding 13kW. 3. Multi-split systems or water source heat pumps are not eligible.

Deemed savings ACOP = 4-4.49 2-3 kW 4.65 t CO2-e/unit 3.1-6.0kW 8.85 t CO2-e/unit >6.0kW 11.09 t CO2-e/unit ACOP = 4.5 - 4.99 2-3 kW 4.83 t CO2-e/unit 3.1-6.0kW 9.18 t CO2-e/unit >6.0kW 11.5 t CO2-e/unit ACOP = 5 - 5.49 2-3 kW 4.96 t CO2-e/unit 3.1-6.0kW 9.44 t CO2-e/unit >6.0kW 11.82 t CO2-e/unit ACOP = 5.5 + 2-3 kW 5.07 t CO2-e/unit 3.1-6.0kW 9.64 t CO2-e/unit >6.0kW 12.04 t CO2-e/unit Formula based on ACOP, capacity

Electricity Savings = Cooling Capacity × Cooling Energy Savings Factor + Heating Capacity × Heating Energy Savings Factor Heating and cooling Savings Factors vary by performance of replacement unit type (3 – 10 stars) and climate zone Credits for both heating and cooling provided (cooling only about 20 - 30% in BCA climate zones 5&6)

Equals Abatement Factor x Regional Factor (Unit = t CO2-e/unit installed) Abatement factor varies by: Capacity of unit:

2 – 2.99kW

3 – 6kW

>6 kW Performance of unit

ACOP = 4 – 4.49

ACOP = 4.5 – 4.99

ACOP = 5 – 5.49

ACOP = 5.5 or more Regional Factor (Location/Climate/Performance)

Metro = 1

Zone 6 = 57.8 – 193.1/MH – 8.4/MC (GJ) All other locations = 37.9 – 84.8/MH – 44.6/MC (GJ) Where: MH = Registered Heating ACOP MC = Registered Cooling AEER

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Parameters EEIS ESS VEET REES and assumed baseline efficiency for 3 cases:

Pre-existing resistance electric

Pre-existing gas

Any other type including no pre-existing

Additional small credit for units that meet H2

Other – varies 0.12 – 0.79

Regional Variations? Nil 4 sets of BCA climate zones Mild, Cold and Hot climates + Metro 2 climate zones - see above

Warranty Requirements Nil 5 years Nil Nil

Referenced Standards AS 3823 AS/NZS 3823.2 - 2013

AS/NZS 3823.2:2011. AS/NZS 3823.2:2013 AS/NZS3823.2 (2013) AS 60335.2.40 (installation standard)

Other requirements be completed and certified in accordance with the relevant code or codes of practice and other relevant legislation applying to the activity, including any licensing, registration, statutory approval, activity certification, health, safety, environmental or waste disposal requirements Is installed by a person who is familiar with the “Air Conditioning Residential Best Practice Guideline published by the Australian Institute of Refrigeration, Air Conditioning and Heating (AIRAH)

The activity must be performed or supervised by a licensed electrician

Persons installing heating/cooling systems should have regard to the “Air Conditioning Residential Best Practice Guideline” (2003) published by the Australian Institute of Refrigeration, Air Conditioning and Heating (AIRAH). All reasonable endeavours should be used to recycle removed systems

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As noted in the 2014 study (EES 2014), the current approach discourages the upsizing of air-conditioner units by having a flat credit rate unaffected by the unit’s capacity. This is a very simple system for third party contractors and unless there is an indication otherwise, the current basis remains appropriate.

Recommendation (Deemed Savings Format): Include tables of deemed savings factors based on the current calculation method (i.e. a single factor based on an average sized SA dwelling) as a replacement for the current formula based method. Separate tables for the two climate zones would need to be provided. Each table would need to be in the form of a matrix with a range of heating performances (ACOPs) along the vertical axis and a range of cooling performances (AEERs) along the horizontal axis. Separate sets of tables would also need to be provided for each different base case (pre-existing equipment type). Where a pre-existing equipment type has no cooling mode (e.g. a resistance electric heater) the cooling energy associated with the replacement air-conditioner will need to be treated as a negative credit (i.e. additional energy usage compared to the base case) Additional credits for H2 compliance (as proposed for application in the ACT) are not considered warranted in South Australia.

Regional Variations: All jurisdictions (except the ACT) apply some form of regional factor to the awarded credits based on the range of climate conditions encountered across the various states. The current approach in the REES scheme using BCA climate zones as the basis for adjusting credits is therefore recommended for retention. Potential additional regional factors relating to transmission losses in the electricity grid that are recommended for inclusion are covered separately in Section 4.

Recommendation (Regional Variations): Refer Section 4 of this report for recommendations.

2.2.3 REVIEW OF BASELINE ASSUMPTIONS

For the current activity, the savings are assessed as a function of the energy consumption of the new efficient appliance selected compared to the average appliance that would have been installed in the absence of REES (business as usual – market average). This is a simple calculation as the market average and the high efficiency system are both installed at the same time and the savings extend over the assumed life of the product. The proposed addition of a pre-existing appliance requires some additional calculations and assumptions. The two main new cases that could be considered are the installation of an efficient new reverse cycle air conditioner as a: • Replacement of a pre-existing air-conditioner (assume stock average

efficiency at the time of installation)

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• Replacement of a pre-existing fixed resistance electric heater (no change in efficiency over time)

There are several issues to consider and assumptions to be made for these two sub-cases. Replacement of an existing air conditioner (Priority group households only). At a minimum, there should be a requirement that the existing system is operating. There are two important parameters that impact on the energy savings in this case: the efficiency (or energy consumption) of the existing system and the assumed length of time that it would have operated in the absence of REES encouraging early replacement. Establishing a market average efficiency of an existing air conditioner is possible if the approximate age of the system is known, based on historical profiles of products sold. MEPS levels were introduced for single phase air conditioners in 2004 and these were ratcheted up several times up until 2012, so the average efficiency of the existing system will be quite sensitive to the assumed age. The second parameter to be assumed is the length of time that the old system would have continued to operate prior to replacement in the absence of REES. There is not a lot of data around to provide guidance on this aspect, but an optimistic assumption would be that the existing unit would have operated for a further four years (one third of the assumed revised lifetime – see below). For ANY additional savings to accrue from this activity, the existing heat pump system would have to be replaced before then end of its normal working life: i.e. that REES encourages early retirement of the existing system. The savings from replacement in this sub-activity can then be calculated as follows: Current savings available for activity HC2A (shown as “A” in Figure 1) Plus Savings for x years operation times the difference between market average new efficiency now and the efficiency of the existing system (shown as “B” in Figure 1).

In reality, the baseline energy consumption for an average new product will be declining over time. However, programs like REES do not generally need to take this into account as the comparison is between an average new product installed now and a high efficiency product installed now.

In the case of early retirement, the savings are quite sensitive to the assumed time that the old system would continue to operate. Four years may be quite optimistic (generous). The other complication is that when the old system is replaced, the baseline energy consumption (average market new energy) in four years is likely to be slightly lower that the current baseline assumption. This would appear as a small negative saving from the time of replacement that would need to come off the energy savings from early retirement (“C” in Figure 1). As the systems are installed at different times, the savings are not directly comparable. But this can be ignored if it is assumed that the base case just replaces each new system at the end of its life with a market average new system. So if 4 years is assumed as the average period of early retirement encouraged by this activity, discounting this to 3 years may be prudent to account for some free riders and to take into account the natural improvement in baseline energy consumption that would occur during this period.

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Figure 1: Schematic of energy savings from air conditioner early retirement

Other schemes such as VEET and EEIS do not count any savings from the difference in efficiency between the old air conditioner and the new one when a system is replaced with like for like. The assumption under those schemes is that the householder was going to replace the old system in any case with an average market new system and that the scheme only provides incentive to install a high efficiency system. Under this proposed REES activity variant, there is a risk of free riders if additional savings based on early retirement is assumed. That is, this new activity for priority group households saves additional energy where householders are encouraged to retire early their existing air conditioner. Replacement of an existing fixed resistance electric heater: As a minimum, there should be a requirement that the existing system is operating. These types of systems are likely to be fairly uncommon, but they do exist. This case is much simpler as it would be reasonable to assume that the existing system would continue to operate indefinitely and may never be replaced with a reverse cycle air conditioner in the absence of REES. Therefore the efficiency difference could be assumed to remain over the life of the new product. However, all states, including South Australia, have shown a long term trend away from electric resistance heating to reverse cycle air conditioners over the past 50 years, so there is some natural migration from electric resistance to reverse cycle within the base case (see Figure 2). Given that this is a desirable activity and the rate of change is slow, these “free riders” would have been adequately captured by the existing overall free riders assumption. For many of the other activities under review in this report the free rider discount is recommended for removal, however, in this case it may be necessary to build in a small factor for this specific sub-activity.

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Figure 2: Share of reverse cycle for electric heating in SA

The savings from replacement in this sub-activity can then be calculated as follows: ACOP of the new system minus 1 (COP of a resistance electric) over the expected lifetime. Install a new efficient air conditioner: The current qualification for HC2A is 2.5 stars or an ACOP of 3.5 – this applies to both heating and cooling. This is weaker than the original REES scheme (3 stars = ACOP 3.75) and weaker than the EES recommended level in the 2014 review (also 3 stars). However, the energy savings formula in the 2014 revision was as recommended by EES, which uses a baseline ACOP of 2.5 stars (ACOP 3.5). This means that some products that now qualify under REES could achieve almost no savings under the savings formula. The average ACOP of non-ducted air conditioners <10kW registered in 2014 to 2016 was 3.84. This is up from an ACOP of about 3.6 in 2011 and 2012. This suggests that the savings baseline could be revised upwards somewhat. Currently a common star rating for heating and cooling or a common AEER/ACOP is specified as the REES qualification criteria. As cooling is an important component for South Australia, a cooling requirement should be retained in REES (even though this is not generally specified in other states). However there is an inherent difference in heating and cooling performance (average difference of all registered non-ducted models is about 0.15 to 0.2). The baseline in Victoria and ACT is now an ACOP of 4.0 and NSW is an ACOP of 3.75 (3 stars). The average ACOP of all non-ducted reverse cycle systems under 10kW registered in 2015 and 2016 is 3.85 and there were 135 models registered in those years with an ACOP of 4.0 or more (out of a total of 390 registrations in those years). On this basis the minimum specifications for non-ducted air conditioners should be increased to an ACOP of 4.0 (equivalent to 3.5 stars) but a requirement of AEER of 3.75 (3.0 stars) for cooling should be separately specified. This will bring REES into closer alignment with other states (even though for practical purposes they are already fairly close due to the heating/cooling differential for most products).

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Table 4: Summary of qualification and baselines for HC2A

Scheme version Qualify stars

Qualify ACOP

Baseline ACOP

Original REES 3.0 3.75 3.5

EES review 2014 recommend 3.0 3.75 3.5

REES 2014 actual 2.5 3.5 3.5

Average new 2014-2016 3.84

VEET and EEIS updated 3.5 4.0 3.3-4.3/3.7

EES review 2016 recommend 3.0/3.5 3.75/4.0 3.5/3.7 Notes: All REES requirements apply to heating and cooling. Average new data based on 657 non-ducted registrations in the range 2kW to 10kW from 2014 to Dec 2016. Average AEER was 3.67 for the same models. VEET have three baselines depending on the product size. EEIS discount the ACOP of 3.7 for cold climate performance degradation, but this will generally not apply in South Australia.

Draft Recommendation (Baseline Assumptions): Change assumed lifetime to 12 years to align with Victoria and ACT Update baseline of average new market in 2017 based on latest data – ACOP = 3.7 and AEER of 3.5 Update qualification requirements to be AEER ≥ 3.75 (3.0 stars) and ACOP ≥ 4.0 (3.5 stars) Add new baselines where specified existing equipment is replaced: • Existing AC - average ACOP from 2008 and assume old system operates for

3 years before replacement with market average new AC. • Existing resistance electric – average ACOP of 1 over lifetime

2.2.4 REVIEW OF ACTIVITY PERFORMANCE ASSUMPTIONS

At present, performance assumptions primarily relate to the units AEER and ACOP rating. This remains the basis upon which these units are rated under AS/NZS3823.2:2013 and this is also the basis upon which all other jurisdictions estimate expected energy savings. The current REES formula based approach allows for any level of performance to be assumed. In the VEET and current EEIS schemes a range of ACOP values are assumed from 4.0 to > 5.5. In the ESS scheme the range extends up to 10 stars (ACOP = 7.25) noting that the current highest performing product on the market is 7 stars (ACOP = 5.75). DSD’s desire is to adopt simplified tabular formats rather than formula based methods as a means for defining the available savings credits. Performance options based on GEMS star ratings are therefore proposed. ACOP or star rating bins are usually defined in terms of the lowest value in each bin (e.g. products which lie in the SRI range 4.00 to 4.49 are defined as being in the “4 star bin”). One option would be to assume all products within that bin just meet the minimum standard (i.e. 4.00 stars), this would be a conservative estimate of actual benefits as some products would exceed 4.00 stars. Alternatively, it could be assumed that all products within a bin met the average for that bin (e.g. 4 star bin = 4.25 stars), this approach is likely to be somewhat optimistic in terms of the actual benefits as the majority of products in any one star rating bin are known to lie within the lowest quartile of that bin, at least for some products. Note that when VEET

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define ACOP bins for heating (e.g. 4.00 to 4.49), they calculate the savings for that bin on the lowest ACOP in the bin range (i.e. 4.00) for all products in that bin (see Figure 3 for refrigerators).

Recommendation (Activity Performance Assumptions) :

Continue to define performance in terms of a product’s ACOP (efficiency) as the primary measure, but organise values into a table using the star rating to define the primary ACOP break points and bins (as per the ESS scheme).

In accord with directions received from DSD, assumed levels of performance should be set at the average of the bin (somewhat optimistic) rather than the lowest possible value within the bin (conservative)

2.2.5 REVIEW OF KEY ASSUMPTIONS UNDERPINNING CREDIT ESTIMATES

The following table details the current key assumptions used in estimating the available credits for this pre-existing activity. The basis for these assumptions was detailed in the report Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014). The left hand column details the parameter under consideration, the centre column details the current setting applied in the REES scheme and the right hand column provides comment on the current settings (with reference to settings used in other jurisdictions as applicable). Where no change is proposed to the current assumption the comment column includes the words Remains valid. Where a change is considered to be warranted to the current settings the comment column includes the words Recommended Change.

Table 5: Review of Underlying Key Assumptions (room space conditioners)

Parameter Value Comment

Energy Service Levels Space Heating and Cooling service levels including heating and cooling availability, time of use, zoning constraint and thermostat settings

State Weighted Average

Remains valid (see note 1 below)

Building shell performance State Weighted Average

Remains valid (see note 1 below)

Base Case Assumptions

Building Stock State Weighted Average

Remains valid (see note 1 below)

Climate Zones BCA 4&5 and BCA 6

Remains valid (see note 1 below)

Weather file type AccuRate TMY Remains valid (see note 1 below)

Existing Equipment Performance

Current assumption =Market average :

ACOP=3.5 AEER=3.25

Recommended Change: Need to expand to include the proposed range of pre-existing equipment types i.e. Pre-existing AC = stock average AC Resistance electric = COP = 1

Update qualification to AEER ≥ 3.75 and ACOP ≥ 4.0

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Parameter Value Comment Lifetime and persistence assumptions

Product lifetime 10 years 10 years matches value used in NSW however Vic and ACT use 12 years which is considered more realistic. Recommended Change: increase to 12 years (will increase credits by 20%)

Product persistence Same as lifetime

See above

Adjustment Factors

Additionality discount factor 1.0 Remains valid: Matches values used in Vic and ACT (NSW unknown)

Free rider discount 0.90 Vic and ACT use 1.0 (NSW unknown) Recommended Change: increase to 1.0 (see note 2)

Rebound discount factor 1.00 Remains valid: Matches values used in Vic and ACT (NSW unknown)

Compliance discount factor 1.00 Remains valid: Matches values used in Vic and ACT (NSW unknown)

Total Discount factor 0.90 Vic and ACT use 1.0 (NSW unknown) Recommended Change: increase to 1.0 (will increase credits by 11%) (see note 2)

Climatic Adjustments

Adjustments required? 2 climates Remains valid (see note 1 below)

Note 1: Modelling as originally applied in the study Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014) is considered to remain valid. Note 2: In assessing credits to be awarded the VEET scheme assumes a value of 1, however, in assessing expected state-wide impacts on greenhouse gas emissions for greenhouse accounting purposes a lesser value is applied. It is understood that DSD have a preference to harmonise with the VEET/EEIS schemes in this respect.

2.2.6 REVIEW OF SPECIFICATION / INSTALLATION PROVISIONS

The specifications in relation to this activity are simple and straight forward requiring no change except as per the following recommendations in relation to the integration of provisions in relation to the replacement of pre-existing heaters.

Recommendation (Specification / Installation Provisions): Augment current specifications to include:

Details of how a pre-existing heater qualifies for replacement under one of the available categories (e.g. what constitutes a fixed electric resistance heater)

Details of required decommissioning and disposal of a qualifying pre-existing heater.

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2.3 HC2B: New Reverse Cycle Air-conditioner (Ducted)

2.3.1 REVIEW OF ACTIVITY DATABASE

The available data from the REES activity database dating back to 2009 for this activity indicates that there has been no uptake of this activity since the commencement for the program. One theory regarding the poor uptake of this activity is that the formula based approach used to determine credits whilst highly flexible and accurate serves as a barrier to less technically adept stakeholders. An alternative approach using a simple tabular format for the credits or possibly a simple register of approved products is explored in this review.

2.3.2 REVIEW OF OTHER JURISDICTIONS, HARMONISATION

Table 6 summarises the current key parameters of the REES scheme as well as the schemes currently operating in the ACT (EEIS), NSW (ESS) and Victoria (VEET) for this activity. In the case of the ACT scheme the text in black reflects the current regulations and the text in red reflects changes expected to be introduced to the current regulations starting in 2017 (these changes were out for comment at the time of commencement of this study). Struck through black text under the ACT indicates that the proposed new regulations would supersede this particular aspect of the current regulations. Reviewing the various schemes with an eye to improved harmonisation with schemes outside SA (and improved specification generally) the following observations/recommendations are made: Eligibility Requirements: At present, there are effectively no pre-conditions in SA in relation to this activity. The installation can either be as a new unit or a replacement unit replacing any form of pre-existing heater. In the ACT the draft new regulations provide differing credits that are tailored to the type of installation, in particular the type of equipment being replaced. Victoria incorporates two separate schedules; Schedule 7 relates to the replacement of a pre-existing ducted air to air heat pump and Schedule 8 relates to the replacement of a central electric resistance heater (serving more than 100m2). Depending on the type of pre-existing heater (or in some cases no pre-existing heater is assumed) a different baseline is assumed and a different Savings Factors are applicable under the VEET and draft EEIS schemes. Pre-condition or baseline options (based on those adopted in other jurisdictions) include:

Replacement of a pre-existing ducted air-conditioner (VEET requires an existing system to be present to qualify (no existing system is not eligible) but only gives a baseline credit from market average new)

Replacement of a pre-existing fixed resistance electric heater – panel type

Replacement of a pre-existing fixed resistance electric heater – slab type

Replacement of a pre-existing fixed ducted gas heater (ACT only2)

Replacement of any other type of fixed heater or a new installation.

2 This option is only considered useful in the ACT context where it is assumed that the

greenhouse gas intensity of Electricity will decline to almost zero over the next 5 or so years.

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Table 6: Comparison of Various Energy Efficiency Schemes – Install a New Reverse Cycle Air-conditioner (Ducted) (REES – HC2B)

Parameters EEIS ESS VEET REES

Included in scheme? Yes Yes Yes Yes

Working Title Install a ducted air-to-air heat pump to replace an existing ducted air-to-air heat pump Install a specified high efficiency central electric space heater

Install a high efficient air-conditioner High efficiency ducted air to air heat pump replacing a ducted air to air heat pump

Install an Efficient new Reverse Cycle Air Conditioner (Ducted); Residential Only

Activity Reference Number Part 2.3 To be Part 2.1 in the revised regs.

D4 Schedule 7 HC2B

Required pre-condition 1. Residential premises or eligible business premises 2. decommissioning an existing ducted air-to-air heat pump and installing an equivalent higher efficiency air to air heat pump -fixed electric resistance central space heater (various types) that is hard wired and services more than 100m

2 or

- a ducted, flued gas heater or flued gas wall furnace, excluding portable or unflued gas heaters or - no pre-existing heater be undertaken together with the activity in Part 2.5 i.e. duct replacement

No existing air conditioner is fixed in place that provides cooling and/or heating to the conditioned space

Decommissioning a ducted air to air heat pump and installing a product that complies with the criteria specified in Part A of Schedule 7

Any residential household in South Australia where the installed product requirements and minimum installation requirements can be met. This can include new or replacement systems

Limitation on replacements Nil Nil

Performance requirements Minimum annual coefficient of performance (ACOP) of 3.7 Minimum rated output heating capacity of 10 kW at H1 condition May be a ducted, non-ducted or a multi-split system that is

The unit must be assigned a minimum star rating for cooling and heating (3.0 - 10 stars depending on type) (EES note: ducted units do not generally carry a star rating so this requirement cannot normally be met)

1. Minimum annual coefficient of performance (ACOP) of 3.7 2. Minimum rated output heating capacity of 10 kW at H1 condition 3. Is listed on the ESC register.

The ducted reverse cycle air conditioner must achieve a rated heating ACOP and a rated cooling AEER of ≥3.5 at rated capacity under AS/NZS3823.2 (2013)

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Parameters EEIS ESS VEET REES

capable of heating an area that is comparable to the system being replaced – different credits apply according to the type installed.

Deemed savings ACOP = 3.7-3.9 10-18 kW 0.63 t CO2-e/unit 18.1-28kW 0.8 t CO2-e/unit >28kW 1.0 t CO2-e/unit ACOP = 4 - 4.29 10-18 kW 1.66 t CO2-e/unit 18.1-28kW 2.1 t CO2-e/unit >28kW 2.63 t CO2-e/unit ACOP = 4.3 - 4.59 10-18 kW 2.45 t CO2-e/unit 18.1-28kW 3.11 t CO2-e/unit >28kW 3.90 t CO2-e/unit ACOP = 4.6 + 10-18 kW 3.09 t CO2-e/unit 18.1-28kW 3.92 t CO2-e/unit >28kW 4.91 t CO2-e/unit Formula based on ACOP and capacity and assumed baseline efficiency for 4 cases:

Pre-existing resistance electric panel type

Pre-existing resistance floor slab type

Pre-existing gas ducted

Any other type including no pre-existing

Additional small credit for units that meet H2

Electricity Savings = Cooling Capacity × Cooling Energy Savings Factor + Heating Capacity × Heating Energy Savings Factor Heating and cooling Savings Factors vary by performance of replacement unit type (3 – 10 stars) and climate zone Credits for both heating and cooling provided (cooling only about 20 - 30% in BCA climate zones 5&6)

Equals Abatement Factor x Regional Factor (Unit = t CO2-e/unit installed) Abatement factor varies by: Capacity of unit:

10 – 18kW

18.1 – 28kW

>28 kW Performance of unit

ACOP = 3.7 – 3.99

ACOP = 4.0 – 4.29

ACOP = 4.3 – 4.59

ACOP = 4.6 or more Regional Factor (Location/Climate)

Metro = 1

Other – varies 0.75 – 1.06 Performance of replacement unit:

Zone 6 = 140.6 – 450.6/MH – 19.6MC (GJ) All other locations = 91.6 – 197.8/MH – 104.0MC (GJ) Where: MH = Registered Heating ACOP MC = Registered Cooling AEER

Regional Variations? Nil 4 sets of BCA climate zones Mild, Cold and Hot climates + Metro

2 climate zones - see above

Warranty Requirements Nil 5 Years Nil Nil

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Parameters EEIS ESS VEET REES Referenced Standards AS 3823

Should be AS/NZS 3823.2 - 2013 is latest edition

AS/NZS 3823.2:2011. AS/NZS 3823.1.2:2012 AS/NZS3823.2 (2013) AS 60335.2.40 (installation standard)

Other requirements Be completed and certified in accordance with the relevant code or codes of practice and other relevant legislation applying to the activity, including any licensing, registration, statutory approval, activity certification, health, safety, environmental or waste disposal requirements installed by a person who is familiar with the “Air Conditioning Residential Best Practice Guideline has scheduled substances in the heat pump or refrigeration unit destroyed

The activity must be performed or supervised by a licensed electrician.

Multi-split systems or water source heat pumps are not eligible.

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Unlike for room type (non-ducted) reverse cycle air-conditioners (HC2A), the scope of works for this project did not include a specific requirement to expand this activity (HC2B) to also target replacement of specific types of existing heating systems as is the case in Victoria and soon to be the case in the ACT. Nevertheless, in the interest of better harmonisation and better matching of awarded credit to actual saving such an approach would appear warranted. It is also notable in the ACTs proposed revisions to their regulations that the option of installing multi-split systems in lieu of ducted systems is also permitted. Because these systems suffer no duct losses the savings associated with these types of reverse cycle air-conditioners typically exceed those for ducted systems. We would generally recommend against a specific activity that targets existing ducted air conditioners and replaces them with a new high efficiency ducted air conditioner. The only savings over and above the current REES activity definition would arise only if the existing air conditioner was to operate for several more years after the replacement and this is difficult to establish with any certainty (i.e. the assumption would have to be that REES encourages early retirement). Central systems represent a large investment and any incentive from REES is unlikely to encourage early retirement of an existing system to any significant extent (in contrast to room air conditioners). Replacement of existing ducted air conditioners is adequately covered by the existing provisions.

Recommendation (Eligibility Requirements): Expand the scope of this activity to also target replacement of specific types of pre-existing central heater systems such as:

Replacement of a pre-existing fixed resistance electric heater – panel type

Replacement of a pre-existing fixed resistance electric heater – slab type

Replacement of any other type of central heater or a new installation (i.e. the existing REES provision – this would cover replacement of an existing ducted AC system) – this is effectively the existing REES specification.

Installed Product Requirements: Generally REES provisions align well with other jurisdictions except that most other jurisdictions set a minimum performance standard of ACOP = 3.7 (3.75 or 3 star minimum in NSW) rather than 3.5 under the REES scheme, noting that this applies to both heating and cooling, so the REES specification is very similar in practical terms.

Recommendation (Installed Product Requirements): Review the minimum performance requirement setting of 3.5 and unless otherwise indicated adopt a minimum ACOP requirement of 3.7 in line with other jurisdictions. Retain the current AEER requirement of 3.5. Expand the scope of installed product to permit non-ducted / multi-split reverse cycle air-conditioners that can provide an equivalent energy service to a ducted system. Typically non ducted systems would offer a minimum of 15% greater savings compared to ducted systems of the same ACOP rating. Where a multi-split system is replacing a pre-existing ducted system that is to be decommissioned, the outlets of that decommissioned system must be effectively sealed at ceiling level.

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Deemed Savings (Format): The current format used in the REES scheme is a formula based approach based on an average sized stock standard dwelling in South Australia, which is very accurate in terms of accounting for the performance rating of the unit (ACOP) but does not account for different capacity units (assumes an average size of approximately 11 kW). The other jurisdictions use tables of credits based on various ranges of capacity and performance3. The “table” approach is understood to be favoured by a significant proportion of the third party contractors. DSD have also indicated a preference for the inclusion of table based deemed savings factors. These could be included as an addition to the formula or as a replacement, although retaining both could prove confusing. Tables could either be based on:

the installed units energy performance (Heating and Cooling) as applicable to an average sized dwelling (i.e. the current approach used in SA)

the installed units energy performance (Heating and Cooling) used as a multiplier to the units rated capacity (i.e. as per the NSW approach)

both the ACOP (star rating) and a set of predefined capacity ranges (as per the VIC and current ACT approach) (note that most ducted systems do not carry a star rating, but ACOP levels could be set to be equivalent to 0.5 star break points for comparability).

As noted in the 2014 study (EES 2014), the current approach discourages the upsizing of air-conditioner units by having a flat credit rate unaffected by the unit’s capacity. This is a very simple system for third party contractors and unless there is an indication otherwise, the current basis remains appropriate.

Recommendation (Deemed Savings Format):

Include tables of deemed savings factors based on the current calculation method (i.e. a single factor based on an average sized SA dwelling) as a replacement for the current formula based method.

A separate table for each of the two climate zones would need to be provided.

Each table would need to be in the form of a matrix with a range of heating performances (ACOPs) along the vertical axis and a range of cooling performances (AEERs) along the horizontal axis.

Separate sets of tables would also need to be provided for each different base case (pre-existing equipment type) to be included.

Where a pre-existing equipment type has no cooling mode (e.g. a resistance electric heater) the cooling energy associated with the replacement air-conditioner will need to be treated as a negative credit (i.e. additional energy usage compared to the base case).

Regional Variations: All jurisdictions (except the ACT) apply some form of regional factor to the awarded credits based on the range of climate conditions encountered across the various states. The current approach in the REES scheme using BCA climate zones as the basis for adjusting credits is therefore recommended for retention. Potential additional regional factors relating to transmission losses in the electricity grid are covered separately in Section 4.

3 Note: The ACT in its draft legislation update for 2017 propose adoption of a formula

approach that accounts for both the unit’s capacity and its performance level.

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Recommendation (Regional Variations): Refer Section 4 of this report for recommendations.

2.3.3 REVIEW OF BASELINE ASSUMPTIONS

For this type of activity, the savings are assessed as a function of the energy consumption of the new efficient appliance selected compared to the pre-existing appliance, or where no pre-existing appliance is identified, the average appliance that would have been installed in the absence of REES (business as usual – market average). The current baseline assumptions relating to the “no pre-existing” appliance case (i.e. the case currently covered by REES) are as follows:

ACOP = 3.35

AEER = 3.2 The issues regarding baseline assumptions for the existing activity and proposed new activities are similar to those set out for HC2A (non-ducted air conditioners). Proposed options, baselines are assumed to be as follows:

Replacement of a pre-existing fixed resistance electric heater – panel type (COP = 1.0)

Replacement of a pre-existing fixed resistance electric heater – slab type (COP = 0.8 – this assumes 20% losses to ground as per the VEET and EEIS schemes)

Replacement of a central gas ducted system – baseline would be average new efficiency for gas ducted (nominally 3 stars)

Replacement of a pre-existing ducted reverse cycle air-conditioner or replacement of any other heating type or installation of a new system – the baseline assumption is based on the average new and the REES credit is based on the difference between the installed system and the average new.

Resistance central heating systems use significant amount of energy and REES could offer significant incentives to convert these systems to high efficiency central heat pump. Some documentation on the existing system would need to be collected by the service provider in order to obtain the credits. As examined in HC2A, some overall savings may be gained if gas ducted systems were converted to high efficiency central heat pump. However, previous analysis in the 2014 REES Review showed that there were negligible numbers of gas ducted systems installed in South Australia, so this activity could be ruled out for REES on the basis that it is unlikely to generate any activity with service providers due to the low number of systems in the stock. We strongly recommend that all other cases be covered by the existing REES activity of installing a new high efficiency central heat pump. An existing system does not need to be present. This is equivalent to the ACT EEIS approach. In Victoria they only provide credits for the replacement of a central heat pump system – they do not cover new systems (where there is no existing installation). It is important to note that the credit provided by VEET is based on a baseline of an average new product (i.e. the assumption is that the system was going to be replaced in any case and the credit provided is from new average market to high efficiency). So while VEET require a new system to be present, they do not estimate the efficiency of the old system or include this in the deemed savings. Additional savings would be achieved if a central non-ducted system was installed, through reduced duct losses.

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While REES appears to have a weaker qualification threshold when compared to the other states, this covers both AEER (cooling) and ACOP (heating). AEER is not specified in other states. This effectively means that, on average, the ACOP for most products will be 3.65 or more, so the difference between the states is smaller than would first appear. Given that there is significant cooling load in South Australia and that cooling contributes to peak load, it is recommended that the minimum AEER requirement be retained. In order to make the SA requirements appear more aligned with other states, separate requirements for AEER and ACOP should be specified in the updated REES specification. Table 7: Summary of qualification and baselines for HC2B

Scheme version Qualify ACOP

Baseline ACOP

Original REES N/A N/A

EES review 2014 recommend 3.5a 3.35

REES 2014 actual 3.5 3.35

Average new 2014-2016 3.30/3.67b

VEET (revised) 3.7 3.6/3.5/3.4c

EEIS (2017) 3.7 3.6d

EES review 2016 recommend AEER and ACOP

3.5/3.7e 3.4/3.6e

Notes: a/ REES qualification applies to AEER and ACOP. b/ Average new AEER and ACOP is based on 335 ducted registrations in 2014, 2015 and 2016 (to mid Dec 2016) in the range 10kW to 30kW. Multi-split systems registered over the same period in the same size range averaged an ACOP of 3.98 (based on 43 registrations) and an average AEER of 3.49. c/ VEET have three baselines depending on the product size: 10-18 kW, 18-28kW and >28kW. d/ EEIS discount the ACOP of 3.6 for cold climate performance degradation, which will generally not apply in South Australia. e/ Separately specify requirements for AEER and ACOP respectively (currently both have to meet the lower AEER limit)

Draft Recommendation (Baseline Assumptions):

Update assumed lifetime to 13 years to align with VEET and EEIS

Update baseline of average new market in 2017 based on latest data – ACOP = 3.6 and AEER of 3.4

Update qualification requirements to be AEER ≥ 3.5 and ACOP ≥ 3.7

Add new baselines where specified existing equipment is replaced: o Existing resistance electric – average ACOP of 1 over lifetime with

adjustments made for duct losses or slab losses as applicable.

2.3.4 REVIEW OF ACTIVITY PERFORMANCE ASSUMPTIONS

At present, performance assumptions primarily relate to the units AEER and ACOP rating. This remains the basis upon which these units are rated under AS/NZS3823.2:2013 and also the basis upon which all other jurisdictions estimate expected energy savings. The current REES formula based approach allows for any level of performance to be assumed. In the VEET and current EEIS schemes a range of ACOP values are assumed from 3.7 to > 4.6. In the ESS scheme the range extends up to 10 stars (ACOP = 7.25) noting that the current highest performing product on the market is 4.5 stars (ACOP = 4.5).

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DSD’s desire is to adopt simplified tabular formats rather than formula based methods as a means for defining the available savings credits. Performance options based on ACOP bins are therefore proposed, but these can be split into nominal star rating bins (noting that most ducted and central systems are not registered with a star rating so in most cases this is not relevant for ducted systems). Ducted systems can carry a star rating, but only if they are tested in a calorimeter (rather than the enthalpy method that is normally used).

Recommendation (Activity Performance Assumptions) :

Continue to define performance in terms of a products efficiency rating, but use ACOP/AEER values in a tabular format that align with nominal star rating bins.

