Clean Energy Finance in NH Multi-families – presentation starts out generic to EE and RE but we’ll talk about SPLIT INCENTIVE ISSUES – rebates – multi specific – examples at the end The focus will be on cost-effective measures that have a payback of 10 years or less. The American Council for an Energy-Efficient Economy (ACEEE) estimates that comprehensive, cost-effective upgrades in multifamily buildings can improve efficiency by 15-30%.  These improvements may require a significant up front capital investment, but the benefits can be long lived.

Worthen Industries On decision to construct a 1MW rooftop solar array on the roof of their NH facility, “Where else can you make an investment today and receive a 20% ROI?” Nashua – CDFA NOT INVOLVED – Just a good example of large-scale RE projects making financial sense without ANY state rebate Worthen Industries began in 1866 as Union Paste Company (UPACO). We have since grown to offer fifteen distinct product lines, but we keep the original values of our family-owned company alive. We embrace sustainability and operate in a fully responsible manner according to our Corporate Values. And, of course, we take care of our employees and our community in the same way we would take care of our own family. 1MW project under construction – 4 plus acres of panels Will be largest in NH 4.7 year payback Exact same project in MA (clinton) 3 year payback

Who We Are CDFA helps municipalities, businesses, and non-profits obtain the resources needed to create thriving, vibrant communities Created in 1983 by the New Hampshire legislature – nonprofit, quasi government organization CDFA administers about $25 million in funding resources, which includes a combination of the New Hampshire Investment Tax Credits, federal Community Development Block Grant program, Clean Energy Fund and Community Economic Development fund.

Clean Energy $9M RLF for businesses, nonprofits, and municipalities. Additionally, CDFA provides technical assistance to projects. Must be cost effective structured so that project savings are equal to or greater than annual debt service payments. Major issue areas for Clean Energy at CDFA include Building efficiency Renewable power generation Electric/thermal Projects pictured here include: Salmon Falls Mills Stafford House (Laconia) East Rochester School Maple Manor Project Eligibility Upgrades eligible for financing must meet three requirements: • They must lower the energy consumption of the building or enable the building to produce clean energy and the project must result in a 15% lifetime energy savings • They must be “permanently affixed” to the property • All energy measures together must meet a “Savings to Investment Ratio” of greater than 1, meaning that projected savings from the energy measures over the term of the loan must exceed the total EE/RE investment Eligible Technologies • Audited energy efficiency measures • Renewable electric and/or thermal generating systems Financial requirements • Recent energy audit (within the past 5 years). • Recent feasibility study, price proposal and proposed savings analysis for renewable generating systems. • Financial statements or tax returns showing the ability of the borrower to repay the debt

Community Development Major issue areas for Community Development that CDFA funds include: Community health Substance abuse treatment Arts Affordable housing Community Development projects/programs are funded by a combination of CDFA Tax Credits and Community Development Block Grant funds. Projects pictured here include: Capitol Center for the Arts One Meeting Place – Avesta Housing (Exeter) Cottage Hospital Serenity Place Colonial Theatre (Bethlehem)

Economic Development Regarding Economic Development, CDFA is focused on the following major issue areas: Workforce development Business expansions and job retention Supporting RDC partners Downtown revitalization Economic Development projects/programs are funded by a combination of CDFA Tax Credits and Community Development Block Grant funds. Projects pictured here include: Downtown Concord Rotobec Lakes Region Community Hospital workforce development program Samson Manufacturing

LINEAR ECONOMY CIRCULAR ECONOMY LOCAL INVESTMENT DISTANT PRODUCTION VALUE LOST DISTANT DISTRIBUTION LOCAL USE CIRCULAR ECONOMY LOCAL INVESTMENT LOCAL PRODUCTION LOCAL DISTRIBUTION LOCAL USE VALUE RETAINED every dollar spent at a small local business, 32 cents leaves the local economy. But, when you spend that same dollar at a chain store, 57 cents leaves; that's more than 50 percent of the dollar that ceases to impact the area in which it was spent. – from Civic Economics “a model that decouples economic growth from resource constraints” by reducing reliance on virgin materials. Instead, the goal is to keep materials functioning at their highest utility at all time, preventing would-be waste from reaching landfills

