Program Application Guide Commercial Geothermal Rebate Program

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1 Program

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3 Financial rebates provided by the : 1. Feasibility Study Assistance For qualifying feasibility studies, SaskPower provides assistance up to 50 per cent of the first $5,000 and up to 25 per cent of the remaining cost of the study (to a maximum grant of $10,000 per study). The amount of the assistance will be limited to 20 per cent of the potential System Installation Rebate. Note: By offering to provide Feasibility Study Assistance, SaskPower and SRC makes no representation or warranty for the fitness and quality of the design, installation or performance of the system proposed by your engineer/architect. This responsibility resides solely with the designers, manufacturers and contractors/installers of the equipment and systems. For complete details, refer to the Terms and Conditions on the Application form. 2 System Installation Rebate The System Installation Rebate is calculated as 15% of the eligible costs to a maximum rebate of $100,000 Eligible Costs: Costs directly related to the installation of the geothermal heat pump system and associated ground loop with a capacity sized to accommodate up to a maximum of 100% of the base building transmission and infiltration heating loads (systems oversized larger than 100% will be prorated) are eligible. (NOTE: submitted cost estimates, installer preliminary quotations and final installer invoices must clearly break out and identify the above costs individually, invoices without required detail will be rejected) Non-Eligible Costs: System costs directly related to the design and installation of the geothermal heat pump additional installed system capacity to handle ventilation or water heating loads are not eligible. The heating system distribution costs are not eligible, these include but are not limited to heating system piping, ductwork, in slab flooring, air handling units, heating coils etc. Costs directly related to the installation of the geothermal heat pump system oversized greater than 100% of the base building transmission and infiltration heating loads are not eligible. 2

4 Tools and equipment purchases for use during the geothermal heat pump system installation are not eligible costs. All other project costs unrelated to the installation of the geothermal heat pump and the installation of the ground loop are not eligible. Program Eligibility Your building eligibility and customer classification determine your eligibility for Commercial Earth Power Program rebates. 1 General Eligibility To be eligible for the program an applicant must be a customer of SaskPower, City of Swift Current of the City of Saskatoon and be eligible for the Farm or General Service Electricity rate excluding residential dwellings. The only exception to this clause will be for multi-unit residential buildings that meet specific eligibility criteria outlined on the next page. 2 Building Eligibility Building Type Current Primary Space heating Fuel Will it cost less than $9,000 to run natural gas to the building s property site? Eligible for Feasibility Study assistance? Eligible for a System installation rebate? New Construction Existing Retrofit Yes Yes To be determined Not Applicable by feasibility study No Yes Yes Electric or Yes Yes Yes Other No Yes Yes Natural Gas Yes No No 3

5 Multi-Unit Residential Building Eligibility In addition to meeting the eligibility requirement outlined on the previous page, a multiunit residential building must meet the following criteria to be eligible for feasibility study assistance and/or a System Installation Rebate. Apartment Style Buildings To be eligible, the project must meet all of the following conditions: Minimum 8 self-contained living units in one detached building Common building entrance and hallway Property must have at least one General Service account to serve the building s common areas Exception for Housing Authority Projects Multi-unit residential projects which do not fit into the criteria outlined above, MAY be considered for eligibility if the building is being constructed and operated by an Official Housing Authority (regional/ provincial or national) and meets a long-term commercial focus complying with Geothermal Rebate Program objectives. Contact the Geothermal Rebate Program coordinator for additional details. All other multi-unit residential buildings* are not eligible under the Commercial Geothermal Rebate Program *Other multi-residential buildings include duplex, triplex, row/ town housing and apartment style buildings that do not meet the above criteria. 4

6 3 Customer Classification For eligible buildings, the Customer Classification under the Commercial Geothermal Rebate Program falls under two sectors (1) Electric Sector and (2) Natural Gas Sector. 1. Electric Sector Customers meet one of the following criteria: It would cost more than $9,000 to run an existing natural gas distribution pipeline to the building property site; or Building has used electricity, oil, wood or propane as the primary space heating fuel for the previous five (5) years of operation. Electric Sector Customers do not require a feasibility study, as they pre-qualify for a System Installation Rebate. Electric Sector Customers that wish to perform a feasibility study may do so and receive Feasibility Study Assistance. 2. Natural Gas Sector Customers meet the following criteria: New construction only it would cost less than $9,000 to run an existing natural gas distribution pipeline to the building property site Natural Gas Sector Customers require a feasibility study to compare the economics of providing the building s base heating load with geothermal, electricity and natural gas. Qualifying feasibility study proposals will receive Feasibility Study Assistance as outlined in the Financial Rebates section on page 3. Buildings not eligible Existing buildings currently heated by natural gas are not eligible for Feasibility Study Assistance or a System Installation Rebate from the Commercial Geothermal Rebate Program. Overview of Customer Classification Customer Sector Electric Sector Natural Gas Sector Feasibility Study required? No Yes 5

