MULTI-FAMILY PROGRAM OVERVIEW Findings and Recommendations - - PowerPoint PPT Presentation

▶
multi family program overview
SMART_READER_LITE
LIVE PREVIEW

MULTI-FAMILY PROGRAM OVERVIEW Findings and Recommendations - - PowerPoint PPT Presentation

Sep 23, 2023 533 likes •763 views

MULTI-FAMILY PROGRAM OVERVIEW Findings and Recommendations November 16, 2016 PRESENTATION OUTLINE Background, History and Initiatives by Market Segment Market Condition Overview Initiative Profiles Performance Indicators and

slide-1
SLIDE 1

MULTI-FAMILY PROGRAM OVERVIEW

Findings and Recommendations

►November 16, 2016

slide-2
SLIDE 2

www.ma-eeac.org Multi-Family Program Overview

PRESENTATION OUTLINE

►Background, History and Initiatives by Market

Segment

►Market Condition Overview ►Initiative Profiles ►Performance Indicators and Cost Effectiveness ►Challenges, Recommendations and Future

Development Opportunities

►Conclusions and Next Steps

| 2

slide-3
SLIDE 3

| 3

Background, History, and Initiatives by Market Segment

slide-4
SLIDE 4

www.ma-eeac.org Multi-Family Program Overview

BACKGROUND AND DEFINITIONS

►Background: − Multi-family initiatives are cross-cutting across all Sectors:

  • Residential (Res)
  • Low Income (LI)
  • Commercial & Industrial (C&I)

− Incentives and program support are available for both new construction and retrofit − 3 stories or less are subject to residential codes − 4 or more stories are subject to commercial building codes ►Definitions: − Facilities with 5 or more dwelling units are served by the market rate multi-family retrofit initiative − Properties with >50% of occupants at <=60% area median income are served by the Low Income Program − “Participants” vary by initiative

| 4

slide-5
SLIDE 5

www.ma-eeac.org Multi-Family Program Overview

HISTORY AND RECENT ACCOMPLISHMENTS

| 5

1990's-mid 2000's

  • Delivery varied among PA's, some coordination of new construction via Joint

Management Committee

  • Fragmented approaches in retrofit, mostly prescriptive, some whole building

2008-2009

  • Green Communities Act (GCA) Passed
  • Multi-family Retrofit Working Group (MFWG) forms

2010-2012

  • MF market potential, process evaluation, and program impact studies completed
  • Stakeholder workshop convened to develop MF strategy across all sectors
  • Gas and electric programs integrated, 1-4 and MF res retrofit incentives aligned
  • Multifamily Market Integrator (MMI) introduced to coordinate market rate retrofit

customers

2013-2015

  • Consultants recommend integrating C&I and Res MF retrofit
  • Energy Action Plan report template introduced for market rate retrofit
  • Low-income Energy Affordability Network (LEAN) completes statewide benchmarking of

low income MF buildings

  • Further enhancements recommended from 2016-18 planning workshops

2016-2018

  • Project Point of Contact (PPC) introduced for market rate MF retrofit
  • C&I MF retrofit project tracking, budgets, and Benefit Cost Ratios (BCR's) introduced
  • Performance-based MF High Rise New Construction model deployed
  • New baseline User Defined Reference Home (UDRH) for low rise new construction
  • New impact and process evaluation studies for market rate retrofit started
slide-6
SLIDE 6

www.ma-eeac.org Multi-Family Program Overview

HISTORY AND RECENT ACCOMPLISHMENTS

| 6

1990's-mid 2000's

  • Delivery varied among PA's, some coordination of new construction via JMC
  • Fragmented approaches in retrofit, mostly prescriptive, some whole building

2008-2009

  • Green Communities Act (GCA) Passed
  • Multi-family Working Group (MFWG) forms

2010-2012

  • MF market potential, process evaluation, and program impact studies completed
  • Stakeholder workshop convened to develop MF strategy across all sectors
  • Gas and electric programs integrated, 1-4 and MF res retrofit incentives aligned
  • MMI introduced to coordinate market rate retrofit customers

