6/12/2024
1 RiversideCA.gov1
RiversideCA.gov
HEAT PUMP REBATE PROGRAM ENHANCEMENTCity CouncilJune 25, 2024Riverside Public Utilities Department RiversideCA.gov2
1. On December 7,1999, City Council approved the Air Conditioning/Heat Pump Rebate Program2. On July 1, 2010, the combined Air Conditioning/ Heat Pump Rebate Program guidelines were revised3. Current dual Air Conditioning/ Heat Pump Rebates offered for residential customersBACKGROUND 1 2
6/12/2024
2 RiversideCA.gov3
RESIDENTIAL PARTICIPATION KWH SAVINGSCOSTPARTICIPANTSFISCAL YEAR84,418.50$135,525.00201FY 14/1587,755.78$188,337.50203FY 15/16118,020.00$269,874.77281FY 16/17137,625.00$320,761.70330FY 17/18136,073.00$324,024.75328FY 18/19141,890.75$337,025.00357FY 19/20160,274.51$381,325.00417FY 20/21149,200.03$371,525.00372FY 21/22124,075.59$307,412.50314FY 22/2353,327.05$130,437.50138FY 23/24 *(Jul. 2023-Dec. 2023)1,192,660.21$2,766,248.722,941TOTALSPROGRAM PARTICIPATION RATES1. Historically both programs have been included in the same budget, separated by SEER ratings.2. Average annual participation in the current combined Air Conditioning/Heat Pump Program is 300 customers.3. The Program provides energy efficiency savings, on average 127,000 kWh per year.
RiversideCA.gov4
1. The California Energy Commission has proposed guidelines to begin in 2026 that require new residential construction and replacement of HVAC units to be converted to heat pumps. 2. Modern heat pumps can reduce electricity use for heating by approximately 65% compared to electric resistance heating such as furnaces and baseboard heaters. 3. High-efficiency heat pumps can also dehumidify more effectively than standard central air conditioners, resulting in less energy usage and better cooling in summer months. DISCUSSION 3 4
6/12/2024
3 RiversideCA.gov5
1. Existing Air Conditioning program remains unchanged.2. Benefits customers who cannot install heat pump technology.3. Program realizes valuable energy efficiency and cost savings.AIR CONDITIONING REBATE PROGRAM INCENTIVESEER*EQUIPMENT$150 per ton15.2 SEER* to 15.9 SEERPackaged A/C$250 per ton16 SEER or greaterPackaged A/C*Seasonal Energy Efficiency Ratio RiversideCA.gov6
Heat pumps provide significantly better kWh savings when compared to traditional air-conditioner units with the same SEER.HEAT PUMP TECHNOLOGYLifetime kWh Savings5-ton unitMeasure LifeAnnual kWhMeasure Name11,70015 years156Heat pump 16 SEER10,20015 years136Heat pump 15 SEER 5 6
6/12/2024
4 RiversideCA.gov7
Benefits of modern heat pumps:1. Offer an energy-efficient alternative to furnaces and air conditioners.2. Well-suited for the local climate.3. Use electricity and a heat exchanger to transfer heating or cooling from one location to another.HEAT PUMP TECHNOLOGY RiversideCA.gov8
1. Heat pump technology is more expensive than traditional air-conditioners.2. Incentive level set to encourage greater adoption of heat pumps.3. Similar programs offered by other municipal utilities:4. Proposed increase incentive level from $150/$250 per ton to $750 per ton.PROPOSED HEAT PUMP REBATE ENHANCEMENT Rebate Agency$400 per tonAnaheim Public Utilitiesup to $2,000Azusa$600 per tonBanningup to $3,000Burbank$400 per tonImperial Irrigation Districtup to $1,200LA Department of Water and Powerup to $3,500Sacramento Municipal Utilities District7 8 6/12/2024
5 RiversideCA.gov9
STRATEGIC PLAN ALIGNMENTStrategic Priority 4 – Environmental StewardshipProgram deliverables will focus on helping customers maximize energy efficiency practices and support the Priority goals of championing proactive and equitable climate solutions based in science to ensure clean air, safe water, a vibrant natural world and a resilient green new economy for current and future generations RiversideCA.gov10
That the City Council approve a program enhancement to the current residential Air Conditioning/Heat Pump Rebate Program by creating a dedicated rebate program for Heat Pumps and increasing the heat pump incentive to $750 per ton, with a total annual heat pump rebate program limit of $375,000 RECOMMENDATION9 10