new jersey’s clean energy program dev/pdf... · 2018-05-31 · njcleanenergy.com opportunities...

NJCleanEnergy.com

Opportunities for Commercial, Industrial

and Institutional Buildings

Marybeth Brenner

Passaic County Division of Economic Development

June 10, 2016

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New Jersey’s Clean Energy Program

NJCleanEnergy.com

NJCEP BACKGROUND

• Administered by the New Jersey Board of Public Utilities

• Funded from “Societal Benefits Charge” on utility bill

• Program Goals:

Save energy and lower operating cost

Protect environment and lower emissions

Change the business mindset

NJCleanEnergy.com

PROGRAM PORTFOLIO

Commercial, Industrial, Government, Non-Profit,

Institutional and Multifamily

Equipment Rebates:

• Retrofit – Existing Buildings• New Construction • Direct Install – Small Business• Large Energy Users

Whole Buildings:

• Pay for Performance Existing Buildings • Pay for Performance New Construction

Energy Generation:

• Combined Heat and Power (CHP) and Fuel Cells

Audits:

• Local Government Energy Audits

ELIGIBLE SECTORS

PROGRAMS

NJCleanEnergy.com

FREE BENCHMARKING REPORT

NJCleanEnergy.com

WHAT IS BENCHMARKING?

Is 60 MPG high or low for this automobile?

Fuel Efficiency: MPG

Is 90 kBtu/SF/YR high or low for this building?

Energy Performance Source: 1 to 100

NJCleanEnergy.com

BENCHMARKING OVERVIEW

• Open to Commercial, Industrial, Agricultural,

Government, Non-Profit and Institutional Customers

• Free Benchmarking Report includes:

An ENERGY STAR® Portfolio Manager score

Suggestions for improving operations and maintenance

Identification of relevant incentives and program options

for energy efficiency projects

NJCleanEnergy.com

WHY BENCHMARK?

• Understand energy usage and costs

• First step for ENERGY STAR

certification

• Identify under-performing facilities

• Assess effectiveness of operations

• Assist in goals, targets and timelines

• Set investment priorities

• Verify and document pre and post

project energy use

NJCleanEnergy.com

HOW TO PARTICIPATE

To Request a Benchmarking report:

Visit NJCleanEnergy.com/BENCHMARKING

Submit the online data collection form

Submit 12 consecutive months of energy data or a

signed Fuel/Energy Release Authorization Form

NJCleanEnergy.com

LOCAL GOVERNMENT ENERGY AUDIT (LGEA)

NJCleanEnergy.com

100% of the audit cost, subject to an annual

incentive cap of $100,000 per entity, per fiscal

year. Exceptions possible (up to $300,000)

Local governments & schools under Local

Public/Schools Contract Laws

County colleges under County College

Contracts Law

NJ State Colleges or State Universities

501(c)(3) Non-profit organizations

State Contracting Agencies & Public Agencies

AVAILABLE TO

INCENTIVE

LGEA: OVERVIEW

NJCleanEnergy.com

LGEA: HOW IT WORKS

• Complete application

• Schedule your audit (no more RFP process)

• Choose among list of recommended, cost-effective

energy efficiency upgrades

• Apply for additional incentives from New Jersey’s Clean

Energy Program

NJCleanEnergy.com

LGEA: NEW FEATURES

• No RFP process for audit firm selection

• Ability to re-apply and get another audit done after 3

years.

• Consistency of audit report format/content.

• Follow up re: NJCEP incentive programs and

implementation of recommended measures.

NJCleanEnergy.com

NJ SMARTSTART BUILDINGS

NJCleanEnergy.com

SMARTSTART: OVERVIEW

• Two types of incentives for high efficiency equipment

installation:

Prescriptive Incentives

Custom Incentives

• Available to all Commercial, Industrial, Agricultural,

Government, Non-Profit and Institutional customers

• Includes New Construction, Rehab and Retrofit projects

• Project pre-approval required for some applications (lighting)

• Incentives up to $500,000 per electric account and

$500,000 per natural gas account.

