Copy of Sustainable Energy Utility (SEU) - Non-Residential Efficiency Plus Rebate Program

September 22, 2010

Summary

Under the Efficiency Plus Program, the Delaware Sustainable Energy Utility (SEU) offers cash incentives of up to $20,000 to Delaware businesses, non-profits, and governmental organizations that make energy efficiency improvements in existing buildings or new construction. The program offers prescriptive rebates for the purchase and installation of certain types of equipment in existing buildings, incentives for custom measures that are not eligible for prescriptive rebates, and loans for credit-qualified entities. Prescriptive rebates are grouped into categories as follows:

• Energy Star Appliances
• Commercial Kitchen Equipment
• HVAC and Water Heating
• Motors and Drives
• Renewable Energy Technologies

Each category includes a wide variety of different measures and improvements. For instance, eligible renewable energy technologies include solar photovoltaic (PV), solar thermal, wind, geothermal, or other technologies that displace fossil fuel use. Renewable energy technologies are only eligible for incentives if at least two efficiency measures have also been identified for implementation. For custom measures, the payback period must be at least one year and may not exceed the expected life of the equipment. New construction projects are only eligible for custom incentives. Custom incentives and program financing also require an energy audit performed by a third-party no more than 6 months prior to the date of program application. The program will provide an incentive of up to $2,000 towards the cost of the audit if at least one audit-recommended measure is implemented. The financing portion of this program will "typically" offer loans from $10,000 to $250,000. Loan terms are limited to the shorter of the payback period for the measure, plus one year or 10 years. Interest rates will vary based on the application type and are subject to change, but as of this writing are set at 5% for commercial and non-profit entities and 3.5% for municipal projects. Lease financing will be available for municipal or other local government applicants. Pre-approval of both measure eligibility and financing is required prior to the purchase and installation of all equipment. Funding for this program comes from the American Recovery and Reinvestment Act (ARRA). Projects funded by ARRA must comply with the Davis-Bacon Act, which includes Prevailing Wage and Buy American Requirements. The Delaware SEU is a non-profit organization created by the state of Delaware to foster a sustainable energy future for the state through conservation, efficiencies and the use of renewable energy sources.