7 Contact Information If you have any questions/concerns or require more information regarding the commercial Geothermal Rebate Program, please contact: Telephone: (306) (indicate that you are calling regarding the Geothermal Rebate Program) Mail: Saskatchewan Research Council Attn: Building Performance Research Drive Regina, SK S4S 7J7 Program Website: or SaskPower.com 6

8 HOW TO FIND A GEOTHERMAL INDUSTRY PROFESSIONAL FIND A GEOTHERMAL HEAT PUMP INSTALLER/CONTRACTOR The following organization can provide you with a list of CGC accredited geothermal heat pump installers in your area. Please note you must use a CGC accredited installation contractor to participate in the. Accredited Installers responsible for drilling, well construction and loop installation are recommended to complete Canadian GeoExchange Coalition (CGC) Drilling, Well Construction and Loop Installation training and work towards Accreditation (potential future requirement for program eligibility). Canadian GeoExchange Coalition (CGC) 1030 Rue Cherrier, Suite 501 Montreal, QC H2L 1H9 Phone: (514) ext info@geo-exchange.ca Website: FIND A COMMERCIAL GEOTHERMAL SYSTEM DESIGNER The following organization can provide you with a list of CGC Commercial Designers that have successfully completed the training and are working towards accreditation in your area. Professional Designers responsible for commercial geothermal system design are recommended to complete Canadian GeoExchange Coalition (CGC) Commercial Designers training and work towards Accreditation (potential future requirement for program eligibility). Canadian GeoExchange Coalition (CGC) 1030 Rue Cherrier, Suite 501 Montreal, QC H2L 1H9 Phone: (514) ext info@geo-exchange.ca Website: 7

9 FIND AN ENGINEER OR ARCHITECT Consulting Engineers of Saskatchewan (CES) Suite 12, th Avenue Regina, SK S4R 1C2 Phone: (306) Fax: (306) ces@sasktel.net Website: Association of Professional Engineers and Geoscientists of Saskatchewan (APEGS) Suite 104, th Avenue Regina, SK S4P 0V6 Phone: (306) Toll Free within North America: Fax: (306) apegs@apegs.sk.ca Website: apegs@apegs.sk.ca Saskatchewan Association of Architects Broadway Ave. Saskatoon, Saskatchewan S7N 1A9 Phone: Fax: Website: 8

10 INSTALLER AND DESIGNER PROJECT REQUIREMENTS Installer Requirement The geothermal system installer must be a Canadian Geoexchange Coalition (CGC) Accredited Installer. Building Code Compliance All new buildings and building alteration projects (including heating system replacements) shall be designed and built in compliance with The Uniform Building and Accessibility Standards Act, the National Building Code (NBC) of Canada as amended for use in Saskatchewan, and Regulations of Provincial and Municipal authorities having jurisdiction. The most severe of these shall apply in case of conflict of codes. Professional Designer Requirement Professional Designers, i.e. Architects, Structural, Mechanical and Electrical Engineers skilled in the type of work involved with the project are required on most building construction and heating system retrofit projects. Exemption from this professional designer requirement may be granted if the building project (includes new buildings and building alteration projects including heating system replacements) is as follows: o The application for the Commercial Geothermal Program applies to a farm building. o The building has a building area of 600m 2 or less and is three storeys or less in building height and consists of either: residential, business and personal services, merchantile, medium hazard industrial or low hazard industrial major occupancies. All buildings (excluding farm buildings) greater then that of 600m2 and more than three storeys in building height are required to have a professional designer undertake the design or the design review of all Commercial Geothermal Retrofits. Professional designers responsible for commercial geothermal system design are recommended to complete Canadian GeoExchange Coalition (CGC) Commercial Designers training and work towards Accreditation (potential future requirement for program eligibility). If a Professional Designer as described above is deemed not required, than the following Canadian GeoExchange Coalition Designer requirements will apply to the chosen Commercial Geothermal Program system designer for program eligibility: 9