2.3.5 REVIEW OF KEY ASSUMPTIONS UNDERPINNING CREDIT ESTIMATES

The following table details the current key assumptions used in estimating the available credits for this pre-existing activity. The basis for these assumptions was detailed in the report Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014). The left hand column details the parameter under consideration, the centre column details the current setting applied in the REES scheme and the right hand column provides comment on the current settings (with reference to settings used in other jurisdictions as applicable). Where no change is proposed to the current assumption the comment column includes the words Remains valid. Where a change is considered to be warranted to the current settings the comment column includes the words Recommended Change.

Table 8: Review of Underlying Key Assumptions (central space conditioners)

Parameter Value Comment

Energy Service Levels Space Heating and Cooling service levels including heating and cooling availability, time of use, zoning constraint and thermostat settings

State Weighted Average

Remains valid (see note 1 below)

Building shell performance State Weighted Average

Remains valid (see note 1 below)

Base Case Assumptions

Building Stock State Weighted Average

Remains valid (see note 1 below)

Climate Zones BCA 4&5 and BCA 6

Remains valid (see note 1 below)

Weather file type AccuRate TMY Remains valid (see note 1 below)

Existing Equipment Performance

Current assumption =Market average :

ACOP=3.35 AEER=3.2

Recommended Change: Need to expand to include the proposed range of pre-existing equipment types i.e. Resistance electric - panel COP = 1 Resistance electric – slab/ducted COP = 0.8

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Parameter Value Comment Any other or New = market average AC

Update qualification to AEER = 3.5 and ACOP = 3.7 Update baselines to AEER = 3.4 and ACOP = 3.6

Lifetime and persistence assumptions

Product lifetime 10 years 10 years matches value used in NSW however Vic and ACT use 13 years which is considered more realistic. Recommended Change: increase to 13 years (will increase credits by 30%)

Product persistence Same as lifetime

See above

Adjustment Factors

Additionality discount factor 1.0 Remains valid: Matches values used in Vic and ACT (NSW unknown)

Free rider discount 0.90 Vic and ACT use 1.0 (NSW unknown) Recommended Change: increase to 1.0 (see note 2)

Rebound discount factor 1.00 Remains valid: Matches values used in Vic and ACT (NSW unknown)

Compliance discount factor 1.00 Remains valid: Matches values used in Vic and ACT (NSW unknown)

Total Discount factor 0.90 Vic and ACT use 1.0 (NSW unknown) Recommended Change: increase to 1.0 (will increase credits by 11%) (see note 2)

Climatic Adjustments

Adjustments required? 2 climates Remains valid (see note 1 below)

Note 1: Modelling as originally applied in the study Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014) is considered to remain valid. Note 2: In assessing credits to be awarded the VEET scheme assumes a value of 1, however, in assessing expected state-wide impacts on greenhouse gas emissions for greenhouse accounting purposes a lesser value is applied. It is understood that DSD have a preference to harmonise with the VEET/EEIS schemes in this respect.

2.3.6 REVIEW OF SPECIFICATION / INSTALLATION PROVISIONS

The specifications in relation to this activity are simple and straight forward requiring no change except as per the following recommendations in relation to the integration of provisions in relation to the replacement of pre-existing heaters.

Recommendation (Specification / Installation Provisions): Augment current specifications to include:

Details of how a pre-existing heater qualifies for replacement under one of the available categories (e.g. what constitutes a fixed electric resistance heater

Details of required decommissioning and disposal of a qualifying pre-existing heater. Including a requirement that wherever possible the replacement system should use the same circuit breakers in the switchboard as had been used by the replaced system. Where this is not possible the replaced system must be disconnected at the switchboard by an electrician such that it cannot be re-activated by the householder.

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2.4 L1: Install CFL or LED General Purpose Lamp

2.4.1 REVIEW OF ACTIVITY DATABASE

The available data from the REES activity database dating back to 2009 for this activity indicates that there has been significant uptake of this activity since the commencement for the program – see Table 9. Nevertheless, since the second year of operation (2010) the uptake of this activity has been steadily declining and is currently about one-third of the level in 2015 compared to 2010.

Table 9: CFL or LED General Purpose Lamp Replacement Activity

Year Number of Activities Number of individual activity items

2009 36168 244,332

2010 68,332 492,276

2011 54,323 412,484

2012 39,254 329,587

2013 31,969 242,532

2014 22,092 234,467

2015 17,130 158,329

2.4.2 REVIEW OF OTHER JURISDICTIONS, HARMONISATION

The following table (Table 10) summarises the current key parameters of the REES scheme as well as the schemes currently operating in the ACT (EEIS), NSW (ESS) and Victoria (VEET). In the case of the ACT scheme the text in Black reflects the current regulations and the text in red reflects changes expected to be introduced to the current regulations starting in 2017 (these changes were out for comment at the time of commencement of this study). Struck through black text under the ACT indicates that the proposed new regulations would supersede this particular aspect of the current regulations. Reviewing the various schemes with an eye to improved harmonisation with schemes outside SA (and improved specification generally) the following observations/recommendations are made: Activity Eligibility Requirements: At present, the pre-conditions under the REES scheme include:

Replaced equipment must be mains voltage

All replaced equipment must be in working order

Replaced equipment must be within certain rated power ranges (40 – 150W incandescent or 28 – 105W halogen)

Other jurisdictions have similar requirements with the following notable additions/differences:

NSW specifies that the replaced equipment must be an Edison screw (ES) or bayonet mount

ACT and VIC set a minimum rated power of replaced equipment at 25W (Tungsten incandescent) or 18W (Tungsten Halogen) i.e. lower than permitted under REES. NSW has no effective lower limit.

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Table 10: Comparison of Various Energy Efficiency Schemes – Install CFL or LED General Purpose Lamp (REES – L1)

Parameters EEIS ESS VEET REES

Included in scheme? Yes Yes Yes Yes

Working Title Residential Lighting Activities Replace and Edison screw or bayonet lamp with an LED lamp for general lighting purposes

Low Energy GLS CFL or LED General Purpose Lamp

Activity Reference Number 71a) / Part 4.1-1a) Part 4.1

E11 Schedule 21A L1

Required pre-condition Tungsten incandescent ≥ 25W Halogen ≥ 18W Must replace a lamp in working order

240V ES or Bayonet Lamp Incandescent, Halogen or CFL Must be in working order Must be a lamp only replacement

Tungsten incandescent ≥ 25W Halogen ≥ 18W

Tungsten incandescent or halogen Must be in working order

Limitation on replacements Nil Nil Nil 20

Performance requirements Equivalent light output. Meets AS/NZS 4847 (or administrator can determine). Minimum efficacy (various). Compatibility with existing circuitry. ≥ 8000hr life. ≥ 15,000 hr life (directional) Warm white (2700K to 3500K) or cool white (3500K to 4000K).

Must meet product requirements and minimum performance specifications for Lamp Life, electro-magnetic compatibility (where applicable), lumen efficacy, power factor, LCP, and any other requirements as Published by the Scheme Administrator. See note 1

Equivalent light output. Meets AS/NZS 4847.2 (or administrator can determine). Minimum efficacy (various) Compatibility with existing circuitry. ≥ 8000hr life (non-directional) ≥ 12,000 hr life (directional) Warm white (2700K to 3500K) or cool white (3500K to 4000K).

CCT ≤ 3000K Min light output (table) CFL: life ≥ 10,000 hours, MEPS registered LED: ESS or Energy Star approved HE LED must be ≥ 80 lm/W Compatibility with existing circuitry

Deemed savings 0.040 - 0.093 t = AAV x N x PF N = number of replacements PF = Power Factor multiplier (if <0.9 = 1.0 otherwise = 1.05) AAV derived from lookup table. Separate Lookup tables for non-directional (0.028 – 0.081 tCO2-e ) and directional lamps (0.049 – 0.095 tCO2-e)

Formula based: LCP x (Lumen Efficacy of new lamp/34.7 – 1) x 840x 10/10

6

LCP = Lamp circuit power

= AF x N x PF x RF N = number of replacements PF = Power Factor multiplier (if <0.9 = 1.0 otherwise = 1.05) RF = Regional Factor AF derived from lookup table. Separate Lookup tables for non-directional (0.2 – 0.75 tCO2-e ) and directional lamps (0.4 – 0.88 tCO2-e)

Separate Lookup tables for non-directional (0.38 - 1.73 GJ ) and directional lamps (0.89 – 4.48 GJ) Lamp ranges from 40W – 150W Separate factors for:

CFL

Standard LED

HE LED

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Parameters EEIS ESS VEET REES

Non Directional

Lifetime options from 8000 – 25000 hours

Efficacy options – 4 levels available with variation according to lumen output

Directional

Lifetime options from 12000 – 25000 hours

Efficacy options from Min 45 – 78 lumens/W

Non Directional

Lifetime options from 8000 – 25000 hours

Efficacy options – 4 levels available with variation according to lumen output

Directional

Lifetime options from 12000 – 25000 hours

Efficacy options from Min 45 – 78 lumens/W

Regional Variations? No No Yes

Metro areas = 0.98 Regional Areas = 1.04

No

Warranty Requirements Nil ? Nil 2 years

Referenced Standards AS/NZS 4847 Relevant AS/NZS standards AS/NZS 4847 AS/NZS 4847

Other requirements Installer required to target high usage lamps in the first instance

Note 1: see: http://www.ess.nsw.gov.au/Projects_and_equipment/Lighting_Technologies/HEER_Lighting_Requirements

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None of the other jurisdictions place an upper limit on the power (or lumen output) of the replaced equipment.

Setting limitations on the upper limit of replaced lamp power (or replaced lamp lumen output) does not appear to serve any purpose and is at variance with all other jurisdictions and should be removed. The NSW requirement that the base be either ES or bayonet types may be relevant in the NSW regulatory context but would be an unnecessary restriction under the REES scheme and is therefore not recommended. If a table based format is to be retained for credits (as is understood to be the preference of DSD) then a specified lower limit of replaced lamp power is necessary to ensure that a minimum level of energy saving is achieved, however, in the interests of harmonisation this should be aligned with VIC and ACT i.e. 25W (Tungsten incandescent) or 18W (Tungsten Halogen).

Recommendation (Activity Eligibility Requirements): Amend the current pre-conditions as follows:

Remove the upper limit to the replaced equipment power

Re-set the lower limit for the rated power of replaced equipment to 25W (Tungsten incandescent) or 18W (Tungsten Halogen) to align with VIC and ACT.

Define the terms “directional” and “non-directional” (according to ESCOSA this had led to some confusion in the past) – see following section for proposed definitions

Installed Product Requirements: REES provisions align reasonably well with other jurisdictions, however there are some notable differences as follows:

VIC and ACT require that the replacement lamp have an equivalent light output to that of the replaced lamp, this is not a current requirement under REES.

VIC and ACT expressly permit a wider range of colour temperatures to be used; Warm white (2700K to 3500K) or cool white (3500K to 4000K). REES only permits colour temperatures ≤ 3000K unless “otherwise authorised by the occupant of the premises”.

NSW only permit the use of LED’s as replacement lamps Given the superior performance of LEDs compared to CFLs and the rapidly decreasing cost of LEDs it now makes sense to limit this activity to LEDs only. In particular, this change should lead to reduced consumer dissatisfaction with the installed product. In the interest of improved harmonisation and specification improvement more generally both the requirement that the replacement lamp have an equivalent light output to that of the replaced lamp and the wider range of colour temperature options offered in the other jurisdictions should be adopted. Home owners should however be given the option of choosing either warm white or cool white lamps. Traditionally the warm white colour has been preferred but some segments of the community now prefer cool white.

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Recommendation (Installed Product Requirements): Amend the requirements as follows:

Include a requirement that the replacement lamp have an equivalent light output to that of the replaced lamp

Align the colour temperature requirements with those of VIC and ACT i.e. permit either warm white (2700K to 3500K) or cool white (3500K to 4000K). However, it is recommended that the installer be required to install either warm white or cool white according to the preference of the home owner, where no preference is provided then warm white shall be installed.

Limit the installed product type to LED only.

Include a definition of “directional” and “non-directional” in relation to lamps as follows:

o Directional lamps include types PAR, ER, R, RE, XR, YR, ZR or MR 11-16 or any other type that has at least 80 % light output within a cone with an angle of 120°

o Non-directional lamps include lamps other than directional lamps.

Deemed Savings (Format): The current format used in the REES scheme is a relatively simple table based approach. Apart from NSW all other jurisdictions use a table based approach. In line with the recommendations above, the tables will need to have the CFL options removed. Non-directional Lamps Apart from CFLs (which are to be removed as an option) REES currently offers a range of performance levels (based on the lamp power) for standard efficiency LED lamp replacements plus a second high efficiency option for LEDs (> 80lm/W) applicable across all lamp power ranges. Consideration might be given to better aligning the REES tables with the VEET and EEIS schemes. In the case of non-directional lamps, VEET (and the proposed EEIS scheme update) offers differing credits across a range of 4 sets of performance levels. The 4 minimum performance thresholds used in the VEET/EEIS scheme (categories a, b, c and d) are described in Table 11. Table 11: Minimum lamp Efficacy threshold requirement by VEET Efficiency Category

(Lumens/W)

Lumen Output Range of Lamp

<350 Lumens

350 to < 650 Lumens

650 to < 850 Lumens

> 850 Lumens VEET Efficiency

Category

21 A (a) 40 45 52 55

21 A (b) 48 54 62 66

21 A (c) 58 65 75 79

21 A (d) 69 78 90 95

Unlike REES, the VEET/EEIS scheme does not differentiate credits on the basis of a single lamps lumen output or lamp power. Instead, a single saving credit per efficiency category is based on replacing a weighted “basket” of 16 incandescent lamps – the estimated average number of lamps being replaced per household (based on old technology tungsten-filament lamps) equates to: 100 W (2), 75 Watts (6), 60 Watts (5), 40 Watts (2) and 25 Watts (1).

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The VEET/EEIS arrangement of varying performance minimum standards according to the lamps lumen output is to a large extent based around replacements using CFL lamps (originally the scheme was conceived with these types of lamps in mind). However, unlike CFL lamps LED lamps do not exhibit increasing efficiency with increasing lumen output and as such the complex arrangements for savings options used in VEET/EEIS (see Table 11) are unwarranted in the proposed REES context The additional complexity of the VEET/EEIS schemes in terms of having four efficacy graduations are difficult to justify as the differences in credit available from one efficiency level to the next tend to be relatively insignificant. A simple standard efficacy and a high efficacy level applied to a defined set of pre-existing lamp power ranges (as currently used in the REES scheme) would appear to be a more practical approach to take. Directional Lamps Apart from CFLs (which are to be removed as an option) REES currently offers a range of performance levels (based on the lamp power) for standard efficiency LED lamp replacements plus a second high efficiency option for LEDs (> 80lm/W) applicable across all lamp power ranges. In the case of directional lamps, VEET (and the proposed EEIS scheme update) offers differing credits across a range of 4 sets of performance levels as follows: (noting that unlike non-directional lamps, there is no differentiation of efficiency level based on the lumen output of the lamp);

> 45 lumens/W

> 54 lumens/W

> 65 lumens/W

> 78 lumens/W The additional complexity of the VEET/EEIS schemes in terms of having four efficacy graduations are difficult to justify as the differences in credit available from one efficiency level to the next tend to be relatively insignificant. A simple standard efficacy and a high efficacy level applied to a defined set of pre-existing lamp power ranges (as currently used in the REES scheme) would appear to be a more practical approach to take. Lamp Life The current REES tables for both non-directional and directional lamps do not offer differing credits according to the life of the lamp, a fixed 10,000 hour lamp life is assumed. The ESS scheme uses a similar fixed lamp life value for estimating credits. In the VEET and EEIS schemes a range of different lamp life options are available ranging from < 10,000 hours to 25,000 hours or more. The longer life lamps yielding significantly increased credits. The approach used in the VEET and EEIS scheme however fits better with the provision of the REES Ministerial Protocol which recommends that an activity should ideally provide “greater rewards for products that deliver higher levels of performance and energy efficiency”. The main issue with allowing for products that claim extended periods for lamp life is that whilst some LEDs are claimed to last more than 25,000 hours there a degree of uncertainty in relation to the actual life of many of the lamps on the market. Whilst the 10,000 hours currently used in REES could be considered conservative, allowing for

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lifespans of up to 25,000 hours (more than 30 years for an average lamp) is likely to be overly optimistic (noting that major house renovations tend to occur on a shorter time scale than 30 years).

Recommendation (Deemed Savings Format): The general recommendation is to retain the current format of two tables (non-directional and directional) but with the following modifications:

Delete the CFL option (Column E)

Efficiency options - If the goal of harmonisation is paramount then adopt the approach as taken in both Victoria and the ACT. However, if simplicity and practicality is valued more than harmonisation then maintain the current two tiered efficiency arrangement (with revised values)1.

Lamp life options: Allow for higher credits for lamps with longer lives by retaining the current 10,000 hour minimum standard but add an option for ≥15,000 hours for any lamp with a claimed life that equals or exceeds 15,000 hours. This will provide a significant boost to credits for those lamps that meet the higher lifetime standard.

Note: DSD confirmed at the workshop that the current two tiered efficiency arrangement was to be retained.

Regional Variations: No jurisdictions, except VIC apply any form of regional factor to the awarded credits. In Victoria the regional factors are based on differences in transmission losses between metropolitan (0.98) and regional areas (1.04). It is understood that DSD wish to align with the VEET scheme in this respect and adopt a set of SA relevant factors relating to transmission losses in the electricity grid. This aspect is covered separately in Section 4.

Recommendation (Regional Variations): Refer Section 4 of this report for recommendations.

Other Matters – Credit for high power factor

Power factor savings are mostly limited to reduced currents in the customer

premises and the distribution system and a slightly reduced peak kVA

requirement. Energy savings are likely to be very modest, but there may be some

merit in rewarding well designed products through additional credits.

In the case of lighting products, jurisdictions such as Victoria and the ACT apply

an additional credit multiplier for products with a good power factor (> 0.9). From

a network perspective, effective electricity savings flowing from a product with a

good power factor will be greater than those for products with a poor power

factor. In Victoria, under the VEET scheme and in the ACT under the EEIS

scheme an additional credit of 5% is awarded in cases where the lighting product

has a power factor of 0.9 or better. Energy savings of 5% are probably an

overestimate.

There is however a great deal of uncertainty in relation to likely benefits to be

derived from improved power factors in electronic equipment such as LED lamps.

Through the use of in built capacitors, LED lamps avoid any lagging power factor

issues that are present in the case of inductive loads such as those generated by

electric motors. However, LED lamps often have non-sinusoidal harmonic

waveforms (distortion power factor) which may adversely affect a power supply

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system in some cases. The actual system wide impacts of harmonic currents

generated by LEDs are difficult to ascertain and therefore there is significant

uncertainty in attributing a benefit to lamps with high power factors. Having said

that, high power factor electronics tend to be associated with higher

manufacturing quality control standards, which may lead to other benefits, such

as reduced lamp failure rates.

Recommendation (Power Factor): Following discussions with DSD it was agreed to recommend as follows:

Ignore the effects of power factor due to the uncertainty relating to the actual impacts on the power system of LED lamps with poorer power factors

2.4.3 REVIEW OF BASELINE ASSUMPTIONS

For this type of activity, the savings are assessed as a function of the energy consumption of the new efficient appliance selected compared to the average appliance that would have been installed in the absence of REES (business as usual – market average). The current baseline assumptions are as follows: Incumbent lamp (the lamp being replaced by the LED):

Non-directional: a halogen lamp with 2000 hour life (1000 hours left to run before failure).

Directional: an incandescent lamp with 2000 hour life (1000 hours left to run before failure).

At the end of its life, the incumbent lamp would have been replaced with (based on current market share):

Non-directional: 50% CFL and 50% halogen.

Directional: 10% CFL and 90% incandescent (note that directional CFL efficacy is around half that of non-directional CFL due to reflector inefficiency coupled with large light source).

The main change in relation to the above assumptions relates to what the incumbent lamp would have been replaced with (based on current market share). In the case of directional lamps there has been a significant change in the market over the past few years and the best estimate now is that replacements would consist of; 40% LED, 40% incandescent and 20% CFL. This change in baseline assumption will act to reduce the expected credits from this activity.

Recommendation (Baseline Assumptions): Incumbent lamp (the lamp being replaced by the LED):

Non-directional: a halogen lamp with 2000 hour life (1000 hours left to run before failure).

Directional: an incandescent lamp with 2000 hour life (1000 hours left to run before failure).

At the end of its life, the incumbent lamp would have been replaced with (based on current market share):

Non-directional: 50% CFL/LED and 50% halogen.

Directional: 40% LED, 40% Incandescent and 20% CFL.

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2.4.4 REVIEW OF ACTIVITY PERFORMANCE ASSUMPTIONS

At present, performance assumptions primarily relate to the units efficacy. This is also the basis upon which all other jurisdictions estimate expected energy savings, although as noted above VIC and ACT also take into account the product claimed lifetime. The current REES assumptions in relation to the performance of replacement lamps is as follows (see Table 12 and Table 13).

Table 12: Current REES Assumptions – Replacement Non-directional Lamps

Power (W) Standard LED Efficacy (lm/W)

HE LED Efficacy (lm/W)

40 (28) 43.2 80

60 (42) 50.7 80

75 (53) 54.0 80

100 (70) 57.5 80

150 (105) 62.7 80

Table 13: Current REES Assumptions – Replacement Directional Lamps

Power (W) Standard LED Efficacy (lm/W

HE LED Efficacy (lm/W)

40 50 80

50 50 80

60 50 80

75 50 80

100 50 80

120 50 80

150 50 80

The market is moving very quickly in relation to the efficacy of LED lamps and the current assumptions in relation to “Standard” efficacy and “High” efficacy are now considered out of date. Perhaps the best guide to current efficacy levels are the 4E “Solid State Lighting Annexes: Product Quality and Performance Tiers’ published in November 2016. These annexes set three levels or ‘tiers” of performance as follows:

Tier 1: Minimum acceptable performance level

Tier 2: Performance Required by Established Quality Programs (e.g. REES)

Tier 3: Current Highest Commercially Available Performance

Table 14: IEA - 4E efficacy tiers (November 2016)

Tier Non directional lamps

Directional lamps

1 65 65

2 90 85

3 125 100

Tier 1 might be considered a baseline level for replacement LED lamps, Tier 2 would constitute a “standard” level of efficacy for use in the REES program and tier 3 would constitute the high efficacy level.

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Recommendation (Activity Performance Assumptions):

For the “Standard” efficacy performance target adopt the IEA-4E tier 2 recommendations

For the “High” efficacy performance target adopt the IEA-4E tier 3 recommendations

2.4.5 REVIEW OF KEY ASSUMPTIONS UNDERPINNING CREDIT ESTIMATES

The following table details the current key assumptions used in estimating the available credits for this pre-existing activity. The basis for these assumptions was detailed in the report Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014). The left hand column details the parameter under consideration, the centre column details the current setting applied in the REES scheme and the right hand column provides comment on the current settings (with reference to settings used in other jurisdictions as applicable). Where no change is proposed to the current assumption the comment column includes the words Remains valid. Where a change is considered to be warranted to the current settings the comment column includes the words Recommended Change

Table 15: Review of Underlying Key Assumptions (General Purpose Lamps)

Parameter Assumption Comment

Efficacy and savings

Based on rated lamp values (direct savings – replacement)

Remains valid

Total energy savings lifetime

10,000 hours Recommended Change: Allow for lamps with extended lifespans to obtain increased credits

Assumed usage N/A - energy savings horizon is assumed to be lamp life, to a maximum of 10,000 hours.

Remains valid

Free riders N/A - taken into account within baseline assumptions

Remains valid

Compliance /Persistence

Assume 10% will remove CFL due to dissatisfaction (0.90). Note that this does not relate to product failure leading to a warranty claim, it relates to personal dissatisfaction with CFLs. None will remove LED (1.00).

Remains valid – note: only LEDs are being considered in this update

Lifetime 10,000 hours Recommended Change: Allow for lamps with extended lifespans to obtain increased credits

2.4.6 REVIEW OF SPECIFICATION / INSTALLATION REQUIREMENTS

The specifications in relation to this activity are simple and straight forward requiring no change apart from changes as noted above

Recommendation (Specification / Installation Provisions):

No change

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2.5 L2A and 2B: Install LED Downlight

2.5.1 REVIEW OF ACTIVITY DATABASE

The available data from the REES activity database dating back to 2009 for this activity indicates that there has been uptake of this activity only since 2015– see Table 16. This suggests that there is still significant scope for the uptake of this activity.

Table 16: Install an LED Downlight Activity

Year Number of Activities Number of individual activity items

2009 0 0

2010 0 0

2011 0 0

2012 0 0

2013 0 0

2014 0 0

2015 7,637 140,961

2.5.2 REVIEW OF OTHER JURISDICTIONS, HARMONISATION

The following table (Table 17) summarises the current key parameters of the REES scheme as well as the schemes currently operating in the ACT (EEIS), NSW (ESS) and Victoria (VEET). In the case of the ACT scheme the text in Black reflects the current regulations and the text in red reflects changes expected to be introduced to the current regulations starting in 2017 (these changes were out for comment at the time of commencement of this study). Struck through black text under the ACT indicates that the proposed new regulations would supersede this particular aspect of the current regulations. Reviewing the various schemes with an eye to improved harmonisation with schemes outside SA (and improved specification generally) the following observations/recommendations are made: Activity Eligibility Requirements: At present, the pre-conditions under the REES scheme include for the replacement of either:

35-50W ELV Halogen Lamp

35-50W ELV Halogen Lamp and Transformer Other jurisdictions have similar requirements except that NSW includes a more diverse range of pre-existing types as follows:

ELV or IRC lamp with electronic driver

ELV or IRC lamp with magnetic driver

Luminaire with ELV or IRC lamp with electronic driver

Luminaire with ELV or IRC lamp with magnetic driver

Tungsten Halogen Lamp (240V)

Tungsten Halogen Lamp (240V) + Luminaire

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Table 17: Comparison of Various Energy Efficiency Schemes – Install LED Downlight (REES – 2A & 2B)

Parameters EEIS ESS VEET REES

Included in scheme? Yes Yes Yes Yes

Working Title Mains voltage low energy downlight mains voltage low energy downlight fitting in place of existing 12 volt halogen downlight fitting

Replace Halogen Downlight With An LED Luminaire and/or Lamp

Incandescent Lighting Installation of a mains voltage low energy downlight fitting in place of an existing 12 volt halogen downlight fitting that uses a 12 volt halogen lamp of at least 35 watts

Install LED Down-light Lamp or LED Down-light Luminaire

Activity Reference Number 71d) / Part 4.1-1d) E1 Schedule 21D L2

Required pre-condition Replace 12V halogen downlight Halogen 240V or 12V multifaceted reflector lamp 35W or 50W Must be in working order Categories of pre-existing:

ELV or IRC lamp with electronic driver

ELV or IRC lamp with magnetic driver

Luminaire with ELV or IRC lamp with electronic driver

Luminaire with ELV or IRC lamp with magnetic driver

Tungsten Halogen Lamp (240V)

Tungsten Halogen Lamp (240V) + Luminaire

Replace 12V halogen downlight of at least 35W

Replace 12V halogen downlight All equipment that is replaced must be in working order Categories of pre-existing:

Replace 35-50W ELV Halogen Lamp

Replace 35-50W ELV Halogen Lamp and Transformer

Limitation on replacements Nil Nil Nil Nil

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Parameters EEIS ESS VEET REES Performance requirements Meets AS/NZS 4847 (or

administrator can determine). Minimum efficacy 48 lm/W Minimum light output 400 lm. Compatibility with existing circuitry. ≥ 15000hr life. Warm white (2700K to 3500K) or cool white (3500K to 4000K). Beam angle ≥ 40 degrees.

LED Lamp only – ELV, LED Lamp and Driver, LED Luminaire-recessed, or an LED Lamp Only – 240V Self Ballasted, Life ≥ 10,000 hours Light Output ≥ 462lm Beam angle consistent with original lamp Must be compatible with the existing Electronic Transformer. Must be compatible with any pre-existing dimmer Must be certified by approved scheme or supply test reports

Meets AS/NZS 4847 (or administrator can determine). Minimum efficacy 48 lm/W Minimum light output 400 lm. Compatibility with existing circuitry. ≥ 15000hr life. Warm white (2700K to 3500K) or cool white (3500K to 4000K). Beam angle ≥ 40 degrees.

CCT ≤ 3000K Min light output 500 lm ESS or Energy Star approved Must be compatible with any pre-existing dimmer Note: No min lifetime specified

Deemed savings 0.076 - 0.141 t = AAV x N x PF N = number of replacements PF = Power Factor multiplier (if <0.9 = 1.0 otherwise = 1.05)

Lifetime options from 15,000 – 25000 hours

Efficacy options – 4 levels available 48, 58, 69, 82 and 100 lumens/W

0.28 - 0.68 MWh New lamp circuit power ranges: ≤ 15W ≤ 10W ≤ 5W

= AAV x N x PF x RF N = number of replacements PF = Power Factor multiplier (if <0.9 = 1.0 otherwise = 1.05) RF = Regional Factor

Lifetime options from 15,000 – 25000 hours

Efficacy options – 4 levels available 48, 58, 69, 82 and 100 lumens/W

0.83 – 1.1 GJ lamp plus cover space conditioning savings where used

Replacement options 11 - 15W ≤ 10W

Regional Variations? No Nil Yes Metro areas = 0.98 Regional Areas = 1.04

No

Warranty Requirements Nil 2 years Nil 2 years

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Parameters EEIS ESS VEET REES Referenced Standards AS/NZS 4847 or as otherwise

determined by the administrator IEC 62560, AS/NZS 4847, AS/NZS 60598.

AS/NZS 4847 AS/NZS 4847

Other requirements Recognise VEET certification. Any pre-existing magnetic transformers must be replaced

REES also allows thermal covers to attain additional abatement

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Effectively the first 4 options under the ESS scheme are covered by the options available under REES (noting that the ESS provides slightly different credits depending upon the type of driver whereas none of the other schemes include such a distinction). The last 2 options under the ESS scheme include for the replacement of MV Halogen lamps. This option is not available under REES or any of the other schemes except the ESS in NSW

Recommendation (Activity Eligibility Requirements):

No change

Installed Product Requirements: REES provisions align reasonably well with other jurisdictions, however there are some notable differences as follows:

Minimum Efficacy Requirement: REES specifies a minimum lumen output of 500 lumens and a maximum power of 15W i.e. effectively an efficacy of 500/15 = 33 lumens/W. VEET and EEIS specify a minimum efficacy of 48 lumens/W. ESS specifies a minimum lumen output of 462 lumens and a maximum power of 15W i.e. effectively an efficacy of 462/15 = 31 lumens/W.

Minimum Light Output: REES specifies a minimum of 500 lumens, VEET and EEIS specify a minimum of 400 lumens and ESS a minimum of 462 lumens.

Minimum Lifetime Requirement: REES does not specify a minimum lifetime requirement (although a warranty of 2 years is required and Energy Star requires LED lumen maintenance (life) of at least 15000 hours). VEET and EEIS mandate a minimum lifetime of 15,000 hours whereas ESS mandates a minimum of 10,000 hours. Shifting to a minimum of 15,000 hours will increase the credits available for this activity.

Minimum Beam Angle Requirement: REES does specify a minimum beam angle requirement. VEET and EEIS both specify a minimum beam angle of 40 degrees whereas ESS requires that the beam angle be consistent with the original lamp.

Minimum colour Rendering Requirement: REES only permits colour temperatures ≤ 3000K. VEET and EEIS permit a wider range of colour temperatures to be used; Warm white (2700K to 3500K) or cool white (3500K to 4000K). ESS has no apparent colour temperature requirement in their regulations.

In the interest of improved harmonisation and specification improvement more generally the installed product requirements specified in both the VEET and the EEIS schemes are recommended for inclusion in the REES scheme. However, home owners should be given the option of choosing either warm white or cool white lamps.

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Recommendation (Installed Product Requirements): Amend/Augment the requirements as follows:

Minimum efficacy requirement = 85 lumens/W (see discussion on this value later in this section).

Minimum light output requirement = 400 lumens

The replacement unit must have an equivalent light output to that of the replaced unit

Minimum lifetime requirement: set a minimum of at least 10,000 hours (see discussion on this value later in this section).

Minimum beam angle requirement = 40 degrees (Note: The term “Beam Angle” needs to be a defined term as follows: “the angle between the opposing points on the beam axis where the intensity drops to 50% of its maximum”)

Colour rendering requirement = either warm white (2700K to 3500K) or cool white (3500K to 4000K). However, it is recommended that the installer be required to install either warm white or cool white according to the preference of the home owner, where no preference is provided then warm white shall be installed.

Deemed Savings (Format): The current format used in the REES scheme is a relatively simple table based approach. All other jurisdictions use a table format, however there are some notable differences in the way the tables are structured:

VEET and EEIS include different credits based on the rated lifetime of the lamp, 15–20,000, 20–25,000 or more than 25,000 hours. Both REES and ESS assume a fixed lifetime (i.e. a simpler table structure).

VEET and EEIS allow different efficiency options in terms of the efficacy of the lamp (48, 58, 69, 82 and 100 lumens/W), whereas REES and ESS allow different efficiency options in terms of the maximum lamp power; ≤ 15W or ≤ 10W in REES and ≤ 15W or ≤ 10W and ≤ 5W in ESS.

If the goal of harmonisation is paramount then it would make sense to adopt the approach as taken in both Victoria and the ACT. However, the additional complexity of the VEET/EEIS schemes in terms of efficacy graduations are difficult to justify as the differences in credit available from one efficiency level to the next tend to be relatively insignificant. A simple standard efficacy level and a high efficacy level appears to be the more practical approach to take. The differences in credits relating to varying lifetimes assumed in the VEET/EEIS schemes are more significant. The approach used in the VEET and EEIS scheme does however fit better with the provision of the REES Ministerial Protocol which recommends that an activity should ideally provide “greater rewards for products that deliver higher levels of performance and energy efficiency”. The main issue with allowing for products that claim extended periods for lamp life is that whilst some LEDs are claimed to last more than 25,000 hours there a degree of uncertainty in relation to the actual life of many of the lamps on the market. Whilst the 10,000 hours currently used in REES could be considered conservative, allowing for lifespans of up to 25,000 hours (more than 30 years for an average lamp) is likely to be overly optimistic (noting that major house renovations tend to occur on a shorter time scale than 30 years).

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Recommendation (Deemed Savings Format):

Efficiency options - Maintain the current two tiered efficiency arrangement (noting that the efficiency levels will need revision and should be expressed in terms of lumens/W).

Lamp life options: Allow for higher credits for lamps with longer lives by retaining the current 10,000 hour minimum standard but adding an option for ≥15,000 hours for any lamp with a claimed life that equals or exceeds 15,000 hours. This will provide a significant boost to credits for those lamps that meet the higher lifetime standard.

Regional Variations: No jurisdictions, except VIC apply any form of regional factor to the awarded credits. In Victoria the regional factors are based on differences in transmission losses between metropolitan (0.98) and regional areas (1.04). It is understood that DSD wish to align with the VEET scheme in this respect and adopt a set of SA relevant factors relating to transmission losses in the electricity grid. This aspect is covered separately in Section 4.