NJCleanEnergy.com

SMARTSTART: INCENTIVES

Prescriptive Incentives

• Project Categories:

New Construction

Renovation

Remodeling

Equipment Replacement

• Specific incentives and individual applications for

Lighting, HVAC, VFDs, Refrigeration, Controls and more.

NJCleanEnergy.com

SMARTSTART: INCENTIVES

Custom Incentives

• Designed for new or innovative technologies proven to

be cost-effective and not listed as prescriptive

• Incentives paid for approved projects at the lesser of

three values:

50% of project cost

Buy down to one year payback, OR

$0.16/kWh, $1.60/ therm saved in first year

• Projects must have a minimum first year energy savings

of 75,000 kWh or 1,500 therms to be eligible.

NJCleanEnergy.com

SMARTSTART EXAMPLES

NJCleanEnergy.com

HOLIDAY INN HASBROUK HEIGHTS

• Hotel

• LED lighting retrofit

• Total Project Cost: $73,787*

• Incentive: $60,510

• Annual Savings: $19,057

• Project Payback: 0.8 years

*Lower costs due to installation by maintenance staff

NJCleanEnergy.com

COLGATE-PALMOLIVE

• Research Facility

• Chilled water plant retrofit

• Total Project Cost:

$2.5 million

• Incentive: $224,526

• Annual Savings: $283,898

NJCleanEnergy.com

DIRECT INSTALL

NJCleanEnergy.com

DIRECT INSTALL

• Program is currently on hold

• Next Steps to re-open:

Approval of general program design by BPU

Release of RFPs for contractors and equipment

Selection of Contracts for contractors and vendors

Approval of all program details

NJCleanEnergy.com

DIRECT INSTALL: OVERVIEW

• A turn-key retrofit program to replace outdated and

inefficient equipment

• Lighting, HVAC, Refrigeration

• Open to Small to Mid-Sized Commercial and Industrial

facilities with a peak electric demand ≤ 200 kW

• Provides incentives of up to 70% of the installed cost

• Incentives are paid directly to the contractor

Customer only pays remaining 30% of installed cost

$125,000 project cap

$250,000 per entity cap

NJCleanEnergy.com

DIRECT INSTALL: BENEFITS

• Turnkey process: participating contractors provide

support and process all paperwork

• Minimal cost: Low upfront cost with generous incentives

• Fast turnaround time: Average length of time for job

completion, 4-6 months

• Ongoing savings: Projects provide energy savings year

after year

NJCleanEnergy.com

DIRECT INSTALL EXAMPLES

NJCleanEnergy.com

BOB DANZEISEN INC.

• Commercial Retail Building

• Lighting & HVAC retrofit

• Total Project Cost: $112,964

• Incentive: $75,000

• Annual Savings: $28,283

• Payback Period: 1.34 Years

NJCleanEnergy.com

PRUDENTIAL STAINLESS & ALLOYS

• Commercial Warehouse

• Lighting & HVAC retrofit

• Total Project Cost: $110,580

• Incentive: $75,000

• Annual Savings: $33,073

• Payback Period: 1.02 Years

NJCleanEnergy.com

FLYING FISH BREWING CO.

• Brewery

• Lighting & HVAC retrofit

• Total Project Cost: $40,591

• Incentive: $28,414

• Annual Savings: $4,015

• Payback Period: 2.6 Years

NJCleanEnergy.com

LIBRARY IV

• Restaurant

• Lighting & HVAC retrofit

• Total Project Cost: $61,283

• Incentive: $42,898

• Annual Savings: $9,052

• Payback Period: 2.0 Years

NJCleanEnergy.com

McDONALD’S

• Franchise in Piscataway

• Lighting & HVAC retrofit

• Total Project Cost: $85,331

• Incentive: $59,731

• Annual Savings: $9,478

• Payback Period: 2.7 Years

NJCleanEnergy.com

SHOP n BAG

• Grocery store in Farmingdale

• Lighting, refrigeration

controls and grocery aisle

covers and doors

• Total Project Cost: $155,121

• Incentive: $108,585

• Annual Savings: $34,719

• Payback Period: 1.3 Years

NJCleanEnergy.com

P4P: OVERVIEW

• Comprehensive, whole-building approach to saving

energy in existing or new facilities

• Goal: reduce consumption by 15% or more

• Incentives up to $2 million per project, assuming both

gas and electric improvements are made; $4 million

annual entity cap

• Incentives paid in three installments at milestones

• Customer chooses from network of pre-approved

participating Partners

NJCleanEnergy.com

P4P: OVERVIEW

• Existing Buildings: Large Commercial, Industrial

Institutional and certain multifamily with an annual

peak demand in excess of 200kW

• New Construction: Projects with over 50,000 square

feet of planned conditioned space

• Eligibility requirements flexible for hospitals, 501(c)(3)