11 o Building Area Less than 1393 m 2 (15,000 sq. ft): requires a CGC Accredited Residential and Small System Designer to perform the system design. o Building Area Greater than 1393 m 2 (15,000 sq. ft): requires a Professional Designer as described above. The required professional designers or another suitably qualified person responsible to the designer shall be responsible for: Preparation of signed and sealed plans of the construction work Reviewing construction of the building or alteration to determine conformance with the design. Reviewing all shop drawings and related documents to determine conformance with the design Reviewing the workmanship, materials and material tests during the process of construction. The above interpretation is an approximate summarization of the National Building Code (NBC) of Canada adopted for use in Saskatchewan. For a specific detailed description of major occupancies and application of the NBC please refer to Division B, Articles , and of the 2005 NBC. 10

12 REBATE APPLICATION PROCESS SaskPower offers both Feasibility Study Assistance and System Installation Rebates for geothermal heat pump projects under the. To qualify and apply for financial rebates from the Commercial Geothermal Rebate Program, you must: Step 1 Program eligibility criteria Review the PROGRAM ELIGIBILITY CRITERIA and the APPLICATION and AGREEMENT found in the Application package. This information will let you determine whether you are eligible to participate and the terms of agreement. Step 2 Determine customer classification Determine the customer sector of your building: 1. ELECTRIC SECTOR Electric Sector Customers must meet one of the following criteria: It would cost more than $9,000 to run an existing natural gas distribution pipeline to the building property site; OR Building has used electricity, oil, wood or propane as primary space heating fuel for the previous five (5) years of operation. 2. NATURAL GAS SECTOR Natural Gas Sector Customers meet the following criteria: New Construction only It would cost less than $9,000 to run an existing natural gas distribution pipeline to the building property site. Buildings not eligible: Existing buildings currently heated by natural gas are not eligible for Feasibility Study Assistance or a System Installation Rebate. If you are unsure of the availability of a natural gas main to your building site, please contact your local SaskEnergy district office. If you have any questions regarding specific project eligibility, please contact the at (306)

13 Step 3 Apply for Feasibility Study Assistance This step is: optional for Electric Sector Customers Skip ahead to Step 7, if you do not want a feasibility study. mandatory for Natural Gas Sector Customers To apply for Feasibility Study Assistance, have your engineer or architect complete a Commercial Earth Power Program Feasibility Study Proposal (Form i). Geothermal Project Requirements Your engineer/architect should reference Appendix 1 Geothermal Project Requirements on page 17 when preparing a Feasibility Study Proposal or if completing a Feasibility Study Report. The document outlines important guidelines put forth by the Commercial Geothermal Rebate Program. Your Feasibility Study Proposal must be approved by SRC before your feasibility study will start. If the study or project has commenced before you receive SRC s approval, Feasibility Study Assistance WILL NOT BE PROVIDED. For more details on the Feasibility Study Proposal, see page 13. For more information on how to find an engineer/ architect, see page 6. DURING THIS STEP Customer needs to submit: Feasibility Study Proposal (Form i) completed by your engineer/architect A preliminary copy of the building heat loss calculation which includes a summary breakdown of the unoccupied base transmission and infiltration loads. 12

14 Step 4 SRC reviews Feasibility Study Proposal SRC will review your Feasibility Study Proposal and notify you whether it has been accepted or rejected. DURING THIS STEP SRC will send the customer: Written correspondence regarding the acceptance/rejection of your Feasibility Study Proposal and amount of Feasibility Study Assistance applicable Step 5 Feasibility study completion Once the Feasibility Study Proposal is accepted, your engineer/architect must prepare a Feasibility Study Report in accordance with the Feasibility Study Template and submit to SaskPower. DURING THIS STEP Customer needs to submit: Completed Feasibility Study Report prepared by your engineer/architect in accordance with the Feasibility Study Template (referenced on page 15). Step 6 SRC reviews feasibility study SRC will review the submitted Feasibility Study Report. If deemed to be complete, SRC will provide written notification to the customer and Feasibility Study Assistance payment instructions. SRC will also evaluate if the customer may be eligible for a System Installation Rebate. Payment for Feasibility Study Assistance will not be forwarded until the Feasibility Study Report has been accepted by SRC. DURING THIS STEP SRC will send to the customer: A letter notifying the customer: If the Feasibility Study Report has been reviewed and accepted and instructions regarding payment of Feasibility Study Assistance 13

