Table of contents A message from our president............................................................. 1 High-efficiency lighting retrofit.............................................................. 2 New construction high-efficiency lighting............................................... 4 Efficient electric motors...................................................................... 5 Adjustable-speed drives...................................................................... 8 Energy-efficient refrigeration................................................................ 9 Heat pumps.................................................................................... 10 Commercial and industrial grants. ...................................................... 13 Commercial design assistance.......................................................... 14 Recommissioning. ............................................................................ 14 Compressed-air system audits. .......................................................... 15 Price-response programs. .................................................................. 16 Off-peak heating.............................................................................. 17 CoolSavings.................................................................................... 21 DollarSmart financing....................................................................... 22 Commercial tax incentives................................................................ 23 Contact information. ......................................................................... 25 For more information........................................................................ 26
A message from our president Get serious about energy solutions
As a facility manager you likely are being pushed to do more with fewer people and less money. Reducing expenses is critical. Squeezing efficiency gains from your building and equipment is mandatory.
Chuck MacFarlane
Otter Tail Power Company can help. Please take time to review this booklet, Taking care of business. It describes our energy-efficiency programs and incentives, including cash rebates and grants for 2014. Our money-saving energy-efficiency programs can reduce your long-term energy costs and lower your up-front investment. You might consider combining rebates from Otter Tail Power Company with your own financing options. In many cases, energy savings more than offset your debt payment. I hope you’ll consider the opportunities in this booklet. Then contact one of our Industrial Services Engineers or Energy Management Representatives to learn more about how you can save energy and money. Contact information is on page 25. We are mindful that the future of our electric business is tied directly to that of our customers. To help secure a bright future for all of us, we promise to remain diligent in finding the most efficient, responsible, cost-effective ways to provide exceptional service, as we have for more than 100 years.
Chuck MacFarlane President
1
High-efficiency lighting retrofit Reduce your costs with efficient lighting
Guidelines ■
Lighting accounts for 18 percent of electricity consumed annually in the United States, with another four to five percent used to remove waste heat generated by lighting. Commercial office building operators spend about 29 percent of their operating budgets on utility bills. Lighting, cooling, and ventilation account for more than 60 percent of these buildings’ electricity use. If you’ve never upgraded to more efficient lighting, opportunities likely exist to enhance your efficiency, reduce energy costs, and reap attractive returns on your investment with rebates from Otter Tail Power Company. But remember, rebates and lower operating costs aren’t the only advantages of highefficiency lighting. Research indicates that efficient lighting also can contribute to productivity, quality control, security, safety and reduced maintenance costs.
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Eligible retrofits include T5 and T8 lamps, electronic ballasts, compact fluorescent fixtures and lamps, efficient high-intensity discharge (HID) lighting, induction lighting systems, LED systems, and occupancy sensors.
Customer case study: Retrofit cost $4,300 Rebate $3,067 Net cost $1,233 Annual savings $1,040 Payback 1.2 years
Rebates will not exceed 75 percent of total lighting, labor, and material cost. Rebates will not exceed 75 percent of your annual electric bill. In outdoor lighting applications the annual electric bill will be based on metered data when available or on average hours of use per year. All rebates exceeding $4,500 must be preapproved.
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Eligibility All commercial, industrial, and agricultural customers in Minnesota are eligible.
Rebates for retrofits from T12 fluorescent lighting systems to standard-efficiency T8 fluorescent lighting systems are no longer available. A small incentive for retrofits from T12 fluorescent to low-watt T8 (28 watts or less) fluorescent lighting systems is available.
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A replacement system must meet minimum recommended lighting standards and be a permanent installation.
Otter Tail Power Company reserves the right to inspect and verify installations before issuing rebates. Eligible customers may select 1.9 percent financing in lieu of Minnesota Conservation Improvement Program (CIP) rebates for all CIP programs. Funding limits and other program guidelines and limitations apply.
Reflectors are included in our lighting program. Reflectors are not appropriate for every situation, and certain guidelines apply. Contact Otter Tail Power Company for more information. Note: Rebates also are available for occupancy sensors. By automatically turning lights on when a room is occupied and off when it’s not, occupancy sensors can cut room lighting costs as much as 50 percent.
Customer case study reflects possible results of investing in efficient lighting. Actual results may vary.
2
2014! in s e g n a h c t n a t r Impo High-efficieny lighting retrofit continued
For more information about highefficiency lighting, or any other Taking care of business program, complete and mail the form at the back of this booklet.
Replacement Lighting Existing Low-efficiency incandescent
Low-efficiency fluorescent Mercury-vapor
Standard HID
Exit lighting fixtures Motion sensors
Replaced with Rebate per watt saved Screw-in type compact fluorescent 10¢ Screw-in type LED 20¢ Hard-wired compact fluorescent 60¢ High-efficiency fluorescent lamps AND electronic ballasts 60¢ High-pressure sodium lamps AND fixtures 60¢ Pulse start metal-halide lamps AND fixtures 60¢ High-efficiency fluorescent lamps, electronic ballasts, and energy-saving reflectors 60¢ High-efficiency induction lighting 60¢ Hard-wired LED 60¢ watt 05¢ per Low-watt T8 fluorescent fixtures (must use lamps at 28-watts per lamp or less) installed Low-watt T8 lamps only (32-watts per lamp to 28-watts per lamp or less) 40¢ High-efficiency fluorescent lamps AND electronic ballasts 60¢ High-pressure sodium lamps AND fixtures 60¢ Pulse start metal-halide lamps AND fixtures 60¢ High-efficiency induction lighting 60¢ Hard-wired LED 60¢ High-efficiency fluorescent lamps AND electronic ballasts 60¢ High-pressure sodium lamps AND fixtures 60¢ Pulse start metal-halide lamps AND fixtures 60¢ High-efficiency induction lighting 60¢ Hard-wired LED 60¢ High-efficiency exit lighting (based on maximum demand reduction of 20 watts 60¢ per fixture)
$200 per connected kw
Some restrictions may apply. See Lighting Rebate Form 1903 for details. Rebate incentives and technologies eligible for incentives may change at any time.
Otter Tail Power Company advises customers to store old fluorescent lamps and HID lamps according to the MPCA procedures described below:
• Store in an area and a manner that will prevent breakage. • Post notices to show employees where and how to store
• Ballasts may contain polychlorinated biphenyls (PCBs).
