As discussed in some of our previous articles, New Jersey is strongly focused on making its buildings greener, and this is achieved in great part through the NJ Clean Energy Program. One of the sub-programs is SmartStart Buildings, which provides financial incentives for energy efficiency measures in commercial and industrial facilities. Both new constructions and existing buildings are eligible for the rebates provided through the program, and the NJCEP has incentive tables and pre-programmed worksheets to simplify the rebate calculation procedure.
HVAC systems account for a significant portion of building energy consumption, while having a sizeable carbon footprint:
This article will describe the HVAC incentives from the NJ Clean Energy Program that focus on electrically-powered equipment. There are also incentives for gas-fired equipment, which are covered in another article.
The SmartStart Buildings program provides financial incentives for water-cooled and air-cooled chillers that meet minimum efficiency levels and are used for space cooling applications. Chillers used for industrial process cooling do not get a prescriptive program incentive, but can submitted through a custom application. Specific incentive rates vary depending on chiller type, but the general procedure is as follows:
In addition to chiller capacity in tons, the following aspects are considered to determine the applicable incentive rate:
For example, a variable-speed, water-cooled, positive displacement chiller with a capacity below 75 tons gets a base incentive of $40/ton. The required performance is 0.78 kW/ton, and the incentive is increased by $2.50/ton for every 0.01 kW/ton below the required value.
Assume the proposed chiller has a capacity of 60 tons and operates at 0.60 kW/ton:
Note that this is just an example, and the incentive rates change depending on chiller characteristics.
This incentive applies for many types of HVAC equipment and controls. Like in the case of electric chillers, there are minimum efficiency levels for eligibility, which are detailed in tables in the NJ Clean Energy Program website.
HVAC EQUIPMENT COVERED |
HVAC CONTROLS COVERED |
1)Unitary HVAC split system |
1)Dual enthalpy economizer control (exclusively for existing buildings)
|
Unlike incentives for electric chillers, these do not have a variable performance-based component. Instead, the incentive rate in USD/ton is determined based on equipment capacity ranges and where the HVAC unit falls among two efficiency tiers - the higher tier yields a higher incentive, but there is no progressive scale between them.
This incentive covers closed-loop ground source and groundwater source heat pumps. Both types of GSHP are classified into two tiers based on performance, where the higher tier gets a better incentive in USD/ton. Note that open-loop GSHPs are not eligible for the benefit, so make sure your use a closed-loop system.
Many types of equipment found in HVAC systems can achieve massive energy savings if their speed is controlled with a variable frequency drive (VFD). The logic is simple: running a motor at partial speed consumes much less electricity than running it intermittently to produce the same design airflow.
The incentive rates are the same for all eligible applications, calculated based on total motor horsepower controlled by the VFD. However, the eligible HP range is different for each application.
APPLICATION |
ELIGIBLE HP RANGE |
Variable air volume HVAC, airfoil/backward inclined fan Variable air volume HVAC, forward curved fan Constant air volume HVAC, airfoil/backward inclined fan Constant air volume HVAC, forward curved fan Cooling tower fan Chilled water pump Air compressor Boiler feedwater pump Boiler fan motor - airfoil/backward inclined Boiler fan motor - forward curved Kitchen hood |
5 - 50 5 - 50 0.5 - 50 0.5 - 50 10 - 50 20 - 50 25 - 200 5 - 50 5 - 50 5 - 50 0.5 - 50 |
The SmartStart Buildings incentive programs improves the financial outlook for many building enhancements, including HVAC systems. Regardless of whether the project is a new construction or a renovation in an existing building, incentive rates increase the return on each dollar spend upfront.
Just keep in mind there are certain performance metrics to meet to be eligible for an incentive, and in many cases you must also submit product certifications according to industry standards. Work with qualified consulting and design engineers to make sure all requirements are met.