15 If the proposed geothermal project is eligible for a System Installation Rebate Ensure you receive this written project eligibility approval PRIOR to advancing to the next step Step 7 Apply for System Installation Rebate This step must be completed by both Electric and Natural Gas Sector customers prior to the purchase or installation of the geothermal heat pump system. Electric Sector customers are eligible to apply for a System Installation Rebate. SRC will advise Natural Gas Sector customers if they are eligible. (See Step 6.) Apply for a System Installation Rebate by completing the Commercial Geothermal Rebate Program Application and Agreement (Form A) and Conditional System Installation Rebate Calculation Summary (Form B) application forms. Forward the completed application forms to SRC. DURING THIS STEP Customer needs to submit: Completed Application and Agreement (Form A) Completed Conditional System Installation Rebate Calculation Summary (Form B) A copy of the building heat loss calculation which includes a breakdown of the unoccupied base transmission and infiltration loads Step 8 SRC reviews System Installation Rebate application SRC will review the System Installation Rebate application forms, and approve or reject the Conditional System Installation Rebate. DURING THIS STEP SRC will send to the customer: A letter notifying the customer: o If the System Installation Rebate application has been reviewed and Conditional System Installation Rebate approved o If approval has been granted to commence the installation of the geothermal heat pump system A package of completion paperwork will also be included with the written correspondence above: Completion Declaration (Form C), Completion Questionnaire 14

16 (Form D), Installed Equipment Summary (Form E), Project System Design Summary (Form F) Step 9 Geothermal heat pump system installation After written approval is received, the customer is authorized to purchase and begin installation of their geothermal heat pump system. Permits: The customer is responsible for obtaining all required permits prior to commencement of the installation of the geothermal heat pump system. These include, but are not limited to: Building permit (Occupancy Certificate) Electrical permit (Certificate of Electrical Approval) Water Rights Licence to Use Ground Water and Approval to Operate Works to use ground water for heating/cooling purposes. (open well to well systems only) Contact Saskatchewan Watershed Authority at (306) , or go to the website at for more information. A valid copy of required permits must be provided to SRC before payment of the System Installation Rebate. Step 10 Project completion and documentation Once the geothermal heat pump system is installed, the customer and/or installer/engineer must perform an inspection and complete the Completion Declaration. This declaration certifies that all the equipment covered by the System Installation Rebate has been installed and is fully operational. Submitting photos of construction and completed project may expedite payment (provide signed letter indicating that SaskPower and SRC may use submitted photos for program promotion and presentations). The following documents listed below must be completed and sent to SRC at the completion of the project: DURING THIS STEP Customer needs to submit: 1. Completion Declaration (FORM C) 2. Completion Questionnaire (FORM D) 3. Installed Equipment Summary (FORM E) 15

17 4. Project System Design Summary (FORM F) (The four documents above will be sent to the customer after initial project approval in Step 8.) 5. Copies of the paid project invoices 6. Start-up verification and manufacturer test data sheets (performance specs) in accordance with ARI/ISO (forced air)/ (water-to-water). 7. Copy of Certificate of Approval (electrical inspection). 8. Copy of Occupancy Certificate (not required for existing retrofits where one is not issued). 9. Copy of Water Rights Licence to Use Ground Water and Approval to Operate Works for Heating/Cooling Purposes from Saskatchewan Watershed Authority (open loop well to well systems only). 10. Valid copies of any other required permits.all documentation requested above must be completed in full, and forwarded to SRC prior to final approval Step 11 Potential Post-installation site visit and final approval After SRC has received the documentation requested in Step 10, a SaskPower or SRC representative may perform a site visit to confirm the make and model of the geothermal heat pump equipment installed. The conditional System Installation Rebate may be increased or decreased, if the actual system, installed equipment or building design have changed. The final System Installation Rebate amount will then be calculated and approved. The rebate cheque will then be processed and sent to the Payee. DURING THIS STEP SRC will send the customer: Written correspondence acknowledging project completion and final System Installation Rebate amount Rebate cheque 16