• If storage on-site is not possible, transport the lamps to
• For more information about fluorescent lamps,
lamps.
a storage location. A hazardous waste manifest is not needed as long as lamps are transported to a site within Minnesota. Shipping papers are required.
Storage and disposal of PCB ballasts must conform to the requirements of the Environmental Protection Agency and the Minnesota Pollution Control Agency.
high‑intensity discharge lamps, and ballast storage and disposal requirements, contact your local county recycling offices. They may have recycling programs in your area. Or call the Minnesota Pollution Control Agency at 800-657-3864.
CIP rebates will not exceed 75 percent of installed cost. Qualified customers may select 1.9 percent financing in lieu of CIP rebates in any of these programs. Funding limits and other program guidelines and limitations apply. 3
4!
201 Look for changes in
New construction high-efficiency lighting Install high-efficiency lighting in new construction
Efficient technology
Rebate/kw installed
Hi-bay fluorescent
$225
Ceramic metal halide
$225
Pin-based CFL fixtures
$225
Eligible energy-efficient technologies include hi-bay fluorescent (T8 and T5), ceramic metal-halide, pulse-start metal halide, low-watt T8 flourescent (28 watts per lamp or less), LED (screw-in and hardwired), and pin-based compact flourescent.
LED (screw-in)
$225
Low-wattage T8 lamps (28 watts or less)
$50
Pulse-start metal halide
$50
LED indoor and outdoor fixtures
$600
Rebates for screw-in based compact fluorescent lighting (CFL) systems are not available in new‑construction applications. Pin-based CFL fixtures do qualify for rebate incentives.
Motion sensors
Plan to build a new facility? Take advantage of cash rebates and install energy-efficient lighting. ■
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New construction high-efficiency lighting
Commercial and industrial customers who install efficient lighting in newly constructed buildings may qualify for rebates.
$200 per connected kw
Compact fluorescent lightbulbs contain small amounts of mercury that are harmful to the environment. It is illegal to place these lamps in the garbage. Call the Minnesota Pollution Control Agency at 800-657-3864 or visit www.earth911.com to learn how to lawfully dispose of the lamps.
CIP rebates will not exceed 75 percent of installed cost. Qualified customers may select 1.9 percent financing in lieu of CIP rebates in any of these programs. Funding limits and other program guidelines and limitations apply. 4
Efficient electric motors Efficient motors can reduce costs
High rebate, permanent savings
Motors can account for up to 75 percent of the total electricity costs in industrial plants and up to 50 percent of electricity costs in commercial buildings. Replacing used or burnedout standard-efficiency motors with energyefficient motors can reduce your energy use and operating costs.
Our Taking care of business motor rebate program offers up to $9,000 for each qualifying energy-efficient motor installation.
Energy-efficient motors have other advantages too. They’re quieter. Because they operate at lower temperatures, they last longer. Their superior design and construction lead to reduced downtime and maintenance costs. And they have a higher power factor.
Federal legislation brings change Our motor rebate program encourages our industrial, commercial, and agricultural customers to purchase efficient new, replacement, or retrofit motors. ■
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2007 EISA legislation set NEMA Premium® as the efficiency standard for 1 to 200 horsepower totally enclosed fan-cooled (TEFC) and open drip-proof (ODP) motors manufactured after December 2010. Efficiency of TEFC and ODP motors must exceed NEMA Premium efficiency to qualify for Otter Tail Power Company CIP incentives for new motors and replacement of nonoperating motors. TEFC and ODP motors replaced prior to failure must meet NEMA Premium efficiency levels to qualify for our CIP incentives. Availability of certain motors meeting efficiency requirements may be limited. Rebates will not exceed 75 percent of project costs.
See the tables starting on page 6 for details on minimum efficiency levels needed to qualify for Otter Tail Power Company rebates. 5
But your savings don’t end with the rebate. Operating energy-efficient motors costs as much as 10 percent less than standard-efficiency motors. That fact, plus the rebate, quickly overcomes the higher initial cost.
Eligibility All Otter Tail Power Company industrial, commercial, and agricultural customers in Minnesota qualify for rebates. Motors must meet or exceed qualifying efficiency levels and: ■
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Range from 1 to 500 hp and be AC 3-phase with speeds of 3600, 1800, or 1200 RPM. Test in accordance with IEEE Standard 112, Test Method B.
Motors exceeding 500-horsepower may qualify under our Commercial and Industrial Grant Program (see page 13). Contact your Otter Tail Power Company representative for details.
Guidelines Higher rebates are available for TEFC and ODP motors replaced prior to failure. Special efficiency requirements and rebates for explosion-proof motors exist. Otter Tail Power Company reserves the right to inspect and verify motor locations and installations before issuing rebates and to verify actual energy savings after installation.
For more information about premium-efficiency motors, or any other Taking care of business program, complete and mail the form at the back of this booklet.
Efficient electric motors continued Motor selection tips
One of the most important factors in motor selection is sizing. Undersized motors sometimes operate under overload conditions. That leads to increased downtime and reduced life expectancy. On the other hand, oversized motors contribute to reduced power factor and operate at a reduced efficiency, which could add to your energy bill. For these reasons, and to achieve maximum energy savings, we recommend that you always match motor ratings to your load requirements. Consider the actual load levels, both starting and running, and the expected duration of each load.
