How Can HVAC System Rebates Benefit Your Customers?

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1 How Can HVAC System Rebates Benefit Your Customers?

2 Agenda Application Requirements South Dakota Plan 2018 Rebate Changes Iowa/Illinois Custom Project Discussion Industrial Express Pilot Illinois Only Assessment Program Benefits and Impacts Questions and Discussion

3 Application Requirements

4 Application Requirements Global Information Requirements Applications have been simplified o o Residential applications require only basic equipment and fuel type information Nonresidential applications, except for lighting projects and building shell projects, no longer require conditioned space or fuel type information Remaining section two information is mandatory and important o MidAmerican needs the remaining information to calculate energy savings

5 Application Requirements Residential and Nonresidential Materials and Labor Breakout on Invoices and Applications Requires material and labor costs to be split out o Assists MidAmerican to determine measure rebate levels o Only include material and labor costs associated with the specific project

6 Application Requirements Nonresidential Materials and Labor Breakout on Invoices and Applications If itemized information is not provided, MidAmerican is not able to process the rebate application. We will need to contact you to obtain the necessary information to process the application. INVOICE MINI-SPLIT DUCTLESS HEAT PUMP DESCRIPTION MATERIAL LABOR FUJITSU 1-TON SYSTEM OUTDOOR - M/N: AOU12RLXFW1 S/N: BTP INDOOR - M/N: ASU12RLF S/N: KTA $1, $ OLD UNIT DEMO $ FUJITSU 1.5-TON SYSTEM OUTDOOR - M/N: AOU18RLXFW1 S/N: BSP INDOOR - M/N: ASU18RLF S/N:KSA $1, $ OLD UNIT DEMO $ SUBTOTAL: $3, $2,100.00

7 Application Requirements Residential Materials and Labor Breakout on Invoices and Applications If itemized information is not provided, MidAmerican will use an average Midwest labor cost (based on data from RSMeans) and an estimated time to complete the job to populate the rebate application Example: Replacement Furnace Application Received: Information entered into MidAmerican Energy system: *Labor cost calculation: 12 hours X $60/hour = $720

8 South Dakota Plan

9 South Dakota Residential Res Equipment Measure 2017 Rebate 2018 Rebate Central Air Conditioners < 65 MBtuh Air-to-air and add-on heat pumps < 65 MBtuh Natural Gas Furnace < 225 MBtuh Furnace Fans < 225 MBtuh SEER = $150 per ton SEER = $225 per ton SEER 16 and above = $300 per ton SEER = $225 per ton SEER 16 and above = $300 per ton AND/OR HSPF add $7.50 per ton HSPF 9 and above add $15 per ton SEER = $50 per ton SEER = $100 per ton SEER 17 and above = $300 per ton $60 quality install rebate $150/ton for SEER $200/ton for SEER $350/ton for 17 SEER and above No HSPF incentive available $60 quality install rebate 95% AFUE and above = $300 95% AFUE and above = $300 Must install a new qualifying furnace with 95% AFUE or above. AHRI Certified = $50 Must install a new qualifying furnace with 95% AFUE or above. AHRI Certified = $50 Rebates will be capped at 50% of the installed cost (equipment + reasonable contractor labor only)

10 South Dakota Residential (continued) Res Equipment Measure 2017 Rebate 2018 Rebate Programmable thermostats Measure renamed to Smart Thermostats 5-1-1, 5-2 or 7 day = $25 Only Smart Thermostats are eligible $100 per unit not to exceed 50% of the smart thermostat purchase price (excluding taxes, shipping, installation charges) Ground-source heat pumps EER = $1,200 EER = $1,800 EER 23 and above = $2,400 COP = $200 additional to EER rebate COP4-4.9 = $400 additional to EER rebate COP 5 and above = $600 additional to EER rebate Additional $25 rebate if professionally installed No rebate available Room air conditioners ENERGY STAR certified - $40 No rebate available

