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Motor Vendors Frequently Asked Questions

Funding Opportunities

Q: How much money is available?
A: NYSERDA will invest over $100 million through 2011 for studies and installations at Manufacturing and Data Center facilities who pay the System Benefits Charge (SBC).

Q: How much money is available per facility?
A: NYSERDA will invest up to $5 million per facility per year. Incentives are paid based on annualized energy savings and are currently capped at 50% of project cost.

Q: Is there a due date I need to respond to?
A: No. The incentives are provided on a first-come, first-served basis. Current funding will last through 2011.

Q: I've heard that the Investor-Owned Utilities (IOUs) offer programs. Is NYSERDA working with the gas and electric Transmission and Distribution (T&D) utilities?
A: NYSERDA is working with the IOUs on customer meetings, coordination of program offerings, and to ensure the best energy services possible are available to the State's SBC paying customers.

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Incentives

Q: How are the incentives calculated?
A: Incentives are paid based on one full year of energy savings. For productivity improvements the energy savings will be calculated by determining energy use per unit of production or workload before and after the improvement, and multiplying the difference by the new output.

Q: When are the incentives paid?
A: NYSERDA will pay a minimum of 60% of the incentive when installation is complete. Progress payments also are available on this installation payment for costs incurred to support installation (design, equipment purchase, etc.).

The remaining 40% of the incentive generally is paid when the project's electricity savings have been measured and verified (M&V). M&V periods are generally one to two years. However, if you or your management is concerned about cash flow, NYSERDA will work with you to accelerate performance payments.

Q: Are incentives available for electric efficiency projects?
A: Yes. NYSERDA has approximately $93 million in electric efficiency funding for manufacturers and data centers. NYSERDA will pay $0.12/kWh upstate and $0.16/kWh in Con Edison territory..

Q: Are incentives available for natural gas efficiency projects?
A: Yes. NYSERDA has approximately $10 million in natural gas efficiency funding for manufacturers and data centers throughout New York State. NYSERDA will pay $15/MMBTU upstate and $20/MMBTU in the Con Edison, KEDNY and KEDLI territories.

Q: Are operational and maintenance incentives available?
A: Yes. Incentives are available for process improvements based on operational changes. Incentives are $.05/kWh and $6/mmBTU up to 50% of the project cost to implement the operational improvement. Eligible measures can include, but are not limited to:

  • Manufacturing: burner maintenance, process controls optimization, compressed air leaks and compressed air pressure reduction.
  • Data centers: tile maintenance and blanking (hot aisle/cold aisle).

Q: Are pre-qualified incentives available?
A: Yes. However, performance-based incentives are far more lucrative. The pre-qualified incentives only should be used for unplanned, one-off equipment replacements. Projects that require planning, design, or that are system or process based should be submitted through the performance-based Industrial and Process Efficiency module of the program.

Q: Are there incentives available for non-manufacturing companies?
A: Yes, NYSERDA has incentives for commercial customers as well. Performance-based electrical incentives are available for Lighting, Motors, Commercial Kitchens, VFD, HVAC, and other projects that reduce electrical use. Download the application.

Q: How do I get started?
A: Send an email to IPEOutreach@nyserda.ny.gov. Call the Manufacturing (585-232-5610 ext. 290) or Data Centers (212-785-0292). A representative will then contact you to discuss your needs, schedule a meeting with your team and assist with the application process.

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Eligibility and Participation

Q: Will my incentives be reduced if I only pay SBC on a portion of my bill?
A: Yes. Incentives are pro-rated for customers who pay SBC on less than 50% of their usage.

Q: Does the program require me to share information about the project with others?
A: No. Although that is generally a requirement of NYSERDA's R&D programs, the goal of this program is to pay for energy savings. NYSERDA will develop case studies of successful projects and leaders in manufacturing and data center energy productivity. However, participation in case studies, awards, or press events is completely voluntary, and any materials published or used by NYSERDA will be reviewed by you before they are used.

Q: Does my project need to be innovative?
A: No. This program is for custom, site, and process-specific solutions that used commercially available systems and technologies..

Q: Why should you participate?
A: This is your money at work. It is the goal of NYSERDA's IPE team to return in energy-efficiency improvements as much of your SBC contribution as possible..

Q: Is my facility eligible to participate in NYSERDA programs?
A: To qualify for participation in NYSERDA programs you must be a customer of one of the following utilities and pay into the SBC.

NYSERDA offers capital incentives amd sets incentive caps across all of New York State. These incentives exist for utility (gas & electric) companies. This table will help you determine whether you're eligible for them.

Utility Electric Gas
Downstate Con Edison X X
Keyspan Energy Delivery Long Island (KEDLI) X
Keyspan Energy Delivery New York (KEDNY) X
Upstate Central Hudson X X
National Grid X X
NYSEG X X
Orange & Rockland X X
Rochester Gas & Electric X X

Q: What projects are eligible?
A: Generally, projects that save electricity are eligible; however, NYSERDA's focus is on projects that improve manufacturing process productivity. For example, projects that increase throughput, reduce scrap, and improve productivity all have an energy component and may be eligible for a NYSERDA incentive. NYSERDA also provides incentives for improvements to support system efficiency for motors, VFDs, process cooling, and compressed air.

Q: Are projects that result in an increase in overall electricity consumption eligible?
A: Yes. One of the goals of this program is to invest in smart, energy-efficient manufacturing growth in New York. To accomplish this, NYSERDA incentives are based on improvements in electricity use per unit of production.

