Transcript Financial Options for Energy Efficiency Retrofits

Financial Options for Energy
Efficiency Retrofits
Trish Jerman & Jennifer
Satterthwaite
SC Energy Office 803-737-8030
S.C. Energy Office Mission
Helping citizens, businesses and public entities
save energy and money through greater
efficiency and cleaner energy sources
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Programs
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Transportation Alternatives
Renewable Energy
Energy Efficiency
Energy Education and Outreach
Energy Planning and Forecasting
Low level Radioactive Waste Issues
Electricity Generation—Fuel Mix
South Carolina (2012)
Natural Biomass Hydro
1.40%
Gas
1.10%
12.33%
Other
0.11%
United States (2012)
Hydro
Biomass 6.83%
1.19%
Other
4.98%
Nuclear
21.13%
Natural
Gas
24.40%
Coal
29.57%
Coal
41.47%
Nuclear
55.48%
Sources: U.S. Energy Information Administration,
U.S. Environmental Protection Agency
“Other” includes petroleum products, wind, solar, and geothermal
South Carolina Total End-Use
Energy Consumption by Sector ('60-'11)
1200
1000
Transportation
600
Industrial
Residential
Commercial
400
200
2011
2008
2005
2002
1999
1996
1993
1990
1987
1984
1981
1978
1975
1972
1969
1966
1963
0
1960
Trillion BTU
800
Why Should You Care?
Nearly 40% of total U.S. (nontransportation) energy consumption in
2012 was used in residential and
commercial buildings, or about 40
quadrillion Btus. (EIA)
Portion of energy in buildings used
inefficiently or unnecessarily:
30 percent (EPA)
Total South Carolina Energy Expenditures ('70-'11)
25000
$ Million (Nominal)
20000
15000
10000
5000
0
Energy Expenditures
Historical Trend
Spend about $20 billion on energy annually
Organization
Type
Average Energy Use per Square Foot
(site kBTU)
Average Energy Spending per Square Foot ($)
FY2000
4
% change
FY2000
FY2014
% change
State Agencies
113
85
-25%
$1.83
$1.79
-2%
Residential
Colleges and
Universities
143
119
-17%
$1.79
$2.00
+12%
Non-Residential
Colleges and
Universities
80
64
-20%
$1.60
$1.59
-1%
School Districts
45
40
-11%
$1.15
$1.18
+3%
Total
75
62
-17%
$1.39
$1.44
+4%
Note: These statistics are based on self-reported data submitted by public entities. SCEO makes no representation regarding the
accuracy of these data. Dollars adjusted using the Consumer Price Index-Urban, BLS (data.bls.gov)
"Now, here, you see, it takes all
the running you can do, to keep
in the same place. If you want to
get somewhere else, you must
run at least twice as fast as
that!“
Red Queen to Alice, in Lewis Carroll’s Through
the Looking Glass
Efficiency First!
Efficiency First!
“maximizing energy efficiency
and decreasing energy use will
remain the lowest hanging fruit
of the next several decades.”
Former U.S. Energy Secretary Steven Chu
“Efficiency is going to be a big focus going forward. I
just don't see the solutions to our biggest energy and
environmental challenges without a very big demandside response. That's why it's important to move this
way, way up in our priorities."
Current Energy Secretary Ernest Moniz
Financial Assistance
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ConserFund & ConserFund Plus
Performance Contracting
Bonds--SCSaves and others
Energy Efficiency Revolving Loan
USDA grants and loans
Mini-grants
“Green” bank loans and bonds
What Works - Horry County School District - $598,438
– 1651 Occupancy Sensors
– Savings - $ 289,000 annually
- $2,896,000 lifetime
– Received $93,400 rebate from Santee Cooper’s
“Reduce The Use – South Carolina” campaign
5/31/2011
What Works – Oconee School District
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New chiller, direct digital controls
ConserFund Loan: $500,000.00
Total Costs (3% interest/5 years): $545,886
Estimated annual savings: $ 65,000.00
Estimated payback:
7.7 Years
Projected lifetime savings: $1.3 million
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Georgetown School District
• District cut energy consumption by >1 million
kBtus from 2004 – 2008
• Three pronged approach
– Technology
– Tracking
– Education
5/31/2011
Georgetown School District Technology
Energy Management System
5/31/2011
Georgetown School District - Tracking
5/31/2011
Vehicle Conversions: Propane
• Conversion cost @ $5,000
• Limited infrastructure
investment (@$250,000)
• Dedicated and duel-fuel
options available
• Works well in light/mediumduty vehicles
• Liquid, fueling time similar to
petroleum
Vehicle Conversions: Propane
• Greenville County
– Converted 113 cruisers
– Alliance Autogas & SE
Propane Autogas
Development Program
– 3 refueling stations
– @$100,000 annual fuel
savings
• Greenwood County
– Converted 37 vehicles
– Propane duel-fuel
cruisers
– $5,800 per retrofit
– ARRA grant
Vehicle Conversions: CNG
• Conversion cost @ $5,000
• Large infrastructure
investment (@$500,000)
• Dedicated and duel-fuel
options available
• Works in light/medium/heavyduty vehicles
• Fueling can be fast-fill (5
minutes) or time-fill
(overnight)
Vehicle Conversions: CNG
• Greer Commission of Public
Works
– Converted 14 light-duty
vehicles
– Installed a CNG fast-fill
station open to the public
($412,000) saved $80,000
using CPW labor
– Encouraging other CNG
development in the area
(AT&T, Frito Lay, City of
Greer)
Financial Assistance – ConserFund
• ConserFund Loan Program
– For government and non-profit
– Retrofits
• Replacement or modification of lighting, HVAC,
building envelope (doors, windows, insulation, roofs);
energy control systems
– Renewables & Alternative Transportation
• Fleet conversions (cost of conversion or equivalent)
• Biomass, solar, geothermal if return is acceptable
http://www.energy.sc.gov/incentives/conserfund
Financial Assistance – ConserFund
• 2% annual interest rate (reevaluated each June)
• 100% of eligible project costs
• One project or multiple projects up to $500,000
per fiscal year
• Maximum term of 10 years.
