Duke Energy Smart $aver Incentive Programs - Larry Airey NC Senior Trade Ally Outreach Representative

 
Duke Energy Smart $aver Incentive Programs - Larry Airey NC Senior Trade Ally Outreach Representative
Duke Energy Smart $aver ® Incentive Programs

Larry Airey
NC Senior Trade Ally Outreach Representative
Duke Energy Smart $aver Incentive Programs - Larry Airey NC Senior Trade Ally Outreach Representative
Non-Residential Smart $aver ® Incentive Programs

            2011 Incentives Paid
           $15,000,000
                For 2012
           $21,500,000
                   2013
           $23,000,000
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Duke Energy Smart $aver Incentive Programs - Larry Airey NC Senior Trade Ally Outreach Representative
Why invest in energy efficiency?

    Lowers energy costs for years to come

    Money saved to invest back into the business

    Minimize future rate increases
          Helps utility defer the cost of building additional generating facilities

    Fosters a cleaner environment by saving valuable energy resources

    Provides a more comfortable, positive work/learning environment

    Lowers market prices by increasing sales volume of higher efficiency equipment

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Duke Energy Smart $aver Incentive Programs - Larry Airey NC Senior Trade Ally Outreach Representative
Where is Energy Being Used?

               Commercial Energy Expenditures

                                          Lighting
             20%        20%               Space Heating
                                          Space Cooling
        4%                                Ventilation
                                          Refrigeration
       5%                    16%
                                          Electronics
        5%                                Water Heating
          8%           12%                Computers
                10%                       Other

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Duke Energy Smart $aver Incentive Programs - Larry Airey NC Senior Trade Ally Outreach Representative
Non-Residential Smart $aver ® Incentive Programs

            1 KW Generation Capacity
                                                                        1 KW Generation Capacity

               Construction cost $2,500 to $3,500*
                    *According to Synapse Energy Economics, Inc. 2008

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Duke Energy Smart $aver Incentive Programs - Larry Airey NC Senior Trade Ally Outreach Representative
Non-Residential Smart $aver ® Incentive Programs

                                                                          1 KW Generation Capacity
                   1 KW Generation Capacity

                Ten, 8-10w LED = 80-100W or 90% savings
                Up to $10 per lamp or $100 total incentives
                     LEDs must be Energy Star or DLC to qualify for incentives

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Duke Energy Smart $aver Incentive Programs - Larry Airey NC Senior Trade Ally Outreach Representative
Non-Residential Smart $aver ® Incentive Programs

                                                        1 KW Generation Capacity
Who is eligible? (Custom and Prescriptive Programs)
Smart $aver® Incentives are available to all Duke
Energy business customers with two exceptions:
   Not on a residential rate
   Cannot have opted out                                            ?
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Duke Energy Smart $aver Incentive Programs - Larry Airey NC Senior Trade Ally Outreach Representative
Non-Residential Smart $aver ® Incentive Programs

                                                                                         1 KW Generation Capacity
 What is Opted Out?
All customers on an Industrial rate and
those commercial customers consuming 1
                                                                                                           ?
million kilowatt-hours annually are eligible
to opt out. The 1 million kWh is per meter
and not an aggregate.
If there is an account on the property that qualifies to opt out (an Industrial or one
that has 1 million kWh’s) then other General Service accounts on that same property
or contiguous property are also eligible to opt out. The opt in/out enrollment period
usually occurs annually from Nov. 1 to Dec. 31.
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Duke Energy Smart $aver Incentive Programs - Larry Airey NC Senior Trade Ally Outreach Representative
Non-Residential Smart $aver ® Incentive Programs

                                                        1 KW Generation Capacity
Who is eligible to receive Incentive? (Custom and
  Prescriptive Programs)

Customer or Vendor can receive
the incentive
   Vendor must agree to lower the invoice
     by the amount of the incentive.

