EnergyRight® & Renewable Solutions 2015 Governor’s Housing Conference Energy Efficiency in Manufactured Housing is Ready Now TVA’s Manufactured Homes Programs: An Overview Lisa Haislip Senior Program Manager October 7, 2015

The Numbers: EnergyRight Installations

EnergyRight Manufactured Homes Program 1996-2002 Goals Encourage the purchase of energy efficient new manufactured homes with an electric heat pump and electric water heating New efficient electric load and satisfied customers for both TVA and local power companies Incentivize manufactured home retailers (through TVA’s participating local power companies) for heat pumps installed in qualified manufactured homes ($550-$600) Increase manufactured home retailer awareness through program education and consumer knowledge of product benefits

EnergyRight Manufactured Homes Program 1996-2002 Challenges Recruitment and training of manufactured home retailers Manufactured home retailer employee turnover Tri-party agreements TVA requirement for local power companies

The Numbers: Volume Heat Pump (VHP) Installations

VHP Program for Manufactured Homes Overview The Manufactured Homes Plan promotes the installation of electric heat pumps in qualified manufactured homes Administered by TVA Incentives paid directly to Volume Heat Pump Contractors (VHPCs) or HVAC Wholesalers Target Audience Sited manufactured homes, no more than 10 years old, located in the TVA power service area Key Features VHPC installs minimum 13-SEER heat pump in qualified manufactured homes $500 incentive paid to VHPC but passed onto purchaser of the heat pump (TVA contract required); may retain $50 for administrative costs Homeowner is true beneficiary Validations of installations performed

Goals VHP Program: 1999-Present Continue to encourage the purchase of energy efficient new manufactured homes with an electric heat pump through new upstream model New efficient electric load and satisfied customers for both TVA and local power companies TVA contracts directly with large HVAC wholesalers or contractors Incentivize HVAC wholesalers for heat pumps installed in qualified manufactured homes ($300 until 2012 increased to $500) Customer satisfaction, loyalty, and retention

Goals continued… VHP Program: 1999-Present Reduced high bill complaints, late pays, and skips No additional administrative paperwork for the manufactured home retailer Manufactured home buyer benefits through: Significantly lower utility bills Discounted heat pump Greater resale value for the home as a result of increased comfort, moisture control, and energy efficiency

The Numbers: ENERGY STAR Installations

ENERGY STAR Pilot Program for Manufactured Homes Overview The ENERGY STAR Pilot Program for Manufactured Homes encourages the production of ENERGY STAR manufactured homes for Valley residents Program administered by Systems Building Research Alliance (SBRA) Incentives paid to manufactured home producers Target Audience Manufactured home producers selling ENERGY STAR homes to be sited in the Valley Key Features Producer builds ENERGY STAR qualified home to be sited in the Valley with a heat pump $1,300 paid to SBRA; $1,200 passed onto manufactured homes producer (MOU with SBRA required)

ENERGY STAR Pilot Program for Manufactured Homes Goals Jump start the demand for ENERGY STAR manufactured homes in TVA’s service area Provide incentives to the builders of ENERGY STAR manufactured homes to entice them to offer ENERGY STAR as a standard feature for homes shipped and sold within the valley

ENERGY STAR Pilot Program for Manufactured Homes Incentive Timeline $400-$500/home includes incentive to man homes retailer plus administrative fee to SBRA $1,500/home includes incentive to man homes producer plus administrative fee to SBRA $1,500-$1,550/home $1,400/home $1,300/home 2008-2010 2011 2012-2013 2014 2015

ENERGY STAR Plus Pilot Program for Manufactured Homes Key Features Accepted SBRA Proposal to provide additional incentive for 729 additional kWh savings per install Plant-installed CFLs (at least 75% of all fixtures) Whole-house sealing Rigorous duct sealing $1,375 paid to SBRA; $1,275 passed onto manufactured homes producer (MOU with SBRA required)

Program for Manufactured Homes ENERGY STAR PLUS Pilot Program for Manufactured Homes Goals Add an optional level of compliance to the existing ENERGY STAR Program for Manufactured Homes, known as the PLUS option PLUS includes the following measures: whole home CFL package shell tightening to minimize envelope air infiltration losses duct tightening to reduce air distribution system losses Incentive Timeline $1475/home includes incentive to man homes producer plus administrative fee to SBRA $1,375/home 2014 2015

Customer Savings for ESMH with a Heat Pump

EnergyRight® Solutions Manufactured Homes Volume Heat Pump Program Administered by TVA Lifetime cost per kWh: $0.008 $450 Incentive $50 Administrative Fee kWh per install: 3,062 Validations performed on 10% of installations ENERGY STAR Pilot Program Administered by Systems Building Research Alliance (SBRA) Lifetime cost per kWh: $0.011 Two Tiers ENERGY STAR $1,200 Incentive $100 Administrative Fee kWh per install: 11,947 Summer kW per install: 0.51 ENERGY STAR PLUS $1,275 Incentive kWh per install: 12,676

Manufactured Homes Installations 57,082 Incentives Paid 53,170 Homes 5,489 4,129 3,899 3,331

What’s Happening in the Valley? 7% increase for VHP over last FY Program FY 2015 FY 2014 VHP 2,311 2,168 ESMH and ESPMH 1,818 1,731 5% increase for ESMH over last FY

Current Challenges Facing Man Homes Programs Dual Participation 77% of ESMHs are also participating in the VHP Program 60% of VHPs are also participating in the ESMH Pilot This means TVA pays incentives in both programs, but can claim savings in the ESMH Pilot only TVA is paying $1,800 for 77% of the homes reported through the ESMH Pilot kW Savings VHP Program receives no kW savings, only kWh savings ESMH receives minimal kW savings, predominantly kWh savings

Potential Solutions Ship Heat Pump With Home Provide additional incentive to manufactured homes producer Current Research: Ductless Heat Pump Whole House Application Study is entitled “A Field Study of Competitive Manufactured Home Energy Performance” Three home comparison: (1) home meeting HUD thermal standards, (2) an ENERGY STAR home, and (3) home that meets the requirements of the U.S. DOE Zero Energy Ready Home Program Study addresses two important questions: what actual savings can be expected as homes are made more energy efficient; and, what role can TVA plan in encouraging the factory building industry to build highly efficient, affordable homes Study garnering national attention for Focusing attention on the role of energy efficiency in the home affordability equation Demonstrating the ability of the industry to produce homes on par with the top builders in the nation Upcoming press event will be held at the Russellville, AL, SE Homes building facility, site of the demonstration home testing

Thank you for your time. Questions? Lisa Haislip Senior Program Manager EnergyRight Solutions for the Home lahaislip@tva.gov (615) 232-6914