Model Energy Efficiency Program

Model Energy Efficiency Program

Residential HVAC

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The purpose of this program is to provide financial incentives for customers to purchase energy efficient HVAC systems.

HVAC systems consume a large percentage of total residential energy use. With high efficiency furnaces and air conditioning, the efficiency of these units can reduce customer energy costs significantly while maintaining personal temperature comfortability. High efficiency HVAC systems have also been known to increase occupant health and productivity. Below are some recommended rebate levels to use for your Utility’s program.

ProgramAppliances / Qualification / Incentive
Air Conditioners
Central AC
(for units < 65,000 Btu) / ≥ SEER 14.5 / $100 (E)
Central AC
(for units < 65,000 Btu) / ≥ SEER 16 / $200 (E)
Room Air Conditioners / ENERGY STAR rated(Eligibility is defined in the Energy Star Products program.) / $25 (E)
Heat Pumps
Air Source / SEER ≥ 14.5 & HSPF ≥ 8.2 / $200 (E)
Air Source / SEER ≥ 16.0 & HSPF ≥ 8.8 / $400 (E)
Ground-Source
(180,000 Btu or 15 tons or less) / New System: Closed Loop
Minimum EER ≥ 14.1 and COP ≥ 3.3 / $2,000 (E)
Ground-Source
(180,000 Btu or 15 tons or less) / New System: Open Loop
Minimum EER ≥ 16.2 and COP ≥ 3.6 / $1,000 (E)
Desuperheater
(Additional incentive for air or ground source units with this technology.) / (A desuperheater is a small, auxiliary heat exchanger that uses superheated gases from the heat pump’s compressor to heat water. This hot water then circulates through a pipe to the home’s storage water heater tank.) / $100 (E)
Natural Gas Furnaces (Municipal Gas Utility Rebates)
Forced Air / Minimum AFUE ≥ 90% / $200 (G)
Forced Air / AFUE ≥ 94% / $325 (G)
Forced Air / AFUE ≥ 96% / $400 (G)
Boiler / Minimum AFUE ≥ 85% / $150 (G)
Boiler / AFUE ≥ 90% / $400 (G)
Clock-Programmable Thermostats / (After December 2009 programmable thermostats will no longer be Energy Star rated) / $25 (G)
Natural Gas Furnace Fan Motor (Municipal Electric Utility Rebate)
Efficient Fan Motor for Natural Gas Furnace / Electrically Commutated Motor
Customer must receive electric service from the utility. New or replacement fan motor of a gas furnace. / $50 (E)
Gas Water Heaters (Municipal Gas Utility Rebates)
Natural gas tank-type / EF ≥ 0.67 / $50 (G)
Natural gas whole-home tankless / EF ≥ 0.82 / $100 (G)
Electric Water Heater (Municipal Electric Utility Rebate)
Heat Pump Water Heater / Energy Star Spec: EF ≥ 2.0 / $100 (E)

SEER= Seasonal Energy Efficiency Ratio

HSPF= Heating Seasonal Performance Factor

EER = Energy Efficiency Ratio

COP= Coefficient of Performance

AFUE= Annual Fuel Utilization Efficiency

EF= Energy Factor

Requirements:

Utilities should present the following requirements to be eligible for this program’s incentives.

Those applying for rebates must be current customers of the operating utility.
The energy efficient equipment must be installed within the utility’s service area.
An evaluation should be made to ensure that the installation of this energy efficient equipment will provide meaningful impact.
A rebate form must be submitted with proof of purchase and installation before any rebate is awarded.

Administration:

The Residential HVAC program should be designed to:

Provide incentives for purchasing high efficiency heating and cooling equipment.
Provide technical information, education, and training to homeowners and contractors to increase awareness of the benefits that high efficiency HVAC provides.
Create a marketing strategy to promote energy efficient equipment for contractors and distributors to use.

Your programs process should be simple and easy to understand, incorporating the items listed above, to break the major barriers involved with implementing the energy efficient systems. High efficiency equipment needs to increase in installation, otherwise the opportunity to install these types of equipment won’t arise for many years later.

IAMU Model Residential HVAC Program

Energy Efficiency Program