11 South Dakota Nonresidential Nonresidential Equipment Measure Central Air Conditioners Small < 65 MBtuh Central Air Conditioners Large MBtuh Natural Gas Boiler < 300 MBtuh Natural Gas Furnace < 225 MBtuh 2017 Rebate 2018 Rebate SEER = $150 per ton SEER = $225 per ton SEER 16 and above = $300 per ton EER = $20 per ton EER = $40 per ton EER 13 and above = $60 per ton AFUE= $3 per MBtuh AFUE = $5 per MBtuh 95 AFUE and above = $7 per MBtuh AFUE= $5 per MBtuh AFUE = $7.50 per MBtuh 96 AFUE and above = $10 per MBtuh SEER = $50 per ton SEER = $100 per ton SEER 17 and above = $300 per ton EER = $20 per ton EER = $37.50 per ton EER 13 and above = $50 per ton AFUE= $4 per MBtuh AFUE = $5 per MBtuh 95 AFUE and above = $6.50 per MBtuh 95% AFUE and above = $300 Rebates will be capped at 50% of the installed cost (equipment + reasonable contractor labor only)

12 2018 Rebate Changes Iowa/Illinois

13 Residential Equipment Rebate Changes Res Equipment Measure 2017 Rebate 2018 Rebate Ductless Minisplit Air Source Heat Pump < 65 MBtuh SEER = $350 SEER 16 and above = $750 HSPF incentive available $150/ton for SEER $200/ton for SEER $350/ton for 17 SEER and above No HSPF incentive available Ductless Minisplit Air Conditioner < 65 MBtuh Central Air Conditioner < 65 MBtuh, AHRI Certified SEER = $350 SEER = $550 SEER 16 and above = $750 SEER = $350 SEER = $550 SEER 16 and above = $750 $50/ton for SEER $100/ton for SEER $300/ton for 17 SEER and above $50/ton for SEER $100/ton for SEER $300/ton for 17 SEER and above Natural Gas Furnace < 225 MBtuh, AHRI Certified Furnace Fans < 225 MBtuh, AHRI Certified Air-Source Heat Pumps < 65 MBtuh 95% AFUE with SAVE rating of excellent = $700 $60 per unit $50 per unit SEER = $550 SEER 16 and above = $750 AND/OR HSPF add $25 HSPF 9 and above add $50 95% AFUE with SAVE rating of excellent = $300 $150/ton for SEER $200/ton for SEER $350/ton for 17 SEER and above No HSPF incentive available Rebates will be capped at 50% of the installed cost (equipment + reasonable contractor labor only)

14 Year-End 2017 Requirements - Residential To qualify for 2017 rebates: Customer must be invoiced for the purchased equipment prior to Dec. 31, 2017 o Rebate applications must be postmarked by Mar. 31, 2018 to qualify for 2017 rebates o Rebate applications postmarked after Mar. 31, 2018 will not be eligible for any rebates

15 Year-End 2018 Requirements Residential To qualify for 2018 rebates: Customer must be invoiced for the purchased equipment prior to Dec. 31, 2018 Rebate applications must be postmarked by Dec. 31, 2018 to qualify for 2018 rebates Rebate applications for equipment purchased in 2018 postmarked after Dec. 31, 2018 will not be eligible for any rebates

16 Year-End 2018 Requirements - Residential To qualify for Central Air Conditioners and ASHPs 2018 rebates: Installed and invoiced prior to Dec. 31, 2018 and tested in 2018 o Rebate applications must be submitted by Dec. 31, 2018 to qualify for a 2018 rebate Installed and invoiced on or after Oct. 1, 2018 but not tested until 2019 o Rebate applications will be accepted through a postmark date of Sept. 30, 2019 to allow for SAVE testing, however, will receive 2019 rebate Must also be pre-enrolled by Dec. 31, 2018 to qualify

17 HVAC SAVE Residential Only Pre-Enrollment o Anything that is not going to be tested in the same year of installment must be pre-enrolled by December 31 st AC Testing Reminders o For assistance (800) o Fan speed must be within manufacturer s specifications o Drill holes o Use the capacity charts o Use manufacturer s fan table description for fan speed setting o Use comment section to communicate o Check third page

18 Nonresidential Equipment Rebate Changes Non Res Equipment Measure 2017 Rebate 2018 Rebate Central Air Conditioner Small < 65 MBtuh Air Source Heat Pump < 65 MBtuh Packaged Terminal Air Conditioners New Construction Packaged Terminal Air Conditioners Replacement Units SEER = $350 SEER = $550 SEER 16 and above = $750 SEER = $350 SEER 16 and above = $500 HSPF incentive available EER > 13.8 = $78 per ton EER > 10.9 = $78 per ton $50/ton for SEER $100/ton for SEER $300/ton for 17 SEER and above $150/ton for SEER $200/ton for SEER $350/ton for 17 SEER and above No HSPF incentive available EER > 13.8 = $35 per ton EER > 10.9 = $35 per ton Rebates will be capped at 50% of the installed cost (equipment + reasonable contractor labor only)