Recommendation (Regional Variations): Refer Section 4 of this report for recommendations.

Other Matters – Credit for high power factor

Power factor savings are mostly limited to reduced currents in the distribution

system and a slightly reduced peak kVA requirement. Energy savings are likely

to be very modest, but there may be some merit in rewarding well designed

products through additional credits.

In the case of lighting products, jurisdictions such as Victoria and the ACT apply

an additional credit multiplier for products with a good power factor (> 0.9). From

a network perspective, effective electricity savings flowing from a product with a

good power factor will be greater than those for products with a poor power

factor. In Victoria, under the VEET scheme and in the ACT under the EEIS

scheme an additional credit of 5% is awarded in cases where the lighting product

has a power factor of 0.9 or better.

There is however a great deal of uncertainty in relation to likely benefits to be

derived from improved power factors in electronic equipment such as LED lamps.

Through the use of in built capacitors, LED lamps avoid any lagging power factor

issues that present in the case of inductive loads such as those generated by

electric motors. LED lamps do however produce harmonic currents (distortion

power factor) which can adversely affect a power supply system. The actual

system wide impacts of harmonic currents generated by LEDs is difficult to

ascertain and therefore, there is significant uncertainty in attributing a benefit to

lamps with high power factors. Having said that, high PF electronics tend to be

associated with higher manufacturing quality control standards which could lead

to other benefits such as educed lamp failure rates.

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Recommendation (Power Factor): Following discussions with DSD it was agreed to recommend as follows:

Ignore the effects of power factor due to the uncertainty relating to the actual impacts on the power system of LED lamps with poorer power factors; or

2.5.3 REVIEW OF BASELINE ASSUMPTIONS

For this type of activity, the savings are assessed as a function of the energy consumption of the new efficient appliance selected compared to the average appliance that would have been installed in the absence of REES (business as usual – market average). The current baseline assumptions are as follows: Parameter Assumption

Baseline lamps 35W

Efficacy and savings Based on rated lamp values (direct savings – replacement). Average electronic/magnetic transformer efficiency of 0.865 (assumed 50% magnetic and 50% electronic with efficiency of 0.8 and 0.93 respectively)

Total energy savings lifetime

10,000 hours

Assumed usage N/A - energy savings horizon is assumed to be lamp life, to a maximum of 10,000 hours.

Free riders N/A - taken account of in baseline assumptions

Compliance/Persistence Assume none will remove LED (1.00)

Lifetime 10,000 hours

The most significant change to these assumptions will be that relating to the baseline lamp power rating assumption. Whilst the incumbent lamp is likely to be a 35W lamp there is now a significant probability that the owner would have replaced that incumbent lamp with a drop-in LED equivalent lamp which now constitute about 80% of downlight lamp sales. This means that expected savings will need to be heavily discounted for the “free rider” effect. The proposal in relation to the replacement for the incumbent lamp is as follows:

70% standard LED

30% Quartz Halogen4 Also, as noted earlier in this section the assumed lifetime of the replacement lamp may be increased (recommended option of 15,000 hours).

Recommendation (Baseline Assumptions):

Amend the baseline assumption relating to the lamp that would have replaced the incumbent lamp to reflect the now significant market share of LED drop-in replacement lamps.

Amend the lifetime assumption for the replacement lamp (see earlier discussion on this aspect in this section of the report).

4 Note: There is at present a proposal to introduce a MEPS requirement in relation to this

product category. Effectively the proposed MEPS level would eliminate Quartz Halogen lamps and as such the assumed replacement for an incumbent lamp would need to be 100% standard LED. The earliest that such a MEPS could come into force would be sometime in 2018 and even then it would probably be at least a further year before grandfathered QH lamps had entirely gone off the market. This means that the above assumptions should be valid at least until sometime in 2019, possibly later.

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2.5.4 REVIEW OF ACTIVITY PERFORMANCE ASSUMPTIONS

At present, performance assumptions primarily relate to the units power consumption. This is also the basis upon which the ESS scheme is based. VEET and EEIS use lamp efficacy as the basis for performance and also take into account the product claimed lifetime The current REES assumptions in relation to the performance of replacement lamps are as follows.

11 - 15W

10W or less The market is moving very quickly in relation to the efficacy of LED lamps and the current assumptions in relation to “Standard” efficacy and “High” efficacy are now considered out of date. Perhaps the best guide to current efficacy levels are the 4E “Solid State Lighting Annexes: Product Quality and Performance Tiers’ published in November 2016. In these annexes set three levels or ‘tiers” of performance as follows:

Tier 1: Minimum acceptable performance level

Tier 2: Performance Required by Established Quality Programs

Tier 3: Current Highest Commercially Available Performance

Table 18: IEA - 4E efficacy tiers (November 2016)

Tier Downlights

1 65

2 85

3 100

Tier 1 might be considered a baseline level for replacement LED lamps, Tier 2 would constitute a “standard” level of efficacy for use in the REES program and tier 3 would constitute the high efficacy level.

Recommendation (Activity Performance Assumptions):

For the “Standard” efficacy performance target adopt the IEA-4E tier 2 recommendations.

For the “High” efficacy performance target adopt the IEA-4E tier 3 recommendations.

2.5.5 REVIEW OF KEY ASSUMPTIONS UNDERPINNING CREDIT ESTIMATES

The following table details the current key assumptions used in estimating the available credits for this pre-existing activity. The basis for these assumptions was detailed in the report Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014). The left hand column details the parameter under consideration, the centre column details the current setting applied in the REES scheme and the right hand column provides comment on the current settings (with reference to settings used in other jurisdictions as applicable). Where no change is proposed to the current assumption the comment column includes the words Remains valid. Where a change is considered to be warranted to the current settings the comment column includes the words Recommended Change

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Table 19: Review of Underlying Key Assumptions (space conditioners)

Parameter Assumption Comment

Baseline lamps 35W Recommended Change: Amend - See discussion earlier in this section on likely replacements for incumbent lamps – this will reduce credits for this activity

Efficacy and savings Based on rated lamp values (direct savings – replacement). Average electronic/magnetic transformer efficiency of 0.865 (assumed 50% magnetic and 50% electronic with efficiency of 0.8 and 0.93 respectively)

Remains valid

Total energy savings lifetime

10,000 hours Recommended Change: Allow for lamps with extended lifespans to obtain increased credits

Assumed usage N/A - energy savings horizon is assumed to be lamp life

Remains valid

Free riders N/A - taken account of in baseline assumptions

Remains valid

Compliance/Persistence Assume none will remove LED (1.00) Remains valid

Lifetime 10,000 hours Recommended Change: Allow for lamps with extended lifespans to obtain increased credits

2.5.6 REVIEW OF SPECIFICATION / INSTALLATION REQUIREMENTS

The specifications in relation to this activity are simple and straight forward requiring no change apart from changes as noted above.

Recommendation (Specification / Installation Provisions):

No change

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2.6 APP1A: Purchase high efficiency new refrigerator/ freezer

2.6.1 REVIEW OF ACTIVITY DATABASE

The available data from the REES activity database dating back to 2009 for this activity indicates that there has been no uptake of this activity since the commencement for the program. One theory regarding the poor uptake of this activity is that the formula based approach used to determine credits whilst highly flexible and accurate serves as a barrier to less technically adept stakeholders. An alternative approach using a simple tabular format for the credits or possibly a simple register of approved products is explored in this review.

2.6.2 REVIEW OF OTHER JURISDICTIONS, HARMONISATION

The following table (Table 20) summarises the current key parameters of the REES scheme as well as the schemes currently operating in the ACT (EEIS), NSW (ESS) and Victoria (VEET). In the case of the ACT scheme the text in Black reflects the current regulations and the text in red reflects changes expected to be introduced to the current regulations starting in 2017 (these changes were out for comment at the time of commencement of this study). Struck through black text under the ACT indicates that the proposed new regulations would supersede this particular aspect of the current regulations. Reviewing the various schemes with an eye to improved harmonisation with schemes outside SA (and improved specification generally) the following observations/recommendations are made: Eligibility Requirements: At present, there are effectively no pre-conditions in SA in relation to this activity apart from the limitations on the type and size of the new Refrigerator/Freezer (this aspect is covered in the following section). The installation can either be as a new unit or a replacement unit replacing any form of pre-existing refrigerator or refrigerator/freezer (for which additional credits are available under activity APP2 (removal and disposal of “other refrigerator or freezer”). This eligibility criterion aligns with the approach taken in all other jurisdictions. In the ESS scheme there is a separate activity (C2) in relation to credits for the removal of a primary refrigerator. The VEET scheme has a similar provision (schedule 19) targeted at existing refrigerators manufactured pre 1996 that are in working condition. The EEIS scheme also has a similar provision (5.1) targeted at removal of existing refrigerators of any type provided they are in working condition. In all these cases the activity attracts additional credit to that offered for the installation of a new efficient refrigerator alone. The option for awarding additional credit for the removal of refrigerator in working order within REES is addressed in Section 3.4 of this report.

Recommendation (Eligibility Requirements):

No change

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Table 20: Comparison of Various Energy Efficiency Schemes – Purchase a high Efficiency Refrigerator or Refrigerator/Freezer (REES – APP1A)

Parameters EEIS ESS VEET REES

Included in scheme? Yes Yes Yes Yes

Working Title Purchase for installation in a premises a high efficiency: (a) single door refrigerator; or (b) two door refrigerator; or (c) chest freezer; or (d) upright freezer (a) = Group 1 (b) = Groups 4, 5B, 5S or 5T (c) = Group 6C (d) = Group 6U or 7

Sell a High Efficiency Refrigerating Appliance

High efficiency refrigerators and freezers

Purchase high efficiency new refrigerator or refrigerator-freezer; Residential or Commercial

Activity Reference Number Part 5.2 B4, B5 and B6 Schedule 22A to 22D APP1A and APP1B Note: For this review only APP1A is being considered. Details of APP1B are included for information purposes only.

Required pre-condition Purchased by a resident of the ACT for installation and use in a residential premises or business premises within the ACT

Residential or small business Residential or business Residential or business

Limitation on replacements Group 1: 100-500 litres Group 4/5T/5B/5S: 100-700 litres Group 6C: 100-700 litres Group 6U/7: 100-400 litres Excludes Groups 2 and 3

No size restriction Includes Group 2 and 3

Group 1: 100-500 litres Group 4/5T/5B/5S: 100-700 litres Group 6C: 100-700 litres Group 6U/7: 100-400 litres Excludes Groups 2 and 3

Group 1: 100-500 litres Group 4/5T/5B/5S: 100-700 litres Group 6C: 100-700 litres (App1B) Group 6U/7: 100-400 litres (App1B) not cooled appliance or wine storage Excludes Groups 2 and 3

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Parameters EEIS ESS VEET REES Performance requirements Group 1: 2 stars

Group 4/5T/5B/5S: 2.7 stars Group 6C: 3.3 stars Group 6U/7: 2.5 stars

Group 1,2,3: 2.5stars Group 4/5T/5B/5S: 3.0 stars Group 6C, 6u and 7: 2.5 stars

Group 1: 2 stars Group 4/5T/5B/5S: 2.7 stars Group 6C: 3.3 stars Group 6U/7: 2.5 stars

Group 1: 2 stars Group 4/5T/5B/5S: 2.7 stars Group 6C: 3.3 stars (App1B) Group 6U/7: 2.5 stars (App1B)

Deemed savings Formula based on volume, energy and group to estimate energy savings – mirrors star rating equation Group 1 base: 1.35 stars Group 4/5T/5B/5S base: 2.39 stars Group 6C base: 2.75 stars Group 6U/7 base: 2.0 stars

Each type split into 2 – 4 size bins as follows: Group 1,2,3: <300 litres ≥300 litres Group 4/5T/5B/5S: <300 litres 300 to > 500 litres ≥500 litres Group 6C, 6u and 7: <150 litres 150 to > 300 litres 300 to > 500 litres ≥500 litres

Formula based on volume, energy and group to estimate energy savings – mirrors star rating equation Group 1 base: 1.35 stars Group 4/5T/5B/5S base: 2.39 stars Group 6C base: 2.75 stars Group 6U/7 base: 2.0 stars

Formula based on volume, energy and group to estimate energy savings – mirrors star rating equation Group 1 base: 1.35 stars Group 4/5T/5B/5S base: 2.39 stars Group 6C base: 2.75 stars (App1B) Group 6U/7 base: 2.0 stars (App1B)

Regional Variations? No No Yes – Regional factor Metro areas = 0.98 Regional Areas = 1.04

No

Warranty Requirements

Referenced Standards AS 4474 (sic) AS/NZS 4474.1, AS/NZS 4474.2

AS/NZS 4474.1-2007, AS/NZS 4474.2-2009

AS/NZS 4474.1-2007 (and 1997), AS/NZS 4474.2-2009

AS/NZS 4474.1, AS/NZS 4474.2

Other requirements On the register of products Valid registration with GEMS ESC register (registration implied) Valid registration with GEMS

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Installed Product Requirements: The REES scheme in SA is limited to the following types of refrigerator as defined in AS/NZS 4474.1:

Group 1: 100-500 litres (APP1A)

Group 4/5T/5B/5S: 100-700 litres (APP1A)

Group 6C: 100-700 litres (App1B)

Group 6U/7: 100-400 litres (App1B) Note: Freezers are covered by activity (APP1B), which does not form part of this review. All other jurisdictions contain similar eligibility provisions for refrigerators with the exception of NSW. In the ESS scheme Group 2 and Group 3 refrigerators (bar fridges) are also eligible for inclusion. Group 2 and Group 3 refrigerators are rarely if ever used as a primary refrigerator within a household. Group 2 and Group 3 refrigerators are however commonly used in small business establishments and as such there could be some merit in their inclusion in the REES scheme in relation to business premises. A requirement that Group 2 and 3 refrigerators could only attract a credit if the installation was to be in a business premises would however constitute an added burden in terms of programme administration, record keeping and auditing and is therefore probably not warranted given that neither VEET or EEIS offer credit for this category of product type.

Recommendation (Installed Product Requirements): No change

Deemed Savings (Format): The current format used in the REES scheme is a formula based approach based on the star rating algorithm contained in AS/NZS4474.2:2009. VEET and EEIS use an almost identical approach to that used in REES except that adjusted volume calculations are undertaken differently (see commentary below). If there is closer alignment between the states, a revised format of the formula would make the approach more transparent – this could apply to all labelled appliances, except air conditioners. Savings = ConversionLifetimeUsageCECBECERF baseSRI

})1{()1(

Where: ERF is the energy reduction factor for the star rating SRIbase is the baseline star rating used to calculate the energy savings for the product BEC is the base energy consumption as per the standard (1 star for the product size) CEC is the label energy consumption as per the standard Usage is a factor to adjust the usage from standard conditions to normal use Lifetime is the assumed lifetime in years Conversion is a factor that converts the energy savings in kWh to local units used in each scheme (this could be MJ. GJ or emissions). ESS uses a table based format5 that includes the following divisions according to the products total gross volume:

5 It is important to note that the underlying assumptions and approach for calculating savings

in the ESS appliance tables is different and not directly compatible with the equation approach currently used by VEET, EEIS and REES.

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Group 1,2,3:

<300 litres

≥300 litres Group 4/5T/5B/5S:

<300 litres

300 to > 500 litres

≥500 litres Group 6C, 6U and 7:

<150 litres

150 to > 300 litres

300 to > 500 litres

≥500 litres DSD indicated in the terms of reference for this review that their preference is to shift to a table based approach for credits for refrigerators. Whilst the ESS schemes table based approach as detailed above could be adopted, the granularity of the size bins used by ESS is quite coarse leading to a reduction in accuracy. 50 litre bins are therefore considered more appropriate. A table of values could be generated using the existing formula as a basis, which would be the recommended approach. If a table is used, a decision also needs to be made whether to use average values in each bin or the minimum value in each bin. For example, for a size range of 400 to 450 litres, should 400 or 425 be used to calculate credits? In practice there should be no size bias within bins, so using an average should create no systematic issue in the calculation of credits. Due to the size range of various bins in a table approach, some products may lose some credits if a table is used. It also means that credits earned by jurisdiction may vary for the same product (which is only of minor concern). The other consideration is how a refrigerator/freezers volume is accounted for in the calculation of savings. Each jurisdiction takes a somewhat different approach to this aspect:

The REES scheme currently uses the products reported “adjusted volume”6. This provides the most accurate estimate of energy consumption (in line with the method as prescribed in AS/NZS4474.2) but requires the user to download and search a CSV data-file from the GEMS energy-rating website in order that they may obtain the adjusted volume claim for the particular product.

The ESS scheme uses the combined gross volume (as defined in AS/NZS4474.1) of all compartments in their lookup tables (this is effectively the advertised or nominal total volume of the refrigerator-freezer and is therefore simpler to locate, but still requires some research). In the case of combined refrigerator-freezers, the ESS scheme must include an assumed adjustment factor to convert the total gross volume to a proxy “adjusted volume” that is then used to estimate the energy savings credit. For example, it might be assumed that on average 30% of the gross volume of a Group 5T

6 The adjusted volume of a refrigerator/freezer is a volume metric that takes into account the

operating temperature of each compartment that makes up the product. The adjusted volume weights more heavily compartments that operate at temperatures lower than a fresh food compartment and less heavily compartments that operate at temperatures higher than a fresh food compartment. For example, whilst fresh food compartments are weighted by a factor of 1, freezer compartments are weighted by a factor of 1.6 and cellar compartments by a factor of 0.7. There are other compartment types as well which are not covered by VEET.

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refrigerator-freezer is allocated to freezer compartment and 70% to fresh food compartment giving an adjustment factor of 1.18 (i.e. 0.3×1.6 + 0.7×1). This approach may give somewhat inaccurate results for a particular refrigerator-freezer but provided the factor used is representative of the current market, the state-wide credits awarded should still closely match actual savings realised by the scheme. The other issue is that the share of freezer volume varies by Group (mainly an issue for 5T, 5B and 5S) and the specific volume share of a particular refrigerator may not be average.

The VEET and EEIS schemes use the gross volume of both the fresh food compartment and the freezer compartment (as applicable) to then calculate the adjusted volume of the product. This approach however, makes no allowance for compartment types other than fresh food or freezer compartments. For example; some refrigerator-freezers include compartments such as cellar compartments for storage of vegetables and chiller compartments for storage of meats and fish. These compartments are neither classified as fresh food compartments or freezer compartments and are presumably not accounted for in the VEET or EEIS schemes.

Recommendation (Deemed Savings Format):

Include tables of deemed savings factors based on 50 litre bins and 0.5 star bins as requested by DSD. In relation to volume bins, the average value in each bin should be used for calculating credits.

For Refrigerator-Freezers, in relation to estimates for the adjusted volume it was agreed in consultation with both DSD and ESCOSA that:

o The products gross volume be multiplied by an adjustment factor applied as a means for approximating the product adjusted volume (less accurate at an individual product level but potentially simpler to use and more user friendly). At a minimum separate tables based on adjusted volume estimates would be required for refrigerator only products (Group 1) and refrigerator freezers (Groups 4/5T/5B and 5S) i.e. a minimum of two tables. If warranted Groups 4/5T/5B and 5S may also need to be split into up to 4 separate tables, although it is understood that ESCOSA have a preference for the minimum number of tables possible.

If a table approach is used, then it is recommended that: o for consistency DSD also plan to update activity APP1B (freezers) in a

similar fashion (noting that APP1B was outside the scope of this study)

o documentation needs to be retained by REES to explain how the table values are calculated (the underlying formula and assumptions to populate the table needs to be documented so it can be updated from time to time).

Regional Variations: No jurisdictions, except Victoria, apply any form of regional factor to the awarded credits. In Victoria the regional factors are based on differences in transmission losses between metropolitan (0.98) and regional areas (1.04). It is understood that DSD wish to align with the VEET scheme in this respect and adopt a set of SA relevant factors relating to transmission losses in the electricity grid. This aspect is covered separately in Section 4.

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Recommendation (Regional Variations): Refer Section 4 of this report for recommendations.

2.6.3 REVIEW OF BASELINE ASSUMPTIONS

For this type of activity, the savings are assessed as a function of the energy consumption of the new efficient appliance selected compared to the average appliance that would have been installed in the absence of REES (business as usual – market average). The current baseline assumptions for this activity are as follows:

Group 1 base: 1.35 stars (average 2014 = 1.8) (APP1A)

Group 4/5T/5B/5S base: 2.39 stars (average 2014 around 2.45) (APP1A). These baselines were derived by VEET some years ago. The same baselines are used in EEIS and REES. The latest data from Whitegoods Efficiency Trends in 2014 (included above for each Group) suggests that some of these baselines will need updating in due course. This is currently not urgent. However, this will be important if proposals for new MEPS levels are progressed within the next few years. The current approach, baselines and qualifications should continue to be used in the interests of interstate alignment for the time being. Given that appliance characteristics are nationally fairly uniform, future requirements should be updated on a consensus basis in conjunction with all states, as far as possible.

Recommendation (Baseline Assumptions): No changes

2.6.4 REVIEW OF ACTIVITY PERFORMANCE ASSUMPTIONS

At present, performance assumptions primarily relate to the units GEMS Star Rating, which is primarily based on the unit’s comparative energy consumption and its adjusted volume. This is also the basis upon which all other jurisdictions estimate expected energy savings. Note that the Part 2 standard also mandates several performance requirements such as the pull down test and operation temperature test, which are critical and are mandated for all registered products – this does not need to be reviewed. The current REES formula based approach allows for any level of performance to be assumed (provided it exceeds the minimum threshold). Both the VEET and the EEIS schemes use the same principle. Only the ESS scheme uses set star rating bins to define the activity performance options. The ESS bins match the star rating options in AS/NZS 4474.2:2009 i.e. half star increments up to 6 stars followed by full star increments from 6 stars to 10 stars. If SA is to follow a table based approach it makes sense to adopt the same star bins as used in the ESS scheme. Star rating bins are defined in terms of the lowest value in each bin (e.g. products which lie in the SRI range 4.00 to 4.49 are defined as being in the “4 star bin”). One option would be to assume all products within that bin just meet the minimum standard (i.e. 4.00 stars). This would be a conservative estimate of actual benefits as some products would exceed 4.00 stars. Alternatively, it could be assumed that all products within a bin met the average for that bin (e.g. 4 star bin = 4.25 stars). This approach is likely to be somewhat optimistic in terms of the actual benefits, as there is evidence that there is a preponderance of lower star ratings in each 0.5 star rating bin, so using say 4.25 to calculate values in the star rating bin 4.0 to 4.49 will provide is slight advantage for more products on average. This is illustrated in Figure 3.

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Using an average star rating for each bin would provide a small additional credit to many products. Figure 3: Distribution of refrigerator registration in Australia by 0.1 stars

Source: Michel, A., et al., Household refrigerators: Monitoring efficiency changes in Europe and Australia over the last 10 years, in EEDAL 2015: Switzerland.

Recommendation (Activity Performance Assumptions) :

Using a table based approach set the activity performance options to match the star rating options in AS/NZS 4474.2:2009 i.e. half star increments up to 6 stars followed by full star increments from 6 stars to 10 stars.

Assumed levels of performance could be set at the lowest possible value within the bin (conservative) or at the average of the bin (less conservative), DSD have indicated a preference for the use of average values.

2.6.5 REVIEW OF KEY ASSUMPTIONS UNDERPINNING CREDIT ESTIMATES

The following table details the current key assumptions used in estimating the available credits for this pre-existing activity. The basis for these assumptions was detailed in the report Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014). The left hand column details the parameter under consideration, the centre column details the current setting applied in the REES scheme and the right hand column provides comment on the current settings (with reference to settings used in other jurisdictions as applicable). Where no change is proposed to the current assumption the comment column includes the words Remains valid. Where a change is considered to be warranted to the current settings the comment column includes the words Recommended Change.

0

20

40

60

80

100

120

140

160

180

1.0

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

2.0

2.1

2.2

2.3

2.4

2.5

2.6

2.7

2.8

2.9

3.0

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

4.0

Nu

mb

er

of

Mo

de

ls R

egi

ste

red

Fractional Star Rating

Australian Refrigerator and Freezer Registrations - 2012 to 2015 (2010 star rating equation)

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Table 21: Review of Underlying Key Assumptions (Refrigerators)

Parameter Value Comment

Energy Service Levels Climate factors As per EES

(2008) Remains valid (see note 1 below)

Base Case Assumptions Ownership Various As per ABS4602

REES Activity Assumptions

Ownership * * As per base case (sales stream not used in setting of specifications)

Performance

As per standards

Remains valid (see note 1 below)

Lifetime and persistence

Product lifetime

15 years refrigerators 21 years freezers

Remains valid (see note 1 below) ESS scheme assumes 12 years but this is extremely conservative.

Product persistence Same as life Remains valid (see note 1 below)

Adjustment Factors

Additionality discount factor 1.0 Not applicable as additional impact is specifically quantified in methodology

Free rider discount 0.90 Vic and ACT use 1.0 (NSW unknown) Recommended Change: increase to 1.0 (see note 2)

Rebound discount factor 1.0 Remains valid (see note 1 below)

Compliance discount factor 1.0 Remains valid (see note 1 below)

Total Discount factor 0.90 Vic and ACT use 1.0 (NSW unknown) Recommended Change: increase to 1.0 (will increase credits by 11%) (see note 2)

Climatic Adjustments

Adjustments required? Climate factors required for South Australia

Remains valid (see note 1 below)

Note 1: Modelling as originally applied in the study Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014) is considered to remain valid. Note 2: In assessing credits to be awarded the VEET scheme assumes a value of 1, however, in assessing expected state-wide impacts on greenhouse gas emissions for greenhouse accounting purposes a lesser value is applied. It is understood that DSD have a preference to harmonise with the VEET/EEIS schemes in this respect.

2.6.6 REVIEW OF SPECIFICATION / INSTALLATION PROVISIONS

The specifications in relation to this activity are simple and straight forward requiring no change.

Recommendation (Specification / Installation Provisions): Augment current specifications to include:

A note making it clear that where this activity can be combined with the disposal of a working refrigerator additional credit is available for the disposal activity (APP2).

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2.7 APP1D: Purchase a high efficiency new clothes dryer

2.7.1 REVIEW OF ACTIVITY DATABASE

The available data from the REES activity database dating back to 2009 for this activity indicates that there has been no uptake of this activity since the commencement for the program. One theory regarding the poor uptake of this activity is that the formula based approach used to determine credits whilst highly flexible and accurate serves as a barrier to less technically adept stakeholders. An alternative approach using a simple tabular format for the credits is explored in this review.

2.7.2 REVIEW OF OTHER JURISDICTIONS, HARMONISATION

Table 22 summarises the current key parameters of the REES scheme as well as the schemes currently operating in the ACT (EEIS), NSW (ESS) and Victoria (VEET). In the case of the ACT scheme the text in Black reflects the current regulations and the text in red reflects changes expected to be introduced to the current regulations starting in 2017 (these changes were out for comment at the time of commencement of this study). Struck through black text under the ACT indicates that the proposed new regulations would supersede this particular aspect of the current regulations. Reviewing the various schemes with an eye to improved harmonisation with schemes outside SA (and improved specification generally) the following observations/recommendations are made: Eligibility Requirements: Eligibility requirements in the REES scheme are minimal, requiring only that the unit be for residential or business application. Similar requirements apply in other jurisdictions.

Recommendation (Eligibility Requirements):

No change

Installed Product Requirements: At present, the installed product criteria for the REES scheme aligns reasonably well with that of other jurisdictions. Washer-dryers are not permitted in any scheme and both VEET and EEIS set a minimum performance rating of 5 stars as per REES. The ESS scheme permits the use of much lower performance dryers (down to 2 stars in some circumstances) but such machines would provide little if any credit above the assumed baseline performance.

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Table 22: Comparison of Various Energy Efficiency Schemes – Purchase a high Efficiency New Clothes Dryer (REES – APP1D)

Parameters EEIS ESS VEET REES

Included in scheme? Yes Yes Yes Yes

Working Title Purchase of high efficiency electric clothes dryer

Sell a High Efficiency Clothes Dryer Installation of energy efficient (low greenhouse intensity) clothes dryer

Purchase high efficiency new clothes dryer; Residential or Commercial

Activity Reference Number Part 5.3 B2 Schedule 25A (electric) APP1D

Required pre-condition Purchased by a resident of the ACT for installation and use in a residential premises or business premises within the ACT

Not stated Residential or business Residential or business

Limitation on replacements Cannot be a washer/dryer Cannot be a washer/dryer Cannot be a washer/dryer Cannot be a washer/dryer

Performance requirements SRI ≥ 5 stars <5kg: credits from 2 stars 5-7kg: credits from 2.5 stars >7kg: credit from 4 stars

SRI ≥ 5 stars SRI ≥ 5 stars Rated capacity ≥ 5 kg

Deemed savings Formula based on capacity – mirrors star rating equation. Saving base is 1.6 stars (to harmonise with VEET) but the market average in 2014 was in fact 2.1 stars

Based on a table split into 3 sizes (as noted above) and savings allocated by star rating

Formula based on capacity – mirrors star rating equation. Saving base is 1.6 stars.

Formula based on capacity – mirrors star rating equation. Saving base is 1.6 stars.

Regional Variations? No No Yes on emission factors No Warranty Requirements

Referenced Standards AS/NZS 2442.1 and 2442.2 AS/NZS 2442.1:1996 and 2442.2:2000

AS/NZS 2442.1:1996 and 2442.2:2000

AS/NZS 2442.1 and 2442.2

Other requirements On the register of products Valid registration with GEMS ESC register (registration implied) Valid registration with GEMS

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The only aspect where the REES scheme varies from the others is in the setting of a minimum load capacity requirement of 5 kg; no other scheme includes such a limitation. At present this limitation has no practical effect as the most efficient clothes dryers of less than 5 kg rated capacity rate at 4 stars or less (and the ones between 3 and 4 stars are mostly washer dryers in any case). The 5 star requirement is only achieved by heat pump type dryers which start at 5 kg capacity. However, it is possible that in the future heat pump dryers of 5 star rating or higher will be produced in capacities less than 5 kg. The eligibility requirement in REES of 5 kg or more seems unnecessarily restrictive, may limit innovation and does not harmonise with other jurisdictions and therefore should be removed. One point for consideration is that AEG have just released a heat-pump washer-dryer that rates 6 stars on the drying function. There is no specific reason why this product should be excluded from REES or the other schemes7. The original washer-dryer exclusion was to eliminate these dryers as they appear to have a higher efficiency than conventional dryers. This is achieved by a high speed spin prior to drying which conventional dryers cannot undertake. Some washer-dryers can rate close to 5 stars. If the washer-dryer exclusion was to be eliminated, then the minimum star rating should be increased to 6 stars.

Recommendation (Installed Product Requirements):

Remove the current restriction on minimum rated dryer capacity to better harmonise with other jurisdictions and to allow for smaller high efficiency products to be eligible.

Remove the current prohibition on washer dryers, provided they have a minimum performance standard of 6 stars

Deemed Savings (Format): The current format used in the REES scheme is a formula based approach based on the star rating algorithm contained in AS/NZS2442.2. VEET and EEIS use an almost identical approach to that used in REES. ESS on the other hand uses a table based format8 that includes the following divisions according to the products rated capacity:

<5kg: credits from 2 stars

5-7kg: credits from 2.5 stars

>7kg: credit from 4 stars .

7 In fact, washer dryers are most popular in apartments and flats where there is limited space

available for separate washers and dryers. This is significant because the limited or total absence of line drying space in apartments means that dryers are used more frequently than in a standard detached dwelling where an external clothes line is normally available. More frequent use equates to greater potential energy savings from the use of a high efficiency washer dryer. 8 It is important to note that the underlying assumptions and approach for calculating savings

in the ESS appliance tables is different and not directly compatible with the equation approach currently used by VEET, EEIS and REES

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DSD has indicated in the terms of reference for this review that their preference is to shift to a table based approach. Whilst the ESS schemes table based approach as detailed above could be adopted the granularity of the size bins is quite course leading to a reduction in accuracy. 0.5 kg bins (as used for rating purposes in the standard) are therefore considered more appropriate. In terms of performance divisions, the ESS scheme uses half star increments from 2 stars to 6 stars. For a tabular format in the REES scheme it is recommended that the scale should extend from 5 stars (minimum permissible) to 10 stars (currently available in the Australian market) in one star increments but including 5.5 stars in line with the star rating graduations used in AS/NZS2442.2 (note that the federal determination was released in 2016 that defined dryer ratings from 7 to 10 stars). The table would start at 6 stars if the minimum requirements were changed.

Recommendation (Deemed Savings Format):

Include tables of deemed savings factors based on: o Rated capacity in 0.5 kg increments from 1 kg to 10 kg o Star rating in one star increments from 5 stars to 10 stars, plus 5.5

stars in line with the star rating graduations used in AS/NZS2442.2

Regional Variations: No jurisdictions, except Victoria apply any form of regional factor to the awarded credits. In Victoria the regional factors are based on differences in transmission losses between metropolitan (0.98) and regional areas (1.04). It is understood that DSD wish to align with the VEET scheme in this respect and adopt a set of SA relevant factors relating to transmission losses in the electricity grid. This aspect is covered separately in Section 4.

Recommendation (Regional Variations): Refer Section 4 of this report for recommendations.

2.7.3 REVIEW OF BASELINE ASSUMPTIONS

For this type of activity, the savings are assessed as a function of the energy consumption of the new efficient appliance selected compared to the average appliance that would have been installed in the absence of REES (business as usual – market average). The current baseline assumption in REES, VEET and EEIS (ESS baseline assumption is unknown) is that a market average clothes dryer would have a performance of 1.6 stars. In fact the current market average performance is 2.1 stars based on the latest Whitegoods Efficiency Trends (year 2014). The low baseline means that slightly more credits are earned than should be the case. However, this 0.5 star error in the assumed baseline (around 8% of energy in the case of dryers) is relatively small compared to the total savings. It is more important that all the state schemes remain aligned as far as possible.

Recommendation (Baseline Assumptions): No changes at this stage

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2.7.4 REVIEW OF ACTIVITY PERFORMANCE ASSUMPTIONS

At present, performance assumptions relate to the units GEMS Star Rating which is primarily based on the unit’s comparative energy consumption and its rated capacity. This is also the basis upon which all other jurisdictions estimate expected energy savings, except that in the ESS scheme this is couched in terms of star rating rather than CEC value. The current REES formula based approach allows for any level of performance to be assumed (provided it exceeds the minimum threshold). Both the VEET and the EEIS schemes use the same principle. Only the ESS scheme uses set star rating bins to define the activity performance options. The ESS bins match the star rating options in AS/NZS 2442.2 i.e. half star increments but only up to 6 stars. Note that GEMS determinations were altered in 2016 and now allow from 7 to 10 stars for dryers. If SA is to follow a table based approach it makes sense to use star ratings as the metric (as in the ESS scheme) but only from the minimum 5 star rating up to the maximum 10 star rating. Note that such a table will end up being quite large and many bins will nominate a value but there will be no products available on the market. An alternative approach is to maintain a register of eligible products and list the credit for each mode, avoiding the need for service providers to undertake any calculations. Star rating bins (if used) could be defined in terms of the lowest value in each bin (e.g. products which lie in the SRI range 5.00 to 5.49 are defined as being in the “5 star bin”). One option would be to assume all products within that bin just meet the minimum standard (i.e. 5.00 stars), this would be a conservative estimate of actual benefits as some products would exceed 5.00 stars. Alternatively, it could be assumed that all products within a bin met the average for that bin (e.g. 5 star bin = 5.25 stars), this approach is likely to be somewhat optimistic in terms of the actual benefits as the majority of products in any one bin are known to lie within the lowest quartile of that bin.