2013-2015

  • Consultants recommend integrating C&I and Res MF retrofit
  • Energy Action Plan report template introduced for market rate retrofit
  • LEAN completes statewide benchmarking of low income MF buildings
  • Further enhancements recommended from 2016-18 planning workshops

2016-2018

  • PPC introduced for market rate MF retrofit
  • C&I MF retrofit project tracking, budgets, and BCR's introduced
  • Performance-based MF High Rise NC model deployed
  • New baseline (UDRH) for low rise new construction
  • New impact and process evaluation studies for market rate retrofit started
  • Gas and electric programs integrated
  • 1-4 and MF res retrofit incentives aligned
  • Statewide benchmarking of LI MF buildings
  • Project Point of Contact introduced for MR

MF retrofit

  • C&I MF retrofit tracking, budgets, and BCRs
  • Performance-based MF High Rise New

Construction model

slide-7
SLIDE 7

www.ma-eeac.org Multi-family Program Overview

INITIATIVES BY SECTOR AND MARKET SEGMENT

| 7

► New construction segmentation aligns with code distinction between

residential and commercial

► Retrofit segmentation aligns with traditional weatherization assistance

program definitions

1 unit

1‐3 stories 2+ units 4+ stories

MF High Rise (Res + C&I)

Residential Single Family Residential MF N/A

Mass Save Multi‐family New Construction Initiatives (Low Income and Market Rate)

1‐4 units

<60% AMI 5+ units >60% AMI Low Income Single Family 1‐4 Low Income MF Retrofit (Res + C&I)

Mass Save Multi‐family Retrofit Initiatives

Home Energy Services Multi‐family Retrofit (Res + C&I)

slide-8
SLIDE 8

| 8

Multi-family Market Conditions

slide-9
SLIDE 9

www.ma-eeac.org Multi-family Program Overview

MARKET CONDITION: NEW CONSTRUCTION

► Expect growth trend to

continue for next several years: − 10,000 new units per year − >300 5+ unit buildings per year

| 9 5,000 10,000 15,000 20,000 25,000 30,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

MA Residential New Construction (# of Dwelling Units Permitted)

1 unit 2 units 3‐4 units 5+ units 100 200 300 400

MA MF New Construction (# of 5+ unit structures permitted)

slide-10
SLIDE 10

www.ma-eeac.org Multi-family Program Overview

MARKET CONDITION: RETROFIT

► Low vacancy rates

lead to − Higher housing costs for renters − Less motivated building owners

► Expect split

incentive issue to be emphasized: − Increasing need for MF retrofit − Challenging market for creating demand among building owners

| 10

slide-11
SLIDE 11

www.ma-eeac.org Multi-Family Program Overview

MARKET CONDITION: LOW INCOME

►~15,000 existing low income MF buildings in MA ►Benchmarking results: − 75% were benchmarked using energy consumption data − 4,031 buildings identified with potential to increase from 2 lowest performing quartiles to median levels ►Market penetration indicator: − 71% of 3,100 units in 2016 agency refinance pipeline for tax credit buildings are prior participants in Mass Save (market rate or low income) ►Other potential opportunities: − Buildings with fewer than 50% residents at <=60% Area Median Income (AMI) are considered on a case-by-case basis − In past pipeline often exceeded budget for gas projects, resulting in wait-listing; 2016-2018 budget increased

| 11

slide-12
SLIDE 12

| 12

Performance Indicators and Cost Effectiveness

slide-13
SLIDE 13

www.ma-eeac.org Multi-family Program Overview

RETROFIT BENEFIT COST RATIOS

| 13

0.5 1 1.5 2 2.5 3 C&I MF Res MF LI MF

Benefit Cost Ratios by Initiative

Electric Gas 0.5 1 1.5 2 2.5 3 Electric Gas

Benefit Cost Ratios by Fuel

C&I MF Res MF LI MF

slide-14
SLIDE 14

www.ma-eeac.org Multi-family Program Overview

PERFORMANCE INDICATORS ANALYSIS

| 14

► New construction

participant data not available to analyze

► “Apples to apples”

comparison between Low- income/Market-rate, C&I/Res and Gas/Electric not possible − C&I MF retrofit counts by commercial meter only − Gas participant counts co- mingle master meters and individual meters, in some situations