Clean Energy Fund 2016 12 - # of approved loans $2.2 million – loans approved $1.8M – leveraged funds $250,000 - in annual avoided energy costs 735,000 kWh - saved Environmental Benefit Equivalencies Reduction of 107 cars Electricity for 75 homes 18,000 LED light bulb conversions Technical Assistance TA for financial structuring 12 - # of approved loans $2.2 million – value of loans $1.8M – leveraged funds $250,000 - in annual avoided energy costs Technical Assistance

Clean Energy – EE Rebates Incentives – Energy Efficiency - Utility rebates - 35% - 50% Electric with oil/propane heat Eversource – 4+ units - out of luck for thermal 4 units and under - residential Home Performance -weatherization must qualify - Home Heating Index screening tool. 4+, -"base load" measures for electric savings – LED and low-flow faucets. - anticipating being able to do some in 2017 depending on budget. Heat Pumps - The heat pump rebate program is a residential rebate program for residentially metered units. If a business pays elec bills, NOT A FIT. Residents pay, yes, - separate application for each unit, - bulk submission ok. Commercial Meters - Multi family properties with commercial accounts, i.e. common area lighting - rebates on lighting and electric savings measures through the small business programs.

Clean Energy – RE Rebates Incentives – Renewable Energy USDA – Rural Energy for America www.rd.usda.gov Grants up to 25% Population less than 50k (for-profit) or 20k (non-profit) EE or RE Contact: (Non-profit) Mark Koprowski Mark.koprowski@nh.usda.gov 603-223-6057 (For-profit) Ken Yearman (802) 828-6070 Kenneth.Yearman@vt.usda.gov NH PUC – Renewable Energy Fund www.puc.nh.gov 30% rebates for commercial biomass wood pellet boilers 20% rebates for solar electric and solar thermal systems Contact: Stephen Eckberg Sustainable Energy Division 603-271-4042 stephen.eckberg@puc.nh.gov USDA Funds may be used for renewable energy systems, such as: Biomass - Geothermal - Hydropower - Small and large wind - Small and large solar generation Funds may also be used for the purchase, installation and construction of energy efficiency improvements, such as: High efficiency heating, (HVAC) – Insulation – Lighting - Cooling or refrigeration units - Doors and windows - Electric, solar – Grants for up to 25% of total eligible project costs Combined grant and loan guarantee funding up to 75% of total eligible project costs What are the loan guarantee terms? Renewable Energy System Grants: - $2,500 minimum - $500,000 maximum Energy Efficiency Grants: - $1,500 minimum - $250,000 maximum Projects greater than $200,000 require a technical report. Energy efficiency projects require an energy audit or assessment.

Franklin – LED Streetlights 498 Sodium Street Lights Replaced with LED Lights Had entered into a city-wide energy savings agreement with EEI Confirmed project budget with EEI $215,000 Project Confirmed rebate and new rate tariff with Eversource $49,800 Utility Rebate 30%!!! CDFA Loan - $165,200 $31,372 – Annual Savings (nearly a 50% reduction) – loan payment - $24k 6 Year Payback Eversource – rate was reduced by 46% after LED conversion

Maple Manor – Existing Conditions 42 units all 1 bed $35k for electricity, $27k for heating 1979 construction Heat with propane Water use on par with average for 1 bed 42 units Annual energy - $63,192 28,914 square feet Water - 75 gal/unit/day

Maple Manor – Existing Conditions RBG – dana nute Building Benchmarking rates your building’s performance on two metrics: Energy Use Intensity (EUI) and Cost Use Intensity (CUI). EUI is the annual energy use - BTUs (British Thermal Units) per square foot of conditioned space. CUI - the annual energy cost per square foot. When compared to other residential buildings nationwide, the Maple Manor uses 17% more energy than the national average for its number of units. This is compared only to the national average, not to energy efficient buildings.

Maple Manor – Existing Conditions Chart - most energy (by cost) - determine where to focus - domestic hot water use is average appliances and heating are the major costs of energy in the building ENVELOPE air sealing all units and the community room and insulating the attic space, mini-split electric heat pumps for heat and air conditioning, installing low-flow water saving fixtures in all units. installing new hot water heaters in all units and replacing all of the refrigerators with energy efficient models and LED lighting replacements in all of the units, 87kW solar photovoltaic system across 5 different roofs reduce overall energy use by 46% - $34,000 annually in savings – loan payment = $29k/year $265k loan – 7.8 year payback

www.nhcdfa.org 603-226-2170