DOE Technical Assistance Program

1 | Designing Effective Residential Retrofit Programs eere.energy.gov

The Parker Ranch installation in Hawaii

DOE Technical Assistance Program

Integration of Energy Efficiency and Renewable Energy

Cheryl JenkinsVermont Energy Investment Corporation

DOE Technical Assistance ProgramFebruary 17, 2011

2 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov

Webinar Overview

• Technical Assistance Project (TAP) Overview

• Integration of Energy Efficiency & Renewable Energy– What does it look like?– Benefits to stakeholders– Some ideas for facilitating such integration

• Q&A


What is TAP?

DOE’s Technical Assistance Program (TAP) supports the Energy Efficiency and Conservation Block Grant Program (EECBG) and the State Energy Program (SEP) by providing state, local, and tribal officials the tools and resources needed to implement successful and sustainable clean energy programs.


How Can TAP Help You?

TAP offers:

• One-on-one assistance

• Extensive online resource library, including:

Webinars Events calendar TAP Blog Best practices and

project resources

• Facilitation of peer exchange

On topics including:

• State and local capacity building

• Energy efficiency and renewable energy technologies

• Program design and implementation

• Financing• Performance contracting


Provider Network Resources

State and Local Capacity Building

• Trainings• Workshops• Peer-to-peer matching

Technical • Renewable energy siting and development• Review of technical specs for RFPs• Strategic planning, energy management, and conservation strategies• Green building technologies• Building codes

Program Design and Implementation

• Policy and program development• Coordinating rate-payer funded dollars with ARRA projects and programs• Sustainable community and building design• State and regional EE and RE assessments and planning• EE and RE portfolio program design elements

Financial Program design support and guidance on financing mechanisms such as: • Revolving loan funds (RLFs)• Property-assessed clean energy (PACE)• Loan loss reserves and enhanced credit mechanisms

Performance Contracting

• Designing and implementing a performance contract • Leveraging private investment• Reducing institutional barriers• Tracking and comparing programs


Who We Are: Team 4P

VEIC

SWEEP

M EEA

NEEA

SEEA

VEIC /NRDC

VEIC

VEIC

A C EEE, NRDC : Na tio na l Sup p o rt

NEEP


Introduction

• Energy efficiency (EE) is usually the least expensive way to respond to growing energy needs – Can reduce energy use; meet policy resource adequacy needs; provide

jobs!

• Barriers include:– Not well understood– Can have high up front costs (even though cost effective)– Project work not visible, and not sexy!


Introduction

• Renewable energy (RE) is a key low-carbon, domestic energy source– Increasing interest in effective and financially appropriate ways to

develop renewables projects

– Project work visible and iconic

– Potential economic and jobs impact

Barriers include:– Not yet economically attractive to all

– High up front costs (even when cost effective)


Introduction

• Both are key elements in planning for sustainable development– Addressing energy

independence and security

– Green jobs– Climate change

• Interest in both is rising– Programs to support EE and RE– Planning targets often specify both– Renewable Portfolio Standards & now some EE Portfolio Standards


Integration of EE & RE

DON’T JUST DO BOTH

DO BOTH TOGETHER• Whenever we:

– Plan– Build– Hire– Fund– Think about energy!

– Legislate– Finance– Invest– Market


All Stakeholders Can Benefit

• Homeowners• Businesses• Local communities• Installer/contractor market• Investment, development, & real estate community• Program administrators• Policy makers

Advantages are mutually reinforcing across these categories


Homeowner Benefits

• Integration = bundle higher green energy costs w/ lower-cost efficiency in buildings

View the house as a system

– Potential to stage projects: maximize potential EE opportunities, then correctly size RE system

– Save (more!) money

– Increase comfort and performance

– Single contractor/installer = single point of contact for information

– Lower transaction costs

– Simpler financing – roll costs together

– Do the right thing

– This is the basis of the Net Zero approach


Homeowner Benefits - Example

Solar Electric, no EE

PV size (kWh/yr) 10,000

Project Cost $37,500

Annual Energy Savings (MMBtu)

34.1

Annual Cost Savings

$2,000

Lifetime 20

Lifetime Energy Savings (MMBtu)

683

Lifetime Cost Savings

$40,000

Savings/Investment Ratio

1.1

NPV $1,335

2) Additional efficiency: Replace heating system; insulate; reduce air leakage. Additional cost - $8,000

Solar Electric, W/ EE

5,000

$21,750

30.7

$1,797

20

613

$35,931

1.7

$13,134

1) Add efficiency to project: Replace refrigerator; Install efficient lighting and on-demand hot water system. Cost = $3,000

Solar Electric, W/ more EE

5,000

$29,750

61.4

$3,597

20

1228

$71,950

2.4

$40,104


Benefits to Businesses

View the building as a system

– EE + Correctly sized RE system – higher return on investment

– Reduce overall operating expenditures

– Increased environment health and safety

– Fewer facility and administrative activities

Fit corporate mission

– Enhance environmental stewardship and corporate sustainability

– Reduce overall carbon footprint

– Create bond with employees and local community

– Enhance public image


NRG Systems

http://www.nrgsystems.com/AboutNRG/TourOurFacilities.aspx

First phase 2004 – one of only 5 industrial facilities in the world to receive gold LEED certification from the U.S. Green Building Council

New facility uses ¼ the energy of conventional buildings

Building tours and community events enhance public image

Global leader in wind measurement technology; Subsidiaries – Solar Trackers, Small Wind Turbines

25 years in business – 115 employees

Core values:– Environmental Stewardship/Leadership– Fair Employment– Profitability

– Integrity– Innovation– Dedication


NRG Systems

78.5 kW PV system (trackers & roof-mounted)

10 kW wind turbine

Solar hot water

Green tags for power not generated on site

= Pre-paid energy bill!!

