Peachtree Rebate Report_January 2016

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Peachtree Associates Group
Peachtree Associates Group LLC
312 Crosstown Road • Suite 203
Peachtree City, GA 30269
www.peachtreeassociates.us
January 2016
2016 Utility Rebate Update
Prepared by: Dan O’Neal, Principal

2© 2016 Peachtree Associates Group
Rebate Report Outline
 What are rebates and incentives?
 Latest information concerning utility rebates and
incentives and trends impacting energy-efficiency.
 What’s eligible for rebate and incentive programs?
 Challenges pursuing rebates and incentives.
 Peachtree solutions.
 Summary and next steps.
HelpingYou Make the Business Case for
Energy Efficiency Investments

Rebates and Incentives Defined
Rebates are a monetary reward for purchasing and
installing high efficiency equipment.
Incentives are funds provided upfront to influence a
decision to purchase and install high efficiency equipment
vs. standard efficiency equipment.
When Utility companies are tasked with meeting the growing demand of
energy consumption, to avoid costly infrastructure investment, companies are
opting to investing in energy efficiency programs to promote energy
conservation. The majority of rebate and incentive programs are funded by
utility ratepayers, and charged as a line item on utility invoices for the
purpose of promoting energy efficiency.

Types of Rebates and Incentives
Prescriptive are a monetary reward for purchasing and
installing high efficiency equipment for a broad range of specific,
predetermined measures.
Custom are funds provided upfront to influence a decision to
purchase and install high efficiency equipment vs. standard
efficiency equipment for projects that require site-specific
assessment and cost analysis (not eligible normally for
prescriptive rebates).
Whole Building are rebates offered for deep energy
retrofits (comprehensive, whole-building analysis, and
construction process) that use integrative design standards to
maximize energy savings.

Utility Rebate and Incentives Trends
From 2008-2012 there was 80% growth in total electric and gas energy
efficiency program spending. During 2013 total spending grew to $7.7 billion,
a 7% increase and 2014 is estimated to have grown by 10% to $8.5 billion.
Electric focused programs remain over 85% of total expenditures.

Projected Growth in EE Spending (Gas & Electric)
 EE expenditures increases
to $10.0B in 2025 in the
medium case scenario-
(low: $6.5B, higher $15.6B);
 Equates to an average
growth of 5%/yr in medium
case scenario -
(low: 2%/yr, high: 8%/yr);
 Electric programs continue
to outpace gas programs
based on overall
opportunity in U.S.
Investments in Energy
Efficiency (EE) Programs
will grow:
Leveraging rebate programs in combination with a
total energy and sustainability management
initiative remains the most effective approach
Projected Utility Customer Funding
for Electric and Gas EE Programs

Projected Growth for Utility DSM* EE Programs
 NOE spending has grown
rapidly as states look to
capture all cost-effective
potential;
 TheWest remains flat
reflecting declining potential
after significant initial
efforts;
 Gas programs increasing
but require increases in
prices to dramatically
expand EE offerings.
different by region and type:
* Demand Side Management (DSM) includes energy efficiency and
demand response activities which act to reduce consumption.
Projected Customer Funding for Electric EE Programs
(% of utility revenues)
Projected Natural Gas EE Program Spending
(% of utility revenues)

State Energy Efficiency Trends
According to the American Council for an Energy-Efficient Economy, 2015 marked a tipping point for
energy efficiency. State policies are increasingly encouraging utilities to invest in cost-effective efficiency,
prompting them to adopt new business models that align their interests with those of customers. Utilities
across the U.S. invested more than $7 billion in energy efficiency over the past year. The following chart
assesses those states that have made the biggest impacts during the past year.

Different Structures Driving EE Programs
This map shows how
the commercial lighting
rebate climate has
changed since 2009. As
states and utilities
struggle to meet
electric demand, more
and more energy
comprehensive
efficiency programs are
being developed in
order to help curb
energy usage.
Lamp rebates are
averaging $8/per
while fixture rebates
range from $25 to
$75/per.
differing by structure:
 Programs are shifting focus
from product-based
approaches (i.e. installing an
efficient water heater) to
more Comprehensive deep-
savings approaches by
conducting whole-building
or system retrofits.
 Segment-specific
programs based on industry
segment are becoming
widespread (i.e.) multifamily;
 Products such as lighting,
HVAC and refrigeration
continue to be key focuses
in addition to water usage
due to payback.
Currently 72% of the U.S. is covered by an
active lighting rebate program
2009
2014

Variation in Climate Zones Impact EE Programs
 Windows, insulation and
water initiatives continue to
grow in the West &
Southwest as a means to
temper cooling and
ventilation needs plus
shortages;
 Electric EE programs tend to
be lucrative in more humid
areas due to the cooling
stress on the grids with
mechanical equipment;
 Gas programs in the NOE
are more numerous due to
usage and seasonality swings.
follow climates:
New sustainability practices are
addressing the entire building envelope
in the design and development of
properties and structures to create a
long-term value for stakeholders

Challenges Pursuing Rebates and Incentives
 Programs can be complex and vary widely
between states and each utility within each state;
 Funding availability is limited and programs can be
terminated at any time;
 Application requirements are resource intensive;
 Offerings change frequently based on new
technologies and building trends.
Peachtree navigates the complexity of rebate and incentive
processing so that you can focus on your core functions.

Typical Equipment Eligible
High-EfficiencyTank Type Water Heaters
Heating and Cooling Systems,Variable
Frequency Drives and Controls
Energy-EfficientWindow Systems &
Insulation Measures
Instantaneous Gas HotWater Heaters
Low-Flow Plumbing Fixtures
High-Efficient Gas-Fired Boilers
LED and Fluorescent
Bulbs and Fixtures
Energy Star® Commercial
Cooking Equipment

Peachtree Solutions
 Identify available rebate opportunities based on
approved projects;
 Prioritize available rebate projects based on identified
efficiency opportunities and financial return;
 Complete all pre-approval requirements, manage, and
track the entire application process through successful
completion;
 Receive payments, validate, and remit “net” checks;
 Prepare reports detailing opportunities, status, and
securements to-date.

Summary and Next Steps
 Rebates and incentives can offset a significant portion of
the incremental expense between standard efficient
equipment and a higher efficiency option;
 Each Utility and program has different standards, guidelines,
deadlines, and requirements which vary widely between
states and each utility within each state;
 Peachtree can help secure available rebates and incentives
that can cover as much as 35 percent or more of qualifying
projects costs in all types of facilities including commercial,
industrial, multifamily, healthcare among many others.
Let us show you what we can secure for
you by being an expert on you!

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A Partnership to Achieve Your
Financial and Sustainability Goals
Peachtree Associates Group, Inc.
312 Crosstown Road • Suite 203
Peachtree City, GA 30269
www.peachtreeassociates.us
Dan O’Neal (678) 994-9712 • doneal@peachtreeassociates.us
Peachtree Associates Group

Peachtree Rebate Report_January 2016

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