NY and NJ Incentives for Energy Savings

Tue, Dec 2, 2008

b. Save Money

Please find below summaries we’ve written about various NJ and NY government incentive programs focused on energy efficiency.

If you are interested in receiving a copy of the full document, please contact us!

NJ Solar Incentive Summary

New Jersey’s Clean Energy Program offers a Solar Renewable Energy Certificate (SREC) Program for financing solar energy systems. This program is designed to compensate individuals and businesses for generating and using clean energy.

SREC program issues credit certificates. Here is how it works:

It allots 1 credit for every 1000kw of energy generated through the installed solar system.

  • Credits are allotted for energy produced in one program year which runs from June 1 through May 31.
  • The owner of the credits can trade in the market, voluntary or compliance, through August 31 of that year.
  • Solar Renewable Energy Certificates are anticipated to compensate
    New Jersey solar generators at an average rate of $0.20 per kWh
    generated with a rate impact to individual ratepayers estimated to be $0.00002 per kWh.

NY State Incentives Summary for Purchasing Energy Efficient Commercial Equipment

The New York State Energy Research and Development Authority (NYSERDA) offers various incentives for businesses that
purchase energy efficient equipment such as energy efficient lighting, chiller upgrades or replacements, and solar panels.

Here is information about some of their programs aimed at improving the reliability of New York’s electric grid while helping businesses reduce operating costs.

  • The Peak-Load Reduction Program – if your company has a large electric load on summer afternoons then you may be eligible for incentives to offset the costs of up to 65% of energy saving capital improvements.
  • The program is divided into two categories: Permanent Demand Reduction and Demand Response.
  • Demand Response is defined as any action taken in response to an emergency signal that temporarily limits electric demand.
  • Demand Response is an effective way to guard New Yorkers against grid events, reduce dependence on oil, lower peak electric prices, and increase revenue.
  • NYSERDA provides businesses with low cost comprehensive energy audits and an excellent loan program offering highly reduced interest rates.

NY State Incentives Summary for Purchasing Energy Efficient Commercial Kitchen Equipment

The New York State Energy Research and Development Authority (NYSERDA) offers various incentives for businesses that purchase energy efficient equipment, including commercial kitchen equipment such as:

  • Electric Steamers
  • Ovens
  • Fryers
  • Pre-rinse spray valves and holding cabinets
  • Boilers, furnaces, unit heaters and storage hot water heaters.
  • Demand freezer and ice makers
  • Unitary HVAC
  • Commercial Clothes Washers
  • NYSERDA’s incentive programs vary according to the type of energy efficient project and the needs of the customer.
  • NYSERDA has organized their incentives into three separate programs, referred to as Tiers. For a given energy efficiency measure, NYSERDA will provide an incentive under only one tier of the applicant’s choice.
  • NYSERDA provides participating businesses with excellent resources such as low-cost energy audits and a fantastic loan program offering highly reduced interest rates.

Energy Efficient Lighting Summary

The 2005 Energy Policy Act regulates and mandates energy-efficient lighting systems. It provides accelerated tax deduction incentives to commercial building owners for energy savings achieved through energy-efficient interior lighting upgrades. The lighting upgrade projects must be completed from 2006 through 2008.

Through lighting upgrades to energy efficient systems a commercial building owner can claim up to 45% tax deductions along with 25%-40% energy cost savings with a payback period of less than 3 years.

Here are some details and highlights of the program:

  • It reduces the overall taxable income.
  • For example, suppose your total taxable income is $10,000 and the lighting tax deduction incentive available to you is $1000. After taking advantage of the incentive your total taxable income becomes $9000. So you now pay tax on $9000.
  • This tax deduction allows a company to write off a significant portion – up to 60 cents per square foot – of a capital investment in an energy efficient lighting system in the year it was installed. (Capital Investment refers to money used by a business to purchase fixed assets, such as land, machinery, or buildings.)
  • The energy requirement for efficient lighting system is related to the savings in energy in terms of Lighting Power Density.
  • The Lighting Power Density is calculated as watts-per-square-foot. For a given space with multiple lighting systems, the Lighting Power Density is calculated as the total wattage of all the lighting systems present in that space (square foot).
  • To qualify for the tax deduction incentives, the Lighting Power Density savings of a commercial building after lighting upgrades must be of 25%-40% below the energy standards set in energy efficiency code ASHRAE/IESNA 90.1-2001.
  • To clarify, this tax deduction incentive is in the range of $0.30 to $0.60 per square foot proportional to Lighting Power Density savings of 25%-40% below ASHRAE/IESNA 90.1-2001.

Lighting technologies

Many technologies can be used to achieve the efficiency targets, such as:

  1. T8 lamps + Super T8 lamps
  2. High-efficiency electronic ballasts
  3. Indirect lighting
  4. High-efficiency fixtures
  5. Low-wattage metal halide lamps
  6. Compact fluorescent
  7. T8 and T5HO hi-bay fixtures
  8. Occupancy sensors
  9. Lighting automation panels
  10. Building automation systems
  11. Photo-sensors (bi-level switching)
  12. Manual switches (bi-level switching)
| More

Tags: , ,

Leave a Reply

You must be logged in to post a comment.