Totally enclosed fan-cooled motor rebates Percent rated efficiency 1200 RPM
Percent rated efficiency 1800 RPM
Percent rated efficiency 3600 RPM
Rebate per motor
HP
New and replacement of nonoperating motors
Replacement of operating motors
New and replacement of nonoperating motors
Replacement of operating motors
New and replacement of nonoperating motors
Replacement of operating motors
New and replacement of nonoperating motors
Replacement of operating motors
1
84.0
82.5
86.5
85.5
78.5
77.0
$ 30
$ 60
1.5
88.5
87.5
87.5
86.5
85.5
84.0
$ 40
$ 80
2
89.5
88.5
87.5
86.5
86.5
85.5
$ 55
$ 110
3
90.2
89.5
90.2
89.5
87.5
86.5
$ 65
$ 130
5
90.2
89.5
90.2
89.5
89.5
88.5
$ 105
$ 210
7.5
91.7
91.0
92.4
91.7
90.2
89.5
$ 165
$ 330
10
91.7
91.0
92.4
91.7
91.0
90.2
$ 210
$ 420
15
92.4
91.7
93.0
92.4
91.7
91.0
$ 315
$ 675
20
92.4
91.7
93.6
93.0
91.7
91.0
$ 420
$ 840
25
93.6
93.0
94.1
93.6
92.4
91.7
$ 420
$ 840
30
93.6
93.0
94.1
93.6
92.4
91.7
$ 500
$ 1000
40
94.5
94.1
94.5
94.1
93.0
92.4
$ 550
$ 1100
50
94.5
94.1
95.0
94.5
93.6
93.0
$ 700
$ 1400
60
95.0
94.5
95.4
95.0
94.1
93.6
$ 775
$ 1550
75
95.0
94.5
95.8
95.4
94.1
93.6
$ 850
$ 1700
100
95.4
95.0
95.8
95.4
94.5
94.1
$ 1125
$ 2250
125
95.4
95.0
95.8
95.4
95.4
95.0
$ 1400
$ 2800
150
96.2
95.8
96.2
95.8
95.4
95.0
$ 1700
$ 3400
200
96.2
95.8
96.5
96.2
95.8
95.4
$ 2000
$ 4000
250
95.8
95.8
96.2
96.2
95.8
95.8
$ 2500
$ 5000
300
95.8
95.8
96.2
96.2
95.8
95.8
$ 3000
$ 6000
350
95.8
95.8
96.2
96.2
95.8
95.8
$ 3000
$ 6000
400
95.8
95.8
96.2
96.2
95.8
95.8
$ 3500
$ 7000
450
95.8
95.8
96.2
96.2
95.8
95.8
$ 4000
$ 8000
500
95.8
95.8
96.2
96.2
95.8
95.8
$ 4500
$ 9000
*Rebate levels may change at any time.
CIP rebates will not exceed 75 percent of installed cost. Qualified customers may select 1.9 percent financing in lieu of CIP rebates in any of these programs. Funding limits and other program guidelines and limitations apply.
6
Efficient electric motors continued Open drip-proof motor rebates Percent rated efficiency 1200 RPM
Percent rated efficiency 1800 RPM
Percent rated efficiency 3600 RPM
Rebate per motor
HP
New and replacement of nonoperating motors
Replacement of operating motors
New and replacement of nonoperating motors
Replacement of operating motors
New and replacement of nonoperating motors
Replacement of operating motors
New and replacement of nonoperating motors
Replacement of operating motors $ 60
1
84.0
82.5
86.5
85.5
78.5
77.0
$30
1.5
87.5
86.5
87.5
86.5
85.5
84.0
$40
$ 80
2
88.5
87.5
87.5
86.5
86.5
85.5
$55
$ 110
3
89.5
88.5
90.2
89.5
86.5
85.5
$65
$ 130
5
90.2
89.5
90.2
89.5
87.5
86.5
$105
$ 210
7.5
91.0
90.2
91.7
91.0
89.5
88.5
$165
$ 330
10
92.4
91.7
92.4
91.7
90.2
89.5
$210
$ 420
15
92.4
91.7
93.6
93.0
91.0
90.2
$315
$ 675
20
93.0
92.4
93.6
93.0
91.7
91.0
$420
$ 840
25
93.6
93.0
94.1
93.6
92.4
91.7
$420
$ 840
30
94.1
93.6
94.5
94.1
92.4
91.7
$500
$ 1000
40
94.5
94.1
94.5
94.1
93.0
92.4
$550
$ 1100
50
94.5
94.1
95.0
94.5
93.6
93.0
$700
$ 1400
60
95.0
94.5
95.4
95.0
94.1
93.6
$775
$ 1550
75
95.0
94.5
95.4
95.0
94.1
93.6
$850
$ 1700
100
95.4
95.0
95.8
95.4
94.1
93.6
$1125
$ 2250
125
95.4
95.0
95.8
95.4
94.5
94.1
$1400
$ 2800
150
95.8
95.4
96.2
95.8
94.5
94.1
$1700
$ 3400
200
95.8
95.4
96.2
95.8
95.4
95.0
$2000
$ 4000
250
95.4
95.4
95.8
95.8
95.0
95.0
$2500
$ 5000
300
95.4
95.4
95.8
95.8
95.4
95.4
$3000
$ 6000
350
95.4
95.4
95.8
95.8
95.4
95.4
$3000
$ 6000
400
95.8
95.8
95.8
95.8
95.8
95.8
$3500
$ 7000
450
96.2
96.2
96.2
96.2
95.8
95.8
$4000
$ 8000
500
96.2
96.2
96.2
96.2
95.8
95.8
$4500
$ 9000
*Rebate levels may change at any time.
Explosion-proof motor rebates - For new, replacement of nonoperating, and replacement of operating motors. Horsepower
7
Percent rated efficiency 1200 RPM
Percent rated efficiency 1800 RPM
Percent rated efficiency 3600 RPM
Rebate per motor
1
82.5
84.0
76.0
$ 40
1.5
86.5
84.0
84.0
$ 60
2
85.5
85.5
84.0
$ 80
3
87.5
85.5
85.5
$ 90
5
88.5
88.5
86.5
$ 150
7.5
90.0
90.0
86.5
$ 230
10
90.0
90.0
89.5
$ 300
15
91.0
91.7
90.2
$ 450
20
90.0
91.7
90.2
$ 600
25
92.0
93.0
91.0
$ 600
30
92.4
93.0
91.0
$ 700
40
93.6
93.6
92.0
$ 800
50
93.6
93.6
92.4
$ 1000
60
94.1
94.0
93.0
$ 1100
75
94.0
94.5
93.6
$ 1200
100
94.5
94.5
93.6
$ 1600
125
94.5
95.0
94.1
$ 2000
150
95.0
95.4
94.1
$ 2400
200
95.0
95.8
95.0
$ 2800
250
95.0
95.0
95.0
$ 3500
300
95.0
95.4
95.4
$ 4200
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014 Higher rebates in 2
Adjustable-speed drives Adjustable-speed drives improve motor performance and efficiency Induction motors are the workhorses of commercial enterprises and are used in virtually every manufacturing plant and office building. The largest energy savings in induction motor systems often lies not in the motor but in the controls governing the motor’s operation. Adjustable-speed drives (ASDs), also known as variable-speed drives (VSDs), variable-frequency drives (VFDs), or variable-frequency inverters (VFIs), are used to modify or control motor behavior, which improves drive system performance and efficiency.