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Duke Energy Smart $aver Incentive Programs - Larry Airey NC Senior Trade Ally Outreach Representative
Non-Residential Smart $aver ® Incentive Programs

Smart $aver® Prescriptive Incentive Program

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Non-Residential Smart $aver® Prescriptive Incentive Programs

    Six Technology Groups

                                                                     Information Technology
Lighting

      HVAC (cooling)                                         Process Equipment
        Includes, chillers,
                              Pumps &           Food services equipment
        Mini Splits
                              variable frequency drives
                  Over 340 Prescriptive incentive possibilities                               11
Non-Residential Smart $aver ® Prescriptive Incentive Programs

 Project Eligibility Prescriptive                                    1 KW Generation Capacity

      1. Equipment has not already received an incentive
      2. Application must be completed in full, with supporting documentation
      3. Payment is received after installation

                          Prescriptive Application
1.    Submit application after installation of eligible equipment

2.    Applications due 90 days after project completion

3.    A sample of all applications are verified after installation

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HIGH EFFICIENCY LIGHTING INCENTIVES

 Up to $25 incentive per fixture for retrofit of T12 lighting to High
Performance T8 with CEE Lamps and Ballast

Up to $12 incentive per fixture for retrofit of standard T8 lighting to high
performance or reduced wattage T8 with CEE Lamps and Ballast

Up to $80 incentive per fixture for retrofit of high bay metal halide
lighting to T8 or T5

                                                                                           13
HIGH EFFICIENCY EXTERIOR LIGHTING INCENTIVES

Up to $200 for Exterior LED or
Induction Fixture

Up to $300 for Parking Garage/Parking Deck LED or
Induction Fixture

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NEW HIGH EFFICIENCY INTERIOR LIGHTING INCENTIVES

LED Panels - $40 per fixture
Replacing T12 or T8
1x4, 2x4, 2x2
1, 2, 3, & 4 lamp
Retrofit, New Construction, Failed Equipment

DLC approved retrofit kits for linear panels are eligible for incentives under this measure.
LED tubes do not qualify under this measure can be submitted as custom.

LEDs must be on the DLC qualified product list and in the appropriate category to be eligible for incentives.
*Note that at this time, DLC does not qualify screw-in “lamps” intended as HID replacements as retrofit kits
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NEW HIGH EFFICIENCY INTERIOR LIGHTING INCENTIVES

For the 1x4, 2x2 and 3x4 to qualify for an incentive, products must be listed on the Design Lights Consortium
qualified products list in the appropriate category. Duke Energy will accept the following categories for these
measures:
       Lamp-style Retrofit Kits for Linear Panels (2x2 Troffers)
       Lamp-style Retrofit Kits for Linear Panels (1x4 Troffers)
       Lamp-style Retrofit Kits for Linear Panels (2x4 Troffers)
       2x2 Luminaires for Ambient Lighting of Interior Commercial Spaces
       1x4 Luminaires for Ambient Lighting of Interior Commercial Spaces
       2x4 Luminaires for Ambient Lighting of Interior Commercial Spaces
       Retrofit Kits for 2x2 Luminaires for Ambient Lighting of Interior Commercial Spaces
       Retrofit Kits for 1x4 Luminaires for Ambient Lighting of Interior Commercial Spaces
       Retrofit Kits for 2x4 Luminaires for Ambient Lighting of Interior Commercial Spaces
       Linear Ambient Luminaires: Direct
       Linear Ambient Luminaires: Indirect
LEDs must be on the DLC qualified product list and in the appropriate category to be eligible for incentives.
                                                                                                                                                                  .
DLC approved retrofit kits for linear panels are eligible for incentives under this measure. LED tubes do not qualify under this measure can be submitted as custom
                                                                                                                                                                      16
NEW HIGH EFFICIENCY INTERIOR LIGHTING INCENTIVES

For the 1x4, 2x2 and 3x4 to qualify for an incentive, products must be listed on the Design Lights Consortium
qualified products list in the appropriate category.
PLEASE NOTE: DLC DEFINES ALL TUBE-STYLE LED PRODUCTS TO FALL UNDER THE LINEAR REPLACEMENT LAMPS CATEGORIES, EVEN IF
SAFETY ORGANIZATIONS CLASSIFY THEM AS RETROFIT KITS DUE TO THE NEED TO PERFORM ELECTRICAL OR MECHANICAL ALTERATIONS TO
THE EXISTING FIXTURE FOR PROPER INSTALLATION. ONLY FULLY-INTEGRATED “INSERT” STYLE KITS WILL BE ELIGIBLE UNDER THE RETROFIT
KIT CATEGORIES.