18 FEASIBILITY STUDY PROPOSAL APPLICATION AND FESIBILTY STUDY TEMPLATE For qualifying feasibility studies, SaskPower provides assistance up to 50 per cent of the first $5 000 and up to 25 per cent of the remaining of the study cost, to a maximum grant of $ per study. The amount of the assistance will be limited to 20 per cent of the potential System Installation Rebate. All feasibility study proposals and feasibility studies submitted to SRC must be completed in accordance with the Feasibility Study Proposal Application Form and Feasibility Study Template Feasibility Study Proposal Application The Feasibility Study Proposal Application is labeled (Form i) and is one booklet. The Feasibility Study Proposal Application is optional for Electric Sector customers as they are already considered an electric heat base case. Electric Sector customers still wishing to investigate the feasibility of a geothermal heat pump system may do so, and are still eligible for Feasibility Study Assistance. The Feasibility Study Proposal Application is mandatory for Natural Gas Sector customers wishing to participate in the Commercial Earth Power Program. Customers classified as Natural Gas Sector must show SRC that they are an electric heat base case to be eligible for Feasibility Study Assistance and/or a System Installation Rebate. Only NATURAL GAS SECTOR projects which can demonstrate a reduction in green house gas emissions and a positive Net Present Value will be deemed eligible for a System Installation Rebate. Hire an engineer/architect to complete the Feasibility Study Proposal Application. For more information on how to find an engineer/architect, see page 8. Note: Your Feasibility Study Proposal Application must be approved by SRC before the feasibility study is initiated Feasibility Study Assistance WILL NOT BE PROVIDED if the study or project has commenced prior to this SRC s approval 17

19 Feasibility Study Template The Feasibility Study Template designed for engineers/architects is a guide towards preparing a Feasibility Study Report that provides the customer/building owner with an appropriate level of information to make a sound decision towards their future building HVAC system, whether it is geothermal, electricity or natural gas. To obtain a Feasibility Study Template select one of the following options: 1. Download via the Internet at saskpower.com Click on the appropriate Feasibility Study Template 2. Request by telephone to the Telephone: (306) Send a written request by mail to the Saskatchewan Research Council Attn: Building Performance Research Drive Regina, SK S4S 7J7 18

20 GENERAL TERMS AND CONDITIONS FEASIBILITY STUDY ASSISTANCE AND COMMERCIAL GEOTHERMAL REBATE PROGRAM In order for commercial customers to be eligible for Feasibility Study Assistance and/or a System Installation Rebate, they must meet/adhere to the following general eligibility criteria: Feasibility Study Assistance Eligibility Criteria Only studies conducted by engineers or architects registered to practice in Saskatchewan will be considered for funding. SRC reserves the right to reject proposals to study geothermal heat pump installations which would not produce predictable, sustainable savings Studies for projects that achieve savings by switching to other energy sources, and studies or projects initiated prior to the approval of this Application are not eligible under this program. Customers receiving financial assistance from other government sources to become more energy efficient must disclose this funding and may not be eligible for Feasibility Study Assistance at SaskPower s discretion. Eligibility Criteria Program applicants must be a SaskPower, City of Swift Current or City of Saskatoon customer and must be eligible for the Farm or General Service Electricity Rate excluding residential dwellings. Payment of Program Feasibility Study Assistance or a System Installation Rebate is conditional upon the Customer remaining a SaskPower, City of Saskatoon or City of Swift Current customer for a minimum period of 36 months from the date of payment of the applicable rebate. In the event that the Customer ceases to be a SaskPower, City of Saskatoon or City of Swift Current customer prior to the expiry of the said 36 month period, the Customer shall forthwith repay to SaskPower a pro rata proportion of the rebate equivalent to 1/36th of the total rebate, multiplied by the number of months or partial months remaining in the 36 month period. Rebates are not available for projects in progress or already completed. Existing buildings currently heated by natural gas are not eligible for Feasibility Study Assistance or System Installation Rebates Existing buildings that have been heated by electricity, oil, wood or propane for the past five years and are constructed in areas served by natural gas will be eligible for the Program. One System Installation rebate will be allowed for each eligible project. 19

21 Installed forced air (water-to-air) geothermal heat pump units must be certified by CSA or ARI/ISO Installed Fluid-to-Fluid geothermal heat pumps must be manufacturer rated in accordance with ARI/ISO All systems must be designed and installed in accordance with the current edition of CSA (Design and Installation of Earth Energy Systems for Commercial and Institutional Buildings). Direct Expansion (DX), standing-column well, air source, internal source or other heat pump systems that are not covered by CSA 448 are not eligible for participation in the Program, Canadian Electrical Code and all codes having jurisdiction. Participating buildings must be heated for the entire heating season (September May) and use the installed geothermal heat pump system as the building s primary heating source. A geothermal heat pump system sized to provide up to 100% of the base building transmission and infiltration heating loads will be eligible for a System Installation rebate. Additional installed system capacity to handle ventilation or water heating loads are not applicable in calculating the rebate. Products, equipment and their applications and installations, must be new and meet or exceed energy efficient regulatory requirements in Saskatchewan. Products and equipment which have received financial assistance under any other federal, provincial or SaskPower energy conservation program must be disclosed and may not be eligible for this Program. SRC must be notified in writing of any changes to the building design that affects the original application before the purchase and installation of any energy efficient equipment in order for the changes to be eligible for rebates. Payment of any rebate is limited to 100% of incremental product costs. SRC and SaskPower decisions relating to product or customer eligibility, energy savings potential of the proposed projects, amount of rebates, or other related issues will be final and binding on all parties. Installer requirement Geothermal heat pump system installations must be done by an accredited installer/contractor in good standing and recognized by the Canadian Geoexchange Coalition (CGC). Building Code Compliance All new buildings and building alteration projects shall be designed and built in compliance with The Uniform Building and Accessibility Standards Act,the National Building Code (NBC) of Canada as amended for use in Saskatchewan, and 20

