PGE Water Heater ET Final Report - FINAL.pdf - Emerging ...

PG&E’s Emerging Technologies Program ET12PGE3191
PG&E has designed a Cost Effectiveness Calculator (based on the E3 Calculator for the 2010
– 2012 program) to estimate the benefit/cost ratio for a program using inputted costs,
energy savings, and estimates market adoption. Inputs to this model for the current
analysis are in Table 18.
Electric Natural Gas
Legacy Test Legacy Test
Costs
Incentive (per unit)
Incentive Payment to Participant (per unit) $ 30 Varies $ 30/50 Varies
Direct Labor and Material Cost (per unit) $ 7 $ 7 $ 7 $ 7
Total Incentive (per unit) $ 37 Varies $ 37 Varies
Adminstrator Costs
Product Development Cost $ 30,000 $ 40,000 $ 30,000 $ 40,000
Annual Costs $ 20,000 $ 61,000 $ 20,000 $ 61,000
# of Years 3
3
3
3
Incentive not offsetting IMC/"Distributor Cost" $ - $ - $ - $ -
Total Administrator Cost
Savings
$ 90,000 $ 223,000 $ 90,000 $ 223,000
kWh Saving/Unit (annual) 325 1,725
kW Saving/Unit (annual) 0.03 0.42
Therm Saving/Unit (annual) 17
56
Market Adoption
Units per Year
2011
Varies 500 Varies 1,500
2012
Varies 500 Varies 1,500
2013
Varies 500 Varies 1,500
Total 3-Year Market Adoption Varies 1,500 Varies 4,500
Processing: $4.83 per unit
Inspection: 2% of Installation at $105.47/inspection
Product Development: $100,000 for four measures
Program Management: $20,000/measure/year. If this is not allocate, then TRC increases by an average of 5% over incentive
Marketing (only Test program): $15K per Test program
Detailing (only Test program): $40/Store, 6 times per year, 217 stores, 2
Net to Gross: ".62-.65" legacy gas = .23, ".65-.67" legacy gas and ".93" legacy electric = .55, ENERGY STAR measures = .7
The charts below are outputs from the Calculator and provide insights on how variations in
incentive rates and annual unit incentivized impacts benefit to cost ratio. Overall insights
from the analysis are:
In all cases, TRC is most sensitive to changes in Net-to-Gross. Net-to-Gross is fixed
for each measure in this analysis using information from approved work papers, but
this number can change during a program evaluation.
Higher incentive per unit decreases TRC because savings per unit is static.
Increasing the number of units incentivized raises the TRC because fixed
development, management, and marketing costs are spread across more units. If
additional marketing expenses or higher incentive rates are necessary to increase
sales, then there will be a corresponding decline in benefit-to-cost.
ENERGY STAR measures have acceptable TRCs for targeted annual sales and
consistent with channel partner advice.
40