Adjustable-speed drive rebates ■
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Rebate of $100 per horsepower for process and other nonseasonal centrifugal applications. Rebate of $60 per horsepower for seasonal and HVAC centrifugal applications.
Guidelines ■
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Rebates cover ASD installation on motors from 1 to 500 horsepower. Rebates will not exceed 75 percent of installed ASD cost. Rebates will not exceed 75 percent of your annual electric bill.
For example, adjustable-speed drives can match the speed of an AC motor to the requirements of a fluctuating load, such as a pump that moves changing fluid volumes during production. When this happens, the control valves, dampers, or other throttling mechanisms can be removed (or locked in full open positions), thereby dramatically improving energy efficiency and reducing energy expenses by more than 50 percent.
CIP rebates will not exceed 75 percent of installed cost. Qualified customers may select 1.9 percent financing in lieu of CIP rebates in any of these programs. Funding limits and other program guidelines and limitations apply. 8
For more information about our Taking care of business programs, complete and mail the form at the back of this booklet.
Energy-efficient refrigeration A hot deal for cool customers
Rebate information
Commercial refrigeration accounts for 16 percent to 18 percent of commercial energy use and as much as 50 percent of energy consumption in some grocery stores. Just a 10 percent reduction in energy costs for a supermarket is the equivalent of increasing net profit margin by 16 percent. When you install energy-efficient equipment you’ll save in two ways:
Many rebates are available in four areas of commercial refrigeration.
1. Lower electric bills. 2. Up-front rebates on certain types of energy-efficient refrigeration equipment.
1. Refrigeration rack system upgrades. 2. Stand-alone condensing units. 3. Display cases and walk-ins. 4. Preventive maintenance cleaning measures. The amount of your rebate and the amount of your savings will depend on the size of your refrigeration unit and the number of rebates that apply to your system. See the chart below for details.
Commercial refrigeration rebates Measure
Incentive
Parallel rack (retrofit)
$100/HP
Conversion to solid-state compressor controls (retrofit)
$50/HP
Preservation of condenser subcooling (retrofit)
$40/HP
Floating head pressure on rack (retrofit)
$25/HP
Floating head pressure, stand-alone (new and retrofit)
$60/HP
Antisweat heater control (retrofit)
$20/lineal ft of case
High-efficiency glass doors (new and retrofit)
$40/lineal ft of case
High-efficiency evaporator fan motor (new)
$10/per motor
High-efficiency evaporator fan motor (retrofit)
$40/per motor
Solid-state condenser fan controls (retrofit)
$50/HP
Outdoor air cooling, e.g., natural cool (new and retrofit)
$2/cfm airflow
High evaporator temp cases (new and retrofit)
$20/lineal ft of case
Condenser-based antisweat heater control (new and retrofit)
$40/lineal ft of case
LED lighting—low-temp (new and retrofit)
$100/door
LED lighting—mid-temp (new and retrofit)
$100/door
*Preventive maintenance—1 to 30 hp Discounted price $29.95
($325 maximum reimbursement)
*Preventive maintenance—31 to 100 hp Discounted price $39.95
($500 maximum reimbursement)
*Preventive maintenance—101 to 200 hp Discounted price $49.95
($650 maximum reimbursement)
*Customers are eligible for one preventive maintenance measure every two years.
CIP rebates will not exceed 75 percent of installed cost. Qualified customers may select 1.9 percent financing in lieu of CIP rebates in any of these programs. Funding limits and other program guidelines and limitations apply. 9
Heat pumps Heat pumps offer heating and cooling No matter how cold it gets, heat always is in the air and ground. Heat pumps are designed to move that heat into your building to keep it warm, and out of your building to keep it cool. Because moving heat is much cheaper than making it, heat pumps provide year-round comfort and savings. They work well by themselves or as part of dual-fuel systems.
Geothermal heat pump The geothermal heat pump is the most economical heating and cooling system on today’s market. It can deliver more than four units of heat for each unit of energy it uses and can help you save up to 70 percent on your annual heating costs!
Here’s how it works A special plastic pipe is buried in the ground. The pipe is filled with an environmentally friendly liquid that flows to a heat pump inside your building. In cold weather the earth warms the liquid in the pipe. The heat pump extracts the heat in the heat exchanger and warms your building. In hot weather the heat pump reverses and works like an air conditioner, moving heat from indoors to outdoors, keeping the building comfortably cool.
Rebates on heat pumps installed as replacements to natural gas heating systems are paid through funds other than Minnesota CIP. Funds may be limited. Financing is not available on heat pumps installed as replacements for natural gas heating.
10
Heat pumps continued Rebate qualifications
Verify your heat pump’s qualifications
Minnesota customers are eligible for rebates of $600 per ton for geothermal heat pumps labeled as Energy Star systems or rated with a COP as follows:
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Type COP
Water to air Water to water Direct exchange
Open 4.1 3.5
3.6
Closed 3.6 3.1
If your make and model has the Energy Star rating it automatically qualifies for rebates. If the unit is not Energy Star rated, secure documentation from your manufacturer or distributor to verify that it meets the requirements.
Rebates on heat pumps installed as replacements to natural gas heating systems are paid through funds other than Minnesota CIP. Funds may be limited. Financing is not available on heat pumps installed as replacements for natural gas heating.
Heating and cooling system retrofit case study Building type: Public K-12 school Size: 82,000 square feet Before: • Fuel oil boilers operating at 60 percent seasonal efficiency • Annual fuel expense of $138,600 (fuel oil at $3.50/gallon) • Other operating expenses, including chemical treatment, boiler inspections, and operating license After: • Geothermal heat pump operating at 350 percent efficiency or greater • Annual electric heating expenses of $18,000 Installed cost: $850,000 Rebate: $114,000 Payback: Six years
Heating costs
Geothermal case study
11
Case study reflects possible results. Actual results including installation costs and energy cost savings may vary.
Heat pumps continued Air-source heat pump Air-source heat pumps, with supplemental electric heating for colder periods, require 30 percent to 50 percent less energy than conventional electric heat. We recommend auxiliary electric heat, such as a plennum heater, to provide quick response for tempering cold air during extremely cold temperatures. At temperatures above 0° F air-source heat pumps operate at 200 percent or greater efficiency and will outperform conventional electric heat and oil and gas systems. New models can reduce cooling costs by 30 percent to 50 percent or more.
Here’s how it works During cold weather the air-source heat pump extracts heat from outside air and moves it into indoor spaces to keep you warm. During warm weather the process is reversed to move heat from indoor spaces to the outside air to keep you cool.