Recommendation (Activity Performance Assumptions) :

Using a table based approach set the activity performance options to match the star rating options in AS/NZS 2442.2 i.e. half star increments from 5 to 6 stars followed by full star increments from 6 stars to 10 stars.

Assumed levels of performance could be set at the lowest possible value within the bin (conservative) or at the average of the bin (less conservative), DSD have indicated a preference for the use of average values.

2.7.5 REVIEW OF KEY ASSUMPTIONS UNDERPINNING CREDIT ESTIMATES

The following table details the current key assumptions used in estimating the available credits for this pre-existing activity. The basis for these assumptions was detailed in the report Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014). The left hand column details the parameter under consideration, the centre column details the current setting applied in the REES scheme and the right hand column provides comment on the current settings (with reference to settings used in other jurisdictions as applicable). Where no change is proposed to the current assumption the comment column includes the words Remains valid. Where a change is considered to be warranted to the current settings the comment column includes the words Recommended Change.

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Table 23: Review of Underlying Key Assumptions (Refrigerators)

Parameter Value Comment

Energy Service Levels Loads per annum 60 Vic and ACT use 78 full loads (NSW

unknown). This is based on a study undertaken by Sustainability Victoria. A recent review of dryer data suggests actual use is much higher (uses per year) but that the average load is very small (SV Clothes Dryer Retrofit Trial, 2016 – see http://www.sustainability.vic.gov.au/services-and-advice/households/energy-efficiency/toolbox/reports/technical-reports ) so the VEET assumption is probably reasonable. Recommended Change: increase to 78 (full loads) this will increase credits by 25% (see note 3 below)

Base Case Assumptions Ownership Various As per ABS4602

REES Activity Assumptions

Ownership * * As per base case (sales stream not used in setting of specifications)

Performance

As per standards

Remains valid (see note 1 below)

Lifetime and persistence

Product lifetime

10 years

VIC and ACT use 12, NSW assumes 10. Recommended Change: increase to 12 years this will increase credits by 20%

Product persistence Same as life Remains valid

Adjustment Factors

Additionality discount factor 1.0 Not applicable as additional impact is specifically quantified in methodology

Free rider discount 0.90 Vic and ACT use 1.0 (NSW unknown) Recommended Change: increase to 1.0 (see note 2)

Rebound discount factor 1.0 Remains valid (see note 1 below)

Compliance discount factor 1.0 Remains valid (see note 1 below)

Total Discount factor 0.90 Vic and ACT use 1.0 (NSW unknown) Recommended Change: increase to 1.0 (will increase credits by 11%) (see note 2)

Climatic Adjustments

Adjustments required? No Remains valid (see note 1 below)

Note 1: Modelling as originally applied in the study Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014) is considered to remain valid. Note 2: In assessing credits to be awarded the VEET scheme assumes a value of 1, however, in assessing expected state-wide impacts on greenhouse gas emissions for greenhouse accounting purposes a lesser value is applied. It is understood that DSD have a preference to harmonise with the VEET/EEIS schemes in this respect. Note 3: For dwellings without access to outside drying areas (typically smaller flats) the loads per annum would be expected to be significantly higher. If some means for establishing that a dwelling into which a dryer is to be installed has no outdoor drying area then additional credit could be awarded.

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2.7.6 REVIEW OF SPECIFICATION / INSTALLATION PROVISIONS

The specifications in relation to this activity are simple and straight forward requiring no change.

Recommendation (Specification / Installation Provisions):

No change

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2.8 APP1F: Purchase a high efficiency new television

2.8.1 REVIEW OF ACTIVITY DATABASE

The available data from the REES activity database dating back to 2009 for this activity indicates that there has been no uptake of this activity since the commencement for the program. One theory regarding the poor uptake of this activity is that the formula based approach used to determine credits whilst highly flexible and accurate serves as a barrier to less technically adept stakeholders. An alternative approach using a simple tabular format for the credits is explored in this review.

2.8.2 REVIEW OF OTHER JURISDICTIONS, HARMONISATION

Table 24 summarises the current key parameters of the REES scheme as well as the schemes currently operating in the ACT (EEIS), NSW (ESS) and Victoria (VEET). In the case of the ACT scheme the text in Black reflects the current regulations and the text in red reflects changes expected to be introduced to the current regulations starting in 2017 (these changes were out for comment at the time of commencement of this study). Struck through black text under the ACT indicates that the proposed new regulations would supersede this particular aspect of the current regulations. Note that the new EEIS requirements for 2017 align quite closely with the REES requirements for 2016 (the energy cap is different, but that is likely to be a typo but will remain now). The VEET requirements for televisions have not been changed since they were first introduced and are now considered by VEET to be out of date (all products on the market qualify). VEET put out consultation documents on a proposed update in June 2016 (bundled with changes for several other activities). Consultation has been completed but the changes have not been implemented yet (but should be in early 2017). Consultation documents are available on request. The basic elements of the VEET proposal are:

Minimum 7 stars

Energy cap (CEC) of 300 kWh/year. EEIS elected to go with the published REES 2016 specification rather than the unpublished VEET revised specification. The 2016 REES requirement is close to the proposed VEET update. A view of the baseline assumptions is examined later in this section. Reviewing the various schemes with an eye to improved harmonisation with schemes outside SA (and improved specification generally) the following observations/recommendations are made:

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Table 24: Comparison of Various Energy Efficiency Schemes – Purchase a high Efficiency Television (REES – APP1F)

Parameters EEIS ESS VEET REES

Included in scheme? Yes Yes Yes Yes

Working Title Purchase of a high efficiency television

Sell a High Efficiency Television Installation of high efficiency television

Purchase high efficiency new television; Residential or Commercial

Activity Reference Number Part 5.5 B7 Schedule 24 APP1F

Required pre-condition Purchased by a resident of the ACT for installation and use in a residential premises or business premises within the ACT

Not stated Residential or business Residential or business

Limitation on replacements

Performance requirements SRI ≥ 5.5 stars (2009 algorithm) Annual energy (CEC) less than 450 kWh/year SRI ≥ 7 stars (2013 algorithm) Annual energy (CEC) less than 270 kWh/year

Size 40cm to 80cm - credits from SRI=5 5.5 (2013 algorithm) Size 80cm to 120cm - credits from SRI=5.5 (2013 algorithm) Size >120cm - credits from SRI=6 (2013 algorithm)

SRI ≥ 5.5 stars (2009 algorithm) Annual energy (CEC) less than 450 kWh/year

2015: SRI ≥ 6.5 stars (2013 algorithm), CEC≤270kWh/y 2016: SRI ≥ 7.0 stars (2013 algorithm), CEC≤242kWh/y 2017: SRI ≥ 7.5 stars (2013 algorithm), CEC≤216kWh/y

Deemed savings Formula based on screen area – mirrors star rating equation (uses 2009 algorithm). Formula based on 2013 algorithm: Up to 7221cm

2 screen area (SA)

based on SA and CEC > 7221cm

2 SA based on CEC alone

(effectively caps credit for screens > 130 cm diagonal dimension)

Based on a table split into 3 sizes (based on screen diagonal (which is not regulated) and savings allocated by star rating (2013 algorithm)

Formula based on screen area – mirrors star rating equation (uses 2009 algorithm). Saving base is 4 stars (2009), market average in 2014 was around 8.2 stars (2009 algorithm)

Formula based on screen area – mirrors star rating equation (uses 2013 algorithm). Saving base is dynamic by year: 5.5 stars in 2015, 6.0 stars in 2016, 6.5 stars in 2017, market average in 2014 was around 5.2 stars (2013). > 7221cm

2 SA based on CEC alone

(effectively caps credit for screens > 130 cm diagonal dimension)

Regional Variations? No No Yes – Regional factor Metro areas = 0.98 Regional Areas = 1.04

No

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Parameters EEIS ESS VEET REES Warranty Requirements

Referenced Standards AS 62087 (sic) AS/NZS62087.1:2010, AS/NZS62087.2.2:2011

AS/NZS62087.2.2:2010 AS/NZS62087.1, AS/NZS62087.2.2

Other requirements On the register of products Valid registration with GEMS ESC register (registration implied) Valid registration with GEMS

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Eligibility Requirements: At present, there are effectively no pre-conditions in SA in relation to this activity apart from the requirement that the product be installed in residential or business premises. The installation can either be as a new unit or a replacement unit replacing any form of pre-existing TV. This eligibility criterion aligns with the approach taken in all other jurisdictions.

Recommendation (Eligibility Requirements):

No change

Installed Product Requirements: The scheme in SA currently sets minimum performance requirements in relation to the installed product. These requirements are in the form of minimum GEMS star ratings and maximum GEMS Comparative Energy Consumption values that vary according to the year of installation. All other jurisdictions include a minimum GEMS star rating requirement but these are static values (i.e. they do not vary by year of installation). The EES scheme includes a minor (0.5 star) variation according to the size range of the TV. The VEET scheme and the EEIS scheme also include a maximum GEMS Comparative Energy Consumption requirement, here again these are static values unlike the REES schemes values that vary by year of installation. The minimum GEMS star rating requirement ensures that the products energy efficiency exceeds the market average and the maximum GEMS Comparative Energy Consumption requirement effectively caps credits for screens > 130 cm diagonal dimension (i.e. avoids providing an incentive to buy extra large screens). Both these requirements are considered valuable and align well with the approach taken in most other jurisdictions. The only issue is that the published REES limits only apply until the end of 2017 and therefore new limits will need to be determined for the period 2018 to 2020.

Recommendation (Installed Product Requirements):

Retain the current minimum GEMS star rating requirement

Retain the current maximum GEMS Comparative Energy Consumption requirement

Set new limits for the above two parameters for 2018 - 2020

Deemed Savings (Format): The current format used in the REES scheme is a formula based approach based on the products screen area and its CEC value. VEET and EEIS use an almost identical approach to that used in REES scheme. ESS uses a table based format9 that includes the following divisions according to the products total diagonal screen dimension:

>40 cm to ≤80 cm

>80 cm to ≤120 cm

>120cm

9 It is important to note that the underlying assumptions and approach for calculating savings

in the ESS appliance tables is different and not directly compatible with the equation approach currently used by VEET, EEIS and REES.

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It should be noted that efficiency ratings are based on the screen area rather than the screens diagonal dimension. However, as most screens have a 16:9 aspect ratio the nominal diagonal screen dimension can generally be used as a means for approximating screen area. The advantage of using a screens diagonal dimension is that this value is readily available in both the retail context and on the GEMS interactive product listing whereas a TVs registered screen area can generally only be determined via reference to the downloadable CSV data file available from the GEMS website. DSD has indicated in the terms of reference for this review that their preference is to shift to a table based approach. Whilst the ESS schemes table based approach as detailed above could be adopted the granularity of the size bins is quiet course leading to a reduction in accuracy. If a table based approach is to be used then it is recommended that the following 16 size bins be adopted:

60cm or less

> 60 cm to ≤ 70 cm

> 70 cm to ≤ 80 cm

> 80 cm to ≤ 90 cm

> 90 cm to ≤ 100 cm

> 100 cm to ≤ 110 cm

> 110 cm to ≤ 120 cm

> 120 cm to ≤ 130 cm

> 130 cm to ≤ 140 cm

> 140 cm to ≤ 150 cm

> 150 cm to ≤ 160 cm

> 160 cm to ≤ 170 cm

> 170 cm to ≤ 180 cm

> 180 cm to ≤ 190 cm

> 190 cm to ≤ 200 cm

200 cm or more Likewise, performance categories should be divided into star rating bins (the star rating index value is available on the GEMS interactive product listing for TVs). It is recommended that the following 4 performance bins be adopted:

Star rating = 7 to SRI ≤ 8

Star rating = 8 to SRI ≤ 9

Star rating = 9 to SRI ≤ 10

Star rating = 10 stars

Recommendation (Deemed Savings Format):

Include tables of deemed savings factors based on 10cm diagonal screen measurement bins and one star rating index bins

Regional Variations: No jurisdictions, except Victoria apply any form of regional factor to the awarded credits. In Victoria the regional factors are based on differences in transmission losses between metropolitan (0.98) and regional areas (1.04).

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It is understood that DSD wish to align with the VEET scheme in this respect and adopt a set of SA relevant factors relating to transmission losses in the electricity grid. This aspect is covered separately in Section 4.

Recommendation (Regional Variations): Refer Section 4 of this report for recommendations.

2.8.3 REVIEW OF BASELINE ASSUMPTIONS

For this type of activity, the savings are assessed as a function of the energy consumption of the new efficient appliance selected compared to the average appliance that would have been installed in the absence of REES (business as usual – market average). The current baseline assumptions are as follows:

2015: SRI ≥ 6.5 stars (2013 algorithm), CEC≤270kWh/y (baseline 5.5 stars)

2016: SRI ≥ 7.0 stars (2013 algorithm), CEC≤242kWh/y (baseline 6.0 stars)

2017: SRI ≥ 7.5 stars (2013 algorithm), CEC≤216kWh/y (baseline 6.5 stars)

The 2014 Review of REES examined the rate of change of television efficiency in 2014 and found this was still proceeding at a fast pace. Accordingly, a dynamic baseline was proposed for REES for the years 2015 to 2017. A recent review of the most recent registration data has found the following trends:

LCD(LED) technology now accounts for 88% of registrations with 10% using LCD and a few percent OLED – plasma disappeared from the market in 2014;

Average screen sizes have continued to increase with the average in 2016 at 125cm (diagonal). It appears that LCD and OLED large screens are filling the gap left by the discontinuation of plasma;

The star rating index for all technologies slowed after 2014 and has effectively been flat during 2015 and 2016.

The number of registrations per year has been consistent at around 500 during 2014, 2015 and 2016 (noting that all products had to be re-registered in 2013 after new MEPS were introduced and star ratings were downgraded).

These trends are illustrated in the following figures (Figure 4 to Figure 8). While these figures are based on registrations by year (rather than sales), the large number of registrations is thought to give a reasonable indication of general market trends and availability of products. The most important observation from this data is that the rate of efficiency improvement slowed dramatically after 2014 and there was little improvement in 2015 and 2016, based on registrations. Based on data to 2014, this slowing of efficiency could not have been forecast. The dynamic baseline proposed in the 2014 REES Review was developed on the basis that historical energy efficiency trends were likely to continue. Clearly this has not eventuated.

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Figure 4: Share of television registrations by technology by year

Figure 5: Average screen size of television registrations by technology by year

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Figure 6: Average star rating index of television registrations by technology by year

Figure 7: Average CEC (energy) of television registrations by technology by year

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Figure 8: Distribution of Star Rating Index for all registrations by year

Given that EEIS has settled on a qualification of 7 stars and that VEET is also likely to revise their requirements to require 7 stars, it is suggested that REES amend their specification so that the 2016 REES requirement be maintained for the period 2017 to 2020. The main issue with this approach is that the assumed baseline for 2016 energy calculations is 6 stars (2013 algorithm), which is about 1 star more than the apparent market average in 2016. Currently there are 48 models that comply with the 2016 requirements that were registered in 2015 and 2016 (out of around 1000 registrations in total). This is perhaps a little harsh if savings are to be encouraged. The ideal approach would be to adopt the REES 2015 requirements for the time being in terms of baseline assumptions (assumed baseline of 5.5 stars) noting that even this is slightly conservative in terms of calculated credits.

Draft Recommendation (Baseline Assumptions): Revise the baseline and qualification requirements as follows:

Baseline assumed to be 5.5 stars

Minimum qualification threshold 7 stars (in line with other jurisdictions)

Apply an energy cap of 242.2 kWh/year (equates to a 130cm TV rated at six stars)

2.8.4 REVIEW OF ACTIVITY PERFORMANCE ASSUMPTIONS

At present, performance assumptions primarily relate to the unit’s comparative energy consumption (CEC) and its screen area. This is also the basis upon which all other jurisdictions estimate expected energy savings except that in the case of the

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ESS scheme the diagonal screen dimension is used as a proxy to calculate the screen area and a set of star rating bins are used in place of a CEC value. The current REES formula based approach allows for any level of performance to be assumed (provided it exceeds the minimum threshold). Both the VEET and the EEIS schemes use the same principle. Only the ESS scheme uses set star rating bins to define the activity performance options.

Recommendation (Activity Performance Assumptions) :

Using a table based approach set the activity performance options to increments of star rating indices as defined in AS/NZS62087.2.2:2011 i.e. between 7 stars and 10 stars in half star increments

Calculate savings based on the following: o Baseline = 5.5 stars o Minimum performance requirement = 7 stars o Energy Cap = 242.5 kWh/year (= 130cm TV rated at 6 stars)

2.8.5 REVIEW OF KEY ASSUMPTIONS UNDERPINNING CREDIT ESTIMATES

The following table details the current key assumptions used in estimating the available credits for this pre-existing activity. The basis for these assumptions was detailed in the report Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014). The left hand column details the parameter under consideration, the centre column details the current setting applied in the REES scheme and the right hand column provides comment on the current settings (with reference to settings used in other jurisdictions as applicable). Where no change is proposed to the current assumption the comment column includes the words Remains valid. Where a change is considered to be warranted to the current settings the comment column includes the words Recommended Change.

Table 25: Review of Underlying Key Assumptions (Televisions)

Parameter Value Comment

Energy Service Levels Usage Factor 5.5 hours per

day Remains valid (see note 1 below)

Base Case Assumptions Ownership As per

ABS4602 Remains valid As per ABS4602

REES Activity Assumptions

Ownership As per base case

Sales stream not used in setting of specifications)

Performance

As per AS/NZS standard

Recommended Change: REES qualifications and baselines from 2017 are too stringent for the current market. Proposed to revert to 2015 REES baseline assumptions and align qualification level with other jurisdictions (i.e. 7 stars). Consider table format as discussed above.

Lifetime and persistence

Product lifetime

10 years

Remains valid (see note 1 below)

Product persistence Same as life Remains valid (see note 1 below)

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Adjustment Factors

Additionality discount factor 1.0 Remains valid (see note 1 below)

Free rider discount 0.90 Vic and ACT use 1.0 (NSW unknown) Recommended Change: increase to 1.0 (see note 2)

Rebound discount factor 1.0 Remains valid (see note 1 below)

Compliance discount factor 1.0 Remains valid (see note 1 below)

Total Discount factor 0.90 Vic and ACT use 1.0 (NSW unknown) Recommended Change: increase to 1.0 (will increase credits by 11%) (see note 2)

Climatic Adjustments

Adjustments required? Not applicable Remains valid (see note 1 below)

Note 1: Modelling as originally applied in the study Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014) is considered to remain valid. Note 2: In assessing credits to be awarded the VEET scheme assumes a value of 1, however, in assessing expected state-wide impacts on greenhouse gas emissions for greenhouse accounting purposes a lesser value is applied. It is understood that DSD have a preference to harmonise with the VEET/EEIS schemes in this respect.

2.8.6 REVIEW OF SPECIFICATION / INSTALLATION PROVISIONS

The specifications in relation to this activity are simple and straight forward requiring no change.

Recommendation (Specification / Installation Provisions):

No change

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2.9 APP2: Remove and Dispose of an Unwanted Refrigerator or Freezer

2.9.1 REVIEW OF ACTIVITY DATABASE

The available data from the REES activity database dating back to 2009 for this activity indicates that there has been minimal uptake of this activity particularly in recent years – see Table 26. This suggests that there is still significant scope for the uptake of this activity.

Table 26: CFL or LED General Purpose Lamp Replacement Activity

Year Number of Activities Number of individual activity items

2009 0 0

2010 0 0

2011 12 12

2012 0 0

2013 0 0

2014 0 0

2015 0 0

2.9.2 REVIEW OF OTHER JURISDICTIONS, HARMONISATION

The following table (Table 27) summarises the current key parameters of the REES scheme as well as the schemes currently operating in the ACT (EEIS), NSW (ESS) and Victoria (VEET). In the case of the ACT scheme the text in Black reflects the current regulations and the text in red reflects changes expected to be introduced to the current regulations starting in 2017 (these changes were out for comment at the time of commencement of this study). Struck through black text under the ACT indicates that the proposed new regulations would supersede this particular aspect of the current regulations. Reviewing the various schemes with an eye to improved harmonisation with schemes outside SA (and improved specification generally) the following observations/recommendations are made: Eligibility Requirements: At present, the key eligibility requirements in the REES scheme include:

Residential or business

In working order

Within the scope of AS/NZS4474.2

If secondary then after the removal of the target appliance, a main refrigerator/freezer must remain installed and operating

Single phase

Vapour compression type

Wine storage and portable units excluded. These requirements align well with those in other jurisdictions. The only point of notable variation is that under the ESS scheme the size of the refrigerator/freezer is limited to those of 200 litres or more of gross volume.

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Table 27: Comparison of Various Energy Efficiency Schemes – Remove and Dispose of an Unwanted Refrigerator or Freezer (REES – APP2)

Parameters EEIS ESS VEET REES

Included in scheme? Yes Yes Yes Yes

Working Title Decommissioning and disposal of refrigerator or freezer

Removal of Old Appliances (refrigerators and freezers) C1 = Remove a spare refrigerator or freezer C2 = Remove a primary refrigerator or freezer

Destruction of pre-1996 refrigerator or freezer

Remove or Dispose of an unwanted Refrigerator or Freezer; Residential or Commercial

Activity Reference Number Part 5.1 C1 (spare) C2 (main) Schedule 19 APP2

Required pre-condition Removing a refrigerator or freezer in working order, from a premises and destroying the refrigerator or freezer (type not specified)

C1 = Residential, C2= Residential or Business, in working order, >200 litres, within the scope of AS/NZS4474.2

Residential or business, working order and manufactured before 1996 (type not specified)

Residential or business, in working order, within the scope of AS/NZS4474.2 If secondary then after the removal of the target appliance, a main refrigerator/freezer must remain installed and operating

Limitation on replacements C1 - a main refrigerator must be left after the secondary unit is removed

Excludes wine storage and portable refrigerators

Performance requirements Working order, previous date requirement removed

Working order, no age requirement Working order, manufactured before 1996

Working order Single phase Vapour compression type

Deemed savings 0.5926 t for 1 door (12.2 GJ) 1.0603 t for 2 door (21.8 GJ)

C1 Secondary: 5.7 MWh C2 Main: 2.4 MWh

Single door refrigerator or freezer: 3⋅25 t (12.1 GJ) Two door refrigerator or freezer: 5⋅82 t (21.7 GJ)

Deemed savings depend on size and vintage and whether secondary or main. Secondary R12: 25.6 GJ/m3 Secondary not R12: 14.2 GJ/m3 Other R12 (main): 15.1 GJ/m3 Other not R12: 7.6 GJ/m3 (based on external volume)

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Parameters EEIS ESS VEET REES Regional Variations? No No Yes

Metro areas = 0.98 Regional Areas = 1.04

No

Warranty Requirements N/A N/A N/A N/A

Referenced Standards AS/NZS4474.2 AS/NZS4474.2

Other requirements Disposal in accordance with Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Commonwealth),

No requirements regarding refrigerant disposal

Disposal in accordance with Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Commonwealth),

Disposal in accordance with Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Commonwealth),

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The limitation on volume in the ESS scheme probably relates to the fact that credits are ascribed per refrigerator or freezer removed rather than per m3 of refrigerator or freezer removed (as is the case in the REES scheme). If the REES scheme were to shift to a per refrigerator or freezer removed rather than per m3 of refrigerator or freezer removed approach (as applied in all other jurisdictions) then placing a lower limit on the volume of refrigerator/freezer removed would have some merit. Under the current volume based approach used in REES such a limitation is unnecessary because unlike other schemes the credits scale with the size of the removed appliance.

Recommendation (Eligibility Requirements):

No change unless there is a change to per refrigerator or freezer removed rather than per m3 of refrigerator or freezer removed approach. In these circumstances a lower limit on the volume of the removed refrigerator/freezer (as per the ESS scheme) would have some merit.

Installed Product Requirements: This aspect is not applicable to this activity as there is no installation of a product, simply a removal of a product.

Recommendation (Installed Product Requirements):

No Change

Deemed Savings (Format): The current format used in the REES scheme is a very simple formula based approach based on the type of product being removed and the external volume of the product (which is used as a means for estimating the gross volume of the product as defined in AS/NZS 4474.2). In terms of the types of products being removed, these are divided into four types each attracting differing credits. The types are:

Secondary Refrigerator/Freezer with R12 refrigerant

Secondary Refrigerator/Freezer without R12 refrigerant

Other Refrigerator/Freezer with R12 refrigerant

Other Refrigerator/Freezer without R12 refrigerant Each jurisdiction takes a somewhat different approach to categorising products in terms of available credits:

VEET and EEIS divide products into single door and two door

VEET limits removals only to pre 1996 products (effectively those with R12 refrigerants)

ESS simply divide products into secondary or main (“other” within the REES scheme) refrigerators and freezers

There is no doubt that the current REES arrangement that takes into account both age and volume of the product to be removed allows for the best match between the savings credits and actual savings achieved. Some might argue that the added complexity of having to calculate the products volume and determine if R12 refrigerant is used acts as a barrier to the take up of this activity. However, neither of these requirements is in reality particularly onerous. An external volume measurement simply requires 3 simple measurements probably taking no more than one minute. Where a product is clearly marked as having R12 or as being manufactured pre 1996 then the presence of R12 is easy to discern, where these indicators cannot be found then the assumption is simply that R12 is not present and a reduced credit is received.

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If there is concern that the formula approach is too complex for service providers or the recording dimensions is too onerous, it may be possible to move to a simpler approach as follows:

Retain the current R12 and other distinction as a proxy for age

Retain the primary or secondary classification

Have 4 categories of products as follows: o Single door refrigerator with a height of 1150mm or more o Single door refrigerator <1150mm height or height not recorded o Two door refrigerator-freezer o Separate freezer

This simpler format provides a total of 16 options (4 types, R12 or not R12, primary or secondary). It would be necessary to develop a likely average volume for each of the 4 product types based on historical sales data and their likely age. While this would be simpler for service providers, it will mean that credits are averaged and that larger products with higher energy savings will earn the same credits as smaller products with lower energy so is not particularly recommended. By including a single door product with a height <1150mm category, no lower volume limit will be necessary (as in the ESS scheme). Because priority group households are likely to contain older refrigerators/freezers compared to non-priority group households it was agreed with DSD that by default refrigerators/freezers to be removed from priority group households shall be deemed to be pre 1996 stock (i.e. R12 refrigerant)

Recommendation (Deemed Savings Format):

Retain existing formula based approach OR;

Include a set credit for 2 sets of 8 simple categories as follows: o Primary/Priority Group Household or R12/Single door of 1150mm or

more o Primary/ Priority Group Household or R12/Single door of <1150mm o Primary/ Priority Group Household or R12/Two door o Primary/ Priority Group Household or R12/Freezer only o Primary/NON R12/Single door of 1150mm or more o Primary/NON R12/Single door of <1150mm o Primary/NON R12/Two door o Primary/NON R12/Freezer only

o Secondary/ Priority Group Household or R12/Single door of 1150mm

or more o Secondary/ Priority Group Household or R12/Single door of <1150mm o Secondary/ Priority Group Household or R12/Two door o Secondary/ Priority Group Household or R12/Freezer only o Secondary/NON R12/Single door of 1150mm or more o Secondary/NON R12/Single door of <1150mm o Secondary/NON R12/Two door o Secondary/NON R12/Freezer only

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Regional Variations: No jurisdictions, except Victoria apply any form of regional factor to the awarded credits. In Victoria the regional factors are based on differences in transmission losses between metropolitan (0.98) and regional areas (1.04). It is understood that DSD wish to align with the VEET scheme in this respect and adopt a set of SA relevant factors relating to transmission losses in the electricity grid. This aspect is covered separately in Section 4.

Recommendation (Regional Variations): Refer Section 4 of this report for recommendations.

2.9.3 REVIEW OF BASELINE/ACTIVITY PERFORMANCE ASSUMPTIONS

For this type of activity, the savings are assessed as the energy consumption avoided from decommissioning an older refrigerator or freezer. In the case of a secondary refrigerator this equates to the expected energy consumption of the product over what remains of its life (estimated to be 7 years on average). In the case of a primary refrigerator (referred to as “other” in the REES scheme) the savings equate to the difference between the energy consumption of the existing product over what remains of its life (7 years) less the energy consumption of the replacement product (assumed to be a market average performance refrigerator/freezer with otherwise similar specifications). If the customer also purchases a high efficiency refrigerator to replace an existing product, then the credit earned from APP1A would be in addition to the credit from this activity. This could be made clearer in the documentation (see also Section 3.4) The current baseline assumptions are as detailed in Table 28. For a detailed description of each of these baseline components refer to the study Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014).

Table 28: Current Baseline Assumptions: Removal and Disposal of Unwanted Refrigerator/Freezer

Activity Subtype kWh/raw litre capacity

Climate Factor

Energy Deterioration Factor

Remove Secondary within a Priority Household or with R12 refrigerant

2.25 0.8 1.2

Remove Secondary Without R12 1.5 0.8 1

Replace Primary within a Priority Household or with R12 refrigerant

1.25 0.85 1.2

Replace Primary without R12 0.75 0.85 1

The climate factor is adjusted because secondary refrigerators and freezers are usually located in non-conditioned (colder) parts of the house. The energy deterioration factor applies to products with R12 (pre-1996), which are now over 20 years old. Unless DSD want this approach simplified in some way, no changes are proposed.

Recommendation (Baseline Assumptions): No changes proposed

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2.9.4 REVIEW OF KEY ASSUMPTIONS UNDERPINNING CREDIT ESTIMATES

The following table details the current key assumptions used in estimating the available credits for this pre-existing activity. The basis for these assumptions was detailed in the report Review of Residential Energy Efficiency Activities under the SA REES Scheme (EES 2014). The left hand column details the parameter under consideration, the centre column details the current setting applied in the REES scheme and the right hand column provides comment on the current settings (with reference to settings used in other jurisdictions as applicable). Where no change is proposed to the current assumption the comment column includes the words Remains valid. Where a change is considered to be warranted to the current settings the comment column includes the words Recommended Change.

Table 29: Review of Underlying Key Assumptions (Refrigerator/Freezer Removal)

Parameter Value Comment

Energy Service Levels Refrigerator and freezers Climate

factors Remains valid Assume labelling values will be adjusted by 0.80 for refrigerators and freezers as user interaction will be (secondary appliances) and many will run in unconditioned space (cooler). Primary refrigerators use a climate factor of 0.85 as per EEIS and VEET.

Refrigerator and freezers Age deterioration

Remains valid A proportion of older products will run less efficiently. US data suggests 20% increase in energy. This is also used in VEET.

Base Case Assumptions Energy consumption AS/NZS4474

adjusted as per (EES 2014)

Remains valid

REES Activity Assumptions

Ownership As per base case (data not used in setting of specifications)

Remains valid

Lifetime and persistence

Product remaining lifetime Refrigerators and freezers

7 years

Remains valid

Product persistence Same as life Remains valid

Adjustment Factors

Additionality discount factor 1.0 Not applicable as additional impact is specifically quantified in methodology

Free rider discount 0.90 Vic and ACT use 1.0 (NSW unknown) Recommended Change: increase to 1.0 (see note 1)

Rebound discount factor 0.98 Vic and ACT use 1.0 (NSW unknown) Recommended Change: increase to 1.0 (see note 1)

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Parameter Value Comment Compliance discount factor 0.9 Vic and ACT use 1.0 (NSW unknown)

Recommended Change: increase to 1.0 (see note 1)

Total Discount factor 0.794 Vic and ACT use 1.0 (NSW unknown) Recommended Change: increase to 1.0 in line with VEET and EEIS schemes (see above) this will increase credits by 26% (see note 1)

Climatic Adjustments

Adjustments required? Secondary = 0.8 Primary = 0.85 As per EES 2014

Remains valid See above

Note 1: In assessing credits to be awarded the VEET scheme assumes a value of 1, however, in assessing expected state-wide impacts on greenhouse gas emissions for greenhouse accounting purposes a lesser value is applied. It is understood that DSD have a preference to harmonise with the VEET/EEIS schemes in this respect.

2.9.5 REVIEW OF SPECIFICATION / INSTALLATION PROVISIONS

The specifications in relation to this activity are simple and straight forward requiring minimal change.

Recommendation (Specification / Installation Provisions): Augment current specifications to include:

A note making it clear that where this activity is combined with the purchase of a new high efficiency refrigerator additional credit is available for the purchase activity (APP1A or APP1B as applicable).

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3 Review of Proposed New Activities

3.1 Overview This section considers the following four new activities as proposed for inclusion by DSD. These are:

IHD1 - Install a device to allow engagement of household with energy usage and cost at time of use (In Home Display – IHD)

RDC1 - Install High Efficiency Refrigerated Display Cabinets

APP1G - Dispose of an old primary refrigerator/freezer and purchase an energy efficient replacement refrigerator/freezer

A fourth new activity, HC2C (Replace and remove an existing inefficient air conditioner and replace with an efficient new revere cycle air conditioner) has been incorporated into the analysis for the pre-existing activity HC2A (refer Section 2.2 for details) on the basis that HC2C constituted an extension to HC2A rather than an entirely new activity. When analysing each of these three proposed new activities for incorporation into REES the following aspects were considered:

Assess Suitability against Ministerial Protocol

Review of other Jurisdictions and potential for harmonisation opportunities

Technical review (baselines, performance standards, basis for credits)

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3.2 IHD1: In Home display Units (Residential Only)

3.2.1 Assess Suitability against Ministerial Protocol

Table 30 below sets out an assessment of this activities suitability against the general principles as set out in the REES Ministerial Protocol. Table 31 below sets out an assessment of this activities suitability against the specific principles (activity and calculation methods) as set out in the REES Ministerial Protocol. This proposed activity aligns well with all of the general principles except for the focus on low income households and a focus on remote and regional areas. By its nature, this is an activity targeted at business energy use and as such would not be expected to target these areas. This proposed activity also aligns well with all of the specific principles – see Table 31.

Table 30: Alignment with REES General Principles – In Home Displays

General Principles Reduces household and/or business energy use Provides a focus on low income households / remote and regional areas x

Fosters competition, innovation and market efficiency Associated Objectives: Provides greenhouse gas emission benefits

Provides energy cost benefits

Table 31: Activity Alignment with REES Specific Principles – In Home Displays

Principle Assessment

1. Provides scope for objective, cost effective and simple auditing

Installation of the equipment as part of the activity can be audited through a simple site inspection.