Duke Energy Prescriptive LED Panel incentives are for fixtures. Changing out lamps does not qualify for the prescriptive
incentive, may qualify for custom.

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NEW HIGH EFFICIENCY INTERIOR LIGHTING INCENTIVES

LED High Bay
$170 to $225 per Fixture
Replacing 251W-400W and >400W HID

LED Low Bay
$80 to $90 per Fixture
Replacing up to 175W and 176-250W HID

LEDs must be on the DLC qualified product list and in the appropriate category to be eligible for incentives.
*Note that at this time, DLC does not qualify screw-in “lamps” intended as HID replacements as retrofit kits
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NEW HIGH EFFICIENCY INTERIOR LIGHTING INCENTIVES

LED Track Light - $35 per fixture

Energy Star® LED lamp replacing incandescent - $10 per lamp

LEDs must be on either Energy Star® or the DLC qualified product list and in the appropriate category to be eligible for incentives.
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NEW HIGH EFFICIENCY LIGHTING INCENTIVES

  More new LED Incentives

LED Canopy Lights replacing HID various wattages - $80 to $170 per fixture
LED Display Case - $10 per fixture
LED Portable Task Light - $25 per fixture
LED Shelf-mounted Task Light Replacing T8 - $10 per foot
LED Bollards – $40 per fixture
LED Floodlight replacing >100W Incandescent, halogen or HID - $50 per fixture
LED Traffic Signals replacing incandescent - $12.50 per lamp
LED Pedestrian Signals replacing incandescent – $25 per signal

  LEDs must be on the DLC qualified product list and in the appropriate category to be eligible for incentives.

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NEW HIGH EFFICIENCY LIGHTING INCENTIVES

Exterior LED Lighting motion sensor controls (not in parking deck) - $27 per control

Occupancy Sensors - $20-$40 per sensor

Daylight Sensor – $20 per sensor

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ENERGY EFFICIENT CHILLERS

 Up to $64/ton incentive for AHRI-rated efficient Chiller

Air Cooled Chillers / Water Cooled
Make/Model #
AHRI Tons/Unit Full-load kW/ton IPLV kW/ton Operable Chiller performance and IPLV must be tested
under AHRI conditions - submit documentation of compliance
Incentives are capped at 75% of the equipment and external labor cost.

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Unitary and Rooftop Air Conditioning

Unitary and Rooftop Air Conditioning
ENERGY EFFICIENT HVAC

Ductless Mini-Splits
AC – AHRI reference # with SEER of 18 or EER of 12.5 - $120 per ton
Heat Pump – AHRI reference # with SEER of 18 or EER of 12.5 and HSPF of 9.5 - $240 per ton

Cool Roof
Initial Solar reflectance greater than or equal to 0.7 - $0.10/sq. ft.
Low sloped roof 2:12 inches or less, no PV panel obstruction, over electrically cooled space.

Demand Control Ventilation
Retrofit only - $0.10/sq. ft.

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ENERGY EFFICIENT HVAC

Window Film Incentives
SHGC or 0.40 or less or a shading coefficient of 0.45 or less $1/sq. ft.

Water Heater Pipe Insulation
Electric domestic water heaters - $1/ft.

Faucet Aerator
Electric domestic water heaters retro fit only 0.5 to 1.0 GPM – $5/unit

Low Flow Showerhead
Electric domestic water heaters retro fit only - $12.50/unit

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ENERGY EFFICIENT HVAC

Setback/Programmable Thermostat Up to $50/thermostat

Guestroom Energy Management Controls for rooms heated with Electric $80/ room
Guestroom Energy Management Controls for rooms heated with Gas $30/ room

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Energy Efficient Food Service Equipment

ENERGY STAR® Fryer – (electric) $200.00/fryer

ENERGY STAR® Steam Cookers $1,200.00/cooker

ENERGY STAR® Commercial Convection Oven $300.00/oven

ENERGY STAR® Commercial Griddle –Electric $300.00/griddle

                                                                                     27
Energy Efficient Food Service Equipment

Commercial Combination Oven (90 lbs/hr) – (electric) $1,912.00/oven

ENERGY STAR® Hot Food Holding Cabinet
   Half Size Insulated $300 /cabinet
   Three Quarter Size Insulated $400/cabinet
   Full Size Insulated $500/cabinet

