Your Path to Energy Savings. New Residential Construction

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1 Your Path to Energy Savings New Residential Construction Maggie Dimitrova March 1 st, 2011

2 Agenda PG&E s Integrated Approach California Energy Efficiency Standards Energy Efficiency Incentive Programs New Solar Homes Partnership Program ClimateSmart

3 About PG&E What we do: Deliver safe, reliable, and environmentally responsible gas and electric services to approximately 15 million Californians Employees 19,800 Electric and gas distribution customers 5.1 MM electric 4.2 MM gas Electric transmission circuits 18,610 miles Gas transmission backbone 6,136 miles Owned Electric generation capacity 6,000+ MW Total Peak Demand 20,000 MW

4 PG&E s Power Mix PG&E serves 5% of the U.S. population, but emit less than 1% of the total CO2 emitted by the utility sector * 2009

5 PG&E s Integrated Approach Energy Efficiency & Conservation Reduce Energy Use Climate Smart Neutralize Energy Use Renewable Power Supply Solar & Wind 5

6 California Energy Efficiency Standards

7 30+ Years of Energy Efficiency Success Energy efficiency programs have helped keep per capita electricity consumption in California flat since 1976 PG&E s programs alone have avoided the release of over 135 million tons of CO 2 into the atmosphere over the same period KWh/person 14,000 12,000 10,000 8,000 6,000 4,000 2, US CA Western Europe Courtesy Art Rosenfeld, California Energy Commission Note: are forecast data.

8 Title Title 24 Energy Efficiency Code in effect January 1, 2010 Methodology Mandatory Measures Prescriptive Method (list of requirements) Performance Approach (trade off between features, flexible budget) Financial incentives available for exceeding the current Title 24 code 8

9 Why energy efficiency? Homeowner Savings lower energy bill Comfort energy efficient, solar home Environment reduced carbon footprint Builder/Developer Differentiation from competition Incentives for both energy efficiency and solar Ease of access and reduced paperwork Solar Contractor Differentiation from competition Customer satisfaction 9

10 How to achieve higher EE Strategies vary by climate zone, market sector, and building type High performance windows Energy efficient water heating Improved wall and ceiling insulation High efficiency space heating and cooling equipment (HVAC) High efficiency appliances High efficacy lighting Properly sized equipment Work with your energy consultant to determine the best approach for your budget 10

11 Case Study Grupe Homes - Carsten Crossings, Rocklin, CA* 70% electrical offset 2.5 kw PV system 35% above 2005 Title 24, 40% reduction in cooling Building Envelope R-49 attic insulation R-15 blown insulation walls Windows: U-value.35 & SHGC.32 Mechanical System Tankless water heaters.84 EF 94 AFUE furnace variable speed AC: 15 SEER/12 EER Ventilation Beutler Fresh Vent ENERGY STAR appliances HERS Measures buried ducts, high EER right sized AC, duct testing, thermal bypass checklist, house wrap/blower door *Source: David Energy Group, Steve Brennan & Grupe Green USGBC article 11

12 Energy Efficiency Incentive Programs

13 Energy Efficiency Programs California Advanced Homes Program California Multifamily New Homes Program Target Customers Builders, developers, and custom home owners in PG&E s territory Market Segment New Residential Construction 13

14 California Advanced Homes Program (CAHP) Timeline - January 1, 2010 through December 31, 2015 Services Financial Incentives Design Assistance Education and Training Marketing and Outreach Technical Support Program Support 14

15 CAHP Qualifying Facilities Qualifying Facilities Designed for the performance-based approach for compliance with the 2008 Title 24 Standards Building Types - Single-family detached homes -Duplex Non Qualifying Facilities Remodels, additions, mobil homes, residential care facilities, hotels, motels, dormitories

16 CAHP Incentive Structure The baseline is 15% better than 2008 T-24 Energy Efficiency Code Incentives increase incrementally as the performance of the structure increases

17 CAHP Additional Incentives California ENERGY STAR New Homes 10% bonus Green Home Certification 10% bonus Compact Homes 15% bonus kw Reduction (Working Toward Zero Peak Homes) New Solar Homes Partnership (NSHP) Tier II - $1,000 Design Team Incentive 50% of cost up to $5,000 17

18 CAHP Requirements Applications submitted after January 1, 2010 and no later then December 15, 2015 Limited funds, reserved on a first-come, first-serve basis Homes permitted under 2008 Title 24 Energy Efficiency Standard Compliance achieved using CEC approved software Payments made only to builders, developers, and home owners 18

19 CAHP Required Documents CAHP incentive agreement Completed application checklist Hard copy of the final 2008 CA Title 24 CF-1R form, prepared by a CEPE, and corresponding electronic input files (.mp8 and.bld) Complete set of construction plans: Architectural plans including floor plans, elevations, and sections Electrical and mechanical sheets Site plan with North arrow for custom homes Subdivision lot map and list of lots/addresses Copy of tract map (tentative or recorded) and construction schedule with phases 19

20 CAHP Application Process Select a Certified Energy Plans Examiner (CEPE) consultant to prepare Title 24 documentation for each plan type Select a Home Energy Rating System (HERS) Rater to perform field verification Submit application and supporting documents to your PG&E representative (prior to drywall) Design assistance is available through CAHP 20