2. Harmonises with other schemes (as far as practical)

At present this activity is available only under the VEET scheme. The proposal is to align as far as possible with the VEET schemes provisions and underlying assumptions.

3. Capable of uptake by households and businesses in SA

Yes – application at this stage would be limited to the residential sector. Limitations may apply depending on the pre-existing household power supply infrastructure.

4. Provides a means for ensuring quality assurance and participant satisfaction (standards, guidelines, Accreditation networks)

Various provisions in the VEET scheme including Zigbee standards are proposed for adoption in the REES scheme (subject to approval by SA Networks)

5. Safety and minimising overall risk

By law the installation process would need to be undertaken by a suitably licenced electrician, thereby minimising any risk. All installations should be in accordance with manufacturer’s instructions.

6. Good practice (Best practice and recycling)

This activity is unlikely to involve aspects such as recycling

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Principle Assessment

7. Provides credible evidence based energy savings applicable to SA.

Energy savings are based on meta-analysis of a range of field surveys from across the world undertaken for the VEET program (Accenture 2011). The analysis selected studies that were considered to be applicable in the Australian context, in particular in Victoria but should be readily applicable to SA.

8. Compliance costs are balanced with accuracy of calculations

The cost of establishing compliance are minimal being based on a visual inspection of:

The installed unit whilst operating

Sales receipts

9. Energy savings are additional to base case (BAU) and minimises free riders

Analysis undertaken for VEET (Accenture 2011) indicates that savings are additional to the base case (no IHD installed) and that free riders are likely to be insignificant.

10. Provision of greater rewards for products that deliver higher levels of performance and energy efficiency

Not applicable

3.2.2 Review of other Jurisdictions, Harmonisation opportunities

The following table (Table 35) summarises for this activity type, the key parameters of the scheme currently operating in Victoria (VEET). The right hand column of this table indicates in red the recommended approach to be taken in the REES scheme. The recommendation is generally based on a desire to achieve harmonisation with the VEET scheme whilst ensuring that the provisions are:

In line with the REES ministerial protocol

As simple as possible

Practical to apply

Relevant in the SA context

3.2.3 Technical review

In the case of IHDs the baseline is effectively dwellings without in-home display units Assumed performance is proposed to be based on that used under the VEET scheme. That is an assumed % reduction in electrical energy consumption based on the study Department of Primary Industries IHD Inclusion into ESI scheme (Accenture 2011). In that study, performance of IHDs was based upon the following factors:

The % reduction in electricity consumption due to the IHD

Average Household energy consumption

The expected lifetime of the IHD

Any discount factors

The Greenhouse gas coefficient for electricity in Victoria (not applicable to SA)

The basis for determining each of these factors in the Accenture study is summarised in the following subsections:

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Table 32: Comparison of Various Energy Efficiency Schemes – Install a HE Refrigerated Display Cabinet

Parameters EEIS ESS VEET REES

Included in scheme? No No Yes Proposed

Working Title In home display unit In home display unit

Activity Reference Number Schedule 30 IHD1

Required pre-condition Nil Nil

Limitation on replacements N/A N/A

Performance requirements - Reading interval ≤ 30 secs - Data Storage ≥ 45 days Include numerical and non-numerical displays - Allows consumer to discern low and high consumption for the cases detailed in Note 1 below - Display tariff data and cost of electricity data - Capacity to erase all tariff and consumption data and all data entered by the consumer - Have an average electric power consumption of not more than 0·6 watts when operating under normal circumstances; - if battery powered, uses a battery that has a manufacturer's rated lifetime of at least 5 years when operating under normal circumstances For non AMI applications:

- Reading interval ≤ 30 secs - Data Storage ≥ 45 days Include numerical and non-numerical displays - Allows consumer to discern low and high consumption for the cases detailed in Note 1 below - Display tariff data and cost of electricity data - Capacity to erase all tariff and consumption data and all data entered by the consumer - Have an average electric power consumption of not more than 0·6 watts when operating under normal circumstances; - if battery powered, uses a battery that has a manufacturer's rated lifetime of at least 5 years when operating under normal circumstances For non AMI applications:

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Parameters EEIS ESS VEET REES

- is accurate to within 5% of actual electricity consumption - uses, for its communications an encrypted communication protocol that is approved by the ESC

- is accurate to within 5% of actual electricity consumption - uses, for its communications an encrypted communication protocol that is approved by the ESC

Deemed savings 6.6% of average electricity consumption. Split into dwellings With mains gas 1.87 tCO2-e Without mains gas 2.47 tCO2-e

6.6% of average electricity consumption.

Regional Variations? Yes – Regional factor Metro areas = 0.98 Regional Areas = 1.04

Nil

Warranty Requirements Nil 5 years

Referenced Standards In relation to interval meter applications (AMI): complies with the ZigBee Smart Energy Profile Specification published by the ZigBee Standards Organisation on 1 December 2008 and the ZigBee Smart Energy Profile Specification version 1.1 published by the ZigBee Standards Organisation on 23 March 2011

As per VEET - To be confirmed by SA Networks

Other requirements Householder instruction in the use of the IHD is required to be undertaken by the provider

Householder instruction in the use of the IHD required to be undertaken by the provider

Note 1: (A) electricity energy consumption information from the previous 45 days in intervals no longer than one hour per day of information displayed and one day per week of information displayed; and (B) the average total household electrical power consumption (in watts) for the displayed period, which must be updated at least every 30 seconds; and (C) the total household electricity energy consumption (in kWh) for the displayed period and the cost of that consumption, which must be updated at least every 30 seconds

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Percentage reduction in electricity consumption Percentage reduction in electricity consumption was used as a basis for calculating abatement as it is simple and is the most common measurement of IHD impact in trials globally. The assumption was made that Victorian households would achieve similar results to the average consumption reduction across global trials after factoring in a scoring mechanism to determine those trials which had the most relevance to the Victorian context. Of the 11 trials identified as relevant, the savings ranged from 0.2% to 18%. The average expected electricity consumption reduction per household, for those trials most relevant to Victoria, was determined to be 6.6% with a standard deviation of 5.2%. Household electricity consumption Due to the high usage of reticulated gas in Victoria and the fact that there is a significant difference in average household electricity consumption between those with and without access to reticulated gas, savings estimates were split into households with gas and those without. The average household electricity consumption in Victoria in 2011 was estimated as:

Victorian households without access to reticulated gas use on average 7,765 kWh per annum;

Victorian households with access to reticulated gas use on average 5,882 kWh per annum*.

Lifetime of Savings To determine a defensible lifetime, the VEET scheme study referenced accounting standards typically used for taxation purposes for similar devices. Accounting standards have been utilised because they are impartial estimated guidelines to assist tax-payers in determining the likely useful lifetime and depreciating value of assets. Based on this analysis a lifetime of 5 years was determined. This was considered to be a conservative estimate of product lifetime because:

The expected minimum life-span of a smart meter, on which an IHD might rely, which is 15 years.

The opinions of retailers and IHD manufacturers who placed an IHD‘s average functional life-span between 7 and 15 years.

The average lifespan of other appliances within the VEET scheme is 13.4 years.

The fact that an IHD may have a similar life-span to a smart thermostat based on similar components: the consumer warranty for a smart thermostat is 3-5 years while the expected life-span is 7-10 years.

The study also determined that “there was evidence that persistence over time broadly occurs, and that it was reasonable to assume consumption savings would persist for the duration of the 5 year device lifetime”. Discount Factors The VEET study concluded that no discount factors for such things as free riders should apply because at the time:

There are a very small number of consumers currently believed to be using an IHD in Victoria (less than 1% of those with a smart meter)

There are currently no defined B2B or business to customer (B2C) procedures to facilitate easy adoption of IHDs

There is no commercial-scale roll-out of IHDs currently planned or in place in Victoria.

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3.3 RDC1: Install High Efficiency Refrigerated Display Cabinets

3.3.1 Assess Suitability against Ministerial Protocol

Table 33 below sets out an assessment of this activities suitability against the general principles as set out in the REES Ministerial Protocol. Table 34 below sets out an assessment of this activities suitability against the specific principles (activity and calculation methods) as set out in the REES Ministerial Protocol. This proposed activity aligns well with all of the general principles except for the focus on low income households and a focus on remote and regional areas. By its nature, this is an activity targeted at business energy use and as such would not be expected to target these areas. This proposed activity also aligns well with all of the specific principles – see Table 34.

Table 33: Alignment with REES General Principles - High Efficiency RDCs

General Principles Reduces household and/or business energy use Provides a focus on low income households / remote and regional areas x

Fosters competition, innovation and market efficiency Associated Objectives: Provides greenhouse gas emission benefits

Provides energy cost benefits

Table 34: Activity Alignment with REES Specific Principles – High Efficiency RDCs

Principle Assessment

1. Provides scope for objective, cost effective and simple auditing

Purchase of the equipment as part of the activity can be audited through retailer sales records and ledgers. Product performance can be checked by comparing the product nameplate with the GEMS register

2. Harmonises with other schemes (as far as practical)

This activity is available in all other jurisdictions. All cover the same categories and sub-categories of product as defined in AS1731 and the GEMS determination. All schemes require that the minimum performance equals the High Efficiency standard as defined in AS 1731. The baseline assumption used in all jurisdictions is the same i.e. the current GEMS MEPS level. The main difference between the various schemes is that the ESS scheme takes the performance of the installed product as per its claimed performance whereas the VEET and EEIS scheme simply assumes the High Efficiency level as prescribed in AS 1731

3. Capable of uptake by households and businesses in SA

Yes – Generally only applies to businesses handling refrigerated foods and beverages.

4. Provides a means for ensuring quality assurance and participant satisfaction (standards, guidelines, Accreditation networks)

Pre-existing Australian standards set performance requirements to ensure that the activity maintains its performance throughout its expected lifetime and meets consumer expectations.

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Principle Assessment

5. Safety and minimising overall risk

The process of RDC installation, particularly self-contained units is common and routine. Remote unit installation would require specialist tradespersons in terms of electrical wiring and the handling of refrigerant gases. Installation of a high efficiency system (over a standard system) presents no additional risk to participants. All products have to comply with relevant safety standards. All installations should be in accordance with manufacturer’s instructions.

6. Good practice (Best practice and recycling)

As this activity is targeted at retail sales, the installation and removal of old products (where they exist) is up to the purchaser (not directly covered by the activity).

7. Provides credible evidence based energy savings applicable to SA.

Energy savings are based on a recognised test standard, the AS1731 series. Saving can be readily calculated from publicly available data. In particular the GEMS register of RDCs. The test method prescribed in AS 1731 closely matches in use conditions and as such the manufacturers performance claims based on testing to AS1731 provide a reliable estimate of actual savings in the field.

8. Compliance costs are balanced with accuracy of calculations

The cost of establishing compliance are minimal being based on a visual inspection of:

The installed unit (in particular its compliance plate)

Sales receipts

The GEMS register of RDCs

9. Energy savings are additional to base case (BAU) and minimises free riders

The BAU case relates to the market average performance of purchased RDCs. This would consist of a mixture of MEPS compliant units and High Efficiency units. Approximately one-third of registrations are of units meeting the HE standard It is however more than likely that sales of high efficiency product are on average less than for MEPS compliant product. Consequently savings would be in addition to the BAU case but there would be expected to be some unavoidable free riders.

10. Provision of greater rewards for products that deliver higher levels of performance and energy efficiency

The VEET and EEIS schemes provide a reward based solely on the HE standard as prescribed in AS1731. On the other hand the ESS scheme provides credit based on the performance of the particular unit (provided it meets as a minimum the HE standard in AS1731). The provision of greater rewards for products that deliver higher levels of performance and energy efficiency is therefore better served by the ESS approach, however such an approach would come at the cost of reduced simplicity and poorer harmonisation (i.e. would harmonise with ESS rather than both VEET and EEIS)

3.3.2 Review of other Jurisdictions, Harmonisation opportunities

The following table (Table 35) summarises for this activity type, the key parameters of the schemes currently operating in the ACT (EEIS), NSW (ESS) and Victoria (VEET). In the case of the ACT the stated parameters reflect changes expected to be introduced to the current regulations starting in 2017 (these changes were out for comment at the time of commencement of this study). The right hand column of this table indicates in red the recommended approach to be taken in the REES scheme. The recommendation is generally based on a desire to achieve harmonisation with the other schemes whilst ensuring that the provisions are:

In line with the REES ministerial protocol

As simple as possible

Practical to apply

Relevant in the SA context

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Table 35: Comparison of Various Energy Efficiency Schemes – Install a HE Refrigerated Display Cabinet

Parameters EEIS ESS VEET REES

Included in scheme? Yes (2017) Yes Yes Proposed

Working Title High Efficiency Refrigerated Display Cabinet Activities

INSTALL A NEW HIGH EFFICIENCY REFRIGERATED DISPLAY CABINET

High efficiency refrigerated display cabinet

Install A New High Efficiency Refrigerated Display Cabinet

Activity Reference Number Part 5.7 Schedule F1 Schedule 32 RDC1

Required pre-condition Must be for installation and use in a business premises within the ACT Applies only to M-package temperature classes M1, M2, L1 and L2 (as applicable) as defined in the AS 1731 series of standards

Nil Nil Applies only to M-package temperature classes M1, M2, L1 and L2 (as applicable) as defined in the AS 1731 series of standards Applies to self-contained units only (requirement of DSD)

Limitation on replacements Nil Nil Nil Nil

Performance requirements Must be rated as 'high efficiency' within the meaning of the AS 1731 series of standards

Must be rated as 'high efficiency' within the meaning of the AS 1731 series of standards RDC must be a registered product under GEMS and comply with the Greenhouse and Energy Minimum Standards (Refrigerated Display Cabinets) Determination 2012.

Must be rated as 'high efficiency' within the meaning of the AS 1731 series of standards

Must be rated as 'high efficiency' within the meaning of the AS 1731 series of standards Must be a registered product under GEMS

Deemed savings Abatement factor (〖tCO〗_2-e)= AAV ×TDA Where: AAV = Activity Abatement Value as specified in the associated table TDA = Total Display Area of the RDC measured in accordance with AS1731 Varies according to cabinet type and sub-class as defined in AS 1731

Deemed Equipment Electricity Savings = (Baseline Efficiency × TDA – TEC) x 365.24 × Lifetime / 1000

Baseline efficiency = MEPS level as set in AS1731 TDA = Total Display Area of the RDC measured in accordance with AS1731 TEC = Total Energy Consumption of the unit measured in accordance with AS1731 Lifetime = 8 years

Deemed savings = TDA x AF x RF Where: TDA = Total Display Area of the RDC measured in accordance with AS1731 AF = Abatement Factor Value as specified in the associated table RF = Regional Factor Varies according to cabinet type and sub-class as defined in AS 1731

Normalised Energy Savings = TDA x SF x RF Where: TDA = Total Display Area of the RDC measured in accordance with AS1731 SF = Savings Factor based on the difference between MEPS level and HE level and an assumed 8 year life RF = Regional Factor (see Section 4 of this report)

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Parameters EEIS ESS VEET REES

Savings = difference between HE standard and MEPS standard Savings based on an assumed life of 8 years

Varies according to cabinet type and sub-class as defined in AS 1731 Savings = difference between measured performance and the MEPS standard (Measured performance must be ≥ the HE level)

Savings = difference between HE standard and MEPS standard Savings based on an assumed life of 8 years

Regional Variations? No No Yes Metro areas = 0.98 Regional Areas = 1.04

Yes (see Section 4)

Warranty Requirements Nil Nil Nil

Referenced Standards AS1731 series of standards AS1731 series of standards AS1731 series of standards AS1731 series of standards

Other requirements Competency in electrical work and handling of refrigerants as required

Competency in electrical work and handling of refrigerants as required

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Points to note are as follows:

1. The proposed method for calculating deemed savings aligns with that used in VEET and EEIS. This is a relatively simple method that provides harmonisation with two of the other three jurisdictions. However, this method does not provide rewards for products that deliver higher levels of performance and energy efficiency as well as does the ESS scheme. This is therefore a trade-off between greater simplicity and harmonisation and the need to reward products that deliver higher levels of energy efficiency (i.e. over and above the high efficiency level specified in the standard)

2. DSD expressed a desire to limit this activity to small to medium enterprises only. The proposed means for achieving this goal is to limit the activity to self-contained units only (Remote Units are typically used in larger businesses such as supermarkets and the like)

Recommendation:

In the interests of simplicity and better harmonisation adopt a simple high efficiency standard as defined in AS 1731.14 (as per VEET and EEIS)

Limit the scope of the activity to self-contained units only

3.3.3 Technical Review

Baseline All products proposed for inclusion within this activity are regulated for energy performance under the Commonwealth GEMS act. Under the Act the performance of this product type is determined in accordance with the test method as set out in the AS 1731 series of standards and all products are required to meet a minimum energy performance standard as published in AS 1731.14. Refrigerated display cabinets Part 14: Minimum energy performance standard (MEPS) requirements Tables 2.1 (remote units) and 2.2 (self-contained units). Alternatively, suppliers can claim compliance with a “High Efficiency” performance level as specified in Tables 3.1 (remote units) and 3.2 (self-contained units) of AS 1731.14. The test conditions applied under AS 1731 when rating a product assume that the product is fully loaded and in ambient conditions of 25oC and 60% relative humidity. There is also a set regime assumed in relation to the opening and closing of doors (where present). Whilst these conditions might be expected to produce energy consumption results towards the upper end of the expected range in service (except for high temperature/high use environments where energy consumption could be higher) the resultant values are likely to be reasonably representative, especially given that the value used in the REES credit calculation is proposed to be the difference between a MEPS compliant unit and a high efficiency unit operating under the same conditions. The baseline performance for new product entering the stock is difficult to assess due to the lack of available sales data. A recent analysis of the performance of the products available on the GEMS register of refrigerated display cabinets suggests that approximately one-third of all registered products are registered as meeting the high efficiency performance standard. . It is however more than likely that sales of high efficiency product (premium product) are on average less than for MEPS

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compliant product (standard product). On this basis it is reasonable to adopt the same assumption used in VEET and EEIS that approximately 20% of purchasers would be for High Efficiency products. That is, the baseline efficiency for this product type is assumed to consist of 80% of products that meet the GEMS MEPS level and 20% that meet the GEMS HE level.

Recommendation (Baseline): For the baseline, assume that 20% of installations would have been high efficiency compliant product.

Activity performance As previously noted, the proposal for this activity is to require that eligible products must meet the high efficiency standard as published in AS 1731.14. Refrigerated display cabinets Part 14: Minimum energy performance standard (MEPS) requirements; Tables 3.1 (remote units) and 3.2 (self-contained units). This means that the minimum performance of the installed product can reasonably be assumed to match (or exceed) the high efficiency standard. Whilst it is true that some units rated as HE will in fact exceed the HE performance threshold set in the standard (as is accounted for in the ESS scheme), it is also true that some units rated as MEPS only compliant will exceed the MEPS performance threshold set in the standard. This means that in all likelihood, the relative difference in performance between HE and MEPS compliant product (i.e. the proposed basis for the activity credit under REES) is in fact representative of the actual difference in performance between these two cohorts of product. Apart from product performance the following table details other factors expected to impact on actual savings expected from this activity (see Table 36). Table 36: Factors Impacting on Realised Savings - RDCs

Parameter Proposed Basis / Comment

Service Levels

Utilisation 100% Assumed to operate continuously

Product Lifetime

Product lifetime

8 years Source - Regulatory Impact Statement: Minimum Energy Performance Standards and Alternative Strategies for Commercial Refrigeration Cabinets in Australia and New Zealand This matches the value adopted in all other jurisdictions

Adjustment Factors

Additionality / free rider

0.8 Assumes 80% of sales are for MEPS only compliant product and 20% for HE product (See discussion above this table)

Rebound discount factor

1 Rebound is considered highly unlikely. Utilisation is already assumed to be 100%

Compliance discount factor

1 There is no available research data on this aspect so the default value of 1 as used in VEET and EEIS is proposed

Total Discount factor

0.8 Product of individual factors

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3.4 APP1G: Remove and replace a Primary Refrigerator/Freezer

This proposed activity is not a new activity as such, rather it is a combination of two pre-existing activities:

APP1A: Purchase a high efficiency new refrigerator or refrigerator/freezer; Residential or commercial

APP2: Remove and Dispose of an Unwanted Refrigerator or Freezer; Residential or Commercial (noting that because this is a replacement activity, only primary or “other” type refrigerators as defined in APP2 would be eligible and not “secondary’ type refrigerators)

DSD’s stated purpose in creating a “new” activity by combining two existing activities is to try and leverage greater uptake of these activities by:

Making it apparent that the two activities can and should be combined in an effort to improve the cost effectiveness of delivery for these measures.

Providing a relatively simple table of credits that would apply in cases where these two pre-existing activities are combined.

Following consultation with DSD it was agreed that the creation of a new activity to cover these two pre-existing activities was in fact unnecessary. Instead it was agreed that additional notation should be included in activity APP2 alerting the reader to the fact that those undertaking activity APP2 (removal and disposal of an unwanted refrigerator or freezer) in relation to a primary refrigerator or freezer may also wish to take advantage of the credits available under activity APP1A (Purchase a high efficiency new refrigerator or refrigerator/freezer).

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4 Adjustment Factors

4.1 Overview As part of the brief for this study DSD asked that two potential influencing factors on the available credits associated with REES activities be investigated. These factors were:

Impacts of Electrical Network Transmission/Distribution System Losses

Impacts of priority group households These two potential influencing factors on available REES credits are analysed in the following sub-sections.

4.2 Allowance for Transmission/Distribution System Losses

As electricity flows through the transmission and distribution networks, energy is

lost due to electrical resistance and the heating of conductors. The losses can

amount to as much as 10% of the total electricity transported between power

stations and market customers.

This losses are divided into two components:

Distribution Loss Factor (DLF) - a number multiplied by a premise’s metered energy to account for electricity losses between the transmission control point and the consumer’s premise.

Transmission Loss Factor (TLF) - a number multiplied by a premise’s metered energy to account for electricity losses between the Central Reference Node and the nearest connected transmission control point.

Energy losses on the network must be factored in at all stages of electricity

production and transport, to ensure the delivery of adequate supply to meet

prevailing demand and maintain the power system in balance. In practical terms,

this means more electricity must be generated than indicated in simple demand

forecasts to allow for this loss during transportation.

Typically electricity transmission losses in regional areas are higher than those in

metropolitan areas. This means that from a network perspective, effective

electricity savings flowing from an activity undertaken in a regional area should

be marginally greater than in metropolitan areas. In Victoria, under the VEET

scheme the difference between the two is assumed to be of the order of 6% and

consequently a commensurate increase in credit is awarded to electricity saving

activities in regional areas as compared to metropolitan areas in that state.

The question is, should a similar additional credit be provided for REES activities

undertaken in regional areas of South Australia?

Reference was made to South Australia’s projected distribution loss factors for

2016-17 as published by AEMO (AEMO 2016), these are reproduced in Figure 9.

As can be seen, for residential and small commercial customers there is no

variation according to location for the distribution loss factors (DLF).

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Figure 9: South Australian Distribution Loss Factors 2016-17 (AEMO 2016)

In relation to possible variation in transmission losses across the state reference

was made to SA Power Networks who advised as follows:

……Transmission loss factors in SA due to embedded generators (e.g. wind farms) connected to the distribution system, create an unusual situation. As a consequence, the loss factor for metropolitan area is marginally greater than 1.0 and the average regional loss factor for the rest of the State is marginally less than 1.0. Consequently, this doesn’t justify higher REES payments to non-Adelaide customers.

In addition, a large percentage of the population that are outside Adelaide live in Regional Centre/towns, which would have similar distribution loss factors to the Adelaide Metropolitan Area so again would not justify regional customers receiving a higher REES payment than Adelaide customers.

Consequently, the difference in the average loss factor for country versus Metropolitan Adelaide would be marginal and not worth the effort to calculate.

Recommendation: Based on this evidence it is not recommended that special factors for transmission/distribution losses from the electrical network (sometimes referred to as “regional factors”) be applied.

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4.3 Enhanced credits for priority group households The Retailer Energy Efficiency Scheme (REES) distinguishes a Priority Group of households based on eligibility criteria set out in the Electricity and Gas Regulations. These generally refer to eligibility for a range of Commonwealth concession card holders. The priority group household represents around one third of all households in South Australia (34%) and consists of three main cohorts:

Aged pensioners (57%)

Those with a disability (20%)

Others (23%) If the energy consumption of these priority group households were greater than the state average then a case could be made for awarding increased REES credits for activities undertaken in these households. The suggestion that these households might have greater than average energy consumption is based on the fact that these dwellings and their appliances tend to be older and less efficient than the average. This suggestion is supported by findings from the study South Australian analysis of the ABS 2012 household energy Consumption survey (HECS) For the Department of State Development - Energy Markets & Programs, ST Kitts and Associates March 2015. However, the same study found that despite priority group households being located in older building stock and using older and less efficient appliances, their mean equivalised energy consumption was in fact slightly lower than the state average. (noting that whilst their consumption was slightly lower than the average, the affordability of their energy was significantly lower than the average due to significantly lower household income). The HECS study does not suggest a reason for this lower than average energy consumption in priority group households but it might be postulated that the priority cohort, dominated by aged pensioners, are thrifty with their energy use.

Recommendation: Given their slightly lower than average energy consumption, the impact of REES activities on these priority group households could not be assumed to result in higher than average energy savings. Consequently, additional credits for activities undertaken in priority group households is therefore unwarranted.

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5 Credit Calculation Method

5.1 Overview The following two sub-sections detail the methodology applied to calculate the default normalised energy savings in GJ for each activity that were the subject of this study. Where it has been decided to report energy savings in the form of tables, both the formula used to calculate the savings and the resultant tables are provided. This is important to enable DSD to keep the REES up to date into the future. Generally, default lifetime normalised energy savings for each case are based on the methodology adopted in the 2014 review of the REES program (EES 2014) with updates to assumptions as detailed earlier in this report.

5.2 Existing Activities

5.2.1 HC2A: New Reverse Cycle Air-conditioner (Non Ducted)

Default lifetime normalised energy savings for each case is based on the methodology adopted in the 2014 review of the REES program (EES 2014) with updates to assumptions as detailed in this report and is given by:

Default savings = ZMC

C

RC

C

MH

H

RH

H

129.0

Where: H is a climate related total heating load in GJ/year C is a climate related total cooling load in GJ/year 0.9 is a program related discount factor (see Section 2.2.5) 12 is the assumed life in years (see Section 2.2.5) Z is the assumed zoning factor (constrains the whole of house loads) RH is the reference heating performance in W/W (ACOP) RC is the reference cooling performance in W/W (AEER) MH is the registered heating ACOP at rated capacity in accordance with AS/NZS3823.2 of the eligible product being installed MC is the registered heating ACOP at rated capacity in accordance with AS/NZS3823.2 of the eligible product being installed Default energy savings are in GJ of electricity over the product lifetime Values for each of the variables is given below.

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Table 37: Activity HC2A - Variables for calculation of default savings factors

Climate Incumbent Type H GJ/y

C GJ/y Z RH RC

BCA Climate Zone 6 Pre-existing A/C 71.52 3.11 0.3 3.6 3.4

All other areas Pre-existing A/C 31.40 16.51 0.3 3.6 3.4

BCA Climate Zone 6 Resistance electric 71.52 3.11 0.3 1.0 N/A

All other areas Resistance electric 31.40 16.51 0.3 1.0 N/A

BCA Climate Zone 6 Any (No pre-condition) 71.52 3.11 0.3 3.7 3.5

All other areas Any (No pre-condition) 31.40 16.51 0.3 3.7 3.5

In Table 37, the reference for a system where no existing system is specified is the current market average, which is a heating COP of 3.7 and a cooling EER of 3.5. In the case where an existing electric resistance heater is replaced, the reference heating efficiency is a COP of 1. In this case it is assumed that there is no existing cooling (N/A), so all cooling energy used by the new system is counted as a negative saving. In the case where a pre-existing AC is specified for replacement, the baseline is assumed to be 3 years operating at the efficiency of the existing system (COP = 3.3 and EER = 3.1) plus 9 years at the current market average, with the weighted average value assumed as the reference. While this is a simplified assumption, it does provide a practical approach for estimating a reference in this specific case. Note that for an average lifetime of 12 years, the base assumption that the product has 3 years remaining means that the average vintage of replaced systems is around 2008. Room air conditioners were subject to increasing MEPS levels in 2004, 2006 and 2007, so the assumed COP/EER of existing units in 2008 to be replaced is not as low as may be expected when compared to older products. Based on the above formula the following tables detail the energy savings for each sub-activity within each of the two climate options. Note that the simple average COP and EER within each bin is assumed when calculating energy saving factors, as set out previously in this report. Table 38: Activity HC2A – Normalised Energy Savings Tables (2 climates, 3 options) (BCA climate 6) – HC2A (i) - Replacement (early retirement) of a pre-existing air-conditioner

(BCA climate 6) – HC2A (ii) - Replacement of a pre-existing fixed resistance electric heater

HC2A(i) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 6 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 8.6 8.7 8.9 9.0 9.1 9.2 9.3 9.4 9.5 9.6

4 to < 4.5 4.25 to < 4.5 11.8 11.9 12.1 12.2 12.3 12.4 12.5 12.7 12.7 12.8

4.5 to < 5 4.5 to < 4.75 14.6 14.8 14.9 15.0 15.2 15.3 15.4 15.5 15.6 15.6

5 to < 5.5 4.75 to < 5 17.2 17.4 17.5 17.6 17.7 17.8 17.9 18.1 18.2 18.2

5.5 to < 6 5 to < 5.25 19.5 19.7 19.8 19.9 20.0 20.2 20.2 20.4 20.5 20.5

6 to < 7 5.25 to < 5.75 21.6 21.8 21.9 22.0 22.2 22.3 22.3 22.5 22.6 22.6

7 to < 7.5 5.75 to < 6 25.3 25.4 25.6 25.7 25.8 25.9 26.0 26.2 26.2 26.3

7.5 to < 8 6 to < 6.25 26.9 27.1 27.2 27.3 27.4 27.5 27.6 27.8 27.9 27.9

8 or more 6.25 or more 28.4 28.5 28.7 28.8 28.9 29.0 29.1 29.3 29.3 29.4

HC2A(ii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 6 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 172.9 173.1 173.2 173.4 173.5 173.6 173.7 173.8 173.9 174.0

4 to < 4.5 4.25 to < 4.5 176.2 176.3 176.5 176.6 176.7 176.8 176.9 177.0 177.1 177.2

4.5 to < 5 4.5 to < 4.75 179.0 179.2 179.3 179.4 179.6 179.7 179.7 179.9 180.0 180.0

5 to < 5.5 4.75 to < 5 181.6 181.7 181.9 182.0 182.1 182.2 182.3 182.5 182.5 182.6

5.5 to < 6 5 to < 5.25 183.9 184.1 184.2 184.3 184.4 184.5 184.6 184.8 184.9 184.9

6 to < 7 5.25 to < 5.75 186.0 186.2 186.3 186.4 186.5 186.6 186.7 186.9 187.0 187.0

7 to < 7.5 5.75 to < 6 189.7 189.8 190.0 190.1 190.2 190.3 190.4 190.6 190.6 190.7

7.5 to < 8 6 to < 6.25 191.3 191.4 191.6 191.7 191.8 191.9 192.0 192.2 192.2 192.3

8 or more 6.25 or more 192.8 192.9 193.1 193.2 193.3 193.4 193.5 193.7 193.7 193.8

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(BCA climate 6) – HC2A (iii) - Installation of a new reverse cycle air-conditioner (non-ducted) without pre-condition

(Other Places in SA) – HC2A (i) - Replacement (early retirement) of a pre-existing air-conditioner

(Other Places in SA) – HC2A (ii) - Replacement of a pre-existing fixed resistance electric heater

(Other Places in SA) – HC2A (iii) - Installation of a new reverse cycle air-conditioner (non-ducted) without pre-condition

HC2A(iii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 6 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 6.7 6.9 7.0 7.2 7.3 7.4 7.5 7.6 7.7 7.8

4 to < 4.5 4.25 to < 4.5 9.9 10.1 10.2 10.4 10.5 10.6 10.7 10.8 10.9 11.0

4.5 to < 5 4.5 to < 4.75 12.8 13.0 13.1 13.2 13.3 13.4 13.5 13.7 13.8 13.8

5 to < 5.5 4.75 to < 5 15.4 15.5 15.7 15.8 15.9 16.0 16.1 16.3 16.3 16.4

5.5 to < 6 5 to < 5.25 17.7 17.8 18.0 18.1 18.2 18.3 18.4 18.6 18.6 18.7

6 to < 7 5.25 to < 5.75 19.8 20.0 20.1 20.2 20.3 20.4 20.5 20.7 20.8 20.8

7 to < 7.5 5.75 to < 6 23.5 23.6 23.8 23.9 24.0 24.1 24.2 24.3 24.4 24.5

7.5 to < 8 6 to < 6.25 25.1 25.2 25.4 25.5 25.6 25.7 25.8 26.0 26.0 26.1

8 or more 6.25 or more 26.6 26.7 26.9 27.0 27.1 27.2 27.3 27.4 27.5 27.6

HC2A(i) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 5 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 5.5 6.4 7.1 7.8 8.4 8.9 9.4 10.2 10.6 10.9

4 to < 4.5 4.25 to < 4.5 6.9 7.8 8.5 9.2 9.8 10.3 10.8 11.6 12.0 12.3

4.5 to < 5 4.5 to < 4.75 8.2 9.0 9.8 10.4 11.0 11.6 12.0 12.9 13.3 13.6

5 to < 5.5 4.75 to < 5 9.3 10.2 10.9 11.6 12.2 12.7 13.2 14.0 14.4 14.7

5.5 to < 6 5 to < 5.25 10.3 11.2 11.9 12.6 13.2 13.7 14.2 15.0 15.4 15.8

6 to < 7 5.25 to < 5.75 11.3 12.1 12.8 13.5 14.1 14.6 15.1 16.0 16.3 16.7

7 to < 7.5 5.75 to < 6 12.9 13.7 14.4 15.1 15.7 16.2 16.7 17.6 17.9 18.3

7.5 to < 8 6 to < 6.25 13.6 14.4 15.2 15.8 16.4 16.9 17.4 18.3 18.6 19.0

8 or more 6.25 or more 14.2 15.1 15.8 16.5 17.1 17.6 18.1 18.9 19.3 19.6

HC2A(ii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 5 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 63.3 64.1 64.8 65.5 66.1 66.6 67.1 68.0 68.3 68.7

4 to < 4.5 4.25 to < 4.5 64.7 65.5 66.3 66.9 67.5 68.0 68.5 69.4 69.7 70.1

4.5 to < 5 4.5 to < 4.75 65.9 66.8 67.5 68.2 68.8 69.3 69.8 70.6 71.0 71.3

5 to < 5.5 4.75 to < 5 67.1 67.9 68.6 69.3 69.9 70.4 70.9 71.8 72.1 72.5

5.5 to < 6 5 to < 5.25 68.1 68.9 69.7 70.3 70.9 71.4 71.9 72.8 73.2 73.5

6 to < 7 5.25 to < 5.75 69.0 69.8 70.6 71.2 71.8 72.4 72.9 73.7 74.1 74.4

7 to < 7.5 5.75 to < 6 70.6 71.5 72.2 72.9 73.4 74.0 74.5 75.3 75.7 76.0

7.5 to < 8 6 to < 6.25 71.3 72.2 72.9 73.6 74.2 74.7 75.2 76.0 76.4 76.7

8 or more 6.25 or more 72.0 72.8 73.5 74.2 74.8 75.3 75.8 76.7 77.0 77.4

HC2A(iii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 5 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 4.3 5.1 5.9 6.6 7.1 7.7 8.2 9.0 9.4 9.7

4 to < 4.5 4.25 to < 4.5 5.7 6.6 7.3 8.0 8.6 9.1 9.6 10.4 10.8 11.1

4.5 to < 5 4.5 to < 4.75 7.0 7.8 8.6 9.2 9.8 10.3 10.8 11.7 12.0 12.4

5 to < 5.5 4.75 to < 5 8.1 8.9 9.7 10.3 10.9 11.5 12.0 12.8 13.2 13.5

5.5 to < 6 5 to < 5.25 9.1 10.0 10.7 11.4 12.0 12.5 13.0 13.8 14.2 14.5

6 to < 7 5.25 to < 5.75 10.0 10.9 11.6 12.3 12.9 13.4 13.9 14.7 15.1 15.5

7 to < 7.5 5.75 to < 6 11.7 12.5 13.2 13.9 14.5 15.0 15.5 16.4 16.7 17.1

7.5 to < 8 6 to < 6.25 12.4 13.2 13.9 14.6 15.2 15.7 16.2 17.1 17.4 17.8

8 or more 6.25 or more 13.0 13.9 14.6 15.3 15.8 16.4 16.9 17.7 18.1 18.4

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5.2.2 HC2B: New Reverse Cycle Air-conditioner (Ducted or multi-split)

Default lifetime normalised energy savings for each case is based on the methodology adopted in the 2014 review of the REES program (EES 2014) with updates to assumptions as detailed in this report and is given by:

Default savings = ZDEMC

C

RC

C

DEMH

H

RH

H

139.0

Where: H is a climate related total heating load in GJ/year C is a climate related total cooling load in GJ/year 0.9 is a program related discount factor (see Section 2.2.5) 13 is the assumed life in years (see Section 2.2.5) Z is the assumed zoning factor (constrains the whole of house loads) RH is the reference heating performance in W/W (ACOP) RC is the reference cooling performance in W/W (AEER) MH is the registered heating ACOP at rated capacity in accordance with AS/NZS3823.2 of the eligible product being installed MC is the registered heating ACOP at rated capacity in accordance with AS/NZS3823.2 of the eligible product being installed DE = Assumed duct efficiency (85%) Default energy savings are in GJ of electricity over the product lifetime Values for each of the variables is given below. Table 39: Activity HC2A - Variables for calculation of default savings factors

Climate Incumbent Type H GJ/y

C GJ/y Z RH RC

BCA Climate Zone 6 Pre-existing Resistance Elec Panel

71.52 3.11 0.7 1.0 N/A

All other areas Pre-existing Resistance Elec Panel

31.40 16.51 0.7 1.0 N/A

BCA Climate Zone 6 Pre-existing Resistance Elec Slab

71.52 3.11 0.7 0.81 N/A

All other areas Pre-existing Resistance Elec Slab

31.40 16.51 0.7 0.81 N/A

BCA Climate Zone 6 Any (No pre-condition) 71.52 3.11 0.7 3.6 3.4

All other areas Any (No pre-condition) 31.40 16.51 0.7 3.6 3.4

Note 1: Includes for assumed losses to ground of 20%

In Table 39, the reference for a system where no existing system is specified is the current market average, which is a heating COP of 3.6 and a cooling EER of 3.4. In the case where an existing electric resistance heater is replaced, the reference heating efficiency is a COP of 1 for panel heaters and 0.8 for slab heaters (assumes some losses). In this case it is assumed that there is no existing cooling (N/A), so all cooling energy used by the new system is counted as a negative saving. Based on the above formula the following tables detail the energy savings for each sub-activity within each of the two climate options. Note that the simple average COP and EER within each bin is assumed when calculating energy saving factors, as set out previously in this report.

