1 | Designing Effective Residential Retrofit Programseere.energy.gov The Parker Ranch installation in Hawaii DOE Technical Assistance Program Integration of Energy Efficiency and Renewable Energy Cheryl Jenkins Vermont Energy Investment Corporation DOE Technical Assistance Program February 17, 2011

2 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Webinar Overview Technical Assistance Project (TAP) Overview Integration of Energy Efficiency & Renewable Energy –What does it look like? –Benefits to stakeholders –Some ideas for facilitating such integration Q&A

3 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov What is TAP? DOE’s Technical Assistance Program (TAP) supports the Energy Efficiency and Conservation Block Grant Program (EECBG) and the State Energy Program (SEP) by providing state, local, and tribal officials the tools and resources needed to implement successful and sustainable clean energy programs.

4 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov How Can TAP Help You? TAP offers: One-on-one assistance Extensive online resource library, including:  Webinars  Events calendar  TAP Blog  Best practices and project resources Facilitation of peer exchange On topics including: State and local capacity building Energy efficiency and renewable energy technologies Program design and implementation Financing Performance contracting

5 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Provider Network Resources State and Local Capacity Building Trainings Workshops Peer-to-peer matching Technical Renewable energy siting and development Review of technical specs for RFPs Strategic planning, energy management, and conservation strategies Green building technologies Building codes Program Design and Implementation Policy and program development Coordinating rate-payer funded dollars with ARRA projects and programs Sustainable community and building design State and regional EE and RE assessments and planning EE and RE portfolio program design elements Financial Program design support and guidance on financing mechanisms such as: Revolving loan funds (RLFs) Property-assessed clean energy (PACE) Loan loss reserves and enhanced credit mechanisms Performance Contracting Designing and implementing a performance contract Leveraging private investment Reducing institutional barriers Tracking and comparing programs

6 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Who We Are: Team 4

7 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Introduction Energy efficiency (EE) is usually the least expensive way to respond to growing energy needs –Can reduce energy use; meet policy resource adequacy needs; provide jobs! Barriers include: –Not well understood –Can have high up front costs (even though cost effective) –Project work not visible, and not sexy!

8 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Introduction Renewable energy (RE) is a key low-carbon, domestic energy source –Increasing interest in effective and financially appropriate ways to develop renewables projects –Project work visible and iconic –Potential economic and jobs impact Barriers include: –Not yet economically attractive to all –High up front costs (even when cost effective)

9 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Introduction Both are key elements in planning for sustainable development –Addressing energy independence and security –Green jobs –Climate change Interest in both is rising –Programs to support EE and RE –Planning targets often specify both –Renewable Portfolio Standards & now some EE Portfolio Standards

10 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Integration of EE & RE DON’T JUST DO BOTH DO BOTH TOGETHER Whenever we: –Plan –Build –Hire –Fund –Think about energy! –Legislate –Finance –Invest –Market

11 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov All Stakeholders Can Benefit Homeowners Businesses Local communities Installer/contractor market Investment, development, & real estate community Program administrators Policy makers Advantages are mutually reinforcing across these categories

12 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Homeowner Benefits Integration = bundle higher green energy costs w/ lower- cost efficiency in buildings View the house as a system –Potential to stage projects: maximize potential EE opportunities, then correctly size RE system –Save (more!) money –Increase comfort and performance –Single contractor/installer = single point of contact for information –Lower transaction costs –Simpler financing – roll costs together –Do the right thing –This is the basis of the Net Zero approach

13 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Homeowner Benefits - Example 2) Additional efficiency: Replace heating system; insulate; reduce air leakage. Additional cost - $8,000 1) Add efficiency to project: Replace refrigerator; Install efficient lighting and on- demand hot water system. Cost = $3,000

14 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Benefits to Businesses View the building as a system –EE + Correctly sized RE system – higher return on investment –Reduce overall operating expenditures –Increased environment health and safety –Fewer facility and administrative activities Fit corporate mission –Enhance environmental stewardship and corporate sustainability –Reduce overall carbon footprint –Create bond with employees and local community –Enhance public image

15 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov NRG Systems First phase 2004 – one of only 5 industrial facilities in the world to receive gold LEED certification from the U.S. Green Building Council New facility uses ¼ the energy of conventional buildings Building tours and community events enhance public image Global leader in wind measurement technology; Subsidiaries – Solar Trackers, Small Wind Turbines 25 years in business – 115 employees Core values: –Environmental Stewardship/Leadership –Fair Employment –Profitability –Integrity –Innovation –Dedication

16 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov NRG Systems 78.5 kW PV system (trackers & roof-mounted) 10 kW wind turbine Solar hot water Green tags for power not generated on site = Pre-paid energy bill!! Wood pellet-fired boilers Geothermal radiant cooling Programmed ventilation control system Natural window ventilation Super insulation and tight building Energy efficient windows Efficient motors and manufacturing equip. Efficient lighting design and daylighting Lots more!

