Example Calculations for Electric Incentives
How are incentive calculated?
incentives are provided on a cost-share basis. There are two important values calculated during the application process:
  1. The first is based on the annual energy savings achieved by the retrofit/repair. There are two methodologies (Method 1 and 2) available for determining the incentive for a pump repair/retrofit. (Section A)
  2. The second is 50% of the project cost since the maximum incentive possible will be 50% of the project cost. (Section B)
Example 1 - Using the assumed 33% Improvement in efficiency
Section A - Incentive Calculation from Energy Savings

Previous 12 months kWh usage (Annual kWh): 75,000

Method 1 - Assume 33% improvement in pumping plant performance. IMPORTANT! To use this option:

  1. You must retrofit/repair either or both of the impeller and bowl of the pump and,
  2. The before-project pump test must indicate an overall pumping plant efficiency less than or equal to 50% (40% if a submersible-type pump).

Potential incentive = .08 X .25 X Annual kWh

Potential incentive = .08 X .25 X 75,000 = $1,500

Section B - incentive Calculated from Project Cost

Enter the estimated Project Cost: $6,000 . This is "Project Cost" in the equation below.

Potential incentive = .50 x Project Cost

Potential incentive = .50 x 6,000 = $ 3,000

Since your estimated incentive is the lower of the potential incentives calculated in Section A and Section B, in this example the incentive is $1,500.

Example 2 - Using the actual improvement in efficiency
Section A - Incentive Calculation from Energy Savings

Previous 12 months kWh usage (Annual kWh): 75,000

Method 2 - Compare pre-repair pump efficiency to after-repair pump efficiency . IMPORTANT! You must use this option if the pre-repair efficiency test indicates an overall pumping plant efficiency of more than 50% (40% if a submersible pump), or you are NOT retrofitting/repairing the bowl and impeller.

The following are requirements for submitted pump efficiency tests when using this method:

  • If this is a water well, the pump tests must be at similar discharge pressures (+/- 5 psi of the before-repair discharge pressure) and with a similar standing water level (+/- 10% of the before-repair level).
  • If this is a booster pump, either a) the same pump and impeller trim (if applicable) must be in place before and after the repair/retrofit or b) the tests are at the same operating condition (+/- 10% of before-repair flow and total dynamic head).

    a. Enter the pre-repair operating plant efficiency: 38 . This is "Pre-OPE" in the equation below.

b. Enter the estimated after-repair operating plant efficiency: 59 . This is "Post-OPE" in the equation below.

Potential Incentive = .08 X (Annual kWh - ( Annual kWh X Pre-OPE / Post-OPE ))

Potential incentive = .08 X ( 75,000 - ( 75,000 X 38 / 59 )) = $ 2,136

The calculations proceed in the following order:

  1. Divide 38 by 59
  2. Multiply the result of step 1. by 75,000
  3. Subtract the result of step 2. from 75,000
  4. Multiply the result of step 3. by .08
Section B - incentive Calculated from Project Cost

Enter the estimated Project Cost: $8,000 . This is "Project Cost" in the equation below.

Potential incentive = .50 x Project Cost

Potential incentive = .50 x 8,000 = $ 4,000

Since your estimated incentive is the lower of the potential incentives calculated in section A and section B, in this example the incentive is $2,136.

 

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