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Table 40: Activity HC2B – Normalised Energy Savings Tables (2 climates, 3 options) (BCA climate 6) – HC2B (i) - Replacement of a pre-existing resistance electric heater – panel type

(BCA climate 6) – HC2B (ii) - Replacement of a pre-existing resistance electric heater – slab type

(BCA climate 6) – HC2B (iii) - Installation of a new reverse cycle air-conditioner (ducted or multi-split)

(Other Places in SA) – HC2B (i) - Replacement of a pre-existing resistance electric heater – panel type

HC2B(i) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 6 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 410.951521 411.420117 411.835159 412.2053318 412.537538 412.837334 413.109242 413.583635 413.791787 413.9836128

4 to < 4.5 4.25 to < 4.5 420.5 421.0 421.4 421.8 422.1 422.4 422.7 423.1 423.3 423.5

4.5 to < 5 4.5 to < 4.75 429.0 429.5 429.9 430.3 430.6 430.9 431.2 431.6 431.9 432.0

5 to < 5.5 4.75 to < 5 436.7 437.1 437.5 437.9 438.2 438.5 438.8 439.3 439.5 439.7

5.5 to < 6 5 to < 5.25 443.5 444.0 444.4 444.8 445.1 445.4 445.7 446.2 446.4 446.6

6 to < 7 5.25 to < 5.75 449.8 450.3 450.7 451.1 451.4 451.7 452.0 452.4 452.6 452.8

7 to < 7.5 5.75 to < 6 460.7 461.2 461.6 462.0 462.3 462.6 462.9 463.3 463.6 463.7

7.5 to < 8 6 to < 6.25 465.5 466.0 466.4 466.8 467.1 467.4 467.7 468.1 468.3 468.5

8 or more 6.25 or more 469.9 470.4 470.8 471.2 471.5 471.8 472.1 472.5 472.8 472.9

HC2B(ii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 6 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 557.4 557.9 558.3 558.6 559.0 559.3 559.5 560.0 560.2 560.4

4 to < 4.5 4.25 to < 4.5 566.9 567.4 567.8 568.2 568.5 568.8 569.1 569.6 569.8 570.0

4.5 to < 5 4.5 to < 4.75 575.4 575.9 576.3 576.7 577.0 577.3 577.6 578.1 578.3 578.5

5 to < 5.5 4.75 to < 5 583.1 583.6 584.0 584.3 584.7 585.0 585.2 585.7 585.9 586.1

5.5 to < 6 5 to < 5.25 590.0 590.5 590.9 591.2 591.6 591.9 592.1 592.6 592.8 593.0

6 to < 7 5.25 to < 5.75 596.2 596.7 597.1 597.5 597.8 598.1 598.4 598.9 599.1 599.3

7 to < 7.5 5.75 to < 6 607.1 607.6 608.0 608.4 608.7 609.0 609.3 609.8 610.0 610.2

7.5 to < 8 6 to < 6.25 611.9 612.4 612.8 613.2 613.5 613.8 614.1 614.6 614.8 615.0

8 or more 6.25 or more 616.3 616.8 617.2 617.6 617.9 618.2 618.5 619.0 619.2 619.4

HC2B(iii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 6 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 25.4 25.9 26.3 26.7 27.0 27.3 27.6 28.1 28.3 28.5

4 to < 4.5 4.25 to < 4.5 35.0 35.5 35.9 36.2 36.6 36.9 37.1 37.6 37.8 38.0

4.5 to < 5 4.5 to < 4.75 43.5 44.0 44.4 44.8 45.1 45.4 45.7 46.1 46.3 46.5

5 to < 5.5 4.75 to < 5 51.1 51.6 52.0 52.4 52.7 53.0 53.3 53.8 54.0 54.2

5.5 to < 6 5 to < 5.25 58.0 58.5 58.9 59.3 59.6 59.9 60.2 60.7 60.9 61.1

6 to < 7 5.25 to < 5.75 64.3 64.8 65.2 65.5 65.9 66.2 66.5 66.9 67.1 67.3

7 to < 7.5 5.75 to < 6 75.2 75.7 76.1 76.5 76.8 77.1 77.4 77.8 78.0 78.2

7.5 to < 8 6 to < 6.25 80.0 80.5 80.9 81.2 81.6 81.9 82.1 82.6 82.8 83.0

8 or more 6.25 or more 84.4 84.9 85.3 85.7 86.0 86.3 86.6 87.0 87.2 87.4

HC2B(i) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 5 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 142.8 145.3 147.5 149.4 151.2 152.8 154.2 156.7 157.8 158.9

4 to < 4.5 4.25 to < 4.5 147.0 149.4 151.6 153.6 155.4 157.0 158.4 160.9 162.0 163.1

4.5 to < 5 4.5 to < 4.75 150.7 153.2 155.4 157.4 159.1 160.7 162.2 164.7 165.8 166.8

5 to < 5.5 4.75 to < 5 154.0 156.5 158.7 160.7 162.5 164.1 165.5 168.0 169.1 170.1

5.5 to < 6 5 to < 5.25 157.1 159.6 161.8 163.7 165.5 167.1 168.5 171.1 172.2 173.2

6 to < 7 5.25 to < 5.75 159.8 162.3 164.5 166.5 168.2 169.8 171.3 173.8 174.9 175.9

7 to < 7.5 5.75 to < 6 164.6 167.1 169.3 171.3 173.0 174.6 176.1 178.6 179.7 180.7

7.5 to < 8 6 to < 6.25 166.7 169.2 171.4 173.4 175.1 176.7 178.2 180.7 181.8 182.8

8 or more 6.25 or more 168.7 171.1 173.3 175.3 177.1 178.7 180.1 182.6 183.7 184.8

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(Other Places in SA) – HC2B (ii) - Replacement of a pre-existing resistance electric heater – slab type

(Other Places in SA) – HC2B (iii) - Installation of a new reverse cycle air-conditioner (ducted or multi-split)

5.2.3 L1: Install CFL or LED General Purpose Lamp

Default lifetime normalised energy savings for each case is based on the methodology adopted in the 2014 review of the REES program (EES 2014) with updates to assumptions as detailed in this report and is given by:

Default savings =

000,000,1

6.3Lr

Er

F

Eb

FLiLrLiPi

Where: Pi = The incumbent lamp power (W) Li = The incumbent lamp remaining life (assumed to be 1000 hours) Lr = The replacement lamp life (either 10,000 or 15,000) F = Luminous Flux of the lamp (Lumens) Eb = Efficiency of the business as usual replacement lamp (Lumens/W) Er = Efficiency of the LED replacement lamp Constant 3.6/1,000,000 – converts Wh to GJ Default energy savings are in GJ of electricity over the product lifetime Based on the above formula the following tables detail the energy savings for each sub-activity.

HC2B(ii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 5 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 207.1 209.5 211.7 213.7 215.5 217.1 218.5 221.0 222.1 223.2

4 to < 4.5 4.25 to < 4.5 211.2 213.7 215.9 217.9 219.7 221.3 222.7 225.2 226.3 227.3

4.5 to < 5 4.5 to < 4.75 215.0 217.5 219.7 221.6 223.4 225.0 226.4 229.0 230.1 231.1

5 to < 5.5 4.75 to < 5 218.3 220.8 223.0 225.0 226.8 228.4 229.8 232.3 233.4 234.4

5.5 to < 6 5 to < 5.25 221.4 223.9 226.1 228.0 229.8 231.4 232.8 235.3 236.4 237.5

6 to < 7 5.25 to < 5.75 224.1 226.6 228.8 230.8 232.5 234.1 235.6 238.1 239.2 240.2

7 to < 7.5 5.75 to < 6 228.9 231.4 233.6 235.6 237.3 238.9 240.4 242.9 244.0 245.0

7.5 to < 8 6 to < 6.25 231.0 233.5 235.7 237.7 239.4 241.0 242.5 245.0 246.1 247.1

8 or more 6.25 or more 232.9 235.4 237.6 239.6 241.4 243.0 244.4 246.9 248.0 249.0

HC2B(iii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 5 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 16.4 18.9 21.1 23.1 24.9 26.4 27.9 30.4 31.5 32.5

4 to < 4.5 4.25 to < 4.5 20.6 23.1 25.3 27.3 29.0 30.6 32.1 34.6 35.7 36.7

4.5 to < 5 4.5 to < 4.75 24.4 26.8 29.1 31.0 32.8 34.4 35.8 38.3 39.4 40.5

5 to < 5.5 4.75 to < 5 27.7 30.2 32.4 34.4 36.1 37.7 39.2 41.7 42.8 43.8

5.5 to < 6 5 to < 5.25 30.7 33.2 35.4 37.4 39.2 40.8 42.2 44.7 45.8 46.8

6 to < 7 5.25 to < 5.75 33.5 36.0 38.2 40.1 41.9 43.5 44.9 47.5 48.6 49.6

7 to < 7.5 5.75 to < 6 38.3 40.8 43.0 44.9 46.7 48.3 49.7 52.3 53.4 54.4

7.5 to < 8 6 to < 6.25 40.4 42.9 45.1 47.0 48.8 50.4 51.8 54.4 55.5 56.5

8 or more 6.25 or more 42.3 44.8 47.0 49.0 50.7 52.3 53.8 56.3 57.4 58.4

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Table 41: Default Saving Factors for Non-Directional Lamps

A B C D E F G H

Class Removed lamp:

Installed Lamp:

Min. 10,000 hours lamp life

Min 15,000 hours lamp life

Typical rated incandescent lamp power (W)

Typical rated halogen lamp power (W)

Minimum luminous flux (lumens)

Standard LED Savings Factor

High Efficiency LED Savings Factor

Standard LED Savings Factor

High Efficiency LED Savings Factor

1 25 18 200 0.17 0.19 0.23 0.27

2 40 28 350 0.28 0.32 0.39 0.45

3 60 42 650 0.49 0.57 0.70 0.81

4 75 53 850 0.64 0.73 0.90 1.05

5 100 70 1150 0.86 0.99 1.22 1.41

6 150 or higher 105 or higher 1800 1.32 1.53 1.89 2.19

Table 42: Default Saving Factors for Directional Lamps

A B C D E F G H

Class Removed lamp:

Installed Lamp:

Min. 10,000 hours lamp life

Min 15,000 hours lamp life

Typical rated incandescent lamp power (W)

Typical rated halogen lamp power (W)

Minimum luminous flux (lumens)

Standard LED Savings Factor

High Efficiency LED Savings Factor

Standard LED Savings Factor

High Efficiency LED Savings Factor

1 25 18 150 0.11 0.12 0.15 0.16

2 40 28 250 0.18 0.20 0.23 0.26

3 50 35 350 0.24 0.26 0.31 0.35

4 60 42 460 0.30 0.33 0.40 0.44

5 75 53 600 0.39 0.43 0.51 0.57

6 100 70 810 0.52 0.57 0.69 0.76

7 120 84 990 0.63 0.69 0.83 0.93

8 150 or higher

105 or higher 1260 0.79 0.87 1.05 1.17

5.2.4 L2A and L2B: Install LED Downlight

Default lifetime normalised energy savings for each case is based on the methodology adopted in the 2014 review of the REES program (EES 2014) with updates to assumptions as detailed in this report and is given by: Default savings =

000,000,1

6.3Lr

BrEr

F

BbEb

FLiLrLiPi

Where: Pi = The incumbent lamp power (W)

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Li = The incumbent lamp remaining life (assumed to be 1000 hours) Lr = The replacement lamp life (either 10,000 or 15,000) F = Luminous Flux of the lamp (assumed to average 525 Lumens10) Eb = Efficiency of the business as usual replacement lamp (Lumens/W) Er = Efficiency of the LED replacement lamp Bb = Average Efficiency of the business as usual or incumbent ballast (assumed to be 0.86511) Br = Average Efficiency of the replacement ballast (applies to L2B activity only – assumed to be electronic type with an efficiency = 0.930). If no replacement ballast (i.e. activity L2A) then Br = Bb = 0.865 Constant 3.6/1,000,000 – converts Wh to GJ Default energy savings are in GJ of electricity over the product lifetime Based on the above formula the following tables detail the energy savings for each sub-activity. Table 43: Default saving factors for LED downlights

A B C D F

Activity Min. 10,000 hours lamp life

Min 15,000 hours lamp life

Standard LED Savings Factor

High Efficiency LED Savings Factor

Standard LED Savings Factor

High Efficiency LED Savings Factor

L2A - Lamp only replacement

0.28 0.32 0.37 0.43

L2B - Lamp and transformer replacement

0.30 0.34 0.40 0.45

5.2.5 APP1A: Purchase high efficiency new Refrigerator/Freezer

Default lifetime normalised energy savings for each case is based on star rating index calculation method (reverse engineered) within the standard AS/NZS4474.2. Reference is also made to the methodology adopted in the 2014 review of the REES program (EES 2014) as applicable with amendments to the underlying assumptions as detailed earlier in this report. Default lifetime normalised energy savings is given by: Default savings = Base Energy – Improved Energy Where: both the base energy and the improved energy consumption is calculated using the following equation: Energy consumption for base and improved cases =

DLifeUVCCe adjvf

ERFLNSRI

000,1

6.367.0)1()1(

10

Based on a 35W QH downlight with an efficacy of 15 lumen/Watt. 11

Assumes 50% of incumbent ballasts are ferromagnetic with an efficiency of 0.8 and 50% are electronic with an efficiency of 0.93.

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Where: e = Base of natural logarithm (2.71828) SRI = Star Rating Index (base or improved case) LN = Natural logarithm ERF = Energy reduction factor as per AS/NZS4474.2 (0.23 for all Groups) Cf = Fixed factor for labelling for the Group as per AS/NZS4474.2 Cv = Variable factor for labelling for the Group as per AS/NZS4474.2 Vadj = The product adjusted volume as per AS/NZS4474.2 U = The climate or usage factor (0.85) Constant 3.6/1,000 – converts kWh to GJ Life = The assumed life of the product (15 years) D = Program Discount Factor (1.0) Energy consumption is in GJ over the product lifetime The key values used to calculate energy savings are set out in Table 44. Note that the ERF is current 0.23 for all Groups. The factor to convert gross volume to adjusted volume for each Group is set out in the table below and is based on a sales weighted analysis of GfK data in 2014. Table 44: Assumed values by Group for refrigerator savings tables

Group Min

size L Max

size L

REES Min SRI

Baseline SRI

(stars) Baseline

(ERF)

Market average

2014

Fixed label

Cf

Variable label

Cv

Ratio gross to adjusted

1 100 500 2.0 1.35 0.9126 1.80 200 4.0 1.0

2 N/A N/A N/A N/A N/A 1.63 200 4.0 N/A

3 N/A N/A N/A N/A N/A 1.29 200 4.0 N/A

4 100 700 2.7 2.39 0.6954 1.86 150 8.8 1.28

5T 100 700 2.7 2.39 0.6954 2.72 150 8.8 1.28

5B 100 700 2.7 2.39 0.6954 2.59 150 8.8 1.33

5S 100 700 2.7 2.39 0.6954 2.16 150 8.8 1.38

6C 100 700 3.3 2.75 0.6329 2.76 150 7.5 1.60

6U 100 400 2.5 2.00 0.7700 2.28 150 7.5 1.60

7 100 400 2.5 2.00 0.7700 2.19 150 7.5 1.60

Note: For Groups 4, 5T, 5B and 5S combined the sales weighted ratio of gross to adjusted volume = 1.31

Based on the above formula the following tables detail the energy savings for each sub-activity. Note that the simple average size and star rating within each bin range is assumed when calculating energy saving factors, as set out in the previous section.

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Table 45: Default savings factors in GJ for Group 1 refrigerators

Group 1 Star Rating

Gross Volume 2 t

o <

2.5

Sta

rs

2.5

to

< 3

Sta

rs

3 t

o <

3.5

Sta

rs

3.5

to

< 4

Sta

rs

4 t

o <

4.5

Sta

rs

4.5

to

< 5

Sta

rs

5 t

o <

5.5

Sta

rs

5.5

to

< 6

Sta

rs

6 t

o <

7 S

tars

7 t

o <

8 S

tars

8 t

o <

9 S

tars

9 t

o <

10

Sta

rs

10

Sta

rs

100 to < 150 L 2.6 3.9 4.9 5.9 6.7 7.4 8.1 8.6 9.3 10.1 10.7 11.1 11.3

150 to < 200 L 2.9 4.2 5.4 6.4 7.3 8.1 8.8 9.4 10.1 11 11.6 12.1 12.3

200 to < 250 L 3.1 4.5 5.7 6.8 7.8 8.6 9.4 10 10.9 11.7 12.4 12.9 13.2

250 to < 300 L 3.3 4.8 6.1 7.3 8.3 9.2 10 10.7 11.5 12.5 13.2 13.7 14

300 to < 350 L 3.4 5 6.4 7.7 8.7 9.7 10.5 11.2 12.2 13.2 13.9 14.5 14.7

350 to < 400 L 3.6 5.3 6.8 8 9.2 10.2 11 11.8 12.8 13.8 14.6 15.2 15.5

400 to < 450 L 3.8 5.5 7.1 8.4 9.6 10.6 11.5 12.3 13.3 14.4 15.3 15.9 16.2

450 to < 500 L 3.9 5.8 7.4 8.8 10 11.1 12 12.8 13.9 15 15.9 16.6 16.8

Table 46: Default savings factors in GJ for Group 4, 5T, 5B and 5S refrigerators

Groups 4, 5T 5B and 5S

Star Rating

Gross Volume

2.5

to

< 3

Sta

rs

3 t

o <

3.5

Sta

rs

3.5

to

< 4

Sta

rs

4 t

o <

4.5

Sta

rs

4.5

to

< 5

Sta

rs

5 t

o <

5.5

Sta

rs

5.5

to

< 6

Sta

rs

6 t

o <

7 S

tars

7 t

o <

8 S

tars

8 t

o <

9 S

tars

9 t

o <

10

Sta

rs

10

Sta

rs

100 to < 150 L 2.6 3.6 4.7 5.7 6.6 7.4 8 8.9 9.8 10.5 11 11.3

150 to < 200 L 2.9 4.1 5.4 6.6 7.6 8.4 9.2 10.2 11.3 12.1 12.7 12.9

200 to < 250 L 3.3 4.6 6.1 7.3 8.5 9.4 10.3 11.4 12.6 13.5 14.2 14.5

250 to < 300 L 3.6 5 6.6 8 9.3 10.4 11.3 12.5 13.8 14.8 15.6 15.9

300 to < 350 L 3.9 5.5 7.2 8.7 10.1 11.2 12.3 13.6 15 16 16.9 17.2

350 to < 400 L 4.2 5.9 7.7 9.4 10.8 12.1 13.2 14.6 16.1 17.2 18.1 18.5

400 to < 450 L 4.5 6.3 8.2 10 11.5 12.8 14 15.5 17.1 18.3 19.3 19.7

450 to < 500 L 4.7 6.6 8.7 10.6 12.2 13.6 14.8 16.4 18.1 19.4 20.4 20.8

500 to < 550 L 5 7 9.2 11.1 12.8 14.3 15.6 17.3 19.1 20.5 21.5 22

550 to < 600 L 5.2 7.3 9.6 11.7 13.5 15 16.4 18.2 20 21.5 22.6 23

600 to < 650 L 5.5 7.7 10.1 12.2 14.1 15.7 17.2 19 21 22.5 23.6 24.1

650 to < 700 L 5.7 8 10.5 12.7 14.7 16.4 17.9 19.8 21.9 23.4 24.6 25.1

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5.2.6 APP1D: Purchase a high efficiency new clothes dryer

Default lifetime normalised energy savings for each case is based on star rating index calculation method (reverse engineered) within the standard AS/NZS2442.2. Reference is also made to the methodology adopted in the 2014 review of the REES program (EES 2014) as applicable with amendments to the underlying assumptions as detailed earlier in this report. Default lifetime normalised energy savings is given by: Default savings = Base Energy – Improved Energy, Where: both the base energy and the improved energy consumption is calculated using the following equation: Energy consumption for base and improved cases =

DLifeU

RCe ERFLNSRI

000,1

6.3

5253)1()1(

Where: e = Base of natural logarithm (2.71828) SRI = Star Rating Index (base or improved case) LN = Natural logarithm ERF = The star rating energy reduction factor as per AS/NZS4474.2 RC = The rated capacity of the dryer as per AS/NZS4474.1 U = Assumed usage in number of loads dried per year (assumed to be 78) 52 is the number of assumed loads in AS/NZS2442.2 Constant 3.6/1,000 – converts kWh to GJ Life = The assumed life of the product (12 years) D = Program discount factor (for assumed free riders) = 0.9 Energy consumption is in GJ over the product lifetime The baseline SRI for dryers is 1.6. Based on the above formula the following tables detail the energy savings for each sub-activity. Note that the simple average size and star rating within each bin range is assumed when calculating energy saving factors, as set out in the previous section. Table 47: Default savings factors in GJ for clothes dryers

Rated Capacity

Star Rating

5 t

o <

5.5

Sta

rs

5.5

to

< 6

Sta

rs

6 t

o <

7 S

tars

7 t

o <

8 S

tars

8 t

o <

9 S

tars

9 t

o <

10

Sta

rs

10

Sta

rs

3 to < 3.5 Kg 4.08 4.46 5.00 5.62 6.14 6.59 6.78

3.5 to < 4 Kg 4.70 5.16 5.77 6.48 7.08 7.60 7.83

4 to < 4.5 Kg 5.33 5.85 6.54 7.34 8.04 8.61 8.87

4.5 to < 5 Kg 5.96 6.53 7.32 8.22 8.98 9.63 9.92

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Rated Capacity

Star Rating

5 t

o <

5.5

Sta

rs

5.5

to

< 6

Sta

rs

6 t

o <

7 S

tars

7 t

o <

8 S

tars

8 t

o <

9 S

tars

9 t

o <

10

Sta

rs

10

Sta

rs

5 to < 5.5 Kg 6.58 7.22 8.07 9.07 9.92 10.64 10.95

5.5 to < 6 Kg 7.21 7.90 8.85 9.94 10.86 11.66 12.01

6 to < 6.5 Kg 7.84 8.60 9.62 10.81 11.82 12.67 13.05

6.5 to < 7 Kg 8.47 9.29 10.40 11.67 12.76 13.69 14.09

7 to < 7.5 Kg 9.09 9.96 11.15 12.53 13.70 14.69 15.13

7.5 to < 8 Kg 9.72 10.66 11.93 13.40 14.64 15.71 16.18

8 to < 8.5 Kg 10.35 11.35 12.70 14.27 15.60 16.72 17.23

8.5 to < 9 Kg 10.98 12.03 13.47 15.13 16.54 17.74 18.27

9 to < 9.5 Kg 11.60 12.72 14.23 15.98 17.48 18.75 19.31

9.5 to < 10 Kg 12.23 13.41 15.00 16.86 18.42 19.76 20.35

10 Kg or more 12.86 14.09 15.78 17.72 19.38 20.78 21.40

Note: For combination washer dryers only star rating values of 6 or more are eligible

5.2.7 APP1F: Purchase a high efficiency new television

Default lifetime normalised energy savings for each case is based on star rating index calculation method (reverse engineered) within the standard AS/NZS62087.2. Reference is also made to the methodology adopted in the 2014 review of the REES program (EES 2014) as applicable with amendments to the underlying assumptions as detailed earlier in this report. Default lifetime normalised energy savings is given by: Default savings = Base Energy – Improved Energy, Where: both the base energy and the improved energy consumption is calculated using the following equation:

DLifeU

Ae ERFLNSRI

000,1

6.3

1009344.0408.65)1()1(

Where: e = Base of natural logarithm (2.71828) SRI = Star Rating Index (base or improved case) LN = Natural logarithm ERF = The star rating energy reduction factor as per AS/NZS62087.2.2 (0.2) A = Area of the screen (cm2) 65.408 is the Base Energy Consumption Factor 1 as per AS/NZS62087.2.2 0.09344 is the Base Energy Consumption Factor 2 as per AS/NZS62087.2.2 U = Hours of use (assumed to be 5.5 hours per day) 10 is the assumed hours of operation in AS/NZS62087.2.2 Constant 3.6/1,000 – converts kWh to GJ

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Life = The assumed life of the product (12 years) D = Program discount factor (for assumed free riders) = 0.9 Energy consumption is in GJ over the product lifetime The baseline SRI for televisions is 5.5. Conversion from screen area to screen diagonal assumes an aspect ratio of 9:16. Based on the above formula the following tables detail the energy savings for each sub-activity. Note that the simple average size and star rating within each bin range is assumed when calculating energy saving factors, as set out in the previous section.

Table 48: Default savings factors in GJ for televisions

Screen Diagonal Dimension (cm)

Star Rating

7 t

o <

8 S

tars

8 t

o <

9 S

tars

9 t

o <

10

Sta

rs

10

Sta

rs

< 60 cm 0.4 0.6 0.7 0.8

60 to < 70 cm 0.5 0.7 0.9 1.0

70 to < 80 cm 0.7 0.9 1.1 1.2

80 to < 90 cm 0.9 1.1 1.3 1.5

90 to < 100 cm 1.0 1.3 1.6 1.8

100 to < 110 cm 1.2 1.6 2.0 2.1

110 to < 120 cm 1.4 1.9 2.3 2.4

120 to < 130 cm 1.4 2.0 2.5 2.7

130 to < 140 cm 1.0 1.7 2.2 2.4

140 to < 150 cm 0.5 1.3 1.9 2.2

150 to < 160 cm 0.9 1.6 1.9

160 to < 170 cm 0.5 1.3 1.5

170 to < 180 cm 0.9 1.3

180 to < 190 cm 0.5 0.9

190 to < 200 cm 0.5

200 cm or more 0.2

Note: The black cells are where the CEC exceeds the specified cap of 242.5 kWh/year.

5.2.8 APP2: Remove and Dispose of an Unwanted Refrigerator or Freezer

Default energy savings for each case is based on the expected average energy consumption for each type of product that is removed. This depends on the expected product size and vintage. It is assumed that the old appliance would have operated for a further 7 years in the absence of REES for both cases (primary and secondary). Replacement of a primary refrigerator assumes that the new refrigerator is market average new in the current year. If the new appliance also qualifies under APP1, then additional savings can be separately claimed under that activity and added to APP2 credits.

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Reference is also made to the methodology adopted in the 2014 review of the REES program (EES 2014) as applicable with amendments to the underlying assumptions as detailed earlier in this report. Default lifetime energy savings is given by:

Default energy savings = DLifeUEDEV 000,1

6.3

Where: V = the assumed total compartment volume of the appliance (see Table 49 below) E = The energy consumption per gross litre of capacity of the appliance – refer EES2014 U = The climate/usage adjustment factor – refer EES2014 (0.8 for secondary, 0.85 for primary) ED = The energy deterioration factor to account for the age of the appliance – refer EES2014 (1.2 for pre-1996, 1.0 for others) Constant 3.6/1,000 – converts kWh to GJ Life = The assumed life of the old product without REES (7 years) – refer EES2014 D = Program discount factor (1.0) Default energy savings are in GJ of electricity over the product lifetime Note that the previous approach under REES used the external dimensions of the appliance in order to calculate the total external volume. This was then converted to an estimated compartment volume. The formula above omits this step in the process. Table 49: Assumed gross volume of appliance by type and vintage

Type AS/NZS4474.2 Groups Included

Pre 1996 (Gross Litres)

1996 or later (Gross Litres)

Single Door Refrigerator ≥ 1150mm Height

1, 2, 3 332 361

Single Door Refrigerator < 1150mm height

1, 2, 3 128 111

Two Door Refrigerator/Freezer 4, 5T, 5B, 5S 385 499

Freezer Only 6U, 6C, 7 220 317

Notes: Values have been derived from GfK sales data.

The assumed volumes are based on a sales weighted analysis of the product volume as derived from GfK sales data for the following years:

Products deemed to have been manufactured pre 1996 = year 1995

Products deemed to have been manufactured in or post 1996 – 2005 (i.e. assumes the product is 13 years old by 2018

Based on the above formula the following tables detail the energy savings for each sub-activity.

