MULTI-FAMILY PROGRAM OVERVIEW Findings and Recommendations ► November 16, 2016
PRESENTATION OUTLINE ► Background, History and Initiatives by Market Segment ► Market Condition Overview ► Initiative Profiles ► Performance Indicators and Cost Effectiveness ► Challenges, Recommendations and Future Development Opportunities ► Conclusions and Next Steps www.ma-eeac.org Multi-Family Program Overview | 2
Background, History, and Initiatives by Market Segment | 3
BACKGROUND AND DEFINITIONS ► Background: − Multi-family initiatives are cross-cutting across all Sectors: • Residential (Res) • Low Income (LI) • Commercial & Industrial (C&I) − Incentives and program support are available for both new construction and retrofit − 3 stories or less are subject to residential codes − 4 or more stories are subject to commercial building codes ► Definitions: − Facilities with 5 or more dwelling units are served by the market rate multi-family retrofit initiative − Properties with >50% of occupants at <=60% area median income are served by the Low Income Program − “Participants” vary by initiative www.ma-eeac.org Multi-Family Program Overview | 4
HISTORY AND RECENT ACCOMPLISHMENTS • Delivery varied among PA's, some coordination of new construction via Joint 1990's-mid Management Committee 2000's • Fragmented approaches in retrofit, mostly prescriptive, some whole building • Green Communities Act (GCA) Passed 2008-2009 • Multi-family Retrofit Working Group (MFWG) forms • MF market potential, process evaluation, and program impact studies completed • Stakeholder workshop convened to develop MF strategy across all sectors 2010-2012 Gas and electric programs integrated, 1-4 and MF res retrofit incentives aligned • • Multifamily Market Integrator (MMI) introduced to coordinate market rate retrofit customers Consultants recommend integrating C&I and Res MF retrofit • • Energy Action Plan report template introduced for market rate retrofit 2013-2015 • Low-income Energy Affordability Network (LEAN) completes statewide benchmarking of low income MF buildings • Further enhancements recommended from 2016-18 planning workshops • Project Point of Contact (PPC) introduced for market rate MF retrofit C&I MF retrofit project tracking, budgets, and Benefit Cost Ratios (BCR's) introduced • 2016-2018 • Performance-based MF High Rise New Construction model deployed • New baseline User Defined Reference Home (UDRH) for low rise new construction New impact and process evaluation studies for market rate retrofit started • www.ma-eeac.org Multi-Family Program Overview | 5
HISTORY AND RECENT ACCOMPLISHMENTS 1990's-mid • Delivery varied among PA's, some coordination of new construction via JMC Fragmented approaches in retrofit, mostly prescriptive, some whole building 2000's • • Green Communities Act (GCA) Passed 2008-2009 • Multi-family Working Group (MFWG) forms • Gas and electric programs integrated MF market potential, process evaluation, and program impact studies completed • • 1-4 and MF res retrofit incentives aligned • Stakeholder workshop convened to develop MF strategy across all sectors 2010-2012 • Gas and electric programs integrated, 1-4 and MF res retrofit incentives aligned MMI introduced to coordinate market rate retrofit customers • • Statewide benchmarking of LI MF buildings • Consultants recommend integrating C&I and Res MF retrofit • Energy Action Plan report template introduced for market rate retrofit 2013-2015 LEAN completes statewide benchmarking of low income MF buildings • • Further enhancements recommended from 2016-18 planning workshops • Project Point of Contact introduced for MR • PPC introduced for market rate MF retrofit MF retrofit C&I MF retrofit project tracking, budgets, and BCR's introduced • 2016-2018 • Performance-based MF High Rise NC model deployed • C&I MF retrofit tracking, budgets, and BCRs • New baseline (UDRH) for low rise new construction New impact and process evaluation studies for market rate retrofit started • • Performance-based MF High Rise New Construction model www.ma-eeac.org Multi-Family Program Overview | 6
INITIATIVES BY SECTOR AND MARKET SEGMENT Mass Save Multi ‐ family Mass Save Multi ‐ family New Construction Initiatives Retrofit Initiatives (Low Income and Market Rate) 4+ stories Multi ‐ family >60% AMI MF High Home Energy Retrofit N/A Rise (Res + Services (Res + C&I) C&I) Low Income 1‐3 stories Residential Residential Low Income <60% AMI MF Retrofit Single Family Single MF (Res + C&I) 1 ‐ 4 Family 1 unit 2+ units 1 ‐ 4 units 5+ units ► New construction segmentation aligns with code distinction between residential and commercial ► Retrofit segmentation aligns with traditional weatherization assistance program definitions www.ma-eeac.org Multi-family Program Overview | 7