50 100 150 200 250 300 350 400

Res MF LI MF Retrofit Lifetime Energy Savings per Participant (MF Retrofit) Electricity (MWh) Gas (therms) E+G (MMBtu)

slide-15
SLIDE 15

www.ma-eeac.org Multi-family Program Overview

MARKET RATE MF RETROFIT IMPACT EVALUATION

‐40 ‐20 20 40 60 80 100 120 140 160 1 2 3

Realization Rates

Electric Gas

| 15

► Study used post-retrofit consumption

data to determine realized energy savings for retrofit measures − Electric RR = 24.4% +/-49.3 − Gas RR = 86.2% +/-64.1

► 92% of savings for retrofit electric

comes from in-unit lighting

► Market Rate electric program is

using 60% RR as a placeholder until study results can be further investigated

► PAs have taken initial actions to

determine root cause and mitigate, but issue will require on- going investigation

slide-16
SLIDE 16

| 16

Challenges, Recommendations, and Future Development

slide-17
SLIDE 17

www.ma-eeac.org Multi-Family Program Overview

CHALLENGES

►Challenge 1: No independent tracking of MF new

construction activity

►Challenge 2: Limited participant tracking and

inconsistent participant definitions

►Challenge 3: BCR models and Total Resource Cost

(TRC) test do not accurately represent the multi-family market opportunity

►Challenge 4: Electric multi-family retrofit may not be

cost effective in its current form

►Challenge 5: Negative participant costs suggest

additional review is needed

slide-18
SLIDE 18

www.ma-eeac.org Multi-Family Program Overview

RECOMMENDATIONS FOR IMPROVED PARTICIPANT COUNTING

►Review current practices by PA for possible

inconsistencies in MF participant counting and reconcile as appropriate

►Replicate retrofit segmentation in new construction

so MF projects are identifiable and results trackable

►Provide unique site identifiers within the PAs’ data

systems to enable services tracking at the facility, building, and dwelling unit levels across sectors

| 18

slide-19
SLIDE 19

www.ma-eeac.org Multi-Family Program Overview

RECOMMENDATIONS FOR ALIGNING BCR MODELS TO MORE ACCURATELY REPRESENT THE MF OPPORTUNITY

►Review existing BCR inputs and consider alternative

approaches for determining cost-effectiveness

− May require policy change ►Continue review to determine the root cause(s) of

low realization rates for electric savings and broad precision bands associated with the realization rate analysis for both electric and gas in market rate multi-family retrofit

►PAs assess further and implement a solution that

eliminates negative participant costs

| 19

slide-20
SLIDE 20

www.ma-eeac.org Multi-Family Program Overview

CONTINUOUS IMPROVEMENT AND FUTURE DEVELOPMENT

► Leverage in-unit measures to overcome the “split incentive” ► Continue efforts to mitigate the dichotomy between res and C&I

incentives (consider blended BCR)

► Consider escalating incentives for greater achievement of

savings (performance based offer)

► Modify the existing Energy Action Plan report to be more

customer-oriented including a cost benefit analysis from the customer’s perspective

► Encourage low cost and no cost Operations & Maintenance

measures and offer building operator training specific to multi- family

► Incorporate energy benchmarking using lessons from LI ► Other opportunities: demand response, renewables and

distributed generation, addressing environmental goals

slide-21
SLIDE 21

www.ma-eeac.org Multi-Family Program Overview

CONCLUSIONS AND NEXT STEPS

►The PAs have made strong progress in improving

and evolving their multi-family program efforts, but

  • pportunities and challenges remain

►The Consultants see two priority areas for near-term

focus:

1. Developing basic performance indicators for all multi- family initiatives, with data collection and management that supports accurate tracking and assessment 2. Collaborative effort between the Consultants and PAs to understand and resolve cost effectiveness challenges, including assessment of alternative program designs and approaches to measuring cost-effectiveness as well as program expansion and enhancement opportunities ►Discussions have started and will continue at the

RMC

| 21

slide-22
SLIDE 22

QUESTIONS AND DISCUSSION