Upgrading Electrical HVAC Equipment in New

Jersey: Commercial and Industrial Buildings

 New Jersey is strongly focused on making its buildings greener, and this is achieved in
great part through the NJ Clean Energy Program. One of the sub-programs is Smart
Start Buildings, which provides financial incentives for energy efficiency measures in
commercial and industrial facilities. Both new constructions and existing buildings are
eligible for the rebates provided through the program, and the NJCEP has incentive
tables and pre-programmed worksheets to simplify the rebate calculation procedure.
 HVAC systems account for a significant portion of building energy consumption, while
having a sizeable carbon footprint:
 In ventilation and air conditioning systems the carbon footprint is indirect, since both
systems run with electricity. The corresponding emissions depend on the power grid
energy mix, but the main power source in NJ is natural gas - a fossil fuel.
 This article will describe the HVAC incentives from the NJ Clean Energy Program that
focus on electrically-powered equipment. There are also incentives for gas-fired
equipment, which are covered in another article.
 Electric Chillers
 The Smart Start Buildings program provides financial incentives for water-cooled and
air-cooled chillers that meet minimum efficiency levels and are used for space
cooling applications. Chillers used for industrial process cooling do not get a
prescriptive program incentive, but can submitted through a custom application.
Specific incentive rates vary depending on chiller type, but the general procedure is
as follows:
 If the chiller qualifies, there is a base rate in USD per ton of capacity.
 The chiller gets an additional performance incentive for every 0.1 EER above the
minimum value, or every 0.01 kW/ton below the minimum value. The performance
incentive is also calculated based on USD/ton.
 Is it a constant speed or variable speed chiller?
 Is the project an existing building or a new construction?
 For example, a variable-speed, water-cooled, positive displacement chiller with
a capacity below 75 tons gets a base incentive of $40/ton. The required performance
is 0.78 kW/ton, and the incentive is increased by $2.50/ton for every 0.01 kW/ton
below the required value.
 Electric Chillers
 Assume the proposed chiller has a capacity of 60 tons and operates at 0.60
kW/ton:

Base Incentive 60 ton x $40/ton = $2,400

Difference with max. 0.78 kW/ton - 0.60 kW/ton = 0.18

kW/ton kW/ton

Performance incentive per

$2.50/ton x (0.18 / 0.01) = $45/ton
ton

Performance incentive 60 ton x $45/ton = $2,700

Total Incentive $2,400 + $2,700 = $5,100

Note that this is just an example, and the incentive rates change depending on chiller
characteristics.
 Electric Unitary HVAC
 This incentive applies for many types of HVAC equipment and controls. Like
in the case of electric chillers, there are minimum efficiency levels for
eligibility, which are detailed in tables in the NJ Clean Energy Program
website.
Ground Source Heat Pumps

 This incentive covers closed-loop ground source and groundwater source

heat pumps. Both types of GSHP are classified into two tiers based on
performance, where the higher tier gets a better incentive in USD/ton.
Note that open-loop GSHPs are not eligible for the benefit, so make sure
your use a closed-loop system.
 Variable Frequency Drives
 Many types of equipment found in HVAC systems
can achieve massive energy savings if their speed
is controlled with a variable frequency drive (VFD).
The logic is simple: running a motor at partial
speed consumes much less electricity than
running it intermittently to produce the same
design airflow.
 The incentive rates are the same for all eligible
applications, calculated based on total motor
horsepower controlled by the VFD. However, the
eligible HP range is different for each application.
 Conclusion
 The Smart Start Buildings incentive programs improves the financial outlook for
many building enhancements, including HVAC systems. Regardless of whether the
project is a new construction or a renovation in an existing building, incentive rates
increase the return on each dollar spend upfront.
 Just keep in mind there are certain performance metrics to meet to be eligible for
an incentive, and in many cases you must also submit product certifications
according to industry standards. Work with qualified consulting and design
engineers to make sure all requirements are met.