17 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Benefits to Local Communities Municipal Buildings –Use interest in RE to drive EE first - completed EE helps address the issue of cost-effectiveness of RE –Includes many of the benefits listed previously –Reduce inspection and compliance costs –Reduce staff and training costs –Help meet energy goals –Engage citizens Policy Tools –Codes –Financing –Zoning & permitting

18 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Moscone Convention Center: San Francisco One of the largest publically owned solar systems in the US Funded through revenue bonds approved by voters to finance RE & EE projects Project completed in ,000 sq ft PV array Lighting upgrades and control systems over 442,000 sq ft of building

19 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Moscone Convention Center Solar System Energy Efficiency Total Cost after incentives $2,428,000$3,278,000$5,706,000 Savings or output in kW hours/year 826, million 21% of 2006 usage Tons CO2 displaced 3171,6161,933 Project payback = ten years

20 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Installer/Contractor Benefits Integrate support of both EE & RE into the business –Access to wider market (especially as policies change) –Job prospects increase –RE contractors integrated into the broader mainstream building community –Single point of customer contact and service –Take advantage of shared marketing strategies (Green labeling!) –Coordinated training –Expanded work opportunities for staff –Scaling of business prospects = reduced costs to customer –Remove competition for $$ between EE & RE –Investors see a diversified mix of services and a higher margin –Help weather slowdown in market

21 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Building Energy A comprehensive energy services company Mission: Committed to reducing the carbon footprint of buildings and preserving healthy building environments Started in 2007 (2 locations in Vermont) – 29 employees, $2.5 million in sales in 2010 Residential Energy Audits Commercial Energy Audits Solar Design & Installation Deep Energy Retrofit Highlights: –Shared labor resources and diversity of skills –Energy remediation integrated with best building practices –Single point of customer contact and service

22 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Benefits to the Investment Community Support buildings, companies that integrate EE & RE –Real estate agents and developers can recover the full value proposition recognized within buildings –Certified LEED buildings achieve significantly higher rents –Financial institutions benefit from efficiencies of financial offerings –Investors benefit from diversified companies –Everyone benefits from a broader customer base

23 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Benefits to Program Administrators Integrate support of both into programs –Use interest in RE to drive EE –Clearer and less expensive if single program administration –Single point of contact for customers, contractors, funders –Remove competition for $$ - Efficiency vs. renewables –Potential to focus on upstream support –More efficient program planning and performance goals –Simplified evaluation –Design into whole building solutions –Tap into Green Building movement

24 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Potential Policy Tools Simplified goals for clean energy Strategies for policy implementation –Single program oversight/ administration Incentive mechanisms –Points for ENERGY STAR Homes; USDA grants –Eligibility requirements for programs Public education and outreach Codes and labeling Funding & financing Zoning & permitting Workforce policy Preferential business development support

25 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Benefits to Policy Makers Enact policies & goals that support integration Current silos don’t always work well Good political messaging: linking through single overall energy policies; climate change policies; sustainable energy strategies Integration can help break down barriers between interest groups Bottom Line: Consider integration whenever developing policies

26 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Accessing TAP Resources 3) Ask questions via our call center at or us at We encourage you to: 1) Explore our online resources via the Solution CenterSolution Center 2) Submit a request via the Technical Assistance Center Technical Assistance Center

27 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Title: Optimizing Solar Installations – Tools and Strategies Webinar Presenters: Ian Metzger and Lars Lisell, NREL Joananne Bachmann, VEIC Date: February 23, 2011 Time: 3:00 – 4:00 EST Upcoming Webinars For the most up-to-date information and registration links, please visit the Solution Center webcast page at Please join us again: Title: Energy Savings Performance Contracting: Savings Measurement and Verification Presenters: Karl Berntson and Irina Bulkley- Hopkins, SRA International Date: February 24, 2011 Time: 1:30 – 3:00 EST

28 | Integration of Energy Efficiency & Renewable Energy eere.energy.gov Questions & Comments Cheryl Jenkins Vermont Energy Investment Corporation Phone: ex. 1103