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Multifamily Retrofits – The Path Forward for
Multifamily Energy Efficiency Programs
Charlie Taylor, Scott Campbell, and Christa Shute
Thursday February 4th, 2016
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WHO’S IN THE ROOM?
• Property owners, developers
• Design community (Architects, Engineers, etc.)
• Energy Efficiency Program Staff
• Policymakers, consultants, Non-profits etc.
• Implementers, builders, contractors etc.
• Others?
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Mission
Accelerate energy efficiency as an essential
part of demand-side solutions that enable a
sustainable regional energy system
Vision
Region embraces next generation energy
efficiency as a core strategy to meet energy
needs in a carbon-constrained world
Approach
Overcome barriers and transform markets via
Collaboration, Education and Enterprise
One of six regional energy efficiency organizations (REEOs) funded by the US Department of Energy (US DOE) to link regions to US DOE guidance, products and programs
NORTHEAST ENERGY EFFICIENCY PARTNERSHIPS“Accelerating Energy Efficiency”
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REGIONAL CONTEXT
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-NEEP’s High Performance Buildings team first began it’s
multifamily retrofit project in 2011.
-Assisted Efficiency Maine in efforts to set up a “one-stop-
shop”, organized a regional working group, held focus groups
for landlords and tenants, and disseminated best practices.
-Published a report in 2014 on strategies to advance energy
efficiency in small and mid-sized multifamily buildings.
-Focused on small to mid-sized multifamily buildings (5-20
units).
-Currently working on a collaborative project to advance the
efficiency of multifamily buildings across the country with four
other REEOs.
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NATIONAL BEST PRACTICES REPORT
• Set for release later this year, will contain:
-Best practices derived from experiences from 5 different
regional organizations providing technical guidance and
support to multifamily programs across the country.
-Policy and program implementation recommendations
-Case studies
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REGIONAL MULTIFAMILY MARKET ASSESSMENT
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Characteristics of the region’s multifamily housing (5+ units):
-Over 5 million multifamily housing units
-Almost half was built before 1960
-Overwhelmingly located in urban areas
-A majority heat with natural gas
-A quarter heat with oil
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VERMONT MULTIFAMILY BUILDINGSCharacteristics of Vermont’s multifamily housing:
– 42% built before 1960
– About 80% heat with oil or other unregulated fuels
(propane, biomass, etc.)
– More rural, 26% located in rural areas compared to about
5% for the rest of the region.
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REGIONAL BEST PRACTICES: SIMPLIFY!
• Refine the development of “one-stop-shops” for multifamily
building owners
• Efforts to reduce the work needed from the building owner
through the retrofit process:
– Create a single point of contact
– Streamline paperwork
– Clear, easily understandable audit reports
– Assign qualified contractors for implementation
– Include installation and savings verification
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EXPAND PROGRAMS FOR DELIVERED FUELS
• Vermont is a leader in this space
• Huge opportunity for savings in multifamily buildings which
are largely ignored in many states
• Nearly 1 million units in New England and New York heated
with oil.
• Many large MF buildings heated with steam
• Funding mechanism needed in states with significant
populations heating with oil and biomass
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FINANCING
• Accessible financing is crucial to this market
• Public/private partnerships can maximize benefits for
building owners
• Public entities can leverage funding by creating loan loss
reserves or interest rate buy-downs which facilitate private
investment
• On-bill and PACE financing enable building owners to bundle
retrofit costs with existing bill/tax payments and typically
have much lower default rates than other forms of debt
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FACILITATE ENERGY DATA ACCESS
• Building owners need access to easily understandable
building energy data
• Benchmarking in Energy Star Portfolio Manager, WegoWise,
or a similar platform enables comparison between buildings.
• Automated data transfer through Green Button Connect My
Data and similar services allow third party service providers
to retrieve energy data on an ongoing basis
• This data should be accessible for tenants. Policies requiring
disclosure of energy bills or benchmarking data to tenants
give insight into the otherwise “invisible” energy attributes
of the building.
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GEOGRAPHICALLY TARGET AREAS WITH GRID
CONSTRAINTS
• A vast majority of multifamily housing is located in urban
areas
• Often grouped together by neighborhood
• “Geo-targeting” enables energy efficiency program staff and
grid planners to work together to delay the construction of
expensive grid infrastructure needed for
load growth.
• There is value in investing in deeper
incentives because of the savings realized
by both the efficiency measures and the
delay of more costly “poles and wires”
alternatives.