                                                                                     28
Energy Efficient Food Service Equipment

ENERGY STAR® Glass and Solid Door Reach-in Freezers      Up to $150
ENERGY STAR® Glass and Solid Door Reach-in Refrigerators Up to $150

ENERGY STAR® Ice Machine    Up to $200

                                                                                   29
Energy Efficient Food Service Equipment

Vending Equipment Controller (retrofit only) $50.00/controller

Snack Machine Motion Controller (retrofit only) $20.00/controller

Beverage Reach-in Controller (retrofit only) $50.00/controller

Anti-Sweat Heater Controls $50.00/door

Night covers for displays $5/lineal ft.

Door gaskets for cooler or freezer $1/lineal ft

Pre-Rinse Sprayer $18/per sprayer                                                      30
New Energy Efficient Food Service Equipment

Energy Star Vending Machine $80

Automatic Door Closer for Coolers and Freezers $40

Energy Star Dishwasher for high and low temperature (electric water heater)
   Under the Counter $400
   Single Tank Door Type $700
   Single Tank Conveyor $1000
   Multiple Tank Conveyor $1500
                                                                                31
Energy Efficient Food Service Equipment

ECM Walk-In Cooler and Freezer Motors – ECM replacing PSC (retrofit only) $39/motor

ECM Walk-In Cooler and Freezer Motors – ECM replacing SP (retrofit only) $39/motor

ECM Refrigerated or Freezer Display Case Motors $39/motor

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New for 2014 Information Technology

Information Technology

                                                       33
New for 2014 Information Technology

Energy Star 6.0 Desktop Computer - $10/ Computer
Energy Star 6.0 Small Scale Server - $15/Small Scale Server
        ENERGY STAR® Must be listed on ENERGY STAR ® Version 6.0 qualified list

Energy Star 2.0 Computer Server - $15/server
        ENERGY STAR® Computer Server – Must be listed on ENERGY STAR ® Version 2.0
        qualified list

PC Power Management System
        $6/desktop system
Controlled Plug Strip
        $4/plug strip

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New for 2014 Information Technology

IT Technology
  Server Virtualization
     $2000/ 10 servers removed
     Proof of recycling/disposal is required to ensure that the consolidated servers have been removed
     and will not re-enter the market.
     A minimum of 10 servers must be virtualized, consolidated, removed and recycled/disposed of to
     qualify for incentive.
     A single new server must perform the functions of the removed servers using virtualization.
     Customer must submit a server inventory report documenting the existing servers that were removed
     and the new servers that were installed.

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Non-Residential Smart $aver ® Incentive Programs

All Incentives capped at 75% of equipment cost.

   Please refer to the online applications for
       complete terms and conditions.

      Additional requirements may apply.
                                                                      36
Why Invest in Energy Efficiency

                                  37
Why Invest in Energy Efficiency

Owner-Occupied Properties
More Competitive             More Profitable                 More Valuable

Lower Occupancy              Lowering “heat, power           Lower operating expense
cost enables competitive     and light” cost improves        expense increases
pricing                      profitability                   earnings per share

Sustainability & comfort     Greater comfort & convenience More efficient facilities
can help attract or retain   supports higher productivity  have higher resale
employees, investors, and                                  values
customers
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Why Invest in Energy Efficiency

Income Properties
More Competitive            More Profitable                 More Valuable

Lower Occupancy cost        Better tenant retention         Higher rent revenue
                            and attraction                  increases cash flow

Enhanced comfort            Lower vacancy rates result      Lower operating cost increase
and productivity            in higher rent revenue          cash flow

Sustainability that gives   Lower tenant utility bills      Higher net operating
marketing advantage         support higher base rates       income (NOI) supports
                                                            higher appraisal
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Why Invest in Energy Efficiency

Proving the productivity Boost
Greening the Building and the Bottom Line Published 1994
Joint effort from the Department of Energy and the Rocky Mountain Institute.
Performed more than twenty years ago, it still holds true today.

Here’s a summary of the findings:

Lockheed: 15% rise in production; 15% drop in absenteeism
West Bend Mutual Insurance: 16% increase in claims processed
ING bank: 15% drop in absenteeism
Verifone: 5% increase in productivity; 40% drop in absenteeism
“By Mark Jewell, Wall Street Journal best-selling author of Selling Energy: Inspiring Ideas That Get More Projects Approved! This content is excerpted from
Jewell Insights, Mark Jewell's daily blog on ideas and inspiration for advancing efficiency. Sign up at SellingEnergy.com.”