19 Nonresidential Equipment Rebate Changes Non Res Equipment Measure 2017 Rebate 2018 Rebate Natural Gas Boiler < 300 MBtuh Natural Gas Furnace < 225 MBtuh Ductless Minisplit Heat Pump < 65 MBtuh Electronically Commutated Furnace Fan Motors < 225 MBtu AFUE = $2 per MBtuh AFUE = $4 per MBtuh 95 AFUE and above = $5 per MBtuh AFUE = $4 per MBtuh AFUE = $5 per MBtuh 95 AFUE and above = $6.50 per MBtuh 95 AFUE and above = $ AFUE and above = $300 SEER = $350 SEER 16 and above = $500 HSPF incentive available Installed on new qualifying furnace with AFUE 95 or above = $60 $150/ton for SEER $200/ton for SEER $350/ton for 17 SEER and above No HSPF incentive available Installed on new qualifying furnace with AFUE 95 or above = $50 Rebates will be capped at 50% of the installed cost (equipment + reasonable contractor labor only)

20 Year-End 2017 Requirements - Nonresidential To qualify for 2017 rebates: Customer must be invoiced for the purchased equipment prior to Dec. 31, 2017 Actual payment for the above invoice must be made prior to Feb. 1, 2018 Proof of payment from customer to contractor must be submitted with application if received after Feb. 1, 2018 o Proof of payment includes: credit card receipt/statement, canceled check, money order receipt, wire transfer documentation or AIA documentation for new construction Installation must be completed and rebate application submitted within six months of the equipment invoice date

21 Year-End 2018 Requirements - Nonresidential To qualify for 2018 rebates: Customer must be invoiced for the purchased equipment prior to Dec. 31, 2018 Installation must be completed and rebate application submitted within six months of the equipment invoice date or by Dec. 31, 2018, whichever comes first Rebate applications for equipment purchased in 2018 postmarked after Dec. 31, 2018 will not be eligible for any rebates

22 Custom HVAC Project Discussion

23 Custom HVAC Project Discussion Rebate changes Preapproval guideline o Preapprovals are valid for 6 months unless otherwise noted o If project not installed and rebate application not submitted by preapproval expiration date, project will be re-evaluated under current terms. This may result in the project no longer eligible for rebates. NEW calculation process o Electric Iowa/Illinois $.12 per kwh first year savings o Natural gas Iowa/Illinois - $2.00 per therm first year savings South Dakota - $1.50 per therm first year savings

24 Custom HVAC Project Checklist Existing Proposed Building use and occupancy schedule Equipment operation hours Mechanical equipment specifications Control type and sequences of operation and system setpoints Data file containing relevant measurements e.g., kw, air pressure, temperature, etc. (if possible) Project cost (itemized material and labor cost)

25 Custom HVAC Project Discussion Goal obtain all information necessary to complete the review Handouts o Custom HVAC Project Checklist o Custom Systems Application sample for HVAC project

26 Industrial Express Pilot Illinois Only

27 Industrial Express Pilot What A turnkey, streamlined offering for small manufacturers Who Trade allies conduct outreach, assess, install, and receive rebates Where Illinois only When Launching January 2018 Why To better serve small industrial customers, bonus for multiple end-uses

28 Steps to Join the Program Step 1: Become a Trade Ally Partner Step 2: Complete Qualified Service Provider Agreement Step 3: Complete training with program staff and begin marketing service Program Manager: Dustin Schneider Direct: Cell: Dschneider@nexant.com

29 Assessment Programs Benefits and Impacts

30 Assessment Programs Benefits and Impacts What is an assessment program? Program offering that identifies, analyzes and reports on cost-effective energy-savings opportunities at no cost to the customer. The intent of an assessment offering is to: o Identify areas of possible improvements in facilities o Engage customer in making energy efficiency improvements

31 Assessment Programs Benefits and Impacts Benefit to YOU, the Trade Ally Incorporate assessment recommendations into your business model Unbiased third party validation Energy Partner o Energy Manager Industrial Partners o Energy Advisor Commercial Energy Solutions, Multifamily and Agribusiness programs

32 Questions and Discussion