Incentives
Funds are available for
Small Projects.
FUNDING
Funding is available for two project types: Large Res/Com SOP projects that
have a 10kw minimum project size; and Small Projects that have no minimum
project size.
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Funding for 2008
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Small Projects
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$150,000
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FUNDING LIMITATIONS
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Maximum Incentive
to Project Sponsor
2007
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Small Projects
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$20,000 ($5,000 max per request)
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A Project Sponsor may submit multiple projects, as long as the total incentive
from all such projects does not exceed the above limits.
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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
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Payment per Annual
kWh Saved
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$226
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$0.077
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INCENTIVE PRICING LIMITATIONS
Load Factor Cap
For projects implemented under this Residential and Small Commercial Standard
Offer Program (Res/Com 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.
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Maximum Payment per kW Reduction $530
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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.
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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.
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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.
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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 $8,665.50. This project would also be subject to the
load factor cap.
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HOW ARE INCENTIVES PAID?
Deemed Savings - One Payment
A project that only utilizes deemed savings to calculate demand and energy
savings will receive an "Implementation Payment" that represents 100% of the
total estimated incentive payment after the project is installed, documented,
and accepted.
Measured Savings - Two Payments
After the project is installed, documented, and accepted, the project sponsor
will receive an "Implementation Payment" that represents 40% of the total
estimated incentive payment. After all measurement and verification activities
are complete, documented, and accepted, the project sponsor will receive the
"Performance Payment" based on verified savings (up to 60% of the total
estimated incentive payment).
For measured savings projects, Entergy will use the following formula to
calculate the amount of the Implementation Payment:
Implementation Payment = [((estimated kW) * ($/kW incentive)) + ((estimated
kWh) * ($/kWh incentive))] * 40%
The second payment (the "Performance Payment") will be based on the one-year
energy savings that the Project Sponsor measures and documents in its M&V
Report. The Performance Payment may be up to 60% of the total estimated
incentive included in the Res/Com SOP Agreement, and will be calculated as
follows:
Performance Payment = [((measured kW saved) * ($/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/Com
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/Com 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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