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Incentives

Funds are available for Small Projects and Large Projects.

FUNDING

Funding is available for two project types: Large Res SOP projects and Small Projects.

Funding for 2009
Small Projects $294,903
Large Projects $600,000
FUNDING LIMITATIONS
Maximum Incentive
to Project Sponsor
2009
Small Projects $20,000 ($5,000 max per request)
Large Projects $60,000
  • A Project Sponsor may submit multiple projects, as long as the total incentive from all such projects does not exceed the above limits.
  • These limits may be waived if Entergy determines that these limits prevent it from achieving its energy efficiency goal.

HOW FUNDING IS RESERVED

Funds are reserved for qualified project sponsors with approved applications on a first-come, first-served basis.

INCENTIVE PRICING

Standard incentive prices are offered for demand savings and energy savings. For residential and small commercial customers, the incentive prices may not exceed 50% of the avoided cost of supplying electricity.

   Payment per
kW Reduction
   Payment per Annual
kWh Saved
$226 $0.077

INCENTIVE PRICING LIMITATIONS

Load Factor Cap

For projects implemented under this Residential Standard Offer Program (Res SOP), there is a limit on the ratio of kWh payment to kW payment. This is to limit incentives for projects that produce relatively little of their energy savings during Entergy's peak summer demand period.

Maximum Payment per kW Reduction  $530 
Example 1 A residential HVAC project saved 25 kW of summer peak demand and 50,000 annual kWh. The unadjusted incentive payment for this project would be: (25 x $226) + (50,000 x $0.077)= $9,500. The maximum allowable incentive for this project is 25 kW multiplied by $530, or $13,250. This project would not be subject to the load factor cap.
Example 2 A small commercial customer's variable-speed motor retrofit saves 20 kW of summer peak demand and 90,000 annual kWh. The unadjusted incentive payment for this project would be: (20 x $226) + (90,000 x $0.077) = $11,450. The maximum allowable incentive for this project is 20 kW multiplied by $530, or $10,600. This project would be subject to the load factor cap.

Lighting Cap

If the fraction of a project sponsor's kW or kWh savings derived from lighting measures exceeds 65% of the total savings, the incentive amounts paid to the project sponsor for the lighting measures shall be reduced by an adjustment factor. The application of these adjustment factors to kW and kWh payments ensures that the lighting measure incentives paid shall not exceed 65% of the total incentive payable if the project had consisted entirely of non-lighting measures.

Example 3 A project at a small commercial office building is projected to result in 15 kW of lighting savings and 4 kW of HVAC savings. In addition to the demand savings, the lighting measures will provide 60,000 kWh of annual energy savings, and the HVAC measures will provide 8,000 kWh of annual energy savings. Percentage of kW savings from lighting = 15/19 = 78.9%. This project is subject to the lighting cap. Adjusted kW = (19 x 0.65) + 4 = 16.35 kW Adjusted kWh = (68,000 x 0.65) + 8,000 = 52,200 kWh The Lighting Cap adjusted incentive payment for this project would be: (16.35 x $226) + (52,200 x $0.077) = $7,714.50. The maximum allowable incentive for this project is 16.35 kW multiplied by $530, or $8,665.50. This project would also be subject to the load factor cap.

HOW ARE INCENTIVES PAID?

Deemed Savings - One Payment

A project that only utilizes deemed savings to calculate demand and energy savings will receive an "Implementation Payment" that represents 100% of the total estimated incentive payment after the project is installed, documented, and accepted.

Measured Savings - Two Payments

After the project is installed, documented, and accepted, the project sponsor will receive an "Implementation Payment" that represents 40% of the total estimated incentive payment. After all measurement and verification activities are complete, documented, and accepted, the project sponsor will receive the "Performance Payment" based on verified savings (up to 60% of the total estimated incentive payment).

For measured savings projects, Entergy will use the following formula to calculate the amount of the Implementation Payment:

Implementation Payment = [((estimated kW) * ($/kW incentive)) + ((estimated kWh) * ($/kWh incentive))] * 40%

The second payment (the "Performance Payment") will be based on the one-year energy savings that the Project Sponsor measures and documents in its M&V Report. The Performance Payment may be up to 60% of the total estimated incentive included in the Res SOP Agreement, and will be calculated as follows:

Performance Payment = [((measured kW saved) * ($/kW incentive)) + ((measured kWh saved) * ($/kWh incentive))] - Implementation Payment

OTHER NOTES

Under no circumstances will Entergy make a total incentive payment (i.e., the sum of the Implementation Payment and the Performance Payment) that is more than 100% of the total estimated incentive payment specified in the Res SOP Agreement. If the final M&V Report indicates that the measured savings are less than the estimated savings, then the total incentive payment will be less than the payment estimated in the Res SOP Agreement. If the above formula results in a negative amount, the Project Sponsor must refund that amount to Entergy within 30 days of receipt of an invoice from Entergy.

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