| Example Calculations for Natural Gas Incentives |
How are incentive incentive calculated?
Incentives are provided on a cost-share basis. There are two important values calculated
during the application process:
- 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)
- The second is 50% of the project cost since the maximum incentive possible will be 50% of
the project cost. (Section B)
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| Example 1 - Using the assumed
33% improvement in efficiency |
| Section A - Incentive Calculation from Energy Savings Previous
12 months Therm usage (Therm): 15,000
Assume 33% improvement in pumping plant performance. IMPORTANT! Use this method when any work is being done to either or both of the impeller and bowl of the pump.
Potential incentive = .80 X .25 X Annual Therm
Potential incentive = .80 X .25 X 15,000 = $ 3,000 |
| Section B - Incentive Calculated from Project Cost
Enter the
estimated Project Cost: $5,000
Potential Incentive = .50 x Project Cost
Potential Incentive = .50 x 5,000 = $ 2,500
Since your estimated incentive incentive is the lower of the potential incentives calculated in Section A and Section B, in this example the incentive incentive is $2,500.
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| Example 2 - Using
the actual improvement in efficiency |
| Section A - Incentive Calculation from Energy Savings Previous
12 months therm usage (Therm): 15,000
Method 2 - Compare pre-repair pump efficiency to after-repair pump efficiency .
IMPORTANT! You must use this option if the project does not involve retrofitting
the pump bowl or impeller.
The following are requirements for submitted pump efficiency tests when using
this Option:
- 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: 12 .
This is "Pre-OPE" in the equation below.
b. Enter the estimated after-repair operating plant efficiency: 19 .
This is "Post-OPE" in the equation below.
Potential Incentive = .80 X (Annual Therm - ( Annual Therm X Pre-OPE / Post-OPE ))
Potential Incentive = .80 X ( 15,000 - ( 15,000 X 12 / 19 )) = $ 4,421
The calculations proceed in the following order:
- Divide 12 by 19
- Multiply the result of step 1. by 15,000
- Subtract the result of step 2. from 15,000
- Multiply the result of step 3. by .80
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| Section B - Incentive Calculated from Project Cost Enter the
estimated Project Cost: $10,000 . This is "Project Cost" in the
equation below.
Potential Incentive = .50 x Project Cost
Potential Incentive = .50 x 10,000 = $ 5,000
Since your estimated incentive is the lower of the potential incentive calculated in Section A and Section B, in this example the incentive is $4,421. |
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