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Table 50: Default savings factors in GJ for Dispose of an Unwanted Refrigerator or Freezer

Commercial and Other Than Priority group households

Activity Reference Number

Type of Refrigerator/ Freezer

Year of Manufacture Refrigerator/Freezer Configuration Normalised energy Savings (GJ)

APP2 (1) Main (Primary) Pre 1996 (R12) Single Door of ≥ 1150mm Height 10.66

APP2 (2) Main (Primary) Pre 1996 (R12) Single Door of < 1150mm height 4.10

APP2 (3) Main (Primary) Pre 1996 (R12) Two door Refrigerator/Freezer 12.38

APP2 (4) Main (Primary) Pre 1996 (R12) Freezer only 7.06

APP2 (5) Main (Primary) ≥ 1996, or unknown Single Door of ≥ 1150mm Height 5.81

APP2 (6) Main (Primary) ≥ 1996, or unknown Single Door of < 1150mm Height 1.79

APP2 (7) Main (Primary) ≥ 1996, or unknown Two door Refrigerator/Freezer 8.02

APP2 (8) Main (Primary) ≥ 1996, or unknown Freezer only 5.09

APP2 (9) Secondary Pre 1996 (R12) Single Door of ≥ 1150mm Height 18.05

APP2 (10) Secondary Pre 1996 (R12) Single Door of < 1150mm Height 6.94

APP2 (11) Secondary Pre 1996 (R12) Two door Refrigerator/Freezer 20.97

APP2 (12) Secondary Pre 1996 (R12) Freezer only 11.96

APP2 (13) Secondary ≥ 1996, or unknown Single Door of ≥ 1150mm Height 10.93

APP2 (14) Secondary ≥ 1996, or unknown Single Door of < 1150mm Height 3.36

APP2 (15) Secondary ≥ 1996, or unknown Two door Refrigerator/Freezer 15.10

APP2 (16) Secondary ≥ 1996, or unknown Freezer only 9.58

Priority group households Only

Activity Reference Number

Type of Refrigerator/ Freezer

Year of Manufacture Refrigerator/Freezer Configuration Normalised energy Savings (GJ

APP2 (17) Main (Primary) Any Single Door of ≥ 1150mm Height 10.66

APP2 (18) Main (Primary) Any Single Door of < 1150mm Height 4.10

APP2 (19) Main (Primary) Any Two door Refrigerator/Freezer 12.38

APP2 (20) Main (Primary) Any Freezer only 7.06

APP2 (21) Secondary Any Single Door of ≥ 1150mm Height 18.05

APP2 (22) Secondary Any Single Door of < 1150mm Height 6.94

APP2 (23) Secondary Any Two door Refrigerator/Freezer 20.97

APP2 (24) Secondary Any Freezer only 11.96

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5.3 New Activities

5.3.1 IHD1: In Home display Unit

Assumed performance is proposed to be based on that used under the VEET scheme. The basis is an assumed % reduction in electrical energy consumption as determined in the study Department of Primary Industries IHD Inclusion into ESI scheme (Accenture 2011). According to the Accenture study the performance of IHDs takes into account the following factors:

The % reduction in electricity consumption due to the IHD

Average Household energy consumption

The expected lifetime of the IHD

Any discount factors Using these factors, the REES credit would be calculated as follows Saving = E R * E C * L * DF * RF * 0.0036 Where: E R = The % reduction in electrical energy consumption due to the IHD E C = Average annual household electricity consumption in SA L = Lifetime DF = Discount factor (free riders) assumed to be 1.0 RF = Regional Factor (see Section 4) 0.0036 = Conversion factor from kWh to GJ Based on the analysis in Section 3.2 the following values would be applied: Table 51: Default Savings Factors for In Home Display Units

Factor Recommended Value

E R = The % reduction in electrical energy consumption due to the IHD

6.6%

E C = Average annual household electricity consumption in SA

5145 kWh Based on ACIL Allen 2015, Electricity Bill Benchmarks for Residential Customers: A Report to the Australian Energy Regulator,

L = Lifetime 5 years

DF = Discount factor (free riders) assumed to be 1.0

1.0

Simplifying the equation above by combining the constants and expressing the result in GJ of normalised energy savings you get: Normalised Energy Saving (GJ) = SF * RF Where: SF = The Savings Factor = 6.6 % * 5145 * 5 * 1 * 0.0036 = 6.1 GJ RF = Regional Factor (see Section 4)

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5.3.2 RDC1: Install High Efficiency Refrigerated Display Cabinets

The estimate of energy savings that are expected to be realised from this activity are based on the assumed electricity savings associated with the installation of a refrigerated display cabinet that meets the “High Efficiency” standard as set out in AS1731.14 Refrigerated display cabinets Part 14: Minimum energy performance standard (MEPS) requirements. Based on the VEET and EEIS approach, the estimated savings represent the difference between the energy consumption of a MEPS compliant product and that of an equivalent product that meets the high efficiency standard. The energy saving calculation is therefore quite simple, it is the difference in energy consumption per 24 hours per m2 of display area between a product that just meets the MEPS requirement and an equivalent product that meets the high efficiency requirement. This value is then multiplied by the total display area, the expected life of the product (in days), the discount factor (see Section 3.2) and finally any regional factor (see Section 4). The equation is as follows: Saving (kWh) = (E meps – E HE) * TDA * 365 * L * DF * RF Where: E meps = The MEPS level of daily energy consumption per m2 of display area (kWh/24 hours/m2)* E HE = The High Efficiency level of daily energy consumption per m2 of display area (kWh/24 hours/m2)* TDA = Total Display Area as defined in AS 1731 365 = constant used to convert daily usage into annual usage L = Product lifetime in years (assumed to be 8) DF = Discount factor (free riders) assumed to be 0.8 RF = Regional Factor (see Section 4)

*Note: For self-contained RDCs the standard provides two separate levels of MEPS or HE standard. These are for either unfrozen type cabinets (M1 or M2 class) or frozen type cabinets (L1 or L2 class). The difference between M1 and M2 or L1 and L2 values are very minor (in some cases they share the same MEPS and HE threshold values). Consequently in line with the approach taken in VEET and EEIS a single value only is used to cover either M1 and M2 class or L1 and L2 class products. The single value is taken as the average of the two possible values.

Simplifying the equation above by combining the constants and expressing the result in GJ of normalised energy savings you get: Normalised Energy Saving (GJ) = SF * TDA * RF Where: SF = The Savings Factor (as per the table below) TDA = Total Display Area as defined in AS 1731 RF = Regional Factor (see Section 4).

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Table 52: Default Savings Factors - Refrigerated Display Cabinets

Activity (Type of Refrigerated Display Cabinet as defined in AS 1731) Savings Factor

HC1 25.23

HC4 34.48

VC1 72.74

VC2 58.03

VC4 - solid door 83.68

VC4 - glass door 55.08

HF4 58.87

HF6 17.66

VF4 - solid door 92.09

VF4 - glass door 92.09

Note: The savings are calculated in part on the basis of the total display area of the cabinet (TDA). It has been observed that some suppliers grossly overstate the TDA for their products when registering for MEPS compliance. A rough check of the TDA should feature as part of any compliance program.

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6 Specifications – Updated / New

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Install an Efficient New Reverse Cycle Air Conditioner (Non-Ducted) ; Residential Only Activity No.

HC2A

1. Activity Specific Definitions Reverse cycle air conditioner (non-ducted) means a single phase non-ducted air conditioner with both heating and cooling functions that is registered for energy labelling and MEPS under standard AS/NZS 3823.2. ACOP means the annual coefficient of performance as defined in AS/NZS 3823.2 AEER means the annual energy efficiency ratio as defined in AS/NZS 3823.2 Fixed Resistance Electric Heater means an electric heater that utilizes a resistance electric heating element (ACOP = 1) that is permanently fixed within the building. Portable electric heaters such as fan convectors radiant or oil column heaters that are not permanently fixed do not qualify as a “fixed resistance electric heater”. SRI means Star Rating Index Priority Group Household - means households as defined in sub regulation 23(1) of Part 4 Electricity (General) Regulations 2012 under the Electricity Act 1996, and 17(1) of Part 4 Gas Regulations 2012 under the Gas Act 1997

2. Activity Description (Summary) Install an efficient new reverse cycle air conditioner (non-ducted). This can take one of three forms: HC2A(i) - Replacement (early retirement) of a pre-existing room air-conditioner in working order (Priority Group households only) HC2A(ii) - Replacement of a pre-existing fixed resistance electric heater in working order HC2A(iii) - Installation of a new reverse cycle air-conditioner (non-ducted) without any pre-condition in relation to type of existing heating equipment (if any)

3. Activity Eligibility Requirements Any residential household in South Australia where the installed product requirements and minimum installation requirements can be met, notwithstanding that: Activity HC2A(i) - Replacement (early retirement) of a pre-existing air-conditioner is limited in application to priority group households only. In relation to activities HC2A(i) and HC2A(ii), all the pre-existing heater/s within the conditioned spaces of the dwelling must be fully decommissioned, removed from the property and disposed of.

4. Installed Product Requirements 1. The reverse cycle air conditioner (non-ducted) must achieve the following minimum performance

standards under AS/NZS 3823.2 (2013): a. Heating Performance, minimum 3.5 stars or minimum ACOP of 4.0 b. Cooling Performance, minimum 3.0 stars or minimum AEER of 3.75

2. The reverse cycle air conditioner (non-ducted) shall be single phase and have a rated cooling output not exceeding 13kW.

3. Multi-split systems or water source heat pumps are not eligible.

5. Minimum Installation Requirements 1. Any reverse cycle air conditioner (non-ducted) installed must comply with AS/NZS 60335.2.40. 2. Removed pre-existing heaters shall have refrigerants and any other scheduled substances disposed of

in accordance with the Australian and New Zealand refrigerant handling code of practice as established under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Cth).

6. Activity energy savings The normalised energy saved per appliance (GJ) from undertaking this this activity is as per the following six tables. Separate tables are provided for “BCA climate zone 6” and “other places in SA” and; Separate tables are provided for each of the 3 possible sub-activities available under this activity. Normalised energy savings are based on the installed products heating star rating or ACOP (refer to the options in the red coloured fields down the left hand side of each table) and its cooling star rating or AEER (refer to the options in the blue coloured fields across the top of each table)

Normalised Energy Savings (GJ) per activity

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(BCA climate 6) – HC2A (i) - Replacement (early retirement) of a pre-existing air-conditioner

(BCA climate 6) – HC2A (ii) - Replacement of a pre-existing fixed resistance electric heater

(BCA climate 6) – HC2A (iii) - Installation of a new reverse cycle air-conditioner (non-ducted) without pre-condition

(Other Places in SA) – HC2A (i) - Replacement (early retirement) of a pre-existing air-conditioner

HC2A(i) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 6 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 8.6 8.7 8.9 9.0 9.1 9.2 9.3 9.4 9.5 9.6

4 to < 4.5 4.25 to < 4.5 11.8 11.9 12.1 12.2 12.3 12.4 12.5 12.7 12.7 12.8

4.5 to < 5 4.5 to < 4.75 14.6 14.8 14.9 15.0 15.2 15.3 15.4 15.5 15.6 15.6

5 to < 5.5 4.75 to < 5 17.2 17.4 17.5 17.6 17.7 17.8 17.9 18.1 18.2 18.2

5.5 to < 6 5 to < 5.25 19.5 19.7 19.8 19.9 20.0 20.2 20.2 20.4 20.5 20.5

6 to < 7 5.25 to < 5.75 21.6 21.8 21.9 22.0 22.2 22.3 22.3 22.5 22.6 22.6

7 to < 7.5 5.75 to < 6 25.3 25.4 25.6 25.7 25.8 25.9 26.0 26.2 26.2 26.3

7.5 to < 8 6 to < 6.25 26.9 27.1 27.2 27.3 27.4 27.5 27.6 27.8 27.9 27.9

8 or more 6.25 or more 28.4 28.5 28.7 28.8 28.9 29.0 29.1 29.3 29.3 29.4

HC2A(ii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 6 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 172.9 173.1 173.2 173.4 173.5 173.6 173.7 173.8 173.9 174.0

4 to < 4.5 4.25 to < 4.5 176.2 176.3 176.5 176.6 176.7 176.8 176.9 177.0 177.1 177.2

4.5 to < 5 4.5 to < 4.75 179.0 179.2 179.3 179.4 179.6 179.7 179.7 179.9 180.0 180.0

5 to < 5.5 4.75 to < 5 181.6 181.7 181.9 182.0 182.1 182.2 182.3 182.5 182.5 182.6

5.5 to < 6 5 to < 5.25 183.9 184.1 184.2 184.3 184.4 184.5 184.6 184.8 184.9 184.9

6 to < 7 5.25 to < 5.75 186.0 186.2 186.3 186.4 186.5 186.6 186.7 186.9 187.0 187.0

7 to < 7.5 5.75 to < 6 189.7 189.8 190.0 190.1 190.2 190.3 190.4 190.6 190.6 190.7

7.5 to < 8 6 to < 6.25 191.3 191.4 191.6 191.7 191.8 191.9 192.0 192.2 192.2 192.3

8 or more 6.25 or more 192.8 192.9 193.1 193.2 193.3 193.4 193.5 193.7 193.7 193.8

HC2A(iii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 6 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 6.7 6.9 7.0 7.2 7.3 7.4 7.5 7.6 7.7 7.8

4 to < 4.5 4.25 to < 4.5 9.9 10.1 10.2 10.4 10.5 10.6 10.7 10.8 10.9 11.0

4.5 to < 5 4.5 to < 4.75 12.8 13.0 13.1 13.2 13.3 13.4 13.5 13.7 13.8 13.8

5 to < 5.5 4.75 to < 5 15.4 15.5 15.7 15.8 15.9 16.0 16.1 16.3 16.3 16.4

5.5 to < 6 5 to < 5.25 17.7 17.8 18.0 18.1 18.2 18.3 18.4 18.6 18.6 18.7

6 to < 7 5.25 to < 5.75 19.8 20.0 20.1 20.2 20.3 20.4 20.5 20.7 20.8 20.8

7 to < 7.5 5.75 to < 6 23.5 23.6 23.8 23.9 24.0 24.1 24.2 24.3 24.4 24.5

7.5 to < 8 6 to < 6.25 25.1 25.2 25.4 25.5 25.6 25.7 25.8 26.0 26.0 26.1

8 or more 6.25 or more 26.6 26.7 26.9 27.0 27.1 27.2 27.3 27.4 27.5 27.6

HC2A(i) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 5 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 5.5 6.4 7.1 7.8 8.4 8.9 9.4 10.2 10.6 10.9

4 to < 4.5 4.25 to < 4.5 6.9 7.8 8.5 9.2 9.8 10.3 10.8 11.6 12.0 12.3

4.5 to < 5 4.5 to < 4.75 8.2 9.0 9.8 10.4 11.0 11.6 12.0 12.9 13.3 13.6

5 to < 5.5 4.75 to < 5 9.3 10.2 10.9 11.6 12.2 12.7 13.2 14.0 14.4 14.7

5.5 to < 6 5 to < 5.25 10.3 11.2 11.9 12.6 13.2 13.7 14.2 15.0 15.4 15.8

6 to < 7 5.25 to < 5.75 11.3 12.1 12.8 13.5 14.1 14.6 15.1 16.0 16.3 16.7

7 to < 7.5 5.75 to < 6 12.9 13.7 14.4 15.1 15.7 16.2 16.7 17.6 17.9 18.3

7.5 to < 8 6 to < 6.25 13.6 14.4 15.2 15.8 16.4 16.9 17.4 18.3 18.6 19.0

8 or more 6.25 or more 14.2 15.1 15.8 16.5 17.1 17.6 18.1 18.9 19.3 19.6

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(Other Places in SA) – HC2A (ii) - Replacement of a pre-existing fixed resistance electric heater

(Other Places in SA) – HC2A (iii) - Installation of a new reverse cycle air-conditioner (non-ducted) without pre-condition

7. Guidance Notes (Informative only – not mandatory) Persons installing heating/cooling systems should have regard to the “Air Conditioning Residential Best Practice Guideline” (2003) published by the Australian Institute of Refrigeration, Air Conditioning and Heating (AIRAH). All reasonable endeavours should be used to recycle removed systems.

HC2A(ii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 5 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 63.3 64.1 64.8 65.5 66.1 66.6 67.1 68.0 68.3 68.7

4 to < 4.5 4.25 to < 4.5 64.7 65.5 66.3 66.9 67.5 68.0 68.5 69.4 69.7 70.1

4.5 to < 5 4.5 to < 4.75 65.9 66.8 67.5 68.2 68.8 69.3 69.8 70.6 71.0 71.3

5 to < 5.5 4.75 to < 5 67.1 67.9 68.6 69.3 69.9 70.4 70.9 71.8 72.1 72.5

5.5 to < 6 5 to < 5.25 68.1 68.9 69.7 70.3 70.9 71.4 71.9 72.8 73.2 73.5

6 to < 7 5.25 to < 5.75 69.0 69.8 70.6 71.2 71.8 72.4 72.9 73.7 74.1 74.4

7 to < 7.5 5.75 to < 6 70.6 71.5 72.2 72.9 73.4 74.0 74.5 75.3 75.7 76.0

7.5 to < 8 6 to < 6.25 71.3 72.2 72.9 73.6 74.2 74.7 75.2 76.0 76.4 76.7

8 or more 6.25 or more 72.0 72.8 73.5 74.2 74.8 75.3 75.8 76.7 77.0 77.4

HC2A(iii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 5 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 4.3 5.1 5.9 6.6 7.1 7.7 8.2 9.0 9.4 9.7

4 to < 4.5 4.25 to < 4.5 5.7 6.6 7.3 8.0 8.6 9.1 9.6 10.4 10.8 11.1

4.5 to < 5 4.5 to < 4.75 7.0 7.8 8.6 9.2 9.8 10.3 10.8 11.7 12.0 12.4

5 to < 5.5 4.75 to < 5 8.1 8.9 9.7 10.3 10.9 11.5 12.0 12.8 13.2 13.5

5.5 to < 6 5 to < 5.25 9.1 10.0 10.7 11.4 12.0 12.5 13.0 13.8 14.2 14.5

6 to < 7 5.25 to < 5.75 10.0 10.9 11.6 12.3 12.9 13.4 13.9 14.7 15.1 15.5

7 to < 7.5 5.75 to < 6 11.7 12.5 13.2 13.9 14.5 15.0 15.5 16.4 16.7 17.1

7.5 to < 8 6 to < 6.25 12.4 13.2 13.9 14.6 15.2 15.7 16.2 17.1 17.4 17.8

8 or more 6.25 or more 13.0 13.9 14.6 15.3 15.8 16.4 16.9 17.7 18.1 18.4

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Install an Efficient New Reverse Cycle Air Conditioner (Ducted or multi-split) ; Residential Only Activity No.

HC2B

1. Activity Specific Definitions Reverse cycle air conditioner (ducted or multi-split) means a ducted or multi-split air conditioner with both heating and cooling functions that is registered for energy labelling and MEPS under standard AS/NZS 3823.2. ACOP means the annual coefficient of performance as defined in AS/NZS 3823.2 AEER means the annual energy efficiency ratio as defined in AS/NZS 3823.2 Resistance electric heater – panel type: means a system of electric heaters capable of providing direct heating to all living/bedroom areas and services an area of not less than 100 m

2 and that utilizes a resistance electric heating

element (ACOP = 1) all of which are permanently fixed within the building. Portable electric heaters such as fan convectors radiant or oil column heaters that are not permanently fixed do not qualify as a “Resistance electric heater – panel type”. Resistance electric heater – slab type: means a system of electric heating elements embedded within a dwellings concrete floor system and services an area of not less than 100 m

2.

2. Activity Description (Summary) Install an efficient new reverse cycle air conditioner (ducted). This can take one of three forms: HC2B(i) - Replacement of a pre-existing resistance electric heater – panel type in working order. HC2B(ii) - Replacement of a pre-existing resistance electric heater – slab type in working order HC2B(iii) - Installation of a new reverse cycle air-conditioner (ducted or multi-split) without any pre-condition in relation to type of existing heating equipment (if any).

3. Activity Eligibility Requirements Any residential household in South Australia where the installed product requirements and minimum installation requirements can be met. This can include new or replacement systems. In relation to activity HC2B(i) all the pre-existing heaters within the conditioned spaces of the dwelling must be fully decommissioned, removed from the property and disposed of. Wherever possible the replacement system should use the same circuit breakers in the switchboard as had been used by the replaced system. Where this is not possible the replaced system must be disconnected at the switchboard by a licenced electrician such that it cannot be re-activated by the householder.

4. Installed Product Requirements 1. The reverse cycle air conditioner (ducted or multi-split) must achieve the following minimum

performance standards under AS/NZS 3823.2 (2013): a. Heating Performance, minimum ACOP of 3.7 b. Cooling Performance, minimum AEER of 3.5

2. Water source heat pumps are not eligible.

5. Minimum Installation Requirements 1. Any reverse cycle air conditioner (ducted or multi-split) installed must comply with AS/NZS 60335.2.40. 2. Where a multi-split system is replacing a pre-existing ducted system that is to be decommissioned, the

outlets of that decommissioned system must be effectively sealed at ceiling level. 3. Removed pre-existing heaters shall have refrigerants and any other scheduled substances disposed of

in accordance with the Australian and New Zealand refrigerant handling code of practice as established under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Cth).

6. Activity energy savings The normalised energy saved per appliance (GJ) from undertaking this this activity is as per the following six tables. Separate tables are provided for “BCA climate zone 6” and “other places in SA” and; Separate tables are provided for each of the 3 possible sub-activities available under this activity. Normalised energy savings are based on the installed products heating star rating or ACOP (refer to the options in the red coloured fields down the left hand side of each table) and its cooling star rating or AEER (refer to the options in the blue coloured fields across the top of each table).

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(BCA climate 6) – HC2B (i) - Replacement of a pre-existing resistance electric heater – panel type

(BCA climate 6) – HC2B (ii) - Replacement of a pre-existing resistance electric heater – slab type

(BCA climate 6) – HC2B (iii) - Installation of a new reverse cycle air-conditioner (ducted or multi-split)

(Other Places in SA) – HC2B (i) - Replacement of a pre-existing resistance electric heater – panel type

(Other Places in SA) – HC2B (ii) - Replacement of a pre-existing resistance electric heater – slab type

HC2B(i) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 6 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 410.951521 411.420117 411.835159 412.2053318 412.537538 412.837334 413.109242 413.583635 413.791787 413.9836128

4 to < 4.5 4.25 to < 4.5 420.5 421.0 421.4 421.8 422.1 422.4 422.7 423.1 423.3 423.5

4.5 to < 5 4.5 to < 4.75 429.0 429.5 429.9 430.3 430.6 430.9 431.2 431.6 431.9 432.0

5 to < 5.5 4.75 to < 5 436.7 437.1 437.5 437.9 438.2 438.5 438.8 439.3 439.5 439.7

5.5 to < 6 5 to < 5.25 443.5 444.0 444.4 444.8 445.1 445.4 445.7 446.2 446.4 446.6

6 to < 7 5.25 to < 5.75 449.8 450.3 450.7 451.1 451.4 451.7 452.0 452.4 452.6 452.8

7 to < 7.5 5.75 to < 6 460.7 461.2 461.6 462.0 462.3 462.6 462.9 463.3 463.6 463.7

7.5 to < 8 6 to < 6.25 465.5 466.0 466.4 466.8 467.1 467.4 467.7 468.1 468.3 468.5

8 or more 6.25 or more 469.9 470.4 470.8 471.2 471.5 471.8 472.1 472.5 472.8 472.9

HC2B(ii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 6 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 557.4 557.9 558.3 558.6 559.0 559.3 559.5 560.0 560.2 560.4

4 to < 4.5 4.25 to < 4.5 566.9 567.4 567.8 568.2 568.5 568.8 569.1 569.6 569.8 570.0

4.5 to < 5 4.5 to < 4.75 575.4 575.9 576.3 576.7 577.0 577.3 577.6 578.1 578.3 578.5

5 to < 5.5 4.75 to < 5 583.1 583.6 584.0 584.3 584.7 585.0 585.2 585.7 585.9 586.1

5.5 to < 6 5 to < 5.25 590.0 590.5 590.9 591.2 591.6 591.9 592.1 592.6 592.8 593.0

6 to < 7 5.25 to < 5.75 596.2 596.7 597.1 597.5 597.8 598.1 598.4 598.9 599.1 599.3

7 to < 7.5 5.75 to < 6 607.1 607.6 608.0 608.4 608.7 609.0 609.3 609.8 610.0 610.2

7.5 to < 8 6 to < 6.25 611.9 612.4 612.8 613.2 613.5 613.8 614.1 614.6 614.8 615.0

8 or more 6.25 or more 616.3 616.8 617.2 617.6 617.9 618.2 618.5 619.0 619.2 619.4

HC2B(iii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 6 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 25.4 25.9 26.3 26.7 27.0 27.3 27.6 28.1 28.3 28.5

4 to < 4.5 4.25 to < 4.5 35.0 35.5 35.9 36.2 36.6 36.9 37.1 37.6 37.8 38.0

4.5 to < 5 4.5 to < 4.75 43.5 44.0 44.4 44.8 45.1 45.4 45.7 46.1 46.3 46.5

5 to < 5.5 4.75 to < 5 51.1 51.6 52.0 52.4 52.7 53.0 53.3 53.8 54.0 54.2

5.5 to < 6 5 to < 5.25 58.0 58.5 58.9 59.3 59.6 59.9 60.2 60.7 60.9 61.1

6 to < 7 5.25 to < 5.75 64.3 64.8 65.2 65.5 65.9 66.2 66.5 66.9 67.1 67.3

7 to < 7.5 5.75 to < 6 75.2 75.7 76.1 76.5 76.8 77.1 77.4 77.8 78.0 78.2

7.5 to < 8 6 to < 6.25 80.0 80.5 80.9 81.2 81.6 81.9 82.1 82.6 82.8 83.0

8 or more 6.25 or more 84.4 84.9 85.3 85.7 86.0 86.3 86.6 87.0 87.2 87.4

HC2B(i) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 5 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 142.8 145.3 147.5 149.4 151.2 152.8 154.2 156.7 157.8 158.9

4 to < 4.5 4.25 to < 4.5 147.0 149.4 151.6 153.6 155.4 157.0 158.4 160.9 162.0 163.1

4.5 to < 5 4.5 to < 4.75 150.7 153.2 155.4 157.4 159.1 160.7 162.2 164.7 165.8 166.8

5 to < 5.5 4.75 to < 5 154.0 156.5 158.7 160.7 162.5 164.1 165.5 168.0 169.1 170.1

5.5 to < 6 5 to < 5.25 157.1 159.6 161.8 163.7 165.5 167.1 168.5 171.1 172.2 173.2

6 to < 7 5.25 to < 5.75 159.8 162.3 164.5 166.5 168.2 169.8 171.3 173.8 174.9 175.9

7 to < 7.5 5.75 to < 6 164.6 167.1 169.3 171.3 173.0 174.6 176.1 178.6 179.7 180.7

7.5 to < 8 6 to < 6.25 166.7 169.2 171.4 173.4 175.1 176.7 178.2 180.7 181.8 182.8

8 or more 6.25 or more 168.7 171.1 173.3 175.3 177.1 178.7 180.1 182.6 183.7 184.8

HC2B(ii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 5 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 207.1 209.5 211.7 213.7 215.5 217.1 218.5 221.0 222.1 223.2

4 to < 4.5 4.25 to < 4.5 211.2 213.7 215.9 217.9 219.7 221.3 222.7 225.2 226.3 227.3

4.5 to < 5 4.5 to < 4.75 215.0 217.5 219.7 221.6 223.4 225.0 226.4 229.0 230.1 231.1

5 to < 5.5 4.75 to < 5 218.3 220.8 223.0 225.0 226.8 228.4 229.8 232.3 233.4 234.4

5.5 to < 6 5 to < 5.25 221.4 223.9 226.1 228.0 229.8 231.4 232.8 235.3 236.4 237.5

6 to < 7 5.25 to < 5.75 224.1 226.6 228.8 230.8 232.5 234.1 235.6 238.1 239.2 240.2

7 to < 7.5 5.75 to < 6 228.9 231.4 233.6 235.6 237.3 238.9 240.4 242.9 244.0 245.0

7.5 to < 8 6 to < 6.25 231.0 233.5 235.7 237.7 239.4 241.0 242.5 245.0 246.1 247.1

8 or more 6.25 or more 232.9 235.4 237.6 239.6 241.4 243.0 244.4 246.9 248.0 249.0

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(Other Places in SA) – HC2B (iii) - Installation of a new reverse cycle air-conditioner (ducted or multi-split)

7. Guidance Notes (Informative only – not mandatory) Persons installing heating/cooling systems should have regard to the “Air Conditioning Residential Best Practice Guideline” (2003) published by the Australian Institute of Refrigeration, Air Conditioning and Heating (AIRAH). All reasonable endeavours should be used to recycle removed systems.

Where a ducted air-conditioner is not star rated refer to the Air Conditioner CSV file available from http://reg.energyrating.gov.au/comparator/product_types/64/search/ for the ACOP and AEER values. Use the data from the AnnualOutputCOP and AnnualOutputEER columns.

HC2B(iii) Cooling Stars > 3 to < 3.5 3.5 to < 4 4 to < 4.5 4.5 to < 5 5 to < 5.5 5.5 to < 6 6 to < 7 7 to < 7.5 7.5 to < 8 8 or more

BCA 5 AEER > 3.75 to < 4 4 to < 4.25 4.25 to < 4.5 4.5 to < 4.75 4.75 to < 5 5 to < 5.25 5.25 to < 5.75 5.75 to < 6 6 to < 6.25 6.25 or more

Heating Stars ACOP Normalised Energy Savings (GJ)

3.5 to < 4 4 to < 4.25 16.4 18.9 21.1 23.1 24.9 26.4 27.9 30.4 31.5 32.5

4 to < 4.5 4.25 to < 4.5 20.6 23.1 25.3 27.3 29.0 30.6 32.1 34.6 35.7 36.7

4.5 to < 5 4.5 to < 4.75 24.4 26.8 29.1 31.0 32.8 34.4 35.8 38.3 39.4 40.5

5 to < 5.5 4.75 to < 5 27.7 30.2 32.4 34.4 36.1 37.7 39.2 41.7 42.8 43.8

5.5 to < 6 5 to < 5.25 30.7 33.2 35.4 37.4 39.2 40.8 42.2 44.7 45.8 46.8

6 to < 7 5.25 to < 5.75 33.5 36.0 38.2 40.1 41.9 43.5 44.9 47.5 48.6 49.6

7 to < 7.5 5.75 to < 6 38.3 40.8 43.0 44.9 46.7 48.3 49.7 52.3 53.4 54.4

7.5 to < 8 6 to < 6.25 40.4 42.9 45.1 47.0 48.8 50.4 51.8 54.4 55.5 56.5

8 or more 6.25 or more 42.3 44.8 47.0 49.0 50.7 52.3 53.8 56.3 57.4 58.4

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Install an LED General Purpose Lamp; Residential Only Activity No.

L1

1. Activity Specific Definitions

Integral referring to a lamp means that the power supply electronics are integrated into the lamp housing allowing direct connection to the existing power supply (typically using a Bayonet cap or Edison screw fitting).

Standard LED means an integral LED lamp with initial efficacy of not less than 90 lm/W (non-directional lamp) or 85 lm/W (directional lamp)

High Efficiency LED means an integral LED lamp with initial efficacy of not less than 125 lm/W (non-directional lamp) or 100 lm/W (directional lamp)

Directional Lamp: Directional lamps include types PAR, ER, R, RE, XR, YR, ZR or MR 11-16 or any other type that has at least 80 % light output within a cone with an angle of 120°

Non-Directional Lamp: A lamp other than a directional lamp

2. Activity Description (Summary)

Replace a mains voltage incandescent or halogen lamp (non-directional or directional) with a light emitting diode integral lamp (LED).

3. Activity Eligibility Requirements

1. The number of individual lamp replacements in any one premises shall not exceed 20, unless the recipient causes payment to the installer for the goods and services provided.

2. Where such payment is required, a valid tax invoice must be retained for verification purposes, clearly showing the completion date, the address that the lamps was installed in, the name and contact details of the person billed for the installation, and the amount charged for the installation.

3. All equipment that is replaced must be in working order immediately prior to removal.

4. Replaced equipment (lamp) shall have rated power according to Table L1A (non-directional lamps) or Table L1B (directional lamps). Refer column B for tungsten incandescent and column C for halogen lamps. If required, intermediate values of rated power are referenced to the next lower rated power.

4. Installed Product Requirements

The installed product shall—

1. Be installed at the time of removal of the existing equipment.

2. Have an equivalent light output to that of the replaced lamp

3. Be either a “warm white” (rated colour temperature of 2700K to 3500K) or “cool white” (rated colour temperature of 3500K to 4000K) lamp. The installer is required to install either warm white or cool white according to the preference of the home owner, where no preference is provided then warm white shall be installed.

4. Have a measured average initial luminous flux (verified by test report - for CFLs test procedure AS/NZS 4847.1 or IEC 60969; for LEDs test procedure as required by the programs described below) of at least the corresponding* value in column D of Table L1A (non-directional lamps) or Table L1B (directional lamps). *Note that this should correspond to the class of replaced lamp.

5. Provide a minimum 2 years replacement warranty.

6. (a) Be approved under the NSW ESS or VEET scheme, or (b) demonstrate compliance with either Energy Star Integral LED Lamps V1.4 or Energy Star Lamps V1.0 by providing, where required for verification, current proof of program certification.

7. For High Efficiency LEDs, demonstrate, where required for verification, through test reports from a NATA or Energy Star recognised laboratory, a minimum initial efficacy of not less than 90 lm/W (non-directional lamp) or 85 lm/W (directional lamp).

5. Minimum Installation Requirements

1. A person or entity undertaking this activity shall use best endeavours to ensure that any replacements are targeted at high usage luminaires in the first instance.

2. All equipment replaced shall be removed from the premises and not re-used.

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3. Installed equipment shall not be connected to a transformer, dimmer, timer, motion sensor, daylight switch or other automated switch or control (or combination thereof) unless specified by the manufacturer as being compatible with such device or combinations of devices.

4. If connected to a dimmer, the installer shall test the equipment through its full dimming range to ensure that the equipment works to the satisfaction of the customer.

5. Where installed equipment causes sub-optimal operation, the installer shall either reinstall equipment equivalent to the original equipment or replace any components of the equipment that are causing the installation not to operate, at no expense to the resident. Such a request for reinstatement must be acted upon if made within 20 business days of the installation of the new equipment.

6. The person undertaking this activity in a residential customer’s premises must satisfy the REES Code mandatory safety training requirements. Registered Plumbers, Gas Fitters, Electricians and Building Work Supervisors are exempt from this requirement.

6. Activity energy savings

The normalised energy saved per lamp installed in a residential premises is equal to:

Normalised Energy Savings (GJ)=Savings factor expressed in column E, F, G or H of the tables below, as applicable:

Table L1A: Non-Directional Lamps

A B C D E F G H

Class Removed lamp:

Installed Lamp:

Min. 10,000 hours lamp life

Min 15,000 hours lamp life

Typical rated incandescent lamp power (W)

Typical rated halogen lamp power (W)

Minimum luminous flux (lumens)

Standard LED Savings Factor

High Efficiency LED Savings Factor

Standard LED Savings Factor

High Efficiency LED Savings Factor

1 25 18 200 0.17 0.19 0.23 0.27

2 40 28 350 0.28 0.32 0.39 0.45

3 60 42 650 0.49 0.57 0.70 0.81

4 75 53 850 0.64 0.73 0.90 1.05

5 100 70 1150 0.86 0.99 1.22 1.41

6 150 or higher 105 or higher 1800 1.32 1.53 1.89 2.19

Table L1B: Directional Lamps

A B C D E F G H

Class Removed lamp:

Installed Lamp:

Min. 10,000 hours lamp life

Min 15,000 hours lamp life

Typical rated incandescent lamp power (W)

Typical rated halogen lamp power (W)

Minimum luminous flux (lumens)

Standard LED Savings Factor

High Efficiency LED Savings Factor

Standard LED Savings Factor

High Efficiency LED Savings Factor

1 25 18 150 0.11 0.12 0.15 0.16

2 40 28 250 0.18 0.20 0.23 0.26

3 50 35 350 0.24 0.26 0.31 0.35

4 60 42 460 0.30 0.33 0.40 0.44

5 75 53 600 0.39 0.43 0.51 0.57

6 100 70 810 0.52 0.57 0.69 0.76

7 120 84 990 0.63 0.69 0.83 0.93

8 150 or higher

105 or higher 1260 0.79 0.87 1.05 1.17

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7. Guidance Notes (Informative only – not mandatory)

All reasonable endeavours should be undertaken to recycle removed equipment.

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Install LED Down-light Lamp or LED Down-light Luminaire; Residential Only

L2A - ELV Down-Light Lamp Replacement L2B - ELV Down-Light Luminaire Replacement L2C - Ceiling Insulation Reinstatement

Activity No.

L2

1. Activity Specific Definitions

Integral ELV LED lamp means a lamp with power supply electronics integrated into the lamp housing allowing direct connection to existing 12V power supply. Integral MV LED lamp means a lamp with power supply electronics integrated into the lamp housing allowing direct connection to existing mains power supply. Mains voltage (MV) LED down-light luminaire means a mains voltage LED light fixture incorporating light source, power supply electronics and luminaire housing that does not rely on any existing components of the replaced equipment in order to operate. ELV means extra low voltage, which in this context means nominal 12V a.c. or d.c. Luminaire means apparatus which distributes, filters or transforms the light transmitted from one or more lamps and which includes, except the lamps themselves, all the parts necessary for fixing and protecting the lamps and, where necessary, circuit auxiliaries together with the means for connecting them to the electricity supply. Partial re-instatement of insulation means reinstatement of ceiling insulation around the down-light, only maintaining the minimum specified separation distance between the down-light and the surrounding insulation (50mm) as specified in AS/NZS 3000. Full re-instatement of insulation means complete reinstatement of ceiling insulation around and over the down-light (where permitted) Beam Angle: the angle between the opposing points on the beam axis where the intensity drops to 50% of its maximum

2. Activity Description (Summary)

L2A Replace ELV halogen lamp with an integral ELV LED lamp

L2B Replace ELV halogen lamp and transformer with an integral MV LED lamp or MV LED down-light luminaire.