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Why Invest in Energy Efficiency

Energy Efficiency Helps Many Line Items on the P&L

Less repairs/maintenance
Less scrap
Less utilities
Higher rental rates
Better tenant retention
Better tenant attraction
Less need for capital expense reserves
Could you use a capital expense cost recovery clause and have tenants help repurpose wasted
utility dollars to help improve your building? (BOMA suggests if you replace prior to failure you can recover.)

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Why Invest in Energy Efficiency

Industry Margins
Source: Stern School of Business as NYU; using data from S&P Capital IQ, Bloomberg and the Fed

Retail (General) 2.90%
Grocery and Food 0.75%

Net margin, net profit margin, profit margin, and net profit ratio all refer to a measure of profitability
that is calculated by finding the net profit as a percentage of revenue.

$1 in energy savings                           =              $133.33 added revenue
0.75% net profit margin

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Why Invest in Energy Efficiency

150,000 Sq. Ft. Facility

Parking has 50, 400W HID light fixtures
Grocer has 100, 400W HID light fixtures
Retail has 40w per lamp, 4 lamp T12 Fluorescent fixtures

Plan on replacing with LEDs

                                                                               43
Why Invest in Energy Efficiency

150,000 Sq. Ft. Facility

Parking has 50, 400W HID light fixtures estimated annual energy cost = $7,500
Grocer has 100, 400W HID light fixtures estimated annual energy cost = $33,060
Retail has 200, 40w per lamp, 4 lamp T12 Fluorescent fixtures estimated annual energy cost = $24,500

Total Annual Energy Cost for Lighting = $65,060.00

                                                                                                       44
Why Invest in Energy Efficiency

150,000 Sq. Ft. Facility

Plan on replacing with LEDs reducing the wattage by 70%
Parking 50 light fixtures estimated annual energy cost = $2,250 ($5,250 annual savings)
Grocer 100 light fixtures estimated annual energy cost = $9,900 ($23,160 annual savings)
Retail has 200 Panel fixtures estimated annual energy cost = $7,335 ($17,165 annual savings)

Estimated Total Annual Energy Cost of Lighting = $19,485

Annual savings = $45,575.00
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Why Invest in Energy Efficiency

Industry Margins
Source: Stern School of Business as NYU; using data from S&P Capital IQ, Bloomberg and the Fed

$1 in energy savings                          $133.33 added revenue
0.75% net profit margin

Retail (General)               2.90%          $17,165.00 energy savings = $591,896.55 added revenue
Grocery and Food               0.75%          $23,160 energy savings = $3,088,000 added revenue
Parking Lot                                   $ 7,500 energy savings

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Non-Residential Smart $aver ® Incentive Programs

                                                  Tropical Foods
“After a local lighting professional told us how we    Project Financials
    could reduce energy costs by implementing new      Projected Energy Savings
    technology, we replaced every light in the
    building. We’ve seen energy savings that even      $20,000/ year
    exceeded their estimations.” John Bauer,
    President                                          Simple Payback
Retrofitted 400W HID to Energy Efficient T8 High Bay   1 year 11 months
    Fixtures
Capital cost - $47,000
                                                       Project Return 50%
Smart $aver Prescriptive Incentive - $8,750
Net Customer Cost - $38,250
Annual energy savings - $20,000
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Non-Residential Smart $aver ® Incentive Programs

                                               Tropical Foods
I have been reading a new book by Mark Jewell ,
“Selling Energy”. One of the chapters, “Do People      Project Financials
Really Decide or Simply Compare?”                      Projected Energy Savings
                                                       $20,000/ year
When asked, “What is my payback period” you           Simple Payback
simply say “2 years”. Customer is thinking, “I have
                                                      1 year 11 months
money in my pocket now and it feels comforting
having access to that capital. If I do the investment Project Return 50%
you are proposing, I have to wait two years to get my
money back. Thanks, but no thanks.”
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Non-Residential Smart $aver ® Incentive Programs

