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Premium Efficiency Cooling Program

Premium Efficiency. Optimal Performance. Good Sense.

Client: San Diego Gas & Electric Company® (SDG&E®)Sample
Location: SDG&E® service area

Challenge/Business Need

In 2008 the California Public Utilities Commission adopted California’s first Long Term Energy Efficiency Strategic Plan to reduce market barriers and to establish ambitious goals for energy efficiency and greenhouse gas reduction.

A cornerstone of this plan required improving HVAC energy efficiency by a total of 50 percent by 2020 and 75 percent by 2030. It also included promoting and delivering quality installations, advanced maintenance and the early adoption of high-efficiency A/C units.

To support the goals outlined in the strategic plan, San Diego Gas & Electric® required an effective outreach strategy to manufacturers, distributors, local HVAC contractors and customers throughout its service area.

CSG’s ROLE

The SDG&E service area covers more than 4,100 square miles and 1.4 million business and residential accounts in two counties and 25 communities.

This third-party program administered by SDG&E was developed, managed and fully implemented by CSG. Program implementation included managing quality control and incentive payments, developing technical standards, recruiting and managing contractors, and overseeing:

  • Incentives paid to manufacturers, distributors, contractors and/or customers
  • Creation of a website and marketing materials
  • Data processing, Verification Service Provider coordination and quality assurance

COMMUNITY BENEFITS:

  • Single point for stakeholder contact
  • Electronic forms and web-based applications enable easy participation
  • Fully staffed contact center supports customers and contractors
  • Early retirement of inefficient units and maintenance of existing ones
  • Direct customer marketing and financing options effectively target high-yield sites

RESULTS:

  • Four-year demand reduction goal surpassed months ahead of schedule
  • Lifecycle net energy savings estimated at 120 million kWh
  • Total lifecycle carbon reductions are estimated at 69.5 thousand tons
  • High visibility achieved in crucial hard-to-reach sectors

Strategy & goals

With San Diego’s temperate climate and strong tourism and technology industries, the program targeted hotels/motels and biotech, retail, office, and restaurant companies to maximize energy savings. In 2006–2008, the program included residential and commercial HVAC equipment replacement. In 2009, the program offered commercial HVAC replacement incentives and tune-up services.

The primary goals were to reduce peak summer demand by 10 MW and annual energy use by 13.6 million kWh over a four-year period.

The strategy included the design and delivery of:

  • Hotel/motel direct outreach promoting SDG&E® On-Bill Financing Program
  • Contractor training and recruiting workshops hosted by AC distributors
  • Multi-portal website for customer information and contractor updates
  • Energy savings calculators for contractor and customer use

A few key strategies were:

  • Participation in business associations and trade events
  • Coordination with utility account executives and participating contractors to influence A/C sales in restaurants, retail outlets, biotech facilities and offices
  • Coordination with manufacturers and distributors to push product stocking and sales through national accounts and engage contractors in the program

Impact

The program met and exceeded its four-year goals (2006-2009) including:

  • Exceeding kW goal by 12.5%
  • Exceeding kWh savings goal by 7.6%
  • Issuing $4.2 million in incentives
  • Saving an estimated 1,675,573 annual kWh (662 kW) from hotel/motel sites alone
  • Replaced 12,660 HVAC units with a total cooling load of 51,600 tons with high
    efficiency equipment

CSG Contacts

Elizabeth DeSouza, Program Manager
Kathleen DeVito, Director of Corporate Communications

Tasteful Flourish