Q: What baseline is used to determine energy savings and incentives?
A: Industrial and data center operations are complex systems and there are no codes or standards that govern how they are to be run. This means that no two projects will be exactly the same and we can not use a standard baseline to compare all projects. To accommodate this, the IPE incentive is a custom measure program and NYSERDA's staff and consulting team will work with the customer to establish an appropriate baseline for each project.

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Manufacturing

A manufacturing company in central New York was considering adding a new piece of production equipment when they contacted NYSERDA. They currently had two machines and they needed additional capacity. The company had a strategy to purchase a new piece of equipment that ran at a higher rate, rather than buying more of the equipment they had already. In addition to making more pieces per hour, the new machine produced a vacuum more efficiently than the existing equipment. As an additional benefit, the company was able to downsize their air compressor and save an additional 135,200 kWh/year. The NYSERDA Industrial & Process Efficiency incentive for this company is $55,340 of the $262,000 project cost.

Existing Conditions Project Improvement Results
Efficiency Improvement .934 Wh/unit
Energy Use .96 Wh/unit Energy Use .026 Wh/unit Improved Capacity 768,000 units/day
Capacity Energy Savings 325,950 kWh/year
Equipment Capacity 192,000 units/day Equipment Capacity 960,000 units/day Compressor Energy Savings 135,190 kWh/year
Total Energy Savings 461,140 kWh
Compressed Air Energy 661,115 kWh/year Compressed Air Energy 530,925 kWh/year Incentive Rate $.12/kWh
NYSERDA Incentive $55,340

Manufacturing Support System Project Example

A materials process plant in upstate New York was looking for energy and operations cost reductions. Through a FlexTech study it analyzed a savings opportunity for a large bag house with two large fans that runs 24 hours a day seven days a week. The process it supports runs periodically. The study indentified that by adding a variable speed drive to each of the fans, the company can save 2,469,300 kWh/year and with a potential NYSERDA IPE incentive of $296,316, the payback for this project goes from 2.7 years to 1.2 years.

Results
Energy Savings 2,469,300 kWh/year
Incentive Rate $.12/kWh
NYSERDA Incentive $296,316

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Data Centers

The work load type for the project is high performance computing (HPC) in a scientific research setting. The customer has developed a plan to replace existing HPC servers with new high efficiency models that will increase computing capacity, within the same physical data center space. The operations measures computing performance in FLOPS (Floating Operations per Second). The energy consumption of the data center remains the same, however the amount of computing work increases, thereby improving the efficiency of kWh required per FLOP. See the project summary table below:

Existing Conditions Project Improvement Results
Energy Use 11,000,000 kWh Energy Use 11,000,000 kWh Efficiency Improvement 296,154 kWh/TFlops
Improved Capacity 20 TFlops
Computing Capacity 13 TFlops Computing Capacity 20 TFlops Energy Savings 5,926,077 kWh
Incentive Rate $0.16 $/kWh
Computing Efficiency 846,154 kWh/TFlops Computing Efficiency 550,000 kWh/TFlops NYSERDA Incentive $947,692

Data Center Support System Project Example

The customer has established an energy and operational cost reduction strategy. Through the FlexTech program, an engineering study evaluated options for cooling, disk storage upgrades, server harvesting/elimination, and server virtualization. The recommendations from the study were implemented, resulting in a demand reduction of 262 kW and annual consumption reduction of 2,131,389 kWh. See the project summary table below:

Energy Conservation Measure Demand Savings (kW) Consumption Savings (kWh) Results
Cooling Upgrades 131 985,581 Energy Savings 2,131,389 kWh
Disk Storage Replacement 9 78,840
Server Harvesting 80 699,048 Incentive Rate 0.12 $/kWh
Server Virtualization 42 367,920
Total 262 2,131,386 NYSERDA Incentive $255,767

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Technical Assistance

Q: Is an engineering study required?
A: Yes. Incentives are based on a site/process specific engineering analysis. However, NYSERDA's Technical Reviewers are available to assist with the required engineering analysis at no cost to the customer.

Q: Will NYSERDA pay for Measurement and Verification?
A: Yes. NYSERDA will use metering and other M&V tools at the Applicant's facility. In addition to the installation incentives described above, any incremental M&V costs will be performed by NYSERDA's technical reviewer at no additional cost to the applicant.

Q: Can NYSERDA help identify or determine the technical and economic feasibility of potential projects?
A: Yes. Through its FlexTech program, NYSERDA can help identify and determine the feasibility of potential projects. Engineering feasibility studies are performed on a cost-shared (50/50) basis using one of NYSERDA's pre-qualified consultants or an independent approved consultant of your choice. A primary goal of the feasibility study is to develop the objective analysis required to support the approval of the project by the customer's management.

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Application Questions

Q: Is there an extensive proposal or application required?
A: No. To get started, all you need to do is submit a brief application.

Q: Do customers have to apply through a third party?
A: Industrial customers can apply to the program and receive incentives directly from NYSERDA or use a third party if desired.

Q: How long will it take to get NYSERDA approval?
A: Project approval is in the form of a purchase order issued to the Applicant by NYSERDA. Generally, the purchase order is issued as soon as a reasonably accurate estimate of the energy savings is available.

For straightforward projects, a purchase order should be issued within a few weeks of application.

For more complex projects, a site visit by NYSERDA staff and/or a NYSERDA technical reviewer may be required to develop a clear understanding of the project and to estimate energy savings. In either case, the goal is to approve projects as quickly as possible.

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Last Updated: 12/11/2013