Multi-family Market Conditions | 8
MARKET CONDITION: NEW CONSTRUCTION ► Expect growth trend to MA Residential New Construction continue for next several (# of Dwelling Units Permitted) years: 2015 − 10,000 new units per year 2014 − >300 5+ unit buildings per year 2013 2012 2011 MA MF New Construction 2010 (# of 5+ unit structures permitted) 2009 400 2008 300 2007 2006 200 2005 100 2004 0 0 5,000 10,000 15,000 20,000 25,000 30,000 1 unit 2 units 3 ‐ 4 units 5+ units www.ma-eeac.org Multi-family Program Overview | 9
MARKET CONDITION: RETROFIT ► Low vacancy rates lead to − Higher housing costs for renters − Less motivated building owners ► Expect split incentive issue to be emphasized: − Increasing need for MF retrofit − Challenging market for creating demand among building owners www.ma-eeac.org Multi-family Program Overview | 10
MARKET CONDITION: LOW INCOME ► ~15,000 existing low income MF buildings in MA ► Benchmarking results: − 75% were benchmarked using energy consumption data − 4,031 buildings identified with potential to increase from 2 lowest performing quartiles to median levels ► Market penetration indicator: − 71% of 3,100 units in 2016 agency refinance pipeline for tax credit buildings are prior participants in Mass Save (market rate or low income) ► Other potential opportunities: − Buildings with fewer than 50% residents at <=60% Area Median Income (AMI) are considered on a case-by-case basis − In past pipeline often exceeded budget for gas projects, resulting in wait-listing; 2016-2018 budget increased www.ma-eeac.org Multi-Family Program Overview | 11
Performance Indicators and Cost Effectiveness | 12
RETROFIT BENEFIT COST RATIOS Benefit Cost Ratios by Initiative Benefit Cost Ratios by Fuel 3 3 2.5 2.5 2 2 1.5 1.5 1 1 0.5 0.5 0 0 C&I MF Res MF LI MF Electric Gas Electric Gas C&I MF Res MF LI MF www.ma-eeac.org Multi-family Program Overview | 13
PERFORMANCE INDICATORS ANALYSIS ► New construction Lifetime Energy Savings per participant data not Participant (MF Retrofit) available to analyze 400 ► “Apples to apples” 350 comparison between Low- income/Market-rate, 300 C&I/Res and Gas/Electric Electricity 250 not possible (MWh) 200 − C&I MF retrofit counts by Gas 150 commercial meter only (therms) 100 E+G − Gas participant counts co- mingle master meters and (MMBtu) 50 individual meters, in some 0 situations Res MF LI MF Retrofit www.ma-eeac.org Multi-family Program Overview | 14
MARKET RATE MF RETROFIT IMPACT EVALUATION ► Study used post-retrofit consumption 160 Realization Rates data to determine realized energy 140 savings for retrofit measures 120 − Electric RR = 24.4% +/-49.3 100 − Gas RR = 86.2% +/-64.1 80 ► 92% of savings for retrofit electric 60 comes from in-unit lighting 40 ► Market Rate electric program is using 60% RR as a placeholder until 20 study results can be further 0 investigated 0 1 2 3 ‐ 20 ► PAs have taken initial actions to ‐ 40 determine root cause and mitigate, but issue will require on- Electric Gas going investigation www.ma-eeac.org Multi-family Program Overview | 15
Challenges, Recommendations, and Future Development | 16
CHALLENGES ► Challenge 1: No independent tracking of MF new construction activity ► Challenge 2: Limited participant tracking and inconsistent participant definitions ► Challenge 3: BCR models and Total Resource Cost (TRC) test do not accurately represent the multi-family market opportunity ► Challenge 4: Electric multi-family retrofit may not be cost effective in its current form ► Challenge 5: Negative participant costs suggest additional review is needed www.ma-eeac.org Multi-Family Program Overview
RECOMMENDATIONS FOR IMPROVED PARTICIPANT COUNTING ► Review current practices by PA for possible inconsistencies in MF participant counting and reconcile as appropriate ► Replicate retrofit segmentation in new construction so MF projects are identifiable and results trackable ► Provide unique site identifiers within the PAs’ data systems to enable services tracking at the facility, building, and dwelling unit levels across sectors www.ma-eeac.org Multi-Family Program Overview | 18
Recommend
More recommend
