Customer Bonus
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All custom projects must be facility improvements that result in a permanent reduction in natural gas energy usage due to an increase in a system’s efficiency. Projects that result in reduction of energy consumption without an improvement in system efficiency are not eligible for a custom incentive. However, projects involving automated control technology may be eligible for incentives. All equipment purchased for custom projects must be new. Projects that entail measures covered by the prescriptive incentive program are not eligible for custom incentives.
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• The following types of projects do not qualify for energy
efficiency incentives:
- On-site electricity generation.
- Renewable energy.
- Changes in operational and or/maintenance practices or simple control modifications that do not involve capital cost.
• The annual gas savings must be calculated for all custom projects
using industry-accepted engineering algorithms and/or simulation models. Calculations must be completed for both the existing and proposed equipment/systems based on the current operation of the facility. If the equipment has reached the end of its useful life, the existing system must be substituted with equipment that would meet the applicable federal and local energy codes when calculating the annual energy savings.
• All calculations, metered data, equations, and assumptions must be
submitted with the application along with their sources if applicable. SEMCO’s Energy Waste Reduction Program is solely responsible for the final determination of the annual energy savings to be used in calculating the incentive amount. Preliminary and post-inspections are required to verify equipment and operation conditions. SEMCO’s EWR Program reserves the right to require specific measurements and verification measures, including monitoring both before and after the completion of the project. The incentive payment will be based on the result of the above-mentioned activities.
• Project payback is equal to the ratio of the project cost divided by the annual energy bill savings. To qualify for a custom project, the project payback must be at least one year and no more than eight years. A pre-application is required for all custom projects while the existing equipment is still in operation in order to allow SEMCO’s EWR Program the opportunity to verify the existing equipment.