21 California Multifamily New Homes Program (CMFNH) Administered by PG&E and implemented by Heschong Mahone Group, Inc. Timeline complete construction and verification by December 31, 2015 Services Financial incentives Energy design assistance Project roundtable Program coordination Educational opportunities 21

22 CMFNH Qualifying Facilities Qualifying Facilities Receive gas or electric service from PG&E Qualify as new construction Exceed the 2008 Title 24 Standard by at least 15% Building Types low-rise and high-rise multifamily buildings of 3 or more attached units 22

23 CMFNH Incentives Structure Developer Incentives - $100 per unit + incremental incentives based on the energy savings achieved above 15% HERS Verification Incentive - $60 per unit (max of $12,000 per project) Energy Consultant Incentive - $50 per unit (max of $10,000 per project) CMFNH Incentives 15% $0.18/kWh $0.73/therm $27.63/kW 20% $0.24/kWh $0.97/therm $38.96/kW 25% $0.30/kWh $1.22/therm $50.29/kW 30% $0.37/kWh $1.46/therm $61.63/kW 35% $0.43/kWh $1.70/therm $72.96/kW 40% $0.49/kWh $1.94/therm $84.29/kW 45% $0.55/kWh $2.18/therm $95.63/kW Incentive Amount 15% 20% 25% 30% 35% 40% 45% Percent Better Than Title 24 $/kwh $/therm $/kw 23

24 CMFNH Required Documents Program application Energy consultant application Title 24 documentation Input files (.BLD or.mp8) PDF files Architectural plan set Site, architectural, MEP Hard copy 50% construction documents preferred PG&E service territory verification PG&E application, application number, account number, or will-serve letter

25 CMFNH Application Process Complete application package Plan review by HMG Project approval Field verification by HERS Rater Completion verified by HMG Incentive check sent to applicant

26 New Solar Homes Partnership Program

27 New Solar Homes Partnership Program (NSHP) Timeline - January 1, 2007 through December 31, 2016 Purpose Provide incentives and support activities for installing eligible solar photovoltaic (PV) systems on new homes Goals 400 MW of installed solar capacity throughout California Create a self sustaining market for energy efficient, solar homes Place solar systems on 50% of the new homes Budget - $400 MM budget 27

28 NSHP Eligibility Target Customers Builders, developers, and custom home owners Market Segment - new residential construction Custom and production homes Single and multifamily buildings Market rated and affordable housing

29 NSHP Incentive Structure One time, up-front, expected performance based (CECPV EPBI calculator) Incentive levels decline to zero over 10 years as megawatt goals are achieved Affordable Housing $3.50/watt for residential units $3.30/watt for common area Market Rate Housing $2.50/watt: Base Incentive $2.60/watt: Solar as a standard feature 29

30 NSHP Requirements PV system size greater than 1 kw AC incentives capped at 7.5 kw Sized to offset the end-use consumer on-site electric load Incentive based on the estimated performance of the system and calculated using the CECPV EPBI calculator Building must achieve energy efficiency above Title 24* Tier 1 15% better than Title 24 Tier 2 30% better than Title 24, 30% reduction in cooling load Energy Star appliances

31 NSHP Requirements New, certified system components listed on the CEC s eligible equipment list Ten year warranty on system components & labor Third-party field verification of energy efficiency measures and PV system (HERS Rater) Equipment seller must be registered with the CEC Grid connected with eligible utility

32 NSHP Application Process Reservation Application Form* (NSHP 1) PG&E Review & CEC approval Within 30 days Reservation Confirmation Notification Payment Claim Form** (NSHP 2) PG&E Review & CEC approval Within 30 days Incentive Approval Notification Missing or incorrect information/documents may cause delays One time, automatic extension for project reserved as of 1/01/10 *NSHP 1 review includes plan check by 3 rd Party agency **NSHP 2 review includes field verification by 3 rd Party HERS Rater

33 How to Participate Before You Apply Establish electric service from PG&E Participate in PG&E s CAHP or CMFNH Program Apply for interconnection under Net Energy Metering Review NSHP Guidebook Apply online at 33

34 ClimateSmart

35 ClimateSmart The energy you use emits greenhouse gases, such as carbon dioxide (CO2), into the atmosphere. ClimateSmart is a voluntary program that enables customers to reduce their impact on climate change. Customers can pay a separate amount on their monthly energy bill PG&E will invest 100% of the payment in independently verified greenhouse gas emission reduction projects in California

36 ClimateSmart These projects absorb or reduce over time an equal amount of CO2 from the atmosphere, balancing out the climate impact of your energy use. Conserving and restoring forests Capturing methane gas from dairy farms and landfills Many more proposed Example of projects: Forestry Dairy Methane Capture * Landfill Methane Capture ** Carbon sequestration Habitat preservation Watershed protection CA is losing 40,000 acres of forestland annually Reduce impact of methane Of 1900 dairies in CA, unless than 24 capture methane Reduce impact of methane * Pending CPUC approval. ** Requesting CPUC approval.

37 Contact Info California Advanced Homes Program: California Multifamily New Homes: Statewide Solar Website: New Solar Homes Partnership Program: Net Energy Metering: Climate Smart: 37

38 Q & A 38