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Clean Air Council Feb 14, 2007 General Overview Michael Winka, Director Lance Miller Chief of Staff New Jersey Board of Public Utilities Office of Clean.

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Presentation on theme: "Clean Air Council Feb 14, 2007 General Overview Michael Winka, Director Lance Miller Chief of Staff New Jersey Board of Public Utilities Office of Clean."— Presentation transcript:

1 Clean Air Council Feb 14, 2007 General Overview Michael Winka, Director Lance Miller Chief of Staff New Jersey Board of Public Utilities Office of Clean Energy New Jerseys Clean Energy Program

2 Clean Air Council Feb 14, 2007 New Jerseys Clean Energy Program is a statewide program administered by the New Jersey Board of Public Utilities that promotes energy efficiency and renewable energy for all New Jersey ratepayers including residences, businesses, schools and municipalities.

3 Clean Air Council Feb 14, 2007 EE (including CHP) and RE will provide energy growth by % annual increase in electric and natural gas energy efficiency saving 785,000 MWh of electricity and 0.6 billion cubic feet of gas will be saved through EE programs by MW of Class I RE facilities by MW PV by 2008 New Jerseys Integrated Approach Goals and Objectives

4 Clean Air Council Feb 14, % reduction in energy use by % Class I Renewables by % or 1500 MW solar by % reduction in 1990 GHG by % reduction in 2006 GHG levels by 2050 New Jerseys New Goals and Objectives

5 Clean Air Council Feb 14, 2007 Energy Master Plan (code, standards EE/RE CHP New Jerseys Clean Energy Program Regional Greenhouse Gas Initiative RGGI State Energy Director Energy Certificate trading Energy Star – Zero Energy Buildings USGBC – LEED other New Jerseys New Tools

6 Clean Air Council Feb 14, 2007 New Jerseys Clean Energy Program 01 – 08 Funding Level Non-bypassable fee - all electric and natural gas customers YearTotal ($M)EE ($M)%RE ($M)% 2001$115$ %$ $119$ %$ $124$9375%$ $124$9375%$ $482$ %$ $140$10374%$3726% 2006$165$11368%$5232% 2007$205$12360%$8240% 2008$235$13356%$10244% 05 – 08$745$47263%$27337% Total$1,227$ %$ % Avg$153.4$104.2$49.2

7 Clean Air Council Feb 14, 2007 New Jerseys Clean Energy Program 05 – 08 Allocation Bill impact and rate impact SBC Allocation 44% of the SBC allocated for electric Energy Efficiency 17% of the SBC allocated for natural gas Energy Efficiency 37% of the SBC allocated for Renewable Energy Bill Impacts $18 per year per the average residential electric customer $14 per year yr per the average residential natural gas customer $14 per year per household for electric Energy Efficiency $5 per year per household for natural gas Energy Efficiency $12 per year per household for Renewable Energy 1-2% rate impact over 4 years (2005 – 2008) or % PER YEAR

8 Clean Air Council Feb 14, 2007 NJCE Program 2003 – 2008 Annual Reporting and Goals YearEE ElectricEE NGRESolarRE Class I MWhDthermMW 2003 A285,586408, A328,912432, A382,845617, G341,770489, G409,454586, G486,958697, G575,568824,

9 Clean Air Council Feb 14, 2007 New Jerseys Integrated Approach for Renewable Energy Net Metering/ Standard Interconnections Capital Cost Incentives/Rebates Portfolio Standard – Longer term financing

10 Clean Air Council Feb 14, 2007 Renewable Energy Incentives/Rebates Lower the initial capital cost Improve the payback period to 5-10 years or better – including REC value. 60% of capital cost for up to 1 MW 20% grants - 80% loan for RE Power Plants

11 Clean Air Council Feb 14, 2007 Up to 2 MW – 125% of Annual Use Small Commercial Business Up to 10 MW peak < 10 kW Inverter-based - No fee Reduce barriers Set timeframes for review New Jerseys Net Metering and Interconnections Standards

12 Clean Air Council Feb 14, 2007 Onsite Renewable Energy Program Rebates History. Incentive Available Solar Electric Systems 2005 PV Rebate per watt # of kW 2003 thru in service by 1/1/ in service after 12/31/ to 10 $5.50$5.30$5.10$4.35$ to 40 $4.00$4.35$3.90$3.20$ to 100 $4.00$3.75$3.45$3.00$ to 700 $3.75$3.60$3.20$2.80$ to $2.00