non-profits, local government buildings, affordable

multi-family housing and public universities and

colleges

NJCleanEnergy.com

P4P: HOW IT WORKS

• Projects must create an Energy Reduction Plan

Prior 12 month energy use baseline for existing buildings

Current energy code baseline for new construction projects

Incentive Milestone #1 of up to $50,000

• Implementation of Project

Must finish construction or renovation to qualify

New Construction projects must submit an As-Built

Energy Reduction Plan to address any changes during

construction

Incentive Milestone #2 paid to customer

NJCleanEnergy.com

P4P: FINAL PAYMENT

To Qualify for Final Payment:

For existing buildings, after 12 month of consecutive

energy billing submit a post-construction report

Complete commissioning and a Commissioning Report of

new construction projects

Final Incentive Milestone #3 paid to customer

NJCleanEnergy.com

P4P: BENEFITS

• Helps businesses to stay competitive:

> 40% of new non-residential buildings are built to

green standards

More cities are mandating energy performance

disclosure of commercial buildings annually

• Increases the value of the building:

ENERGY STAR and LEED labeled buildings receive higher

prices and have increased occupancy over standard

buildings

• Reduces operations and maintenance costs

NJCleanEnergy.com

PAY FOR PERFORMANCE

EXAMPLES

NJCleanEnergy.com

TROY HILLS VILLAGE

• Multifamily Apartment

• Lighting & HVAC retrofit

• Total Project Cost:

$1,480,000

• Incentive: $683,186

• Annual Savings: $208,927

• Payback Period: 5.5 Years

NJCleanEnergy.com

• 12-story, 303,764 sq. ft. office

tower in downtown Newark

• Heat recovery units, cogeneration

chillers, condensing boilers, LEDs

• Total Project Cost: $918,000

• Incentive: $440,459

• Annual Cost Savings: $118,900

• Created more than 600

construction jobs

PANASONIC CORP N.A.

NJCleanEnergy.com

70-90 COLUMBUS TOWER

• 50-story high rise with 550

luxury apartments; 12,000 sq ft

of retail space in Jersey City

• Heat pumps, HVAC units,

insulation, efficient windows,

ENERGY STAR® appliances, LEDs

• Total Project Cost: $1,050,000

• Incentive: $775,446

• Annual Cost Savings: $192,216

• Payback period: 1.5 years

NJCleanEnergy.com

EDIBLE GARDEN

• New construction 214,000-square

foot greenhouse in Belvidere

• Thermal nighttime canopy,

condensing boilers, variable

frequency drives on pump motors

• Total Project Cost: $720,005

• Incentive: $315,673

• Annual Cost Savings: $56,845

• Payback period: 7.1 years

NJCleanEnergy.com

BAYER

• New construction 700,000-square

foot office in Whippany

• LED lighting with occupancy

sensors, high-efficiency HVAC,

VFDs, Low-E windows

• Total Project Cost: $4,233,858

• Incentive: $1,133,423

• Annual Cost Savings: $526,876

• Payback period: 6 years

NJCleanEnergy.com

COMBINED HEAT & POWER AND FUEL CELLS

NJCleanEnergy.com

CHP/FC:

• Program currently being re-designed. BPU will solicit

comments on new program design in the coming

months.