Rebate qualifications The customer rebate for an air-source heat pump is $240 per ton if it is labeled as an Energy Star system or is rated as follows: ■
Split-system (multi-unit) installations must be rated with 14.5 or greater SEER, 12 EER, and 8.2 or greater HSPF.
Package-terminal heat pump installations must be rated with 11.0 or greater EER.
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Verify your heat pump’s qualifications ■
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If your make and model has the Energy Star rating it automatically qualifies for rebates. If the unit is not Energy Star rated, secure documentation from your manufacturer or distributor to verify that it meets the requirements.
Rebates on heat pumps installed as replacements to natural gas heating systems are paid through funds other than Minnesota CIP. Financing is not available on heat pumps installed as replacements for natural gas heating.
CIP rebates will not exceed 75 percent of installed cost. Qualified customers may select 1.9 percent financing in lieu of CIP rebates in any of these programs. Funding limits and other program guidelines and limitations apply. 12
Commercial and industrial grants You’re the boss
Here’s how it works
No one knows your business as well as you. That’s the premise behind our grant program, which lets you submit energy-savings proposals based on your individual needs.
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Ideas unlimited! Chances are you already know of a number of ways you could improve the energy efficiency of your operation. A list of possibilities might include but is not limited to: ■
Air compressor changeout
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Compressed-air system improvements
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Chillers
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Commercial cooking installation
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Heat-recovery systems
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Process improvements
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Heat pump and MVR (multi-vapor recovery) installations
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Refrigeration improvements
Lighting, motors, adjustable-speed drives, and heat pumps are eligible for rebates under separate programs specifically designed for those applications. Our analysis of your proposals may indicate greater savings potential under one of those programs. Please refer to their respective sections in this booklet for more information.
Measurement and verification New rules from the Minnesota Department of Energy Resources apply on measurement and verification of energy savings for large grant projects. If you anticipate energy savings of 1,000,000 kwh or more annually, consult your Industrial Services Engineer or Energy Management Representative to be sure that you qualify for Commercial and Industrial Grant Program incentives. 13
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You submit your energy-efficiency proposals using one of our grant proposal forms. Your Otter Tail Power Company Industrial Services Engineer or Energy Management Representative can help you. We evaluate your proposals to determine the effect of the improvements suggested. If the evaluation indicates that sufficient energy savings will result, we’ll let you know how much grant money you can expect from us to implement your energy-saving measures. Our analysis will include both the amount of the up-front grant and the estimated long-term savings. You decide if the up-front cash grant and long-term savings are attractive enough to proceed with your improvements. If you decide to proceed, you’ll receive a check for the approved amount when the installations are complete.
Guidelines ■
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Energy-saving measures must be installed within six months of project approval unless special arrangements are made. Otter Tail Power Company reserves the right to inspect and verify project location and installation before issuing the grant check and to verify installation and actual energy savings after project completion. Incentives for grant projects may be capped.
Other programs Commercial design assistance Qualifying building owners, architectural and engineering firms, and developers may participate in Otter Tail Power Company’s FREE commercial design assistance program. Commercial design assistance is an integrated design process that puts energy efficiency at the forefront of plans for new construction. Benefits include: ■
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Free computerized energy-use modeling of design alternatives. Reimbursements to your architectural and design team for time commitments. Design team reimbursements are based on project size. Capped incentive amounts apply. Cash incentives based on the extent that your final building design exceeds State of Minnesota Energy Code. Review of construction documents to ensure that your final building plans reflect intended efficiency. Verification that your building has been constructed to meet intended efficiency levels.
Contact your Energy Management Representative or Industrial Services Engineer to learn more. Buildings must be at least 5,000 square feet and exceed baseline energy efficiency by 5 percent or more to qualify for our Commercial Design Assistance Program and any incentives.
Think efficiency Envelope insulation Lighting design Daylighting controls Occupancy-sensor controls Chiller efficiency Variable-speed drives Heat recovery Indoor air quality CO2 control And more…
Recommissioning (RCx & RCx lite) The basics Recomissioning and Retrocomissioning ensures that specific building systems perform interactively according to the design intent and the owner’s operational needs.
Recommissioning ensures that a previously commissioned building is running at optimal performance.
Retrocommissioning is a process that involves tuning up an existing building that never was formally commissioned after initial construction. Retrocommissioning identifies less-than-optimal performance in an existing facility’s HVAC equipment, lighting, and control and process systems and identifies costeffective energy-saving adjustments. The Recommissioning and Retrocommissioning study process often involves a six-month or longer process to gather data on energy-using systems in your building. Information gathered in this process typically comes from control system trending data, equipment monitoring and data logging, and other sources.
RCx lite is a process new to Otter Tail Power Company’s energy efficiency programs for 2014. RCx lite is similar to that of a traditional RCx study. Key differences between traditional RCx and RCx lite include: ■
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Lower study costs for RCx lite studies (typically 25% of cost of a traditional RCx study). Somewhat reduced energy savings (often 75% of the savings identified through more stringent RCx studies). Reduced or simplified data-gathering requirements. Use of engineering assumptions in limited areas of the study.
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Other programs continued Benefits of RCx include: ■
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A detailed building assessment completed by a qualified engineering professional. Typical energy cost savings of 5 percent to 20 percent. A more comfortable facility with fewer occupant complaints.
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Longer equipment life.
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Lower energy bills.
RCx Rebates ■
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Eligible RCx studies qualify for a rebate of 30% of the study cost and $400/kW of reduced demand due to implementing recommended RCx measures. Rebates for RCx studies will not exceed $20,000 per building. Consult with your Otter Tail Power Company representative. Eligible RCx Lite studies qualify for rebate funding of 50% of the study cost, up to $10,000. Preapproval of all RCx and RCx lite projects is required. Customers proceeding with RCx or RCx lite studies prior to receiving written approval from Otter Tail may not qualify for rebate incentives.
