Consumers Energy Business Solutions Commercial and Industrial Energy Efficiency Program April 18, 2013 1
Ralph Huston | Energy Advisor Consumers Energy Business Solutions 3965 Okemos Rd. Ste. A-1 | Okemos, MI 48864 877.607.0737 x1949 | 517.881.9971 cell | 517.381.0189 fax rhuston@franklinenergy.com | www.comsumersenergy.com/eeprograms TODAY’S PRESENTER 2
Today’s Topics • Program Summary • Special Programs • 2013 Measure Updates 3
Why Energy Efficiency? • Good for your business • Good for the environment • Good for Michigan 4
Energy Efficiency Can Save You Money • By improving your energy efficiency you can improve your company’s bottom line in many ways – Shorten payback times – Lower energy costs – Increased productivity – Increased employee morale – Decreased maintenance costs 5
Customer Participation • Customers from all business segments and sizes are represented • Consumers Energy has distributed more than $59 million in incentives to customers since the program began in 2009 • Over 50,000 commercial & industrial customers have participated 6
Who’s Participating Kent County Barry County Ashley Grand Rapids, LLC, Grand Delton Kellogg Schools, Delton Rapids: $40,168 $1,755 Spectrum Health Hospitals, Grand Genesee County Rapids: $224,250 Flint Community Schools, Flint: Oakland County $43,401 Holly Area Schools, Holly: $1,464 Genesee Packaging, Inc., Flint $4,332 Otsego County Ingham County Kirtland Community College, Ashley Delta, LLC, Lansing $46,350 Gaylord: $6,060 Ionia County Ottawa County Cargill Kitchen Solutions, Lake Coopersville Public Schools, Odessa: $153 Coopersville: $11,421 Iosco County Shiawassee County Oscoda Area Schools, Oscoda: $2,240 Machine Tool and Gear, Inc., Owosso: Kalamazoo County $3,450 Green Bay Packaging, Inc., Kalamazoo $1,150 Galesburg-Augusta Community Schools, Galesburg $2,450 7
Business Programs • Comprehensive business solutions – Rebates based on amount of each project’s first year savings for lighting, HVAC, insulation, hot water heating, controls and other energy savings projects. • Small business solutions – Designed to help small commercial and industrial customers, typically considered "hard to reach” using less than 400,000 kWh annually 8
Comprehensive Business Solutions There are two types of Incentives: • Prescriptive incentives – Think “off the rack,” get it and go • You install energy efficient equipment and achieve energy savings and pre-determined incentive levels – Incentives typically average 20% to 50% of the incremental cost of purchasing qualifying technologies • Custom incentives – Think “tailored,” custom fit to your business • Incentives are determined on a case-by-case basis • Must have a greater than one-year payback period and less than eight years 9
Small Business Solutions • Objectives: – Promote energy efficiency to small businesses – Achieve low installation costs and short payback periods – Minimize out-of-pocket costs to customers • Target customers: – <400,000 kWh annual electric usage – Commercial customers who typically would not participate in the Consumers Energy Business Solutions Program due to: • Lack of capital dollars to make improvements • Lack of technical knowledge • Limited personnel and resources 10
Small Business Solutions • Free facility assessment • Detailed project proposal from program • Installation of approved energy-saving equipment • Inspections will assure quality and verify energy savings • Minimum hassle or time required • Reduction in energy consumption and costs • Higher incentives on a limited number of measures • Up to $7,500 in incentives per customer 11
What’s Ahead in 2013 • More money for incentives – $23.5 million electric incentives – $7 million gas incentives • Over 40 new measures – 200 measures in total • Special programs • More opportunity to participate 12
Special Programs 13
Programs • New construction • Buy Michigan • Multiple measure • Compressed air bonus program program • Building operator certification 14
New Construction Kalamazoo Regional Education Service Agency -WoodsEdge Learning Center • Incentives available for Project Details • New Construction Project design and construction • Completed: 2010 • Contractor: Tower Pinkster of energy efficient • Overall Incentive from Consumers Energy: $48,500 • Energy Savings: 33.7 percent buildings • Enough savings to supply energy to 20 homes/year • Anticipating Leadership in Energy and Environmental • Three tiered structure Design (LEED) Gold Certification – The more efficient the building the higher the potential incentive – Incentives for design team and owner 15
