Electric Efficiency Performance Based Incentive

Incentives

While incentives are based upon the amount of energy saved in one year, the total incentive can not exceed 50% of project cost. Project cost may include equipment, labor, and engineering expenses. Incentives are also capped at $2,000,000 per facility.

Eligibility

Minimum Efficiency – All equipment covered by ENERGY STAR® must meet the ENERGY STAR® minimum efficiencies. All other equipment must meet the following criteria:

• HVAC – All HVAC equipment must exceed ASHRAE 90.1 2004 by at least 2%.
• Motors – All motors must qualify as National Electric Manufacturers Association (NEMA) Premium Efficiency Motors.
• Lighting – T12 lighting technology is ineligible. All four-foot T8 fixtures must be high performance, or low wattage, as defined by the Consortium for Energy Efficiency (CEE). Note: Hard-wired or Pin-Based CFL's are eligible. For all performance-based lighting projects, the following Lighting Form must be filled out.

Custom Projects – Applicants considering projects other than lighting, HVAC, motors, Variable Frequency Drives (VFDs), or Energy Management Systems (EMS) should call NYSERDA to discuss eligibility. Power Quality and Power Factor improvements are ineligible for funding. All applications will be reviewed and accepted or rejected at NYSERDA’s discretion.

Permanent Installation – All measures must be permanently installed and achieve savings for at least five years. Screw-in Compact fluorescent Lights (CFLs) are ineligible.

Payback – Projects with simple payback periods greater than 18 years (excluding NYSERDA incentives) are ineligible.

Fuel Switching – Conversion from electric to non-electric equipment is ineligible for funding.

Measurement and Verification

All lighting projects saving more than 1,000,000 kWh annually and all other projects saving more than 500,000 kWh annually must perform Measurement and Verification (M&V) for a period of up to one year. NYSERDA’s Technical Consultant will create an M&V Plan in collaboration with the applicant. Projects requiring M&V will be subject to a 40% withholding of incentive, which is payable after NYSERDA receives and approves the final M&V report.

Super Efficient Electric Chiller Bonus

Chillers that exceed ASHRAE 90.1 2004 centrifugal chiller full load requirement by at least 2%, and Net Part Load Value (NPLV) by at least 25%, may add one of the two bonuses to the base incentive. Only water-cooled, electrically operated chillers > 300 tons are eligible for a Super Efficient Chiller Bonus. Bonus calculation may be based on nameplate efficiencies. Chillers not covered by ASHRAE 90.1 2004 are ineligible for this bonus. Backup chillers are not eligible for this bonus. Exceptions may be considered to the minimum efficiency if it is determined that the proposed equipment is the most efficient available.

a) Full Load Based Bonus – $1,000/kW, using full load efficiency, for savings incremental to ASHRAE 90.1 2004 centrifugal chiller standards.

b) NPLV Based Bonus – $275/kW, using NPLV, for savings incremental to ASHRAE 90.1 2004 centrifugal chiller standards.

Steam Cooling

The replacement of old steam chillers with new steam chillers can qualify for funding, provided the following criteria are met:  

• Only Con Edison Steam customers are eligible for steam cooling incentives.
• Efficiency – Chillers must have a COP of at least 1.1.
• Baseline – To calculate the electricity avoided, a baseline of 0.55 kW/ton will be used.
• Co-Funding – Con Edison Steam must grant a negotiated steam rate.
• Incremental Cost Cap – Funding will be capped at the incremental equipment cost of steam cooling, as compared to electric cooling. This must include the cost of electric service upgrades required to power electric equipment.

Funding for steam cooling expires March 1, 2009.

Minimum Size

Unless otherwise approved by NYSERDA, projects must qualify for an incentive of at least $10,000. Smaller projects should consider Pre-Qualified incentives.

17 Columbia Circle, Albany, NY 12203-6399    Toll-Free: 1-866-NYSERDA or Local: 518-862-1090    Fax: 518-862-1091
New York City and Buffalo Regional Offices

© 2004 New York State Energy Research and Development Authority