22 Regulations of Provincial and Municipal authorities having jurisdiction. The most severe of these shall apply in case of conflict of codes. Professional designer requirement Professional designers, i.e. Architects, Structural, Mechanical and Electrical Engineers skilled in the type of work involved with the project are required on most building construction and heating system retrofit projects. Exemption from this professional designer requirement may be granted if the building project (includes new buildings and building alteration projects including heating system replacements) is as follows: o The application for the Commercial Geothermal Program applies to a farm building. o The building has a building area of 600m 2 or less and is three storeys or less in building height and consists of either: residential, business and personal services, merchantile, medium hazard industrial or low hazard industrial major occupancies. All buildings (excluding farm buildings) greater then that of 600m2 and more than three storeys in building height are required to have a professional designer undertake the design or the design review of all Commercial Geothermal Retrofits. Professional designers responsible for commercial geothermal system design are recommended to complete Canadian GeoExchange Coalition (CGC) Commercial Designers training and work towards Accreditation (potential future requirement for program eligibility). If a Professional Designer as described above is deemed not required, than the following Canadian GeoExchange Coalition Designer requirements will apply to the chosen Commercial Geothermal Program system designer for program eligibility: o Building Area Less than 1393 m 2 (15,000 sq. ft): requires a CGC Accredited Residential and Small System Designer to perform the system design. o Building Area Greater than 1393 m 2 (15,000 sq. ft): requires a Professional Designer as described above. If you are requesting exemption from the professional designer requirement attach written documentation as to the which exemption rule applies to your project. Indicate the CGC Accredited Residential and Small System Designer chosen to perform the system design (This exemption will not apply to most projects.) IN ORDER TO QUALIFY FOR THE SYSTEM INSTALLATION REBATE, THIS ENTIRE APPLICATION MUST BE APPROVED IN WRITING BY AN AUTHORIZED SRC COMMERCIAL GEOTHERMAL REPRESENTATIVE BEFORE ANY PROTION OF THE SYSTEM IS PURCHASED OR INSTALLED. 21

23 APPENDIX 1 GEOTHERMAL PROJECT RQUIREMNTS For review by mechanical engineer, architect or system designer 1 0 Introduction Please use the following information in conjunction with the Feasibility Study Proposal Form and the appropriate Feasibility Study Template when preparing a feasibility study. 2 0 Project eligibility Geothermal heating systems sized to provide up to 100% of the base building transmission and infiltration heating loads only, will be eligible for an installation rebate. Eligible heating systems must be designed to operate a minimum of 1500 full load hours in one heating season (September through May). SRC reserves the right to reject proposals to study geothermal heat pump installations which are deemed to be a significant risk of not producing predictable, sustainable savings. Direct expansion, standing-column well, air source, internal source or other heat pumps that are not covered by CSA 448 Design & Installation of Earth Energy Systems, are not eligible for program participation. Please review the detailed Program Eligibility Criteria on the Commercial Geothermal Rebate Application Form. 3 0 Determining an existing building s Customer Classification 3 1 Existing buildings with fossil fuel fired heating systems Natural Gas Heated Buildings Existing buildings or portions of buildings heated with natural gas are NOT ELIGIBLE for Feasibility Study Assistance or a System Installation Rebate under the Commercial Geothermal Rebate Program. These customers are eligible for financial rebates through the SaskEnergy Commercial Boiler Program for installing high-efficiency natural gas hydronic spaceheating systems in commercial new construction and retrofit applications. Fuel Oil / Propane / Other Fuel Heated Buildings Customers who have heated their existing building with other heating fuels (other than natural gas) for the past five years that have historically been more costly to use for base load heating than electricity will be considered for eligibility as ELECTRIC SECTOR.. Contact an authorized Geothermal Rebate Program representative regarding eligibility. See section 6. 22