• Most effective when paired with other DERs12
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NEEP MULTIFAMILY RESOURCES
NEEP Website: www.neep.org
NEEP Reports: “Increasing Energy Efficiency in Small Multifamily Properties in the Northeast: Recommendations for Policy Action”
“Operations and Maintenance Guide for Schools and Public
Buildings”
“Energy Efficiency as a Transmission and Distribution Resource
Using Geotargeting”
http://www.neep.org/http://www.neep.org/sites/default/files/resources/NEEP Multifamily Report_April 2014.pdfhttp://www.neep.org/sites/default/files/resources/O%26M Guide Revision v2.5_FINAL.pdfhttp://www.neep.org/file/2414/download?token=bNV2vVea
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CONTACT INFO:
Charlie Taylor – High Performance Buildings Research and
Analysis Associate
781-860-9177 x 151
mailto:[email protected]
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Multifamily Efficiency Retrofits:
the Path Forward
Better Buildings by Design
February 4, 2016
Scott Campbell
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Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 16
3EThermal.org
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Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 17
nytimes.com/2015/09/12/science/climate-study-predicts-huge-sea-level-rise-if-all-fossil-fuels-are-burned.html?ref=energy-environment&_r=0
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Overview
• Baseline Savings Potential
• Barriers
• Actual Savings Compared to Predicted
• Policy Opportunities
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 18
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• All rental units in Vermont: ~75,000
• Units in apartment buildings (3+) ~50%: ~38,000
• ‘Affordable’ units (
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Baseline Savings Potential
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 20
1998
VT Weatherization Assistance Program
Impact Evaluation
State Auditor’s Office
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Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 21
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Vermont Gas:Market Rate
Vermont Gas:Low-Income
HomePerformanceEnergy Star
VT Fuel EfficiencyPartnership
predicted
actual
2013 Studies:
VFEP internal ‘Fuel Study’
VGS, HPwES:
Impact Evaluation studies by
West Hill Energy & GDS Assocs
for Dept of Public Service
Realization Rate: 89% 62% 51% 75%
Baseline Savings Potential
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
older smallhouse
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Barriers
• Owner
• Programmatic
• Design & Execution
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 23
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Barriers for the Owner
• Resources: Funding & Financing
• Knowledge: Whom to Trust?
• Project Management
• Split Incentive
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 24
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Program Barriers
• Timelines
• Funding
• Coordination with complementary programs
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 25
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Barriers in Design and Execution
• Project parameters
• Team expertise
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 26
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Actual Savings versus Predicted
What are Actual Savings?
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 27
• Data Accuracy
• Normalization
• Vacancy, Tenancy
• Predicted
Savings: A
collection of
assumptions
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1970 Two-Story grouped entry (2011)
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 28
• 2 buildings, 16 units
• 12,544 SF
• propane heat & DHW
• Add ventilation
• Insulate side walls, attics, slab edge
• Install new windows and doors
• Total cost: $260,000 ($21/SF)
• $91,000 3E, WAP, EVT
Sass Apts, Randolph VT
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Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 29
2 layers of 2” polyiso foam board, new windows
Dense-pack cellulose in 2x6 stud
cavities with existing fiberglass
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Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 30
2” extruded polystyrene at slab edge
Ready for siding
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1970 Two-Story grouped entry (2011)
2010 energy analysis
• usage 7,000 gal LP
• Energy Factor pre: 7.5
• Energy Factor post: 4.3
• Predicted Savings: 43%
Including baseload electric
Ventilation NOT included
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 31
2013 analysis for study
• usage pre: 6,070 gal LP
• Energy Factor pre: 5.0
• Energy Factor post: 4.8
• Predicted Savings: 5%
Space Heat & DHW only
Including Ventilation
Fuel study Actual savings: 5%
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1885/1975 Rural Apartments (2013)
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 32
• 3 Buildings, 5 units
• 5,972 SF
• oil heat, electric DHW
• Install boiler; add ventilation
• Insulate attics, walls, foundations
• Install new windows
• Total cost: $175,000 ($29/SF)
• $40,000 3E, WAP, EVT
Mountain View, Hancock VT
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Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 33
Crawlspace: confused thermal layer, poorly installed;
little or no vapor layer on dirt floor
Crawlspace venting
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Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 34
Spray polyurethane foam in demo’d areas
Looking down from attic:
Stud cavity air bypass
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Energy Analysis
• usage pre: 3,500 gal oil + 20,000 kWh
• Energy Factor pre: 10.5
• Energy Factor post: 4.6
• Predicted Savings: 56%
Space Heat & DHW only
Including Ventilation
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 35
Fuel study Actual savings: 45%
1885/1975 Rural Apartments (2013)
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1853 Downtown Apartments (2013)
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 36
• 1 building, 75 units
• 54,962 SF
• oil heat & DHW
• Install LP boiler for heat & DHW; add ventilation
• Insulate roof; replace windows
• Total cost: $675,300 ($12/SF)
• $200,000 3E, WAP, EVT
Bardwell House, Rutland VT
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Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 37
New condensing propane boilers
Existing converted coal boilers:
75% AFUE?
