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:
  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 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.

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:

  1. Divide 12 by 19
  2. Multiply the result of step 1. by 15,000
  3. Subtract the result of step 2. from 15,000
  4. Multiply the result of step 3. by .80
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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