13 Clean Air Council Feb 14, 2007 StatusNumberCapacityRebate Installed with OCE rebate 2,04236 MW$147 M Approved for Rebate MW$88 M Applications in Queue 1,41282 MW$152 M TOTAL 3, MW$387 M NJsCEP Solar Rebates Installed, in- Construction and Awaiting Approved As of September 2006

14 Clean Air Council Feb 14, 2007 New Jersey Solar Installations & Capacity 4Q 2006 NJ Solar Market Stats as reported online at NJCleanEnergy.com

15 Clean Air Council Feb 14, 2007 Renewable Energy Portfolio Standard RPS The RPS requires all NJ electric supplier to provide a set percentage of their electricity as Class I renewable (wind, solar or sustainable biomass) EY % including - 4 MW of PV EY % including by 90 MW of PV EY % including 2% solar PV or 1500 MW Bill cost to the average electric residential customer EY $1.40 per year per household EY $4.50 per year per household EY $23.00 per year per household

16 Clean Air Council Feb 14, 2007 Renewable Energy Portfolio Standard Compliance with NJs RPS is through Renewable Energy Certificates (RECs) issued and tracked through either PJMs Generator Attributes Tracking System (GATS) or NJCEPs Behind the Meter system Each MWh of energy produced by a renewable energy generator creates 1 REC. This REC has a unique serial number. When it is traded and used for compliance, it is matched with a MWh or energy supply and retired. In NJ system RECs have a 1 year life and most be used in the year they are generated plus a 3 month true up period Current prices for RECs: LFG REC $5, Wind REC $15, Solar REC $200 NJs RE goals will be achieved through the RPS and financed by RECs

17 Clean Air Council Feb 14, 2007 Solar Renewable Energy Certificates (RECs) Renewable Generator: Production of Renewable Energy Environmental Benefits (S0 2, NO X,CO 2 ) Commodity Electricity Certificates represent the environmental benefits and other attributes associated with electricity generated from a renewable energy generator. May be traded independently of underlying electricity. New Jersey REC or Solar REC Electric Supplier: Retires the REC

18 Clean Air Council Feb 14, 2007 New Jerseys RPS Value of RECs Year Class 1 – Class 2 and Solar RECs Solar RECS 2005 $ 14,009,400$ 1,448, $ 48,746,600$ 15,080, $ 222,275,800$ 126,000,000 GHG Credits -> $25-> $250 REC$15 -> $5 ($2.5)$200 -> $70

19 Clean Air Council Feb 14, 2007 New Jersey SRECs

20 Clean Air Council Feb 14, 2007 New Jersey RECs Reporting in PJM GATS PJM – Environmental Information Systems (EIS launched its Generator Attributes Tracking System (GATS) in Oct 2005 for the Mid-Atlantic States NJ, MD,PA, DE and DC all use GATS for their RPS Compliance Reporting Feb 2006 GATS reported 14,282,070 REC generated during the first 2005 trading period This represents 2.02% of PJM total system mix 82 account holders 734 generators More info available at

21 Clean Air Council Feb 14, 2007 New Jerseys 20 % by 2020 Renewable Energy Portfolio Standards (RPS) will require at minimum approximately 4,400 MW of renewable energy capacity and 1500 MW of Solar capacity. NJ cannot simply buy our way to the RPS goals by providing rebates or grants to construct this capacity. We must consider other models …. New Jerseys Transition to an Open Market RECs based System

22 Clean Air Council Feb 14, 2007 Insert Residential Home New Jersey Residential 10 kw Solar Electric System Installed Cost: $77,500 NJCEP Rebate: $38,000 Electric cost savings / Net Metering: $1,500/ yr Out of Pocket Expense: $37,500 Total savings : $1,500 Federal Tax Credit: $2,000 Payback Period: 25 yrs assuming a 12,000 kWh annual energy usage

23 Clean Air Council Feb 14, 2007 Insert Residential Home New Jersey Residential 10 kw Solar Electric System Installed Cost: $77,500 NJCEP Rebate: $38,000 Electric cost savings / Net Metering: $1,500/ yr SRECs Income: $2,400 / yr 2005 $0.14/hh/yr 2009 $1.40/hh/yr 2020 $23/hh/yr Out of Pocket Expense :$37,500 Total savings : $3,900 Federal Tax Credit: $2,000 Payback Period: 9.6 yrs assuming a 12,000 kWh annual energy usage 2008 $5.00/hh/yr

24 Clean Air Council Feb 14, 2007 Insert Residential Home New Jersey Residential 10 kw Solar Electric System Installed Cost: $77,500 NJCEP Rebate: $0.00 Electric cost savings / Net Metering: $1,500/ yr Out of Pocket Expense : $75,500 Total savings : $1,500 Federal Tax Credit: $2,000 Payback Period: 50.3 yrs assuming a 12,000 kWh annual energy usage

