Energy Credits and Incentives for Multi-Family Development

By Ryan Meno, LEED AP, Rafn Company Project Manager 

Most consumers would like to save energy, both for environmental and financial reasons. But there is another entity that likes us to save energy even more, utility companies. That may seem counterintuitive as they make money by selling energy. 

End user incentives are an energy saving alternative to the much greater capital expense of expanding power plant capacity and infrastructure maintenance. It is often cheaper to pay for rebates than to build a new power plant. Utilities we've worked with on local projects that offer incentives include:

• Puget Sound Energy
• Seattle City Light
• Seattle Public Utilities

The following are just 3 examples of incentives recently pursued on behalf of our client on our Emerald City Commons Mixed-Use project. This new construction is located in South Seattle and combines 61 apartment units over 5,700 square feet of commercial space. 

Gas Fired Boilers
For gas fired boilers in multifamily projects, PSE has a custom measure incentive/rebate opportunity. For this PSE asks for two cost estimates: one for the +90% (and we often see +93% submitted) and one for the 83%. Other items to submit are equipment cut sheets and PDF copy of related project drawings. PSE will generate the energy savings calculations but if you have an energy model that has already looked at this they are happy to receive that information too. 

PSE bases our incentive amount on the cost difference between the more efficient choice and the code minimum choice, the energy saved, and how long the measure will last before it needs to be replaced. If the energy savings produce a quick payback PSE will pay for most of the upgrade cost difference. If it has a longer payback PSE pays a smaller percentage or perhaps none of the cost increase. 

Showerheads
Rebates for installation of low-flow showerheads vary from year to year. In 2012, PSE offered $5 for each showerhead 2.0 gpm max. Currently in 2013, PSE is offering $15 for each showerhead 1.75 gpm max and $25 for each showerhead 1.5 gpm max. Our project is looking at a potential incentive of $1,525 for use of the 1.5 gpm max showerheads. 

Built Smart Program
Seattle City Light's Built Smart incentive program looks at a variety of energy savings measures and incentivizes a project accordingly. Our project will earn incentives from:

• low u-value glazing
• interior common area lighting
• in-unit Energy Star light fixtures
• Energy Star refrigerators
• energy efficient whole house fans
• energy efficient washing machines

We estimate the combined kWh savings for these measures to be 159,351 and the incentive for the project owner to be just over $35,000. 

In summary, there are many incentives from many utilities that developers may not know about but are easy to achieve. However, they do change each year; even if your project is underway, check in to see what programs are currently being offered. Utilities move funds from one program to another based on their market and what makes sense to them to encourage energy savings. 

Energy savings = more green in your pocket.