Preapproval is required to determine if your RCx or RCx lite project will qualify for incentives. Contact your Energy Management Representative or Industrial Services Engineer to learn more about the RCx Program. Buildings must contain at least 50,000 square feet of conditioned space to qualify for the RCx incentives and 25,000 square feet for RCx lite incentives. Otter Tail Power Company must preapprove all applications to assure rebate funding. 15
Compressed-air system audits Compressed air, often referred to as the “fourth utility” in industrial facilities, is a critical operations component. Common uses for compressed air include power tool operation, packaging, conveyors, automation equipment, and control systems. Compressed air is expensive to produce because only 20 percent to 25 percent of input electricity results in useful compressed-air energy delivered to the plant’s air system. This program provides incentives of 80 percent of the cost (up to $10,000 per audit) for customers who bring in experts to complete compressed-air audits. The compressed-air audit provider must meet requirements set by Otter Tail Power Company to ensure payment of incentives. Audit funds are limited. The customer can apply to our Commercial and Industrial Grant Program (see page 13) for analysis of additional incentive dollars for any specific efficiency measures identified in the compressed-air audit.
Price-response programs Three factors determine your electric service bill ■
The amount of electricity you use.
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The rate at which it’s used.
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The time(s) it’s used.
Taking care of business offers a variety of energy-efficient options that help you save money by reducing the amount of electricity you use and the rate at which you use it. By addressing the time you use it, effective load-management practices can help you save even more.
PowerProfiler
Time-of-use service
PowerProfiler is a convenient Internet-based software package that provides customized electric load reports for large industrial and large commercial businesses with interval data metering. This information can help you gain a better understanding of your company’s energy use and related costs.
If you have the ability to adjust your operations in ways that shift your load from our peak demand times, you allow us to operate more efficiently. In turn, we pass on the savings to you through special rates.
By analyzing PowerProfiler reports, you will see if you can lower your overall energy demand and better regulate costly demand peaks by fine-tuning equipment and adjusting start-up schedules.
If you choose interruptible service, you allow us to use radio signals to control predetermined electric equipment during peak energy-use or emergency situations. You benefit from our greater efficiency in the form of off-peak rates that can reduce your total energy costs substantially.
Released Energy Access Program
Interruptible rates
If you are a large energy user, our Released Energy Access Program (REAP) offers a way for your company to profit by backing off your operations at times of peak power demand. When you voluntarily release energy that Otter Tail Power Company can sell into the wholesale market or offer to other customers during peak energy-use periods, we’ll share the profit with you. With REAP you can better manage your energy costs and help keep electric rates low for everyone. If your demand exceeds 500 kw, find out if REAP is a good option for your company. For more information about our price‑response programs, or any other Taking care of business program, complete and mail the form at the back of this booklet. 16
Off-peak heating Dual fuel As the name implies, dual-fuel heating systems use two sources of energy. Electricity, the primary energy source, supplies heat during typical off-peak periods. A secondary fuel, usually natural gas, propane, or fuel oil, supplies heat during energy-control periods. We may control: ■
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When our customers operate many electrical devices at the same time creating periods of peak demand. During testing or emergency periods, such as when restoring service following a storm. When energy prices on the wholesale market are high and we must purchase energy to supplement or replace our own low-cost generation.
For a nonautomatic system we will provide a waiver that the customer must sign to be served on a Dual Fuel Rate.
Our savings lead to your savings The ability to control system peaks reduces our operating costs significantly. We pass on the savings to our dual-fuel and other controlled-service customers in the form of reduced electric rates.
Dual fuel cools too Heat pumps installed on our Dual Fuel Rate may be cycled during summer-season control periods. With this option, systems cycle on and off every 15 minutes only during peak conditions. Your facility remains cool and comfortable while helping us to manage regional system peaks.
With a dual-fuel system, the switch from one fuel to another is automatic through our radio-control system.
The choice is yours. With so many electric heating options, you are sure to find one that can create a money-saving dual-fuel system for your business. Backup heating system Forced-air with ductwork
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Fossil fuel boiler
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If you have areas that aren’t heated well, supplemental electric heat installed as part of a dual-fuel system can help keep every room comfortable.
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Best electric option*
Description
Advantage
Plenum heater and air-source heat pump combination
The heat pump provides most of your high-efficiency heating while the plenum heater helps ensure your comfort during the coldest winter weather.
Save money and energy. Gain summertime cooling.
Plenum heater
Installed where the existing furnace and the ductwork system meet; air warms as it flows over heating elements inside the plenum.
Low-cost whole-building solution.
Electric boiler
Compact; heats liquid distributed to radiators, hydoronic baseboards, or underfloor hydronic heating system.
Easily connects into existing piping system.
Electric baseboard
Units are installed near the floor.
Low up-front cost; provides zoned heating.
Cove heat
Radiant heaters are installed near the ceiling.
Provides zoned heating; units installed out of the way of people and objects.
Ceiling panels
Radiant panels embedded with heating cables are installed in the ceiling.
Radiant heat provides instant, sunshine-like comfort.
* Electric heating applications may require electric service and wiring upgrades.
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Note: A heat pump also may qualify as the electric side of a dual-fuel system (see pages 10 through 12).
For more information about dual fuel, thermal storage, or any other Taking care of business program,
Off-peak heating continued
complete and mail the form at the back of this booklet.
Thermal-storage heating and cooling Capture the comfort Electric thermal-storage heating and cooling systems create their stores during offpeak hours, qualifying for our low off-peak rates that can save you hundreds of dollars a year. Thermal‑storage systems installed on qualifying rates are eligible for rebates.
Choose from several options ■
Underfloor heat-storage systems
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Central heat-storage furnaces
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Individually controlled room units
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Ice-storage and chilled-water-storage cooling systems
Underfloor electric cable system An underfloor heat-storage system must be installed during construction before the slab is poured. Electric cables or panels are placed in sand several inches beneath the building’s concrete slab and above an insulation layer. When electricity costs are lowest the cable is energized to heat the sand. Heat radiates from this reservoir to maintain a comfortable building temperature.
Underfloor hydronic system Again, this underfloor heat-storage system must be installed during construction before the slab is poured. Underfloor hydronic systems use a boiler or certain storage furnaces to heat liquid that is circulated through underfloor tubing to store heat in sand above an insulation layer and beneath the building’s concrete slab. This stored heat continues to radiate during energy-control periods to maintain comfort levels.
Central heat-storage furnace A central heat-storage furnace is an excellent option for centrally ducted heating. It offers the same clean and efficient comfort as an electric underfloor system by storing heat in ceramic bricks to be released as required to maintain comfortable temperatures even during energy-control periods.
Room units Individual room heat-storage units are a great option for installations where ductwork is not available or for smaller rooms. They store heat during off-peak periods in ceramic bricks. Each unit may be individually temperature controlled. Room units are proven solutions for classrooms, courthouses, offices, and large institutional facilities, affording individualized comfort to each space.
