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Home  >  Rebates & Savings  >  Large Business  >  Standard Performance Contract (SPC)  >  Calculating Energy Savings
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Large Business - Standard Performance Contract (SPC)
Calculating Energy Savings

SPC incentives are based on annual kWh savings achieved beyond Title 24 or minimum industry standards. For the purpose of calculating energy savings, current Title 24 or minimum industry/government standards must be used as the baseline efficiency for all projects. (Existing equipment not covered by a defined standard uses existing equipment as the basecase.) The estimated incentive is the delta between Title 24 and the proposed equipment.

SPC Software

The SPC software offers calculator tools that provide reasonable savings estimates under most conditions. Title 24 or industry standards are automatically incorporated into the software for the baseline equipment. The following energy-efficiency measures are available:

  • Air conditioning packaged systems or heat pumps greater than 63.3 tons (> 760,000 Btu/hr)
  • Air conditioning economizers
  • Air compressors
  • Carbon monoxide sensors for parking garages
  • Chillers (air-cooled or water-cooled)
  • Cold storage rapid close doors
  • Cool roofs
  • Demand control ventilation
  • Drip tape irrigation (refers to thin-walled hoses ranging from 4 to 20 millimeters)
  • Early Retirement for motors, HVAC packaged units, or chillers
  • Frictionless chiller or compressor
  • Injection molding machines
  • Lighting upgrades
  • Lighting controls
  • Motors
  • Pulse cooling for injection molders
  • Pump off controllers for oil wells
  • Refrigerated tank insulation
  • Thermal oxidizer upgrades
  • Variable speed drives for centrifugal chillers, cooling tower fans, HVAC fans with motors >100hp, process applications and dairy vacuum pumps.
  • Wastewater retrocommissioning

The software prompts the user for detailed information about the proposed equipment type and size, building type and location, and hours of operation. Based on the inputs an estimated savings is provided.

Engineering Calculations

Use engineering calculations if the SPC software does not address the measure you're installing. Submit detailed documentation of your calculations (electronic files or CD) providing visibility to the inputs and assumptions. Some projects may require power measurements or logged data to support the baseline or proposed case.

Supporting Documentation Requirements: Accompany your application with the following:

  • A detailed description of the methodology used including assumptions and variables.
  • Electronic files of calculations.
  • Logged data, measurements or data sources used to validate equipment efficiency or basecase operation.
  • Results of your analysis.

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Early Retirement

This feature is designed to accelerate the retirement of older, less efficient equipment with new, high efficiency replacements. The incentive is based on existing equipment efficiency rather than Title 24 standards. This results in a larger incentive than would be possible using the traditional calculated SPC approach.

For Early Retirement, applicants are required to use the SPC estimation software.

Eligibility criteria:
  • Packaged air conditioning and heat pump units greater than 63.3 tons (> 760,000 Btu/hr) with 5 or more years of remaining useful life.
  • Chillers, electrical motors, and professional wet/dry cleaning with 5 or more years of remaining useful life.
  • New equipment must exceed current minimum standards.

Estimated Useful Life Chart

Below is a summary of equipment and dates that qualify for Early Retirement:

Equipment Year Built
or later
Motors 1996
Packaged Units 1998
Chillers-Reciprocating 1993
Chillers-Centrifugal 1993

Early Retirement Incentive

The incentive is based on the full level of achieved savings using existing equipment efficiency rather than Title 24.

Below is a simplified energy-savings calculation for a 10-year-old, 350-ton, water-cooled centrifugal chiller:

Assumptions
Existing chiller 350 Ton, 5.612 COP* and 8,760 annual operating hours
Title 24 Standard Efficiency 350 Ton, 6.1 COP
Proposed chiller 350-Ton, 6.39 COP, 8,760 hrs per year

*Coefficient of performance

Calculations
Baseline Annual Energy Usage 568,826 kWh
Proposed Annual Energy Usage 462,894 kWh
Annual kWh savings using Baseline Efficiency 568,826 kWh – 462,894 kWh = 105,932 kWh
Incentive using Early Retirement feature 105,932 kWh x $0.14 /kWh = $14,830.48
Annual Energy Usage at Title 24 Efficiency 484,901 kWh
Annual kWh savings based on Title 24 Efficiency