Your Path to Energy SavingsYour Path to Energy SavingsNew Residential ConstructionNew Residential Construction

Maggie DimitrovaMarch 1st, 2011

Agenda

PG&E’s Integrated Approach

California Energy Efficiency Standards

Energy Efficiency Incentive Programs

New Solar Homes Partnership Program

ClimateSmart

About PG&E

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

What we do:Deliver safe, reliable, and environmentally responsible gas and electric services to approximately 15 million Californians

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

PG&E’s Power Mix

* 2009

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PG&E’s Integrated Approach

Reduce Energy

Use

Renewable Power Supply

NeutralizeEnergy

Use

Energy Efficiency &

Conservation

Solar &

WindClimate Smart

California Energy Efficiency Standards

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1960 1965 1970 1975 1980 1985 1990 1995 2000

KW

h/pe

rson

US CA Western Europe

Courtesy Art Rosenfeld, California Energy Commission

Energy efficiency programs have helped keep per capita electricity consumption in California flat since 1976PG&E’s programs alone have avoided the release of over 135 million tons of CO2

into the atmosphere over the same period

30+ Years of Energy Efficiency Success

Note: 2005 – 2008 are forecast data.

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Title 24

2008 Title 24 Energy Efficiency Code in effect January 1, 2010

Methodology Mandatory MeasuresPrescriptive Method (list of requirements) Performance Approach (trade off between features, flexible budget)

Financial incentives available for exceeding the current Title 24 code

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Why energy efficiency?Homeowner

Savings – lower energy billComfort – energy efficient, solar homeEnvironment – reduced carbon footprint

Builder/DeveloperDifferentiation from competitionIncentives for both energy efficiency and solarEase of access and reduced paperwork

Solar ContractorDifferentiation from competitionCustomer satisfaction

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How to achieve higher EEStrategies vary by climate zone, market sector, and building type

High performance windowsEnergy efficient water heatingImproved wall and ceiling insulationHigh efficiency space heating and coolingequipment (HVAC)High efficiency appliancesHigh efficacy lightingProperly sized equipment

Work with your energy consultant to determine the best approach for your budget

Case Study Grupe Homes -

Carsten Crossings, Rocklin, CA*

70% electrical offset –

2.5 kW PV system35% above 2005 Title 24, 40% reduction in coolingBuilding Envelope

•

R-49 attic insulation •

R-15 blown insulation walls•

Windows: U-value .35 & SHGC .32Mechanical 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

11*Source: David Energy Group, Steve Brennan & Grupe Green USGBC article

Energy Efficiency Incentive Programs

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Energy Efficiency Programs

California Advanced Homes Program

California Multifamily New Homes Program

Target CustomersBuilders, developers, and custom home owners in PG&E’s territory

Market SegmentNew Residential Construction

14

California Advanced Homes Program (CAHP)Timeline

-

January 1, 2010 through December 31,

2015

Services

Financial IncentivesDesign AssistanceEducation and TrainingMarketing and OutreachTechnical SupportProgram Support

CAHP Qualifying FacilitiesQualifying Facilities

Designed for the performance-based approach for compliance with the 2008 Title 24 StandardsBuilding Types -

Single-family detached homes

- Duplex

Non –

Qualifying Facilities

Remodels, additions, mobil homes, residential care facilities, hotels, motels, dormitories

CAHP Incentive StructureThe baseline is 15% better than 2008 T-24 Energy

Efficiency CodeIncentives increase incrementally as the performance of

the structure increases

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CAHP Additional IncentivesCalifornia 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

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CAHP RequirementsApplications 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

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CAHP Required DocumentsCAHP incentive agreementCompleted application checklistHard 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

2020

CAHP Application ProcessSelect 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

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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 incentivesEnergy design assistanceProject roundtableProgram coordination Educational opportunities

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CMFNH Qualifying Facilities

Qualifying Facilities

Receive gas or electric service from PG&EQualify as new constructionExceed the 2008 Title 24 Standard by at least

15%

Building Types

–

low-rise and high-rise multifamily buildings of

3 or more attached units

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CMFNH Incentives StructureDeveloper 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 2010-12 Incentives

15% 20% 25% 30% 35% 40% 45%

Percent Better Than Title 24

Ince

ntiv

e Am

ount

$/kWh $/therm $/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

15%$0.18/kWh$0.73/therm$27.63/kW

CMFNH Required DocumentsProgram applicationEnergy consultant applicationTitle 24 documentation

Input files (.BLD or .mp8)PDF files

Architectural plan setSite, architectural, MEPHard copy50% construction documents preferred

PG&E service territory verificationPG&E application, application number, account number, or will-serve letter

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

New Solar Homes Partnership Program

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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 CaliforniaCreate a self sustaining market for energy efficient, solar homes Place solar systems on 50% of the new homes

Budget

-

$400 MM budget

NSHP EligibilityTarget Customers

Builders, developers, and custom home owners

Market Segment

-

new residential construction

Custom and production homesSingle and multifamily buildingsMarket rated and affordable housing

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NSHP Incentive StructureOne 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

NSHP RequirementsPV 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 24Tier 2 – 30% better than Title 24, 30%

reduction in cooling loadEnergy Star® appliances

NSHP RequirementsNew, 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

NSHP Application Process

Missing or incorrect information/documents may cause delaysOne time, automatic extension for project reserved as of 1/01/10

Payment

Claim

Form**

(NSHP –

2)

Incentive

Approval

Notification

PG&E Review &

CEC approval

Reservation

Application

Form*

(NSHP –

1)Within

30 days

Reservation

Confirmation

Notification

PG&E Review & CEC

approval

Within 30

days

*NSHP –

1 review includes plan check by 3rd

Party agency**NSHP –

2 review includes field verification by 3rd

Party HERS

Rater

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How to Participate

Before You Apply

Establish electric service from PG&EParticipate in PG&E’s CAHP or CMFNH Program Apply for interconnection under Net Energy Metering Review NSHP GuidebookApply online at https://newsolarhomes.org

ClimateSmart

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

ClimateSmartThese 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

• Carbon sequestration• Habitat preservation• Watershed protection• CA is losing 40,000

acres of forestland annually

Dairy Methane Capture *

• Reduce impact of methane• Of 1900 dairies in CA,

unless than 24 capture methane

Landfill Methane Capture **

• Reduce impact of methane

* Pending CPUC approval.** Requesting CPUC approval.

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Contact

InfoCalifornia Advanced Homes Program:

1-800-342-7737

http://www.californiaadvancedhomes.com/

California Multifamily New Homes: 1-866-352-7457 www.h-m-g.com/multifamily/CMFNH

Statewide Solar Website: www.gosolarcalifornia.com

New Solar Homes Partnership Program:

415-973-3480

www.pge.com/nshp

Net Energy Metering: 415-973-5676www.pge.com/gen

Climate Smart:http://www.joinclimatesmart.com

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Q & A