SDG&E Energy Efficiency Programs and On-Bill Financing

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SDG&E

Energy Efficiency Programs and

On-Bill Financing

Program Basics

SDG&E offers three types of non-residential programs:

 Direct Install - certain energy efficient equipment is installed at no cost to qualifying customers

 Rebate - offers a fixed amount per item installed

example - $6.00 per new energy efficient fluorescent lamp

 Incentive - offers a fixed amount per kWh or Therm saved for installation of qualified energy-efficient equipment

example - $.05 cents per kWh saved for a lighting upgrade

Program Review



Direct Install



Energy Efficiency Business Rebates



Energy Efficiency Business Incentives



Energy Savings Bid

Commercial Direct Install (DI)

Program

• Provides an energy assessment, energy efficient products, and installation to eligible customers at

no cost

• Open to all SDG&E qualified small- and medium-sized business customers on a Commercial A rate who do not have monthly electrical demand over 100 kW for three consecutive months during a twelve month period

• Launched February 1, 2011 and runs through the end of 2012, or until funds are no longer available

Direct Install - continued

How it works:

Direct Install contractor will evaluate qualifying facilities, identify energy-saving opportunities, and schedule

appointments to install energy-efficient replacement equipment at no cost.

SDG&E has contracted with the following contractors:

 Matrix Energy Services

 Synergy Companies

Direct Install - continued

 No-cost energy-efficient products include but are not limited to:

 Fluorescent & High Intensity Discharge (HID) lighting

 Refrigeration (door closers, etc.)

 LED open and exit signs

 Occupancy sensors

 Vending Misers

Complete list of qualifying products is posted on our website at:

Direct Install - continued

• Non-Qualifying sites

 Corporate-owned franchises and franchises for which corporate pays utility bill (e.g. 7-Eleven)

 Multi-Family facilities – program not intended for residential segment, even if there are areas on commercial rate

 Enclosed parking structures/parking garages

 Special Qualifying

 Individually-owned franchises

 School district facilities

 Investigating

 Investigating potential including local government facilities

Energy Efficiency Business

Rebates

Provides rebates to businesses that install qualifying energy-efficient upgrades. Rebates are available for:

 Lighting (including T8 to T8 retrofit)  Refrigeration

 Food Service

 Natural Gas, and Other Technologies  Led Fixtures

 Led Case Lighting  Motors

Energy Efficiency Business

Rebates

How it works:

Step 1: Browse the EEBR Product Catalog for eligible products Step 2: Select a vendor/contractor (if not installing yourself) Step 3: Benchmark your facility

Step 4: Apply for On-Bill Financing (if necessary) Step 5: Calculate rebate

 For non-lighting products complete the Rebate Product Information table

 For lighting measures complete the lighting worksheet

Step 6: Install equipment

Step 7: Submit Rebate Application and other required documentation

Energy Efficiency Business

Incentives

• Program offers incentive payments for energy-efficient projects involving the installation of new, high-efficiency equipment or systems – gas or electric

• Incentives are paid based on the amount of

documented energy saved. Incentive amounts based on equipment type:

 Lighting - $0.05 per kWh saved and $100/Peak kW

 A/C & Refrigeration - $0.15 per kWh saved and $100/Peak kW

 Other (motors, fans, etc.) - $0.09 per kWh saved and $100/Peak kW  Natural Gas - $1.00 per Therm

Energy Efficiency Business

Incentives

• Pre- and post-inspections are required on all projects.

• Applicants are eligible to receive up to 50% of the cost for each project, for calculated equipment or the incentive amount, whichever is less.

• If a business rebate is available for the same product, we will refer the customer to the business rebate program.

• If Measurement & Verification is required, the customer will receive 60% of the incentive upon installation and the 40% balance after the verification period.

Energy Savings Bid Program

• Project minimum annual savings must be >500,000 kWh or >25,000 therms

 A single large site, one customer – must meet a 500,000kWh minimum  Aggregated (multiple sites, multiple customers – each site must meet a

5,000 kWh savings minimum)

• Incentive amounts for non-residential energy-saving retrofit projects are standard

 Lighting: Interior - $.05/kWh  A/C & Refrigeration - $.15/kWh

 Other (Motors, Fans, etc) - $.09/kWh  Natural Gas - $1.00/therm

On-Bill Financing (OBF)

Why On-Bill Financing?

 Interest-free loan

 No up-front costs

 Energy and cost savings

Who is eligible?

Qualifying Project Criteria:

 Commercial customers - $5,000 to $100,000 per meter for business customers; maximum of 3 or 5 yr. pay back OR useful measure life

(whichever is shorter)

 Taxpayer-funded customers - $5,000 to

$250,000; maximum 10 yr. pay back OR useful measure life (whichever is shorter)

 Qualified accounts for the State of California may be eligible for up to $1,000,000 per meter

On-Bill Financing

Qualifying Credit Criteria:

 Active account for at least two years

 At least 12 months at the premise

 No disconnect notices in the last 12 months

 No deposit on SDG&E account

 No returned payments within the last 12 months

 No more than 1 payment arrangement within the last 12 months

OBF Application Basics

 All OBF projects will be calculated by location

 Program engineering staff will determine the savings and energy rate for the loan payback

 Projects with equipment installed on multiple accounts may realize savings across accounts but loan will be tied to a primary account

Loan Agreement Reminders

 OBF cannot finance projects without a signed loan agreement prior to installation

 Customer typically allows final payment to go directly to vendor for final project payment

 Loan Agreement must be signed by authorized title (owner, etc)

 Wet signatures required for loan and loan adjustment letter

Comprehensive OBF Project

Customer type: Small Restaurant

Equipment Retrofitted: Auto closers, strip curtains, lighting, ice machine, and ECM motors

 Job Cost = $23,000

 Rebate Total = $3,000

 OBF Loan Amount = $20,000

 Project Payback = 3.90/yrs

 Annual kWh savings = 41,000

 Monthly Energy Savings = $427.00

Additional Program Contacts

Energy Efficiency Business Incentives

Mayda Portillo 858-636-5785

Email: eebi@semprautilities.com

Energy Efficiency Business Rebates

Teresa Verdugo – Program Advisor 858-636-6888

Commercial Direct Install Program

Margaret Finley – Program Advisor 858-654-1250

Email: RS-DirectInstall@semprautilities.com

Energy Savings Bid Program

Disclaimers

Rebate and incentive programs are funded by California utility customers and

administered by San Diego Gas & Electric® (SDG&E) under the auspices of the California

Public Utilities Commission. Program incentive funds will be allocated on a first-come, first-served basis, until all are no longer available.

The Direct Install program is funded by California utility customers and administered by SDG&E under the auspices of the California Public Utilities Commission , through

contracts awarded to Matrix Energy Services, Synergy Companies, and Willdan Engineers and Constructors. California customers who choose to participate in this program are not obligated to purchase any additional services offered by the contractor.

The selection, purchase, and ownership of goods and services are the sole responsibility of the customer. SDG&E makes no warranty, whether express or implied, including warranty of merchantability or fitness for any particular purpose, use or application of selected goods and services.

The On-Bill Financing (OBF) program is funded by California utility customers and

Q&A