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Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 38
Rear view
Google Earth view: Multiple separate building
sections
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1853+ Downtown Apartments (2013)
Energy Analysis
• usage pre: 21,000 gal oil
• Energy Factor pre: 7.4
• Energy Factor post: 4.5
• Predicted Savings: 39%
Space Heat & DHW only
Including Ventilation
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 39
Fuel study Actual savings: 25% Missed in 2013 work:
Rim joist with dirt-filled fiberglass
Ice damage 2015
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1980s Single-Story, Separate Entry (2013)
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 40
• 5 buildings, 24 units
• 17,152 SF
• oil heat & DHW
• Install 1 new boiler; add ventilation
• Insulate attics, bay windows, foundations
• Total cost: $205,000 ($12/SF)
• $66,000 3E, EVT
Gill Terrace, Ludlow VT
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Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 41
Fiberglass in ceiling of crawlspace; uninsulated heating pipes
Uninsulated bay window; crawlspace venting
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Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 42
Attic floor: Fiberglass pulled back from lighting fixtures
Attic: Mold on underside of roof sheathing
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1980s 1-Story, Separate Entry (2013)
Energy Analysis
• usage pre: 9,500 gal oil
• Energy Factor pre: 8.7
• Energy Factor post: 6.5
• Predicted Savings: 26%
Space Heat & DHW only
Including Ventilation
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 43
Fuel study Actual savings: 34% Insulated pipes; poly vapor layer on crawlspace floor
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Lessons
• Airsealing: Control stack effect
• Ventilation: Big impact in large buildings
• Heating & DHW efficiency: Easy improvement
• Commission mechanical systems
• Track results
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 44
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Policy Opportunities• Carbon Pollution Tax
• Funding & Financing
• Grant programs: 3E Thermal, Weatherization Program
• VEIC/VSECU Business Energy Loan
• Commons Energy
• RUS – Rural Utilities Service
• DSIRE – Database of State Incentives for Renewables & Efficiency
• PACE – Property-Assessed Clean Energy
• Vermont Information Clearinghouse
• Labeling & Benchmarking
Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 45
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Better Buildings by Design, Burlington Vermont, Feb 4, 2016: 46
3E Thermal is a Statewide program of
Funded through:
Scott CampbellProject [email protected] 477-517
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Financing Options
for
Multi-Family Housing
Better Building by DesignConference Presentation
Christa Shute
February 4, 2016
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The Right Combination
VEIC – Clean Energy Financing – October 2015
• Financing
• Incentives
• Technical Assistance
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Financing Options for Vermont LIMFH
VEIC – Clean Energy Financing – October 2015
• Commons Energy – Public Purpose
Energy Service Company
• Business Energy Loan
• Rural Utility Service – Energy Efficiency
and Conservation Loan Program
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Better Buildings by DesignConference Presentation
February 4, 2015
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PPESCO = Deep energy
improvements in under-served public buildings
Commons Energy:A public-purpose energy services company (PPESCO)
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Target Markets
• Public-use sites
• Four sectors
• Significant barriers
• Under-served buildings Size & complexity
• Partners and networks
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Key Model BasicsFour-part service model designed to break down barriers
Commons Energy Integrated Services Model
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Financing
• Creating underwriting relationships
National Housing Trust
• Bringing Foundations Support for Financing
High Meadows
Vermont Community Loan Fund
MacArthur
Kresge
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Approach:
• Help facilitate any available free services or incentives
• Use energy savings for debt service
• Lower return to Commons
• Higher return to the mission
• Product neutrality
• Trusted source
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Status
• Working with your contractors Increasing EE in Comprehensive Retrofits Upgrading EE from code to Passive House
• Providing Contractors and Expertise Biomass Fuel Switch Discrete Energy Efficiency
Types of Projects
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• Rural Edge. The Darling Inn is a 28-unit apartment building in Lyndonville, VT.
• Commons Energy will provide both construction project oversight and commissioning services for Darling Inn.
• List of Improvements– Upgraded insulation and
air-sealing– Heat Recovery Ventilation– Biomass Boiler
• Projected Savings– Improvements will reduce the per-unit cost to heat and
provide hot water to each unit by 56%.
Darling Inn – Complete Rehab
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• Cathedral Square. Heineberg Senior Housing is an 82-unit apartment building in the new North End of Burlington, VT.
• Commons Energy provides fixed-rate financing-up to 15 years.
• List of Improvements– Upgrade stairwell lighting to LED and add occupancy based controls
– Retrofitting outdoor bollard and parking lot lighting to LED.
– LED lighting upgrades in hallways and the complete retrofit of 90 existing wall scones from un-controlled compact fluorescent lamps to LED lamps on an occupancy-based controller.