25 Clean Air Council Feb 14, 2007 Insert Residential Home New Jersey Residential 10 kW Solar Electric System Installed Cost: $77,500 NJCEP Rebate: $0.00 Electric cost savings / Net Metering: $1,500/ yr SRECs Income: $6,050 / yr $502/ SREC Out of Pocket Expense : $75,500 Total savings : $7,550 Federal Tax Credit: $2,000 Payback Period: 10 yrs assuming a 12,000 kWh annual energy usage

26 Clean Air Council Feb 14, Energy Efficiency Programs - Residential ProgramParticipantsMWhDtherms Home Energy Analysis Warm Advantage129,02112,328,739 Cool Advantage129,0211,095,661 NJ Energy Star Homes20,800376,55412,883,376 NJ Energy Star Products4,889,2101,715,225 Comfort Partners31,555550,9456,729,837

27 Clean Air Council Feb 14, 2007 Energy Efficiency Programs - Residential Home Energy Analysis is a free online audit to help residential customers understand and reduce their home energy use links the audit to our residential rebates Home Performance with Energy Star – In home audit - Contractors certified by the Building Performance Institute work with homeowners to identify sources of energy loses and recommend energy saving improvements linked to utility financing and residential rebates – performed additional incentives for affordable housing up to 300% of the federal poverty level

28 Clean Air Council Feb 14, Energy Efficiency Programs - Residential Warm Advantage and Cool Advantage Programs Provides rebates and promotes energy efficient heating and cooling systems in homes 27,510 participants saved 15,000,000 kWh, 13 MW and 1,400,000 therms. Energy Star Homes Provides incentives for energy efficient new construction that target NJ area designated for growth (Smart Growth) 8,000 participants 20% market share for new homes construction saved 6,100,000 kWh, 19 MW, and 2, therms. An Energy Star home certification is acceptable as the local energy code costruction review

29 Clean Air Council Feb 14, Energy Efficiency Programs - Residential Energy Star Products Public education and incentives for home energy efficient appliances and lighting over 1.2 million rebates provided for room air conditions and compact fluorescents saving 63,500,000 kWh and 5 MW Comfort Partners Provides 100% installation of energy saving measures to low income customers at no cost to improve their energy affordability linked with our other energy assistance programs. Over 6,000 customers saving each homeowner on average 880 kWhs and 76 therms for an annual savings over $200.

30 Clean Air Council Feb 14, – 2005 & 2005 Energy Efficiency Programs – C&I Smart Start Buildings Program Provides technical assistance and incentives for new and retrofit efficiency upgrades for commercial office buildings, industrial facilities, schools, hospitals and government building owners. Provided rebates to 2,400 businesses and government building owners that saved 288,439,000 kWh, 36.5 MW, and 1,900,000 therms saving these building owners over $60,000,000 annually. Over the last 5 years 21,394 participants have saved 10,858,892,000 kWh and 68,853,920 therms

31 Clean Air Council Feb 14, 2007 Energy Efficiency Programs – C&I Combined Heat and Power Provides incentives up to 30% to purchase and install various types of combined heat and power systems up to 1 MW that have at minimum 68% efficiency and meet all NJDEP State of the Art air quality control limits – provided 10 rebates with commitments of $7.4 million.

32 Clean Air Council Feb 14, 2007 Energy Efficiency Programs – C&I Larger Projects 50,000 sq ft - starting in planning stage are eligible for for up to $12,000 in incentives : Three step process to plan in overall energy efficiency into and project in a coordinated approach: Pre-Design Planning Session up to $2,000 Design Simulation and Screening up to $5,000 Detailed Analysis of Energy-Efficient Measures up to $5,000 And…Equipment Incentives Additional Multiple Measures Bonus (Two or More Approved Measures)

33 Clean Air Council Feb 14, 2007 Energy Efficiency Programs – C&I Smaller Projects, or Those Begun After the Design Stage, May Take Advantage of: Project Review and Screening Recommendations for Energy-Efficiency Measures Equipment Incentives Additional Multiple Measures Bonus (Two or More Approved Measures)

34 Clean Air Council Feb 14, 2007 Energy Efficiency Programs – C&I Categories: –Electric Chillers –Natural Gas Cooling –Desiccant Units –Electric Unitary HVAC Systems –Natural Gas Heating Systems –Natural Gas Water Heating –Premium-Efficiency Motors –Prescriptive Lighting –Lighting Controls –LED Traffic Signals –Variable Frequency Drives –Ground Source Heat Pumps