                                               Tropical Foods
What if instead of saying 2 years you said
“50 percent” ?                                        Project Financials
                                                      Projected Energy Savings
Now what comparison could they make? I can            $20,000/ year
invest in your product/service and get a 50%          Simple Payback
return or I can go out and invest in a 24 month
                                                      1 year 11 months
CD and get a 1.33% return. Now this is an
apples or oranges comparison, but the decision        Project Return 50%
maker may feel totally comfortable in using this
to make their decision.
                                                                                     49
Why Invest in Energy Efficiency

Industry Margins
Source: Stern School of Business as NYU; using data from S&P Capital IQ, Bloomberg and the Fed

$1 in energy savings                          $34.48 added revenue
2.90% net profit margin
Retail (General)      2.90%                   $17,165.00 energy savings = $591,896.55 added revenue

200 LED Troffer DLC Panel Lights replaced T12 Cost of $169.90 per fixture = $33,980.00
Simple ROI = 1.9 Years = 52.6% annual return

Smart Saver Incentive at $40 per fixture = $8,000.00
Cost of Project less Smart Saver incentive = $25,980.00
1.5 year ROI = 66.66% annual return or customer can invest in a 24 month CD = 1.33% annual return
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Non-Residential Smart $aver ® Incentive Programs

Smart $aver® Custom Incentive Program

                                                                  51
Non-Residential Smart $aver® Prescriptive Incentive Programs

     Technology Groups

                                                                      Information Technology

Lighting                                                         Process Equipment
           HVAC (cooling)
                                                  Food services equipment
              Includes thermal
                 storage, chillers   Pumps &
                                     variable frequency drives

           Other Unique Energy Saving Opportunities
                                                                                               52
Smart $aver® Custom Incentive Program

 High-efficiency equipment that falls outside the scope of our standard prescriptive offers may
  still be eligible for incentives. The Smart $aver Custom Incentive program picks up where the
  Prescriptive Incentive program leaves off. Whether you’re installing building automation
  controls, upgrading compressed air systems or implementing other unique energy efficient
  technologies, Smart $aver custom incentives can help you offset up-front costs and improve
  your bottom line.
 Custom projects can vary widely and are sometimes complex. Here are some helpful hints to
  consider before beginning the incentive application process.
    • Only Duke Energy commercial and industrial electric customers are eligible to receive custom incentives.
    • To receive custom incentives, approval must be granted prior to the initiation of the project.
    • For complex projects, calculating the energy savings can often require engineering expertise. Before
      applying you may want to consider whether you have the resources to provide all the required
      information.
    • The application and approval process typically takes 1-2 months.

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Smart $aver® Custom Incentive Program

      • Project Eligibility Custom
            1. Equipment has not already received an incentive
            2. Application must be completed in full, with supporting documentation
            3. Payment is received after installation

                                          Custom Application
1.   Apply before project initiation (before signing purchase order, purchasing equipment and or installing equipment)

2.   Wait for approval before installation (at least 1 month)

3.   A high percentage are verified
                                                                                                                         54
Smart $aver® Custom Incentive Program

Phase 1
 Application
 Custom Incentive Application - Part 1 (required):
• This is the main application form that must be submitted in order to receive an incentive payment.
 Custom Incentive Application - Part 2 (required):
• Select the appropriate worksheet for your project type. (Excel spreadsheet*)
Phase 2
 Application Evaluation
 Duke Energy assesses the application and provides a technical evaluation. A preliminary incentive value is
  calculated and pre-approval is granted. (Allow 1–2 months for completion.)
Phase 3
 Project Installation
 The equipment is installed and Duke Energy processes payment of the incentive. (Allow 10 days after
  installation for payment.)

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Preferred Customized Calculation Tools

Please refer to the list below of the preferred software tools to use when calculating the baseline electrical
   usage and the electrical usage of the proposed high-efficiency equipment or system. Software Tool Category :
   eQuest : Nonresidential retrofits and new construction
   EnergyPlus : Nonresidential retrofits and new construction; Whole building simulation
   Carrier® HAP: HVAC
   Trane® Trace TM : HVAC
   DOE OIT Pumping System Assessment Tool (PSAT) : Pumps
   MotorMaster+ : Motors
   AirMaster : Air compressor systems
   Emerson TM Product Selection & Energy Analysis : Refrigeration compressor retrofits using BIN analysis. 2 For projects of
    approximately 250,000 kWh or less
   DOE2.2R: Refrigeration measures
   SkyCalc TM: Skylighting
   BinMaker®: Weather data analysis tool
   AFT Fathom : Fluid flow analysis for industrial systems