Multiple Measure Bonus • Additional incentive bonus for customers pursuing “deep dive” projects • Customer is eligible to receive an additional bonus incentive of 15% of the total incentive amount when – Secondary measure incentive must be ＞ 25% of the primary measure incentive – More than two measure categories must be applied for on the same application 16
Buy Michigan • Purchase products made in Michigan and qualify for a bonus incentive – At least 50% of the cost to manufacture and assemble this product (exclusive of packaging) is performed in the State of Michigan • Customer qualifies for a 15% bonus on the total incentive of installed measure • Affidavit from manufacturer with application 17
Prescriptive Measures 2013 Incentive Catalog 18
Lighting • Lighting is typically 30% of your bill • Easy to implement & cost effective – T12-T8/T5 replacement – Exit signs – Exterior lighting – Metal halide replacement – Occupancy sensors – Lighting controls – Induction or LED lighting 19
Heating Ventilation and Air Conditioning • Heating & cooling combine for more than 50% of the energy budget • Easy to find projects – Programmable thermostats – Boiler/furnace/RTU tune-ups – Economizers – Boiler controls/sequencing – Heat recovery – Destratification fans – Energy management systems 20
Water Heating • Accounts for 10% of energy use • Opportunities are in all buildings – Water heaters – Pipe/water heater insulation – Pool heaters – Pool covers – Incoming water heat recovery/preheat – High efficiency boilers 21
Plug Loads • “Vampire loads” - they are everywhere • Hard to control • Eat away at your energy cost – Individual printers – Vending machines – Computers – Copy machines – Chargers – Space heaters – AC adapters 22
Lighting: T12 to T8 Retrofit • Can T12 fluorescent lamps retrofitted to T8s and be incentivized in 2013? YES, BUT… 23
Lighting: T12 to T8 Retrofit • T12 to standard T8 applications are not eligible to receive an incentive – Except 2 and 3 foot retrofits • T12 to High Performance (HP) or Reduced Wattage (RW) T8/T5 lamps ARE eligible to receive an incentive • Qualifying products are listed on the CEE1.org website 24
VFD’s: Prescriptive up to 250 HP • HVAC motors greater than 100HP, or process motors greater than 50HP require: – Information sheet on the VFD (Application – A12) – 7 days of pre and post meter data • Electronically commutated motors on furnaces 25
Industrial Battery Chargers, UPS and Transformers • Industrial battery chargers – New or replacement three phase, high frequency battery chargers for electric vehicles • Uninterruptable power supply – Single normal mode AC output UPS – Multiple normal mode AC output UPS • Transformers – Single phase – Three phase 26
Correctly Sized Hydronic Pumping Systems • Information required: – Existing pump operational performance – Proposed pump operational performance – Pumping system improvement summary 27
Domestic Water Heater • Air-to-water heat pump – Tank style (EF ≥ 2.0) - $750 – Up to $6,000 for a 300-MBH, coefficient of performance ≥ 3.0 – Electric customers only • Boiler style • Tank style 28
HVAC Controls • Boiler controls – Boiler plant sequencing – Chilled water reset – Modulating boiler control – Oxygen trim control – Linkageless boiler control • Centralized energy management system – Optimal start-stop for air handling units – HVAC occupancy sensor control 29
Chiller Tune-up • Air or water-cooled chillers • Greater than 20-tons capacity • Used for either space or process cooling 30
Kitchen Equipment • Temperature and optical sensor on ventilation hood • Installing case cooler doors – Retrofit or new • Dishwashers – Under counter, door, single tank, multitank 31
Custom Projects • A wide range of facility improvements can qualify for the program including: – Boilers – Motors – Compressed air – Refrigeration – Process improvements – Building or equipment controls – Heat recovery – Cooling – Lighting • If it’s not a prescriptive measure it probably qualifies as a custom project 32
We can do this WITH YOU Thank you! For more information contact the program team (877) 607-0737 www.ConsumersEnergy.com/mybusiness 33
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