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Off-peak heating continued Cooling storage Thermal-storage cooling is a technique that originally was employed to allow small cooling equipment to serve large cooling loads for short intervals. The technology works well to move cooling load to times of day when electricity rates are lower. Generally suited for commercial installations, system options include ice storage and chilledwater storage. Ice-storage options include ice harvesters as well as ice-on-coil, coil-melt, icecapsule, and ice-slurry systems. Chilled-waterstorage systems include eutectic salt systems. Thermal-storage cooling systems qualify for rebates when served on our Deferred Load or Fixed Time of Delivery Rates.
Thermal-storage technologies Rebates of $40 a kilowatt are available for thermal-storage heating technologies installed on the Fixed Time of Delivery Rate, and on thermal-storage cooling technologies installed on the Deferred Load or Fixed Time of Delivery Rates that are part of our off-peak loadmanagement program. Thermal-storage heating applications include: ■
Central furnaces.
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Room units.
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Underfloor cable or panel systems.
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Electric boilers installed to serve underfloor hydronic systems.
Thermal-storage cooling applications include ■
Ice storage applications.
Systems must have adequate capacity to heat or cool the space during the maximum control period allowed by the rate to qualify for a rebate. We encourage customers to work with a reputable installer to ensure correct sizing of equipment and optimal system design. Qualifying projects must be new installations with a minimum of 9 kilowatts. Installations must remain on a qualified rate for at least one year. In combined thermal-storage/air-source heat pump systems, this rebate applies only to the thermal-storage load. Heat pumps are rebated separately. Rebates on thermal-storage heating systems Rate
Rebate per kw*
Application*
Rebate per addtnl. kw
Maximum
Fixed Time of Delivery
$40
200 kw heat or cool storage
$20
1,000 addtl. kw
Rebates on thermal-storage cooling systems Deferred 1,000 $40 200 kw $20 Load addtl. kw Fixed Time 1,000 $40 200kw $20 of Delivery addtl. kw *Minimum of 9 kw must be installed. Deferred Load includes Rates 195 and 197. Fixed Time of Delivery includes Rates 301, 302 ad 303
Off-peak heating continued Off-peak electric water heating Install an electric water heater with proof of a minimum 90 percent efficiency (.90 energy factor) on one of our controlled-service rates to qualify for a rebate. ■ Get a $150 rebate when a qualifying electric water heater of at least 50 gallons but less than 80 gallons is installed on a new controlled service.* ■ Get a $300 rebate when a qualifying 80-gallon or larger electric water heater is installed on a new controlled service.* ■ Get a $150 rebate when a qualifying replacement 80-gallon or larger electric water heater is installed on existing controlled service.* ■ Get a $20-a-kilowatt rebate on a commercial water heater with a minimum 90 percent efficiency when 12 kilowatts or more and 120 gallons of storage capacity are installed on an off-peak rate. Efficiency is measured by the stand by heat-loss rate of the tank, with a minimum requirement of 290 Btu per hour or less. A $5,000 rebate limit applies.
* Controlled service may include Dual Fuel, Controlled Water Heating, or Deferred Load Rates. Another option is direct water-heating control through a firm-service rate, which is eligible for a $4-a-month credit.
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CoolSavings Now available
Qualifications
Small commercial businesses will now be given the opportunity to conserve electricity— and save money—while helping us manage summer’s high energy-use periods by allowing us to cycle your air conditioner. Qualified businesses can earn a credit of $5 per ton of air-conditioning load in June, July, August, and September. For example, a 5-ton air-conditioning load would qualify for a rebate of $25 a month for up to four months.
Customers must have a centralized cooling system, such as an air-source heat pump or central air conditioner, to be eligible for CoolSavings. Window units or ductless airconditioning systems do not qualify for the program, nor do units already served on a controlled rate. To enroll in CoolSavings, you must be the property owner.
How it works If you qualify for CoolSavings, a company representative will install a radio receiver on the outside of your business that will automatically control your air-conditioning system. On peak days we may cycle your air-conditioning 15 minutes on and 15 minutes off for up to 8 hours. Customer research shows that participants stay cool and aren’t aware that control is occurring.
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Questions To sign up for our CoolSavings program — or for answers to any questions you may have — contact Jeremy Rham at 218-739-8333.
DollarSmart financing Make energy-efficiency improvements with DollarSmart financing
Energy-efficiency 1.9% financing ■
Heat pumps (both air-source and geothermal)*
Eligibility
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Commercial lighting
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Motors and adjustable-speed drives
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Refrigeration
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Heat-recovery systems
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Milk house precoolers
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Stock waterers
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Commercial electric cooking equipment
All residential, commercial, and industrial customers of Otter Tail Power Company who own their homes or businesses and obtain credit approval are eligible for 1.9% DollarSmart financing in lieu of rebates. Request a financing form for details.
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Minimum loan amount is $150. Maximum loan amount for commercial customers is $100,000 with the 1.9% energy-efficiency financing option. Customers may borrow up to 80 percent of installed cost.
*Rebates on heat pumps installed as replacements to natural gas heating systems are paid through funds other than Minnesota CIP. Financing is not available on heat pumps installed as replacements for natural gas heating.
Repayment periods are up to 5 years with schedule based on loan amount. Convenient payments are added to monthly electric service statements.
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Standard financing rate is subject to change.
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Loans exceeding $5,000 will be secured.
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Maximum residential loan is $7,000 with the following exceptions: Geothermal heat pump installations are eligible for up to $20,000 in financing. Combined thermal-storage centralfurnace/air-source heat pump systems are eligible for $15,000 in financing.
FREE OFFER For more energy-savings tips fo your busines, contact us to receive a free How to Reduce Your Energy Costs booklet published by the Center for Information Sharing. 22
For more information about commercial tax incentives visit us at www.otpco.com.
Commercial tax incentives Solar water-heating and photovoltaic systems Businesses that install solar water heating systems, photovoltaic systems for electric generation, and certain solar lighting systems qualify for tax credits of 30 percent of the cost of the system. ■
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Systems installed after December 31, 2008, are not subject to a cap. Systems must be certified by the Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the government in the state in which the system is installed.
At least half of the energy used to heat water with the system must be solar energy. The credit is not available for expenses for swimming pools or hot tubs. ■
Credits are available for systems placed in service between January 1, 2006, and December 31, 2016.