24 3 2 Existing buildings with electric heating systems If the building s heating load has been provided for the last 5 years by electricity that heating load would be considered eligible through the ELECTRIC SECTOR process. This eligibility would only apply to eligible heating loads as described in section Determining a new building project s Customer Classification 4 1 New building projects If it would cost less than $9,000 to bring natural gas to the customer s property then they will be required to follow the process of a NATURAL GAS SECTOR customer and to go through the mandatory feasibility study process. Only base building transmission and infiltration heating loads will be considered for eligibility. See section New additions to existing buildings If it would cost less than $9,000 to bring natural gas to the customer s building site then they will be required to follow the process of a NATURAL GAS SECTOR customer and to go through the mandatory feasibility study process. Base building transmission and infiltration heating loads in the new addition only will be considered for eligibility. See section 6. The existing portion of the building would be assessed as NOT ELIGIBLE for rebates as per the above descriptions for existing buildings. 5 0 Mandatory analysis required for all Natural Gas Sector customers SRC requires that a feasibility study be completed to provide the customer with capital and operating cost estimates for a minimum of four base heating load options including: 1) Natural Gas option (minimum mid-efficiency) 2) Electricity 3) Geothermal heat pump system 4) Hybrid Combinations of the above energy sources If cooling is part of the feasibility study comparison then a minimum of an ENERGY STAR traditional electric cooling system efficiency shall be utilized. Successful Feasibility Studies must demonstrate the following: o favourable Net Present Value Calculations o greenhouse gas emission reductions. Customers that are classified as ELECTRIC SECTOR can proceed directly to the System Installation Rebate Application if a feasibility study is not desired 6 0 Heating loads eligible for rebates Under the, System Installation Rebates are calculated based on 15% of eligible costs to maximum rebate of $100,

25 The section below outlines which loads are eligible for the purposes of calculating the rebate Eligible Costs: Costs directly related to the installation of the geothermal heat pump system and associated ground loop with a capacity sized to accommodate up to a maximum of 100% of the base building transmission and infiltration heating loads (systems oversized larger than 100% will be prorated) are eligible. (NOTE: submitted cost estimates, installer preliminary quotations and final installer invoices must clearly break out and identify the above costs individually, invoices without required detail will be rejected) Non-Eligible Costs: System costs directly related to the design and installation of the geothermal heat pump additional installed system capacity to handle ventilation or water heating loads are not eligible. The heating system distribution costs are not eligible, these include but are not limited to heating system piping, ductwork, in slab flooring, air handling units, heating coils ect. costs directly related to the installation of the geothermal heat pump system oversized greater than 100% of the base building transmission and infiltration heating loads are not eligible. Tools and equipment purchases for use during the geothermal heat pump system installation are not eligible costs. All other project costs unrelated to the installation of the geothermal heat pump and the installation of the ground loop are not eligible. 6 1 Envelope Base Heating Loads If an electric heat base case has been adequately justified, a geothermal heat pump system sized to provide up to 100% of the base building unoccupied transmission and infiltration heating loads (systems oversized larger than 100% will be prorated) will be eligible for a Commercial Geothermal Rebate. 6 2 Continuous Ventilation Base Heating Loads Natural Gas would cost less than $9,000 to bring to Building Site Natural gas ventilation air heating is considered by the program as base case and therefore equipment installed to serve this load is not eligible for rebates No Natural Gas Line would cost more than $9,000 to bring to Building Site Electric ventilation air heating with air to air heat recovery is considered by the program as base case. Continuous ventilation base loads incremental to the loads that the heat recovery system can service will be considered on an individual basis. 24