Wood pellet-fired boilers

Geothermal radiant cooling

Programmed ventilation control system

Natural window ventilation

Super insulation and tight building

Energy efficient windows

Efficient motors and manufacturing equip.

Efficient lighting design and daylighting

Lots more!


Benefits to Local Communities

Municipal Buildings

– Use interest in RE to drive EE first - completed EE helps address the issue of cost-effectiveness of RE

– Includes many of the benefits listed previously

– Reduce inspection and compliance costs

– Reduce staff and training costs

– Help meet energy goals

– Engage citizens

Policy Tools– Codes

– Financing

– Zoning & permitting


Moscone Convention Center: San Francisco

• One of the largest publically owned solar systems in the US

• Funded through revenue bonds approved by voters to finance RE & EE projects

• Project completed in 2004

60,000 sq ft PV array

Lighting upgrades and control systems over

442,000 sq ft of building

http://www.moscone.com/uploads/news/22/pdf/Moscone%20Solar%20Factsheet.pdf


Moscone Convention Center

Solar SystemEnergy

EfficiencyTotal

Cost after incentives

$2,428,000 $3,278,000 $5,706,000

Savings or output in kW hours/year

826,000 4.2 million21% of 2006

usage

Tons CO2 displaced

317 1,616 1,933

Project payback = ten years


Installer/Contractor Benefits

Integrate support of both EE & RE into the business

– Access to wider market (especially as policies change)

– Job prospects increase

– RE contractors integrated into the broader mainstream building community

– Single point of customer contact and service

– Take advantage of shared marketing strategies (Green labeling!)

– Coordinated training

– Expanded work opportunities for staff

– Scaling of business prospects = reduced costs to customer

– Remove competition for $$ between EE & RE

– Investors see a diversified mix of services and a higher margin

– Help weather slowdown in market


Building Energy

A comprehensive energy services company

Mission: Committed to reducing the carbon footprint of buildings and preserving healthy building environments

Started in 2007 (2 locations in Vermont) – 29 employees, $2.5 million in sales in 2010

Residential Energy Audits

Commercial Energy Audits

Solar Design & Installation

Deep Energy Retrofit

http://www.buildingenergyvt.com/

• Highlights:– Shared labor resources and diversity of skills

– Energy remediation integrated with best building practices

– Single point of customer contact and service


Benefits to the Investment Community

Support buildings, companies that integrate EE & RE

– Real estate agents and developers can recover the full value proposition recognized within buildings

– Certified LEED buildings achieve significantly higher rents

– Financial institutions benefit from efficiencies of financial offerings

– Investors benefit from diversified companies

– Everyone benefits from a broader customer base


Benefits to Program Administrators

Integrate support of both into programs

– Use interest in RE to drive EE

– Clearer and less expensive if single program administration

– Single point of contact for customers, contractors, funders

– Remove competition for $$ - Efficiency vs. renewables

– Potential to focus on upstream support

– More efficient program planning and performance goals

– Simplified evaluation

– Design into whole building solutions

– Tap into Green Building movement


Potential Policy Tools

• Simplified goals for clean energy• Strategies for policy implementation

– Single program oversight/ administration

• Incentive mechanisms– Points for ENERGY STAR Homes; USDA grants– Eligibility requirements for programs

• Public education and outreach• Codes and labeling• Funding & financing• Zoning & permitting• Workforce policy• Preferential business development support


Benefits to Policy Makers

Enact policies & goals that support integration

• Current silos don’t always work well

• Good political messaging: linking through single overall energy policies; climate change policies; sustainable energy strategies

• Integration can help break down barriers between interest groups

Bottom Line:

Consider integration whenever developing policies


Accessing TAP Resources

3) Ask questions via our call center at 1-877-337-3827 or email us at

[email protected]

We encourage you to:

1) Explore our online resources via the Solution Center

2) Submit a request via the Technical Assistance Center


Title: Optimizing Solar Installations – Tools and Strategies Webinar

Presenters: Ian Metzger and Lars Lisell, NREL

Joananne Bachmann, VEIC

Date: February 23, 2011

Time: 3:00 – 4:00 EST

Upcoming Webinars

For the most up-to-date information and registration links, please visit the Solution Center webcast page at www.wip.energy.gov/solutioncenter/webcasts

Please join us again:

Title: Energy Savings Performance Contracting: Savings Measurement and Verification

Presenters: Karl Berntson and Irina Bulkley-Hopkins, SRA International

Date: February 24, 2011

Time: 1:30 – 3:00 EST


Questions & Comments

Cheryl JenkinsVermont Energy Investment Corporation

[email protected]

Phone: 802-658-6060 ex. 1103

DOE Technical Assistance Program

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