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Fuel cells and microturbines Credits are available primarily for business use of fuel cells and microturbines. ■
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The IRS is developing detailed regulations that likely will require taxpayers to provide evidence of the following: ■
Cost of the system.
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Capacity of the system.
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Efficiency of the system.
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Date the system was placed in service.
Combined heat and power A 10% investment tax credit is available for CHP property, applicable to only the fist 15MW of CHP property. Owners of systems smaller than 50 MW may take advantage of this tax credit, and their systems must be placed into service between October 3, 2008 and January 1, 2017. Only the original constructor or user of the CHP property may take the tax credit. The incentive is an investment tax credit, a reduction in either overall individual or overall business tax liabilities. The incentive also can be applied to the alternative minimum tax. CHP system owners/users cannot take the credit until the year that the system is operational.
Fuel cell credit is 30 percent of the cost, up to $3,000 a kw, of power that can be produced. Fuel cells must have an efficiency of at least 30 percent and a capacity of at least 0.5 kw.
To qualify, a CHP system must be 60 percent efficient (on a lower heating value basis), produce at least 20% of its useful energy as electricity and at least another 20% as useful thermal energy.
Microturbine credit is 10 percent of the cost, up to $200 a kw, of power that can be produced. Microturbines must have an efficiency of at least 26 percent and a capacity of less than 2,000 kw.
The Environmental Protection Agency’s CHP Partnership issued a useful write-up on the incentive and other alternative energy incentives. The Partnership summarizes eligible technologies and provides additional contact information here.
Credits are available for systems placed in service prior to December 31, 2016.
For more information on combined Heat and Power, see http://aceee.org/chp.
This information about tax incentives is subject to change and is not a substitute for advice or decisions from a tax professional.
Commercial tax incentives continued Please note that combining this credit with other federal or state energy credits may reduce the amount of this or other credits. The IRS provides formulas for understanding the impact that these other “subsidized energy financing” mechanisms may have. Consult a tax professional for more information, and view the IRS’s definition of “subsidized energy financing” here.
Small wind systems The Emergency Economic Stabilization Act includes a federal investment tax credit to help consumers purchase small wind turbines for home, farm, or business use. The credit will be available for equipment installed through December 31, 2016. Homeowners, farmers, and businesses that install wind turbines with not more than 100 kilowatts (kw) of nameplate capacity are eligible for the incentive. Owners of small wind systems with 100 kw of capacity or less can receive a credit for 30 percent of the total installed cost of the system. The American Recovery and Reinvestment Act of 2009 removed financial caps from previous legislation. For more information about on-site small wind systems contact the American Wind Energy Association (AWEA) (www.awea.org).
Geothermal heat pumps The Emergency Economic Stabilization Act also has an incentive for geothermal heat pumps. The incentive for businesses is available from October 3, 2008, through December 31, 2016. For residential installations the incentive is available for units placed in service from January 1, 2008,
to December 31, 2016. Qualified geothermal heat pump property installed after December 31, 2008, is eligible for 10 percent of the installed cost without a cap, as provided under the American Recovery and Reinvestment Tax Act of 2009. Qualified geothermal heat pump property refers to any equipment that uses the ground or groundwater as a thermal energy source to heat the taxpayer’s building or as a thermal energy sink to cool the building. The unit must meet Energy Star requirements that are in effect when the heat pump is purchased. For more information about geothermal heat pump systems contact the Geothermal Heat Pump Consortium (www.geoexchange.org). To qualify, taxpayers will need to have evidence regarding: ■
the cost of the system.
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when it was placed in service.
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whether the system meets the qualifying criteria.
Consult the following web sites for design advice to help meet your savings goals: ■
www.energytaxincentives.org
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www.newbuildings.org
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www.eere.energy.gov
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www.energydesignresources.com
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www.advancedbuildings.net
This information about tax incentives is subject to change and is not a substitute for advice or decisions from a tax professional.
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Contact information Give us a call to see how we can help
Otter Tail Power Company is dedicated to the growth and vitality of the businesses we serve. We offer rebates and financing, and our team of commercial and industrial representatives can offer advice about efficient lighting and equipment to help existing local business manage energy costs. Our team also can help identify community partnerships, financing packages, and labor pools to help ensure the success of new businesses. If you’d like to speak with an Otter Tail Power Company representative, call our Idea Center at 800-493-3299 or contact these individuals directly.
Commercial and Industrial Representatives
Jeff Lemen Manager, Customer Care and Operations Support Fergus Falls 218-739-8354 jlemen@otpco.com
Economic development
Ken Johnson Energy Management Representative for Crookston and Bemidji areas 218-739-8530 kjohnson@otpco.com
Bill Klyve Energy Management Representative for Morris area 800-630-7358 bklyve@otpco.com
Brad Nelson Energy Management Representative for the Milbank and Wahpeton areas 605-432-4713 Ext. 6602 bnelson@otpco.com
Scott Sigette Energy Management Representative for Devils Lake, Rugby, and Langdon areas 701-662-4876 Ext. 740 ssigette@otpco.com
Bob Sitzmann Energy Management Representative for Jamestown, Oakes, and Garrison areas 701-253-4703 bsitzmann@otpco.com
Paul Aasgaard Senior Industrial Services Engineer Fergus Falls 218-739-8492 paasgaard@otpco.com
Mark Remer Senior Industrial Services Engineer Fergus Falls 218-739-8967 mremer@otpco.com
Jeremy Rham Senior Commercial and Industrial Services Engineer Fergus Falls 218-739-8333 jrham@otpco.com
Terry Stallman Economic Development Consultant 800-630-7965 tstallman@otpco.com
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YES, I would like more information about the Taking care of business program(s) I have checked below:
Have an Otter Tail Power Company representative contact me
Send program information and/or forms Lighting rebates
Adjustable-speed drive rebates
Motor rebates
Heat pump rebates
Fold along this line
Thermal-storage rebates
Price-response programs Refrigeration rebates
Cut along this line
Compressed-air system audits Commercial design assistance program
Recommissioning program
Commercial and industrial grants
CoolSavings DollarSmart Financing
Off-peak applications How to Reduce Your Energy Costs booklet
Fold along this line
Business name/contact name Type of business Address City
State
ZIP
Mailing address (if different from installation address) Email Phone
Otter Tail Power Company account number
For faster service call our Idea Center at 800-493-3299
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