35 Clean Air Council Feb 14, 2007 Custom Measures Customers May Request Technical Assistance and Receive an Incentive for Qualified Energy-Efficient Equipment Not on the Prescriptive Technologies List. Customer project in New Jersey Custom Measure application Screening process Incentive Up to 80% of measure or 1.5 year payback New Jersey SmartStart Buildings ® The Program

36 Clean Air Council Feb 14, 2007 Custom Measures Local Government Energy Audits – up to 90% of cost but will require all cost effective (LT 2 yr PB) to be implemented. Demand Response – Load Management Incentives Pay for Performance pilot Zero Energy Buildings (Energy Star Benchmarking) Linking EE and RE in congested areas New Jersey Clean Energy Programs – New Developments

37 Clean Air Council Feb 14, 2007 Free Fuel Power & Hot Water from Microturbine PPT Total Energy Utilization 70%+ MicroTurbine ~26% Integrated Heat Exchanger ~45% + = Natural Gas Waste Heat

38 Clean Air Council Feb 14, 2007 Energy Efficiency Portfolio Standard (EEPS) and EE Certificates Energy Efficiency: Avoided Energy Use Saved Energy Environmental Benefits (S0 2, NO X,CO 2 ) Energy Savings Certificates represent the environmental benefits and other attributes associated with electricity generated from a energy efficiency system. May be traded independently of underlying electricity. New Jersey EEC Electric Supplier: Retires the EEC

39 Clean Air Council Feb 14, 2007 New Jerseys EEPS Value of EECs Year Class 1 Res EE Class II C&I EE Class III Clean DG Class IV Load Mgmt 2006 $ 5,124, $ 38,024, $ 84,900,000 EEEC2006 -> 2021$70 -> $20

40 Clean Air Council Feb 14, 2007 New Jerseys Clean Energy Program Results New Jerseys Clean Energy Program provides incentives for investments in energy efficiency and renewable energy –$492 million in energy efficiency investments These investments help to: –reduce customers energy bills –reduce pollution levels –reduce reliance on imported fuels –stimulate the local economy and keep energy dollars in the State

41 Clean Air Council Feb 14, 2007 New Jerseys Clean Energy Program Results The programs reduced electrical usage by 1,216,403 MWh over 5 years –243,280 MWH of energy savings per year These savings are equivalent to the electric usage of approximately 135,000 average homes

42 Clean Air Council Feb 14, 2007 New Jerseys Clean Energy Program Results These savings continue over the life of the measures which averages 15 years Savings over the life of the measures: 14,888,209 MWH of energy savings

43 Clean Air Council Feb 14, 2007 New Jerseys Clean Energy Program Results These programs also reduced natural gas usage by 2,048,981 Dtherms per year These savings are equivalent to the annual usage of over 20,000 average homes heated with natural gas Savings over the life of the measures: –38,943,822 Dtherms

44 Clean Air Council Feb 14, 2007 New Jerseys Clean Energy Program Results The programs have also reduced electric demand by 450 MW This has eliminated the need to site, build and operate a mid-sized power plant Reducing demand also improves the reliability of the electric transmission and distribution system

45 Clean Air Council Feb 14, 2007 New Jerseys Clean Energy Program Results Energy efficiency and renewable energy generation also reduce emissions resulting in cleaner air and other environmental and health benefits Annual Emission Reductions: –CO2: 317,467 metric tons –NOX: 550 metric tons –SO2: 1,217 metric tons –HG (mercury): 15 lbs

46 Clean Air Council Feb 14, 2007 New Jerseys Clean Energy Program Results Cumulative emission reductions over the life of the measures over the five years of the program: –CO2: 13,190,265 metric tons –NOX: 21,798 metric tons –SO2: 46,283 metric tons –HG: 558 pounds

47 Clean Air Council Feb 14, 2007 You can either incorporate more energy efficiency (including increased building energy codes and appliance standards) including combined heat and power and clean distributive and renewable energy into the over energy mix or pay for larger and larger transmission lines into NJ that will move your payments to out of state facilities and out of state jobs with the associated transport of out of state emissions contributing to the reasons NJ does not meet its clean air states putting more pressure on existing NJ business to reduce emissions BOTTOM LINE

48 Clean Air Council Feb 14, 2007 New Jerseys Clean Energy Program: Rutgers Center for Energy, Economics and Environmental Policy (CEEEP) Clean Energy Council – Committees Portfolio Management Work Group State Energy Master Plan and Energy data management New Jerseys Integrated Approach

49 Clean Air Council Feb 14, 2007 Thank you Questions ?? YOUR POWER TO SAVE Energy, Money and the Environment Visit: NJCleanEnergy.com


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