New Opportunities in Affordable Housing Energy Efficiency and - PowerPoint PPT Presentation

New Opportunities in Affordable Housing Energy Efficiency and Renewables Presentation by Mercy Housing and Affordable Community Energy | 1

DISCUSSION TOPICS 1 Setting the Stage 2 Why Whole Building Retrofits 3 Why Not Whole Portfolio Retrofits 4 Discussion 2

SETTING THE STAGE MERCY HOUSING • Affordable housing nonprofit • ~280 owned properties • ~18,000 units • ~16.5M sf (owned) • Mostly LIHTC, Section 202, Section 8, USDA RD • Green Hope External Environmental Commitments • BBC • Enterprise Call to Action • Renew300 3

SETTING THE STAGE AFFORDABLE COMMUNITY ENERGY (ACE) • Mission-Driven Energy Services Company • Whole Building Retrofits • Energy Efficiency • Water Conservation • Renewable, Co-generation and Storage • Multifamily Affordable Housing • National • Turn-key Feasibility/design • Installation • Management • 100% of the capital • 4

SETTING THE STAGE MERCY HOUSING’S OBJECTIVES, CHALLENGES • Objectives • Reduce operating expenses • 20% energy and water reduction portfolio wide • Financial Barriers Split incentives • Owner vs HUD • Owner vs Tenant • Developer vs Manager • Payback periods • LOC and loan adversity or inability • Non-fungible savings/pencil at each • property • Other Constraints Gaining internal buy-in • Diverse portfolio • 5

WHY WHOLE BUILDING RETROFITS?

WHY WHOLE BUILDING RETROFITS USE IT OR LOSE IT • Limited benefits from low- hanging fruit • Immediate satisfaction • But ultimate satisfaction is permanently delayed • Savings from low-hanging fruit will be lost • Management will use it • Or HUD will sweep it 7

WHY WHOLE BUILDING RETROFITS USE IT OR LOSE IT • Properties are “systems,” work needs to be integrated 1 1 From “How ‘Low-Hanging Fruit’ Has Poisoned Energy Efficiency” by Nate Adams, published online in Greentech Media, Feb. 2, 2015 8

NOT WHY WHOLE BUILDING RETROFITS— BUT HOW! BUT HOW! USE LOWER HANGING FRUIT TO REACH THE TOP 20 18 Need Blended Need Blended Payback Period Payback Period 16 to be less than to be less than PPA/ESA T PP A/ESA Ter erm(s) m(s) 14 ears Simple Payback in Years 12 Simple Payback in Y 10 8 6 4 2 0 Lighting and Lighting and Water ater DHW/Other DHW/Other HVAC Systems HV AC Systems Solar Ther Solar Thermal mal Solar PV Solar PV Controls Contr ols Smaller Systems Smaller Systems 9

WHY NOT WHOLE PORTFOLIO RETROFITS

WHOLE PORTFOLIO RETROFITS DON’T LEAVE ANYTHING IN THE BARREL ANOTHER FORM OF “LOW-HANGING FRUIT” Instinct is to focus on the worst offenders in the portfolio Or Quickly grab the best incentives Then couldn’t afford to make improvements in many of the other properties Because the savings will be swept 11

WHOLE PORTFOLIO RETROFITS BUT THIS APPROACH IS MUCH HARDER • Challenge • 120 Properties +/- Interaction of • Savings goal of Energy Efficiency Renewable >20% EE and RE Opportunities Opportunities • Need every Improvements possible incentives • Goal to do every property, every measure • Execute efficiently and effectively Incentives FINAL PLAN Incentives • Advantages Availability & Timing • Institutional Reqt’s openness • Good data • California Development Project Lender/ And Asset Management Partner Management Coordination/ Approvals Plans Efficiency 12

CONCLUSION 13