L2C Optional with L2B - re-instate ceiling insulation.

3. Activity Eligibility Requirements

1. All equipment that is replaced must be in working order immediately prior to removal.

2. Where it can be demonstrated that the lamps and transformer being replaced have not previously been installed for the purposes of REES, activity L2B and L2C can be delivered twice per premises, providing that all other aspects of the specification are met.

Additional Requirements for activity L2C 3. Re-instatement of ceiling insulation - the activity L2C can only be undertaken in combination with activity

L2B.

4. Installed Product Requirements

For activities L2A and L2B, the installed product shall:

1. Be installed at the time of removal of the existing equipment. 2. Be either a “warm white” (rated colour temperature of 2700K to 3500K) or “cool white” (rated colour

temperature of 3500K to 4000K) lamp. The installer is required to install either warm white or cool white according to the preference of the home owner, where no preference is provided then warm white shall be installed.

3. Have a measured average initial luminous flux (verified by test report - test procedure as required by one of the programs described below) of at least 400 lumens.

4. Have a measured average minimum initial luminous efficacy of 85 Lumens/Watt 5. Have a minimum beam angle of 40 degrees 6. (A) Be approved under the NSW ESS or VEET scheme or (B) meet Energy Star specifications (Integral LED

Lamps V1.4 or Energy Star Lamps V1.0) by providing, where required for verification, current proof of program certification.

7. Provide a minimum 2 years replacement warranty. Additional Requirements for Activity L2C 8. Re-instatement of ceiling insulation - where a down-light thermal barrier is used it must comply with AS/NZS

5110. 9. Down-light thermal barriers – where used, any barrier that is used around and or over a light fitting must be

one that is approved for use with the particular light fitting by the manufacturer in their product literature

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and must not adversely affect any aspect of the performance of the light fitting or any form of lamp that may be fitted to that fitting.

10. Where the full re-instatement of thermal insulation option is used, the down-light or down-light in combination with a down-light thermal barrier must be certified by the manufacturer in accordance with AS/NZS 3000 as being suitable for operation when covered by thermal insulation material.

5. Minimum Installation Requirements

For activities L2A and L2B:

1. A person or entity undertaking this activity shall use best endeavours to ensure that any replacements are targeted at high usage luminaires in the first instance.

2. All equipment replaced shall be removed from the premises and not re-used. 3. Installed equipment shall not be connected to a transformer, dimmer, timer, motion sensor, daylight switch

or other automated switch or control (or combination thereof) unless specified by the manufacturer as being compatible with such device or combinations of devices.

4. If connected to a dimmer, the installer shall test the equipment through its full dimming range to ensure that the equipment works to the satisfaction of the customer.

5. Where installed equipment causes sub-optimal operation, the installer shall either reinstall equipment equivalent to the original equipment or replace any components of the equipment that are causing the installation not to operate, at no expense to the resident. Such a request for reinstatement must be acted upon if made within 20 business days of the installation of the new equipment.

6. The activity must be performed by a licensed electrical worker under the supervision of a licensed electrical contractor.

Additional Requirements for Activity L2C 7. Re-instatement of ceiling insulation - the activity is only applicable to ceiling spaces already fitted with

ceiling insulation of at least R1.5 and where the insulation around the pre-existing down-light does not already meet the requirements of “partial re-instatement”. The insulation used for re-instatement purposes must have an R value equal to or greater than the pre-existing ceiling insulation (minimum = R1.5)

8. Re-instatement of ceiling insulation - the activity can only be undertaken in ceilings that abut roofs (i.e. not internal ceilings such as between a ground floor and an upper floor of a two storey dwelling).

9. The insulation product used must be installed in compliance with the effective version of AS 3999, AS/NZS 3000 (as applicable) and the National Construction Code BCA Section J1.2. In particular the safety, pre-inspection and risk assessment procedures, electrical safety provisions and provisions for limiting moisture ingress of AS 3999 shall be observed.

10. The activity must be completed and certified in accordance with any relevant code or codes of practice and other relevant legislation applying to the activity, including any licensing, registration, statutory approval, activity certification, health, safety, environmental or waste disposal requirements.

11. The undertaking of this activity shall not compromise the condensation management of the building. Reference should be made to the provisions in the Australian Building Codes Board publication “Condensation in buildings – Information handbook”.

12. The activity must be performed by a licensed electrical worker under the supervision of a licensed electrical contractor.

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6. Activity energy savings

The normalised energy saved per activity is equal to: Normalised Energy Savings (GJ)= The relevant Savings factor in the tables below:

A B C D F

Activity Min. 10,000 hours lamp life

Min 15,000 hours lamp life

Standard LED Savings Factor

High Efficiency LED Savings Factor

Standard LED Savings Factor

High Efficiency LED Savings Factor

L2A - Lamp only replacement 0.28 0.32 0.37 0.43

L2B - Lamp and transformer replacement

0.30 0.34 0.40 0.45

Option Activity L2C L2C1: Partial re-instatement of insulation (BCA Zones 4 & 5) (additional savings, only with L2B) 0.14160

L2C2: Full re-instatement of insulation (BCA Zones 4 & 5) (additional savings, only with L2B) 0.24729

L2C3: Partial re-instatement of insulation (BCA Zone 6) (additional savings, only with L2B) 0.20729

L2C4: Full re-instatement of insulation (BCA Zone 6) (additional savings, only with L2B) 0.37079

Options L2C1, L2C2, L2C3 & L2C4 are additional space conditioning savings that are added to the applicable lamp replacement Option L2B savings. Options L2C1 to L2C4 are NOT available with Options L2A.

7. Guidance Notes (Informative only – not mandatory)

All reasonable endeavours should be undertaken to recycle removed equipment.

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Purchase High Efficiency New Refrigerator or Refrigerator-Freezer; Residential or Commercial Activity No.

APP1A

1. Activity Specific Definitions Refrigerator means a refrigerating appliance registered for energy labelling and MEPS under standard AS/NZS 4474.2 classified as Group 1, 4, 5T, 5B or 5S Gross volume is the total gross volume of all compartments as determined in accordance with AS/NZS 4474.1 in litres

2. Activity Description (Summary) Purchase an efficient new refrigerator or refrigerator-freezer

3. Activity Eligibility Requirements Any compliant product sold in a retail outlet in South Australia for use in a residential or commercial premises in South Australia.

4. Product Requirements 1. A Group 1 product shall have a total gross volume in the size range 100 to 500 litres and shall achieve a star

rating index of not less than 2.0 in accordance with AS/NZS 4474.2; 2. A Group 4, 5T, 5B or 5S product shall have a total gross volume in the size range 100 to 700 litres and shall

achieve a star rating index of not less than 2.7 in accordance with AS/NZS 4474.2. 3. The product shall have a valid registration with the GEMS regulator at the time of sale. 4. The refrigerating appliance shall not have a designation of cooled appliance under AS/NZS 4474.1. 5. The refrigerating appliance shall not be a wine storage appliance or have any compartment that is intended

exclusively for wine or beverage storage.

5. Minimum Installation Requirements None.

6. Activity energy savings The normalised energy saved per appliance purchased is equal to:

Normalised Energy Savings (GJ)= The relevant Savings factor in the tables below.

7. Guidance Notes (Informative only – not mandatory) 1. This activity may be undertaken in conjunction with activity APP2, in which case credits for both this activity and activity APP2 may be claimed. Note, this only applies in cases where activity APP2 relates to removal and disposal of a main (primary) appliance and not in relation to a “secondary” appliance as defined under activity APP2. 2. Information on registration data for current models can be obtained from: http://reg.energyrating.gov.au/comparator/product_types/28/search/. A description of refrigerator and freezer Groups (called “Type” in the above noted website) is provided at, http://www.energyrating.gov.au/products-themes/refrigeration/domestic-refrigeration/meps/ 3. Cooled appliance has the meaning as in AS/NZS 4474.1, being an appliance which cannot be classified as a refrigerator, refrigerator/freezer or freezer.

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Group 1 Star Rating

Gross Volume 2 t

o <

2.5

Sta

rs

2.5

to

< 3

Sta

rs

3 t

o <

3.5

Sta

rs

3.5

to

< 4

Sta

rs

4 t

o <

4.5

Sta

rs

4.5

to

< 5

Sta

rs

5 t

o <

5.5

Sta

rs

5.5

to

< 6

Sta

rs

6 t

o <

7 S

tars

7 t

o <

8 S

tars

8 t

o <

9 S

tars

9 t

o <

10

Sta

rs

10

Sta

rs

100 to < 150 L 2.6 3.9 4.9 5.9 6.7 7.4 8.1 8.6 9.3 10.1 10.7 11.1 11.3

150 to < 200 L 2.9 4.2 5.4 6.4 7.3 8.1 8.8 9.4 10.1 11 11.6 12.1 12.3

200 to < 250 L 3.1 4.5 5.7 6.8 7.8 8.6 9.4 10 10.9 11.7 12.4 12.9 13.2

250 to < 300 L 3.3 4.8 6.1 7.3 8.3 9.2 10 10.7 11.5 12.5 13.2 13.7 14

300 to < 350 L 3.4 5 6.4 7.7 8.7 9.7 10.5 11.2 12.2 13.2 13.9 14.5 14.7

350 to < 400 L 3.6 5.3 6.8 8 9.2 10.2 11 11.8 12.8 13.8 14.6 15.2 15.5

400 to < 450 L 3.8 5.5 7.1 8.4 9.6 10.6 11.5 12.3 13.3 14.4 15.3 15.9 16.2

450 to 500 L 3.9 5.8 7.4 8.8 10 11.1 12 12.8 13.9 15 15.9 16.6 16.8

Groups 4, 5T, 5B and 5S

Star Rating

Gross Volume

2.7

to

< 3

Sta

rs

3 t

o <

3.5

Sta

rs

3.5

to

< 4

Sta

rs

4 t

o <

4.5

Sta

rs

4.5

to

< 5

Sta

rs

5 t

o <

5.5

Sta

rs

5.5

to

< 6

Sta

rs

6 t

o <

7 S

tars

7 t

o <

8 S

tars

8 t

o <

9 S

tars

9 t

o <

10

Sta

rs

10

Sta

rs

100 to < 150 L

2.6 3.6 4.7 5.7 6.6 7.4 8 8.9 9.8 10.5 11 11.3

150 to < 200 L

2.9 4.1 5.4 6.6 7.6 8.4 9.2 10.2 11.3 12.1 12.7 12.9

200 to < 250 L

3.3 4.6 6.1 7.3 8.5 9.4 10.3 11.4 12.6 13.5 14.2 14.5

250 to < 300 L

3.6 5 6.6 8 9.3 10.4 11.3 12.5 13.8 14.8 15.6 15.9

300 to < 350 L

3.9 5.5 7.2 8.7 10.1 11.2 12.3 13.6 15 16 16.9 17.2

350 to < 400 L

4.2 5.9 7.7 9.4 10.8 12.1 13.2 14.6 16.1 17.2 18.1 18.5

400 to < 450 L

4.5 6.3 8.2 10 11.5 12.8 14 15.5 17.1 18.3 19.3 19.7

450 to < 500 L

4.7 6.6 8.7 10.6 12.2 13.6 14.8 16.4 18.1 19.4 20.4 20.8

500 to < 550 L

5 7 9.2 11.1 12.8 14.3 15.6 17.3 19.1 20.5 21.5 22

550 to < 600 L

5.2 7.3 9.6 11.7 13.5 15 16.4 18.2 20 21.5 22.6 23

600 to < 650 L

5.5 7.7 10.1

12.2 14.1 15.7 17.2 19 21 22.5 23.6 24.1

650 to 700 L

5.7 8 10.5

12.7 14.7 16.4 17.9 19.8 21.9 23.4 24.6 25.1

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Purchase a High Efficiency New Clothes Dryer; Residential or Commercial Activity No.

APP1D

1. Activity Specific Definitions Electric clothes dryer means a rotary clothes dryer (tumble dryer) or the dryer part of a combination washer dryer registered for energy labelling under standard AS/NZS 2442.2 and classified as a vented or condensing type. Star Rating is the Star rating shown on the energy label and entered in the product registration Rated capacity is the rated capacity of the appliance as determined in accordance with AS/NZS 2442.1 and entered in the product registration in kg

2. Activity Description (Summary) Purchase a high efficiency new electric clothes dryer or washer dryer

3. Activity Eligibility Requirements Any compliant product sold in a retail outlet in South Australia for use in a residential or commercial premises in South Australia.

4. Installed Product Requirements 1. An electric clothes dryer shall achieve a star rating index of not less than 5.0 in accordance with AS/NZS

2442.2. In the case of a combination washer dryer, the minimum star rating index shall be 6.0 in accordance with AS/NZS 2442.2.

2. The electric clothes dryer shall have a rated capacity of not less than 3.0 kg in accordance with AS/NZS 2442.1.

3. The product shall have a valid registration with an Australian or New Zealand energy regulator at the time of sale.

5. Minimum Installation Requirements None.

6. Activity energy savings The normalised energy saved per appliance purchased is equal to:

Normalised Energy Savings (GJ) = The relevant Savings factor in the table below.

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Rated Capacity

Star Rating

5 t

o <

5.5

Sta

rs

5.5

to

< 6

Sta

rs

6 t

o <

7 S

tars

7 t

o <

8 S

tars

8 t

o <

9 S

tars

9 t

o <

10

Sta

rs

10

Sta

rs

3 to < 3.5 Kg 4.08 4.46 5.00 5.62 6.14 6.59 6.78

3.5 to < 4 Kg 4.70 5.16 5.77 6.48 7.08 7.60 7.83

4 to < 4.5 Kg 5.33 5.85 6.54 7.34 8.04 8.61 8.87

4.5 to < 5 Kg 5.96 6.53 7.32 8.22 8.98 9.63 9.92

5 to < 5.5 Kg 6.58 7.22 8.07 9.07 9.92 10.64 10.95

5.5 to < 6 Kg 7.21 7.90 8.85 9.94 10.86 11.66 12.01

6 to < 6.5 Kg 7.84 8.60 9.62 10.81 11.82 12.67 13.05

6.5 to < 7 Kg 8.47 9.29 10.40 11.67 12.76 13.69 14.09

7 to < 7.5 Kg 9.09 9.96 11.15 12.53 13.70 14.69 15.13

7.5 to < 8 Kg 9.72 10.66 11.93 13.40 14.64 15.71 16.18

8 to < 8.5 Kg 10.35 11.35 12.70 14.27 15.60 16.72 17.23

8.5 to < 9 Kg 10.98 12.03 13.47 15.13 16.54 17.74 18.27

9 to < 9.5 Kg 11.60 12.72 14.23 15.98 17.48 18.75 19.31

9.5 to < 10 Kg 12.23 13.41 15.00 16.86 18.42 19.76 20.35

10 Kg or more 12.86 14.09 15.78 17.72 19.38 20.78 21.40

Note: The dryer component of an eligible washer dryer must achieve a star rating of not less than 6.

7. Guidance Notes (Informative only – not mandatory) Information on registration data for current models can be obtained from: http://reg.energyrating.gov.au/comparator/product_types/35/search/.

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Purchase a High Efficiency New Television; Residential or Commercial Activity No.

APP1F

1. Activity Specific Definitions Television means a television registered for energy labelling and MEPS under standard AS/NZS 62087.2.2. Star Rating is the Star rating shown on the energy label and entered in the product registration Screen area is the rated screen area of the appliance as determined in accordance with AS/NZS 62087.1 and entered in the product registration in square centimetres.

2. Activity Description (Summary) Purchase an efficient new television.

3. Activity Eligibility Requirements Any compliant product sold in a retail outlet in South Australia for use in a residential or commercial premises in South Australia.

4. Installed Product Requirements 1. A television shall achieve a star rating index of not less than 7.0 in accordance with AS/NZS 62087.2 (Tier 2

2013) and shall have a CEC of ≤ 242 kWh/y 2. The product shall have a valid registration with an Australian or New Zealand energy regulator at the time of

sale.

5. Minimum Installation Requirements None.

6. Activity energy savings The normalised energy saved per appliance purchased is equal to:

Normalised Energy Savings (GJ) = The relevant Savings factor in the table below.

Screen Diagonal Dimension (cm)

Star Rating

7 t

o <

8 S

tars

8 t

o <

9 S

tars

9 t

o <

10

Sta

rs

10

Sta

rs

< 60 cm 0.4 0.6 0.7 0.8

60 to < 70 cm 0.5 0.7 0.9 1.0

70 to < 80 cm 0.7 0.9 1.1 1.2

80 to < 90 cm 0.9 1.1 1.3 1.5

90 to < 100 cm 1.0 1.3 1.6 1.8

100 to < 110 cm 1.2 1.6 2.0 2.1

110 to < 120 cm 1.4 1.9 2.3 2.4

120 to < 130 cm 1.4 2.0 2.5 2.7

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Screen Diagonal Dimension (cm)

Star Rating

7 t

o <

8 S

tars

8 t

o <

9 S

tars

9 t

o <

10

Sta

rs

10

Sta

rs

130 to < 140 cm 1.0 1.7 2.2 2.4

140 to < 150 cm 0.5 1.3 1.9 2.2

150 to < 160 cm 0.9 1.6 1.9

160 to < 170 cm 0.5 1.3 1.5

170 to < 180 cm 0.9 1.3

180 to < 190 cm 0.5 0.9

190 to < 200 cm 0.5

200 cm or more 0.2

7. Guidance Notes (Informative only – not mandatory) Information on registration data for current models can be obtained at: http://reg.energyrating.gov.au/comparator/product_types/32/search/.

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Remove and Dispose of an Unwanted Refrigerator or Freezer; Residential or Commercial Activity No.

APP2

1. Activity Specific Definitions Single Door Refrigerator means a refrigerating appliance that could be classified as Group 1, 2, 3, under standard AS/NZS 4474.2 (or under AS1430). Two Door Refrigerator/Freezer means a refrigerating appliance that could be classified as Group 4, 5T, 5B or 5S under standard AS/NZS 4474.2 (or under AS1430). (Note: This includes products with more than 2 doors) Freezer only means a refrigerating appliance that could be classified as Group 6C, 6U or 7 under standard AS/NZS 4474.2 (or under AS1430). Secondary single door refrigerator means, after the removal of the target appliance, a main single door refrigerator or two door refrigerator/freezer remains installed and operating Secondary two door refrigerator/Freezer means, after the removal of the target appliance, a main single door refrigerator or a two door refrigerator/freezer remains installed and operating Secondary freezer only means, after the removal of the target appliance, a main freezer remains installed and operating Height means the measured external height of the refrigerating appliance from the lowest part of the cabinet wall or door (excluding any clearance or air gap to the floor) to the top of the appliance in metres Other refrigerator or freezer means a refrigerator or freezer that is not a secondary refrigerator or freezer. This includes a main single door refrigerator, a main two door refrigerator/Freezer or a main freezer. Priority Group Household - means households as defined in sub regulation 23(1) of Part 4 Electricity (General) Regulations 2012 under the Electricity Act 1996, and 17(1) of Part 4 Gas Regulations 2012 under the Gas Act 1997

2. Activity Description (Summary) Remove and dispose of an existing single door refrigerator, two door refrigerator/freezer or freezer only from a residential or commercial premises.

3. Activity Eligibility Requirements Any residential or commercial premises in South Australia where the installed product requirements can be met. More than one secondary single door refrigerator, two door refrigerator/freezer or freezer only may be removed.

4. Product Requirements 1. The target appliance must be in working order. 2. The appliance shall operate on single phase mains power (nominally 230V, 50Hz). 3. The appliance shall be a household type of refrigeration appliance that could be classified under AS/NZS

4474 or AS 1430. 4. The refrigerating appliance shall use the vapour compression cycle (absorption and piezoelectric types are

not eligible). 5. The refrigerating appliance shall not be a wine storage appliance. 6. Portable appliances, camping appliances or appliances installed in caravans are not eligible.

5. Minimum Removal Requirements 1. The single door refrigerator, two door refrigerator/freezer or freezer only must be removed from the

premises and decommissioned. 2. Removed single door refrigerator, two door refrigerator/freezer or freezer only shall have refrigerants and

any other scheduled substances disposed of in accordance with the Australian and New Zealand refrigerant handling code of practice as established under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Cth).

3. Removed single door refrigerator, two door refrigerator/freezer or freezer only shall be disposed of in

accordance with the Environment Protection (Waste to Resources) Policy 2010, which bans

whitegoods from disposal to landfill in South Australia 4. Where possible, the type of refrigerant used in the product shall be established from markings on the

product and recorded in the activity schedule. A product with CFC R12 refrigerant is deemed to have a year of manufacture of before 1996.

5. For verification purposes, the following records will be retained for each appliance removed:

A photograph of the target appliance in its location prior to removal (date and location stamped)

A record of the measured height for a single door refrigerator

A record of the type of refrigerant used in the appliance, where known, as established from markings on the appliance or compressor

Proof that the appliance has been properly disposed of, such as recycling receipts and invoices

Proof that the appliance has been degassed by technicians licensed under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Cth)

Activity reference number being claimed from the tables below.

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6. Activity energy savings

Normalised Energy Savings (GJ)= The relevant savings factor in the tables below

Commercial and Non-Priority group households Activity Reference Number

Type of Refrigerator/ Freezer

Year of Manufacture Refrigerator/Freezer Configuration Normalised energy Savings (GJ)

APP2 (1) Main (Primary) Pre 1996 (R12) Single Door of ≥ 1150mm Height 10.66

APP2 (2) Main (Primary) Pre 1996 (R12) Single Door of < 1150mm height 4.10

APP2 (3) Main (Primary) Pre 1996 (R12) Two door Refrigerator/Freezer 12.38

APP2 (4) Main (Primary) Pre 1996 (R12) Freezer only 7.06

APP2 (5) Main (Primary) ≥ 1996, or unknown Single Door of ≥ 1150mm Height 5.81

APP2 (6) Main (Primary) ≥ 1996, or unknown Single Door of < 1150mm Height 1.79

APP2 (7) Main (Primary) ≥ 1996, or unknown Two door Refrigerator/Freezer 8.02

APP2 (8) Main (Primary) ≥ 1996, or unknown Freezer only 5.09

APP2 (9) Secondary Pre 1996 (R12) Single Door of ≥ 1150mm Height 18.05

APP2 (10) Secondary Pre 1996 (R12) Single Door of < 1150mm Height 6.94

APP2 (11) Secondary Pre 1996 (R12) Two door Refrigerator/Freezer 20.97

APP2 (12) Secondary Pre 1996 (R12) Freezer only 11.96

APP2 (13) Secondary ≥ 1996, or unknown Single Door of ≥ 1150mm Height 10.93

APP2 (14) Secondary ≥ 1996, or unknown Single Door of < 1150mm Height 3.36

APP2 (15) Secondary ≥ 1996, or unknown Two door Refrigerator/Freezer 15.10

APP2 (16) Secondary ≥ 1996, or unknown Freezer only 9.58

Priority Group Households Only Activity Reference Number

Type of Refrigerator/ Freezer

Year of Manufacture Refrigerator/Freezer Configuration Normalised energy Savings (GJ)

APP2 (17) Main (Primary) Any Single Door of ≥ 1150mm Height 10.66

APP2 (18) Main (Primary) Any Single Door of < 1150mm Height 4.10

APP2 (19) Main (Primary) Any Two door Refrigerator/Freezer 12.38

APP2 (20) Main (Primary) Any Freezer only 7.06

APP2 (21) Secondary Any Single Door of ≥ 1150mm Height 18.05

APP2 (22) Secondary Any Single Door of < 1150mm Height 6.94

APP2 (23) Secondary Any Two door Refrigerator/Freezer 20.97

APP2 (24) Secondary Any Freezer only 11.96

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7. Guidance Notes (Informative only – not mandatory) 1. There is no size restriction on eligible products. All reasonable endeavours should be used to recycle other components of removed appliances 2. For non-priority group households and commercial premises, if the refrigerant cannot be established as R12 or where the year of manufacture cannot be established, the year of manufacture shall be deemed as 1996 or later. 3. This activity in relation to the removal and disposal of a main (primary) appliance may be undertaken in conjunction with activity APP1A in which case credits for both this activity and activity APP1A may be claimed.

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Install and Commission an In Home display Unit (IHD): Residential Only Activity No.

IHD1

1. Activity Specific Definitions In home display Unit: A visual display device that provides feedback on electrical energy use in real time. Devices may also display cost of energy used, and estimates of greenhouse gas emissions Advanced Metering Infrastructure (AMI): an electronic device that records consumption of electric energy in intervals of an hour or less and communicates that information at least daily back to the utility for monitoring and billing. Otherwise known as a “Smart Meter”

2. Activity Description (Summary) Install and commission an In Home Display unit (IHD) to a residential building

3. Activity Eligibility Requirements Any residential household in South Australia where the installed product requirements and minimum installation requirements can be met.

4. Product Requirements

1. A product that when tested by an approved laboratory in accordance with a laboratory test approved by ESCOSA, is demonstrated to—

a. determine electricity consumption information from the sensing apparatus at least every 30 seconds; and

b. be able to store electricity energy consumption information from the previous 45 days; and c. be able to display to the consumer (or relay to a device that is capable of displaying to the

consumer) in a numerical format and a format other than a numerical format that allows the consumer to easily distinguish between low and high consumption—

i. electricity energy consumption information from the previous 45 days in intervals no longer than one hour per day of information displayed and one day per week of information displayed; and

ii. the average total household electrical power consumption (in watts) for the displayed period, which must be updated at least every 30 seconds; and

iii. the total household electricity energy consumption (in kWh) for the displayed period and the cost of that consumption, which must be updated at least every 30 seconds; and

d. be able to display to the consumer (or relay to a device that is capable of displaying to the consumer) the tariff (in cost per unit of energy consumed) and the total cost of electricity consumed for the period displayed; and

e. be able to permanently erase all consumption and tariff information held by the product including all information entered by the consumer; and

f. have an average electric power consumption of not more than 0·6 watts when operating under normal circumstances; and

2. if battery powered, uses a battery that has a manufacturer's rated lifetime of at least 5 years when operating under normal circumstances.

3. is demonstrated to provide electricity energy consumption information that is accurate to within 5% of actual electricity consumption; and

4. is delivered with an instruction manual in its use; and 5. If used in conjunction with Advanced Metering Infrastructure (AMI): complies with the ZigBee Smart

Energy Profile Specification published by the ZigBee Standards Organisation on 1 December 2008 and the ZigBee Smart Energy Profile Specification version 1.1 published by the ZigBee Standards Organisation on 23 March 2011

6. If NOT used in conjunction with Advanced Metering Infrastructure (AMI): uses, for its communications an encrypted communication protocol that is approved by ESCOSA

7. Provide a minimum 2 years replacement warranty.

5. Minimum Installation Requirements 1. The activity must be performed by a licensed electrical worker under the supervision of a licensed

electrical contractor. 2. The installer must provide the householder with training in the use of the full range of features

available from the IHD at the time of commissioning.

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6. Activity Energy Savings The normalised energy saved per household for this activity = 6.1 GJ

7. Guidance Notes (Informative Only – not mandatory) Nil

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Install a Self-contained High Efficiency Refrigerated Display Cabinet: Commercial Only Activity No.

RDC1

1. Activity Specific Definitions

1. Refrigerated Display Cabinet – A cabinet cooled by a refrigerating system which enables chilled and frozen foodstuffs placed therein for display to be maintained within prescribed temperature limits as defined within the scope of the standard AS 1731.

2. Total display Area - Total visible product storage area, including visible area through the glazing, defined by the sum of horizontal and vertical projected surface areas of the net volume as defined in AS 1731.14, Appendix D and as listed in the eligible product GEMS registration - refer also to the guidance note below.

3. 3. M-package temperature class - Classification of M-package temperature according to temperatures to warmest and coldest M-packages during the temperature test defined in AS 1731.5 - refer also to the guidance note below.

2. Activity Description (Summary) Installing a refrigerated display cabinet that is rated as 'high efficiency' within the meaning of the AS 1731 series of standards.

3. Activity Eligibility Requirements 1. Any commercial site in South Australia where the installed product requirements and minimum

installation requirements can be met.

4. Product Requirements 1. The RDC must be rated as 'high efficiency' within the meaning of the AS 1731 series of standards when

tested in accordance with the AS 1731 series of standards as applicable; and 2. The RDC must be listed on the GEMS register of currently approved products and must be classified as

“High Efficiency” in the GEMS registration; and 3. This activity applies only to M-package temperature classes M1, M2, L1 and L2 (as applicable) as

defined in the AS 1731 series of standards; and 4. The activity does not cover the retrofitting of existing refrigeration equipment.

5. Minimum Installation Requirements 1. Installation must be undertaken in strict accordance with the manufacturer’s instructions. 2. If electrical work is required to be undertaken then this must be performed by a licensed electrical

worker under the supervision of a licensed electrical contractor. 3. If gassing or de-gassing is required to be undertaken then this must be carried out by technicians

licensed under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Cth).

6. Activity Energy Savings Normalised Energy Savings (GJ) = TDA x Savings Factor Where: TDA = The total display area of the refrigerated Display Cabinet as defined in the AS1731 series of standards and as listed in the eligible product GEMS registration. Savings Factor = The value as noted in the table below for the particular type of Refrigerated Display Cabinet supplied.

Activity Reference Number

Type of Refrigerated Display Cabinet (as defined in AS1731)

Savings Factor

1 HC1 25.23

2 HC4 34.48

3 VC1 72.74

4 VC2 58.03

5 VC4 - solid door 83.68

6 VC4 - glass door 55.08

7 HF4 58.87

8 HF6 17.66

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9 VF4 - solid door 92.09

10 VF4 - glass door 92.09

7. Guidance Notes (Informative Only – not mandatory) Information on registration data for current models can be obtained at: http://reg.energyrating.gov.au/comparator/product_types/37/search/. Download the CSV file:

Total display area can be found under the column heading “total_dis”

M package temperature class can be found under the column heading “Temp_Class”

High Efficiency Status class can be found under the column heading “High Efficiency”

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7 References

AEMO 2016, Distribution Loss Factors for the 2016 / 2017 Financial Year, Australian energy

Market Operator 2016

Accenture 2011, Department of Primary Industries IHD Inclusion into ESI scheme’

November 2011

Australian Capital Territory 2013, Energy Efficiency (Cost of Living) Improvement (Eligible

Activities) Code of Practice 2013 (No 1), Disallowable instrument DI2013–264

AS/NZS 2040, Performance of Household Electrical Appliances – Clothes Washing

Machines (Parts 1 and 2)

AS/NZS 2442, Performance of Household Electrical Appliances – Rotary Clothes Dryers

(Parts 1 and 2)

AS/NZS 3823, Performance of electrical appliances – Air conditioners and heat pumps

(Parts 1.1, 1.2, 1.3, 2 and 3)

AS/NZS 4474, Performance of Household Electrical Appliances – Refrigerators and

Freezers (Parts 1 and 2)

DSD 2014, South Australian Retailer Energy Efficiency Scheme - Consultation Paper on Proposed Rees Thresholds, Metrics & Activity Specification, Department of State Development South Australia 2014 EES 2008, Energy Use in the Australian Residential Sector: 1986 – 2020. Energy Efficient

Strategies for the Department of Environment, Water, Heritage and the Arts, June 2008.

http://www.energyrating.gov.au/resources/program-publications/?viewPublicationID=2141

EES 2010a, Greening Whitegoods. Energy Efficient Strategies for the Department of

Environment, Water, Heritage and the Arts and E3. Includes access to raw data from GfK.

- Greening Whitegoods - energy efficiency trends of whitegoods 1993 – 2009

http://www.energyrating.gov.au/resources/program-publications/?viewPublicationID=2149

- Greening Whitegoods - Detailed Output Tables (2009)

http://www.energyrating.gov.au/resources/program-publications/?viewPublicationID=2167

EES 2010c, Evaluation of Energy Efficiency Policy Measures for Household Refrigeration in

Australia: An assessment of energy savings since 1986, prepared by Lloyd Harrington and

Dr Kevin Lane, EES for Department of Energy Efficiency and Climate Change, December

2010, see http://www.energyrating.gov.au/wp-

content/uploads/Energy_Rating_Documents/Library/Refrigeration/Domestic_Refrigeration/2

01010-refrigeration-evaluation.pdf

EES 2011b, Tracking the Efficiency of Televisions, for DCCEE by EES, June 2011, see

http://www.energyrating.gov.au/resources/program-publications/?viewPublicationID=2138

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EES 2011c, Discussion Paper: Clothes Washer Standards Revision Program - AS/NZS

2040.1 and AS/NZS 2040.2, Version 10, Energy Efficient Strategies for Department of

Climate Change and Energy Efficiency, October 2011.

EES 2012b, Household Refrigeration Paper 3: MEPS3 in Australia and NZ – Preliminary

Impact Assessment of New MEPS Levels, EES for E3, May 2012, see

http://www.energyrating.gov.au/wp-

content/uploads/Energy_Rating_Documents/Library/Refrigeration/Domestic_Refrigeration/P

aper3-meps-impact.pdf

EES 2013b, Independent Review of Victorian Energy Efficiency Targets: Energy Savings

Assumptions for Selected Schedules, prepared by Energy Efficient Strategies for the

Department of Environment and Primary Industries Victoria, June 2013.

EES 2014, Review of Residential Energy Efficiency Activities under the SA REES Scheme prepared for DSD in South Australia 2014 EEIS 2013a, Energy Efficiency (Cost of Living) Improvement (Eligible Activities)

Determination 2013 (No 1).

EEIS 2013b, Energy Efficiency (Cost of Living) Improvement (Eligible Activities) Code of

Practice 2013 (No 1).

NSW Energy Savings Scheme 2009, ELECTRICITY SUPPLY ACT 1995 - Notice of

Approval of Amendment of Energy Savings Scheme Rule, NSW Energy Savings Scheme

Rule (2009)

SA 2012a, South Australia Electricity (General) Regulations 2012, under the Electricity Act

1996.

STKITTS & Assoc. 2015, South Australian analysis of the ABS 2012 household energy

Consumption survey (HECS) For the Department of State Development - Energy Markets &

Programs, ST Kitts and Associates, March 2015

VaasaETT 2013, Case study on innovative smart billing for household consumers Prepared by VaasaETT for the World Energy Council and ADEME, 2013

Victorian Energy Efficiency Target Regulations 2008, S.R. No. 158/2008, Authorised

Version incorporating amendments as at December 2016.