26 6 3 Non-Continuous or Intermittent Ventilation & Infiltration Heating Loads Non-continuous and intermittent heating loads (mechanical or passive ventilation and door openings) are not eligible for rebate. 6 4 Service Water Heating Loads Not eligible for rebates at this time. 7 0 Engineering calculation methods 7 1 Manual or Spreadsheet Methods Manual or spreadsheet (Excel or equal) methods utilizing 30 year normal Degree Day or Bin weather data calculations are acceptable if all calculations and assumptions are adequately documented in the study report. 7 2 Modeling Software NRCan s EE4 or other commercially available energy modeling software may be utilized to obtain the annual energy consumption and monthly electrical peaks of all options. However, the reference case automatically compiled by the EE4 software should not be used. The building envelope system, lighting system and any other measure covered in a SaskPower prescriptive rebate program must remain constant for both the base case and proposed case comparison analysis. A breakout of the individual measures or loads must be presented and interactive effects of the measures shall be taken into consideration. 7 3 Technical Review Results of the energy calculations obtained through manual, spreadsheet or modeling methods will be reviewed by SRC technical staff to ensure that the results are acceptable and realistic and that they meet program requirements. Copies of electronic model or spreadsheet files shall be provided upon request. 8 0 Required supporting documentation A breakout of the energy efficiency measures and heating loads, including the estimated energy and customer savings and incremental costs are required to be documented in the feasibility study. This will provide the customer with the necessary information to make an informed decision on the proposed energy efficient measures and is necessary to allow SRC to fairly assess the potential impact of the proposal. Supporting equipment performance data, load calculations, detailed cost estimates and assumptions that were used in the calculations and estimates must be documented and provided in this analysis 9 0 Geothermal heating system coefficient of performance (COP) Savings claims should be based on detailed engineering calculations and estimates of the system s COP at design conditions and over several heating seasons. The Seasonal Heating COP is defined as the total output energy over a heating season divided by the total input energy over a heating season at average operating conditions that could be 25

27 expected over an expected 20 year operating life. The CSA C13256 standard for rating heat pump equipment performance only requires inclusion of the portion of the fan and pump power required to overcome internal resistance. The additional fan and pump power and energy required to overcome all external pressure drops must therefore be added to the system loads. Performance ratings also do not account for cycling losses and imperfect field operating conditions and maintenance practices. Not all equipment is independently tested and certified. Based upon Manitoba Hydro s Commercial Earth Power Program findings it has been found that the most important factors affecting and limiting the long term performance of the geothermal system is the proper design, installation, and maintenance of the systems. These factors include the design and installation of the earth loop or groundwater heat exchanger, heating and cooling distribution system, and maintenance of the heat pumps, filters, coils, heat exchangers and well systems. These factors are generally unknown at the time of the feasibility study, so conservative performance estimates are justified. At present no minimum standards or regulations are enforced for earth loop design and installation. Due to the many factors that affect the actual system efficiency, SRC expects that the average long term Design Condition COP s and Seasonal COP s for systems installed and operating in Saskatchewan fall between 2.5 and 3.0. Performance claims exceeding this range, will not be endorsed by SRC Maximum full load heating hours 10 1 Maximum Theoretical Hours The maximum full load heating hours theoretically possible for a heating system sized to meet exactly 100% of the building design heat loss can be calculated as follows: Divide the Environment Canada 30 year normal 18 C base heating degree hours of the location by the 2.5% design temperature difference and multiply the result by a Cd factor of less than 1 to derate the hours to account for the contribution of the internal heat generating loads (people, lighting, appliances, office & cooking equipment etc.) and external heat gains (passive solar). For example: Regina s theoretical maximum full load heating hours for a heating system sized to exactly meet the buildings design heat load, with no external or internal heat gains would be: 5613 deg C days x 24 h/d / (22 C -(-33 C)) = 2449 hours. Multiplying 2449 hours by a realistic Cd factor of 0.8 to derate for internal and external heat gain contribution to the heating load yields 1959 full load heating hours Conventional Heating Systems Heating systems are typically upsized for various reasons, such as providing a factor of safety and to allow the system to recover more quickly from night setback or system outages on cold days. Systems with extra output capacity will naturally run fewer full load hours depending on how much extra capacity they have. Often as building envelopes are upgraded with higher insulation levels and sealed up for air tightness, the amount of 26

28 extra capacity can increase from when it was originally designed and constructed. Full load hours of 1000 to 1500 are common in many existing buildings Geothermal Systems Geothermal systems which are sized to meet less than 100% of the design heat load of the building will run a higher number of full load hours and use an auxiliary heating source to supplement and make up the difference. For example: A heat pump sized to meet 70% of the design heat load should provide approximately 95% of the annual heating energy required by the building but should run 35% more equivalent full load hours than a unit sized for 100% of design load 11 0 Maximum full load cooling hours Depending on the internal and external heat loads to which the building is exposed, the full load cooling hours of an optimally sized cooling system should be between 400 and 600 hours per year. Geothermal systems sized to meet 70% to 100% of the design heating load will normally be oversized for the cooling load and should therefore run even less full load hours per year. TECHNICAL QUESTIONS/CONCERNS Contact: Shawn Wedewer, P. Eng or Ray Sieber, P. Eng. at SRC. Telephone: (306) Fax: (306) For more information on SaskPower s : or SaskPower.com May