• Projected Savings– The investment is expected to
reduce electric use and costs
associated with lighting by 75%.
Heineberg Senior Housing Discrete EE Measures
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• Cathedral Square. The proposed Milton Senior Housing property is designed to be a 24-unit senior housing facility.
• Commons Energy will contribute financing to cover the incremental cost of the building materials needed to allow the facility to reach Passive House standards, and will guarantee that the building will perform as designed.
• Projected Savings– A 77% cost savings on heating
is estimated.
Milton Senior Housing New Construction - Upgrade
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• Housing Vermont. Union Square Apartments is a 58-unit apartment building located in Windsor, VT
• Engineering, bid solicitation, construction, financing
• List of Improvements– Biomass boiler replacement with High Performance
Circulator Pumps and integral control VFDs
• Projected Savings– The investment is expected to
reduce heating and hot water costs
by at least one-third.
Union Square ApartmentsBiomass Fuel Switch
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Making Energy Efficiency
More Accessible to
Vermonters
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Business Energy Loan
•Fast, simple financing for commercial energy efficiency projects
• Any type of business or nonprofit (including municipalities)
• Attractive interest rates (3.25% up to 3 years, 4.25% up to 5 years)
• No closing costs or application fee• ($25 for Certificate of Good Standing from VT Secretary of State,
where applicable)
• No collateral requirement; 100% of project costs can be financed
• Up to $35,000, minimum of $3,500
• No business financial statements required
• Financing and loan servicing provided by VSECU • For more info contact: Efficiency Vermont at 855-317-2254
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USDA RUS EECLP
VEIC – Clean Energy Financing – October 2015
• United States Department of Agriculture
• Rural Utility Service – Electric Division
• Energy Efficiency and Conservation Loan
Program
• VEIC qualification as the energy efficiency
utility
• Statewide rural program (not Burlington)
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Creating Possibilities - Program
Status
VEIC – Clean Energy Financing – October 2015
• VEIC received conditional approval for up to $46 million in financing for RE and EE
• VEIC is working with the State of Vermont, Public Service Department and Board to meet conditions
• RUS Loan Documents and PSB Approval expected February and March of 2016.
• Loan Program Development starts
• Program Availability 2016 - 2020
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Why is VEIC involved?
VEIC – Clean Energy Financing – October 2015
• Efficiency Vermont as the statewide efficiency
utility outside of Burlington
• To bring a federal financing opportunity to
Vermonters
• To create a comprehensive financing program –
help fill in the gaps
• To broaden the population of people that can
implement energy efficiency – by including a focus
on moderate income Vermonters
• To facilitate economic development
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Why is RUS financing important to
Vermont?
VEIC – Clean Energy Financing – October 2015
• This is what the program would allow…
• Length of term – 20 years or measure life
• Facilitates cash flow positive projects
• Energy savings paying for debt service
• Rates connected to Treasury
• 4% for 20 year loans, 3% for 5 year loans
• Project sizes from residential to commercial
• Both Efficiency and Renewable Measures
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A wide range of measures
VEIC – Clean Energy Financing – October 2015
• Energy Efficiency Projects• Building envelope
• Equipment and Lighting
• Heat pumps
• Thermal Efficiency • Better woodstoves
• Biomass fuel switch
• Geothermal
• Renewable Energy Projects
• Vehicle Charging stations
• Health and Safety Investments to facilitate projects
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Who else is or will be involved?
VEIC – Clean Energy Financing – October 2015
• Statewide Program (except Burlington)
• Efficiency Vermont
• Utilities
• Vendors
• Financial Institutions
• Economic Development
• Energy Service Companies
• Others
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Market Sectors
Introduction to New Ventures - April 2015
• Multifamily
• Single Family / Moderate Income
• Single Family / Above Moderate Income
• Small Businesses / Agricultural
• State Government, Municipalities, and Schools
• Larger Commercial, Institutional, and Industrial
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Timing and Next Steps
VEIC – Clean Energy Financing – October 2015
• This is a work in process.
• Working with RUS and State players to
finalize then building the loan program
itself.
• Potential Projects larger that $35,000
should let us know now.
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Financing Options
VEIC – Clean Energy Financing – October 2015
• Business Energy Loan – below $35k
• Efficiency Vermont, Mark Kelley
• [email protected]; (802) 338-5111
• Commons Energy – above $150k
• Brian Pine, [email protected]
• RUS – Energy Efficiency & Conservation Loan
• Christa Shute
• [email protected]; 802-557-7704
mailto:[email protected]:[email protected]:[email protected]
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Making Energy Efficiency
More Accessible to
Vermonters
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Christa Shute
Director, Targeted
Implementation
802-557-7704
mailto:[email protected]
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QUESTIONS?
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