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Smart $aver® Custom Incentive Program

•   Custom Incentive Selection Process
        –   Every Application is unique and reviewed on a stand-alone basis
        –   Submitting an application does not guarantee an incentive
        –   Primary Criteria considered-
                 1. Electric savings to the customer (kWh and kW)
                     – Determine the realistic and likely electric reductions
                     – Natural gas, maintenance, operational, etc savings are great for the customer but are not used to
                         determine the incentive
                 2. Incremental project cost (compare EE option to standard/code)
                 3. Cost-effectiveness (encourage the most cost effective options)
                 4. Technical viability (conform to codes and standard engineering practices)
                 5. Useful life
                 6. Payback > 1 year
                 7. Incentive cannot exceed 75% of incremental cost
    –       This review often involves a request for additional information or dialogue for clarification
                                                                                                                           57
Smart $aver® Custom Incentive Program

Examples that are NOT eligible for Custom Incentives
   Renewable energy generation projects, including Solar PV

   Work that was begun prior to Duke Energy incentive approval

   Projects that cannot be supported with data and calculations performed using acceptable engineering methods

   De-lamping of lighting fixtures, unless the project involves a complete redesign and a lighting study shows that the
      proposed light levels are appropriate

   Eliminating electric loads, or moving to another facility

   Replacing electric loads with another fuel source

   Measures that are not sustainable over time

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Non-Residential Smart $aver ® Incentive Programs

Smart $aver® Incentives are available to all Duke Energy business customers with two exceptions:
        Not on a residential rate
        Cannot have opted out
Who can receive the payment? Customer, Vendor, or other Third Party can receive the incentive
  payment

                                                 Important Application Differences
                    Prescriptive Application                                                Custom Application

   1.     Submit application after installation of eligible            1.   Apply before project initiation
          equipment
                                                                       2.   Wait for approval before installation (at least 1
   2.     Applications due 90 days after project completion                 month)

   3.     A sample of all applications are verified after              3.   A high percentage are verified
          installation
                                                                                                                                59
2014 Smart Saver Custom Changes

 Actual equipment purchase not a requirement for eligibility
     Some maintenance, retro-commissioning & re-commissioning type measures are eligible
            Examples
                      –   Repairing inoperable outdoor air damper
                      –   Programming new functionality into an existing BAS
                      –   Re-tuning an existing HVAC system for new occupancy
            Typical analytical rigor and pre-approval requirements still apply
            Persistence of savings is required
            Savings that rely on human behavior are not eligible
            Utilizing existing functionality (like changing set point) is not eligible

 Leased equipment is eligible
     Special conditions and application requirements apply.
     Contact your Trade Ally Outreach Rep before heavy customer engagement

                                                                                                                            60
Non-Residential Smart $aver ® Incentive Programs

Please refer to the online applications for
    complete terms and conditions.

  Additional requirements may apply.

                                                                   61
Case Studies

Davidson College
   The on-campus athletic facility’s energy consumption
   during large events was nearly identical to consumption
                                                             Project Financials
   levels during non-peak times.
                                                             Simple Payback – 2.5 years
   Replaced pneumatic controls with a direct digital         Project Return – 39%
   control system and retrofitted air handlers with new
   valves, damper actuators and variable speed drives.       “The energy efficiency work
                                                             continues to demonstrate an
   Capital cost - $345,000                                   average improvement of 30
   Smart $aver Incentive - $75,000                           percent over readings taken
   Net Customer Cost - $270,000                              before the upgrades.”
   Annual energy savings - $110,000

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Non-Residential Smart $aver ® Incentive Programs

• If you need help:
    - Customer Service: 1-866-380-9580
    - “Ask a Question” online
    - Call your Smart Saver Trade Ally Representatives directly for assistance:
               North Carolina: Larry Airey – 704-773-7282
               Larry.airey@duke-energy.com
                  Charlotte Mecklenburg, Cabarrus, Iredell, Union Counties in NC
                  York, Chester and Lancaster Counties in SC

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