• ICF is the Program Manager

NJCleanEnergy.com

COMBINED HEAT & POWER AND FUEL CELLS EXAMPLES

NJCleanEnergy.com

• 280 acre college campus

• Combined Heat and Power (CHP)

• Total Project Cost: $4,594,188

(estimated)

• Incentive: $1,000,000

• Annual Cost Savings: $527,973

• Payback Period: 6.8 Years

• Manufacturing and construction anticipated to generate

25 temporary full-time jobs

RIDER UNIVERSITY

NJCleanEnergy.com

• Restaurant by the Jersey Shore

• Micro CHP

• Total Project Cost: $189,600

• Incentive: $40,000

• Annual Cost Savings: $20,588

• Payback Period: 6.3 Years

STEVE & COOKIE’S

NJCleanEnergy.com

PRINCETON UNIVERSITY

• College/University

• CHP Equipment

• Total Project Cost: $914,557

• Incentive: $243,000

• Annual Savings: $250,000

• Payback Period: 2.68 Years

NJCleanEnergy.com

BRISTOL-MYERS SQUIBB

• Pharmaceutical Manufacturer

• CHP Equipment

• Total Project Cost: $6,500,100

• Incentive: $1,000,000

• Annual Savings: $440,000

• Payback Period: 12.5 Years

NJCleanEnergy.com

THE WESTIN JERSEY CITY NEWPORT

• Hotel

• CHP Equipment

• Total Project Cost: $2,158,229

• Incentive: $600,000

• Annual Savings: $123,007

• Payback Period: 10.5 Years

NJCleanEnergy.com

LARGE ENERGY USERS PROGRAM (LEUP)

NJCleanEnergy.com

LEUP: OVERVIEW

• State's largest commercial and industrial facilities

• Eligible entities must have contributed ≥$300,000 into

NJCEP fund in previous year

• The maximum incentive per entity is $4 million or 75% of

total project cost, or annual energy saving caps,

whichever is less

• Customer must submit draft and final Energy Efficiency

Plans for approval

• Projects approved on first come, first served basis

NJCleanEnergy.com

LEUP: BENEFITS

• Lower Costs: Reduce operating costs

• Creates Opportunity: Provides budget for other company

projects

• Enhances Reliability: Reduces costly disruptions from

electric grid

• Meets Goals: Help meet sustainability goals

• Stabilizes Prices: Keeps company’s energy prices more stable

over time

• Increases Value: Higher valuation of facilities

NJCleanEnergy.com

LARGE ENERGY USERS PROGRAM EXAMPLES

NJCleanEnergy.com

RUTGERS UNIVERSITY

• Upgrades for 36 locations at

the Newark, Piscataway and

Camden campuses

• LEDs, occupancy sensors,

HVAC fan and pump motors

• Total Project Cost: $1,538,603

• Incentive: $1,153,952

• Annual Savings: $617,424

NJCleanEnergy.com

STOP & SHOP (AHOLD USA)

• Grocery store upgrades for 13

store locations

• Variable speed drives and

motor controls on

refrigerators and HVAC units

• Total Project Cost: $688,889

• Incentive: $504,253

• Annual Savings: $568,792

NJCleanEnergy.com

NJ TRANSIT

• Large-scale lighting upgrade

at Meadows Maintenance

Complex in Kearny

• LEDs, occupancy and daylight

sensors, wireless networking

and integrated controls

• Total Project Cost: $1,238,507

• Incentive: $928,880

• Annual Savings: $386,062

NJCleanEnergy.com

HOMEOWNER INCENTIVE PROGRAM

NJCleanEnergy.com

Homeowner Incentives

• Home Performance with ENERGY STAR®

• Provides home energy assessments and

comprehensive energy efficient upgrades

• Incentives up to $5,000

• 0% interest loan up to $10,000

NJCleanEnergy.com

Homeowner Incentives

• ENERGY Efficient Products Program

• Rebates between $50-$300 when purchasing ENERGY

STAR certified refrigerators, washers and dryers

• Discounted efficient lighting at participating retailers

• Old, working refrigerators or freezers picked up free of

charge, plus $50 rebate

• HVAC programs offer incentives up to $1,500 for heating and

cooling equipment upgraded to highly efficient systems

NJCleanEnergy.com

FOR MORE INFORMATION

Visit NJCleanEnergy.com

Call (866) NJSMART

Stay Informed NJCleanEnergy.com/Newsletter

To join the Energy Efficiency listserv

contact the NJCEP Webmaster.