• Payments made annually after a grace period
for construction
Financial Assistance - ConserFund
• Requires technical analysis
• Three years of audited financials plus year-todate
• Collateral
– Treasurer’s Intercept
– Bank letter of credit for non-profits
Financial Assistance – ConserFund Plus
• ConserFund Plus
– For state government and schools only
– 30% grant/70% revolving loan at 2% interest
– ARRA based
• Davis Bacon
• Buy American
Financial Assistance – EERL
• Energy Efficiency Revolving Loan (EERL)
– For government, non-profit, commercial,
industrial
– Building retrofits, renewables, alternative
transportation
– Terms will vary
– ARRA based (Davis Bacon, Buy American )
– Contact: Edwin Lesley
803-744-0301
[email protected]
Financial Assistance – Performance
Contracting
Energy Savings Performance Contracting
“The use of GUARANTEED savings from the
maintenance and operations budgets as capital
to make needed upgrades and modernizations
to your building environmental systems,
financed over a specified period of time.”
-- US Department of Energy
Financial Assistance –
Performance Contracting
• If the project is straightforward
-Project management can be done in-house
-Financing isn’t a problem
-The project is small in scope or cost
-Loan might be the best approach
Financial Assistance –
Performance Contracting
• If the solution seems complex or unclear
-You need project management help
-Financing is an issue
-Your organization wants to mitigate risk
-Think about entering into a Performance
Contract
Help available through SCEO
http://energy.sc.gov/perfcont
Financial Assistance – USDA
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Most areas in SC qualify as “rural”
Funding for cost-share grants, loans
For retrofits and renewables
Contact:
• Shannon LeGree
• [email protected]
• (803) 253-3150
Financial Assistance -- Utility Rebates
• Information on web sites –
prescriptive/custom
• Can pay up to half of the project cost
• Get custom rebate approval BEFORE
installation
• Consider opt in/opt out options
Smart $aver® Incentive Program
More Grants?
Financial Assistance – SCEO Mini-grants
• For state agencies, K-12 schools,
public colleges & universities
• $5000 (cost share not required)
• Can fund lighting, other small
projects
On Everyone’s Mind….
SOLAR
Installed PV Capacity by County
(includes only distributed solar installations <100 kW)
Charleston
Greenville
Richland
Spartanburg
Lexington
Beaufort
Horry
York
Berkeley
Dorchester
Aiken
Oconee
Colleton
Anderson
Newberry
Pickens
Chesterfield
Sumter
Hampton
Chester
Laurens
Lancaster
Orangeburg
Kershaw
Cherokee
Abbeville
Union
Calhoun
Greenwood
Edgefield
Fairfield
McCormick
Darlington
Marion
Saluda
Georgetown
Bamberg
Barnwell
Florence
3682.32 total kW
PV capacity
installed in SC
581 total installations
0
100
200
300
400
kW AC
500
600
700
800
SC Distributed Energy Resource Program
(Act 236 of 2014)
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Distributed Energy Resource Program
Net Metering Program
Creation of Framework for Leasing Program
Review of costs and charges associated with
distributed energy resources within current
cost of service approach
• Standards for interconnection
• Co-ops to consider costs of DE and charges
How Do We Get From Here to There?
• Duke and Duke/Progress expect to need to
add at least 2000 solar installations over the
next 6 years
• SCE&G expects the same
4000
581
Issues for Local Governments?
• Do you need new ordinances?
• Are the current permitting process & fees adequate?
• Are your code officials comfortable inspecting solar
systems?
• Are assessors comfortable determining how solar
affects property values?
• How will you tax solar equipment/businesses?
• Do first responders need special training to manage an
incident which includes solar power generation?
Training Assistance
SCEO, IREC, ICMA, APA, Municipal Association, Association of Counties, SC
Fire Academy, and a host of others
Planning three day-long workshops
Roper Mt Science Center – May 13
SCANA HQ – May 14
N. Charleston City Hall – May 15
Overview of expected effects of the law
Two tracks:
First responders
Planners, Permitting and Inspectors
Information on our website www.energy.sc.gov
QUESTIONS?
Trish Jerman
803-737-8025 [email protected]
Jennifer Satterthwaite
803-737-0411 [email protected]