2017 Home Rebates Guidelines

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1 2017 Home Rebates Guidelines Updated: January 1, 2017 Effective: January 1, 2017 Version 1.1

2 Home Rebates Guidelines To assist the Service Provider community in our area with its transition to a business model that includes whole house performance, Public Service Company of Oklahoma (PSO) is sponsoring a U.S. Department of Energy Home Performance with ENERGY STAR Program. PSO Home Rebates provide up to $5,000 per home for efficiency upgrades installed between January 1, 2017, and December 31, 2017, or until funds are exhausted. This aligns you, homeowners and PSO s objective to reduce energy and costs while developing a new, profitable and differentiated line of business for participating Service Providers. Approved Energy Efficiency and Rebates Single Rebates Multiple Rebates Attic/Ceiling Insulation (R-22 or less existing) $400 $600 High Efficiency Electric Water Heater Replacement Not eligible $120 ENERGY STAR Certified Windows and Doors ($600 maximum) $30 per window/door $45 per window/door Solar Screens ($200 maximum) $20 per window $30 per window Air Conditioner/Heat Pump Replacement 1 ENERGY STAR SEER (Multiple only) Not eligible $600 ENERGY STAR SEER $500 $750 ENERGY STAR SEER $550 $825 ENERGY STAR SEER 18+ $600 $900 1 HVAC replacement in Multiple projects must be combined with Duct Replacement or Duct Sealing for that system Ground Source Heat Pumps $600 + $350 per ton $900 + $525 per ton Furnace Electronically Commutated Motor (ECM) $100 $150 ENERGY STAR Certified Pool Pump (Single Only) $400 Not eligible Multiple Only 2 Knee Wall Insulation $525 Wall Insulation (R-0 existing) $450 Floor/Crawlspace Insulation (R-0 existing) $450 Radiant Barrier $450 Air Infiltration 20% Reduction Air Infiltration 10% % Reduction Duct Replacement Duct Sealing Adding Additional Duct Return (only if required, system must test within static pressure guidelines) 2 Requires mandatory third-party verification and performance testing $500 $150 $120 per supply replaced $150 per return replaced $75 per supply sealed $120 per return sealed $150 per added return

3 2 Eligibility Guidelines The following rules, conditions and limitations apply to rebates paid under this service: This service runs through December 31, 2017, or until funds are exhausted. PSO customers can qualify for rebates of up to $5,000 per home. Homes must be located within the PSO electric service territory, have a valid PSO meter number or account number and proposed upgrades have not been previously incentivized by a PSO energy efficiency service. Mobile Homes, Manufactured Homes and New Construction Homes do not qualify. must be installed and verified to meet guidelines. Rebates can be submitted for payment only after project completion. Checks to Service Providers are mailed within three to four weeks of application approval. Rebates may not exceed the value of installed upgrades (individually or collectively). More than one air conditioner, heat pump or ECM motor can be installed in a project and each unit will qualify as an individual upgrade. Additional Multiple Eligibility Guidelines Projects must be completed prior to December 31, 2017; at least three (3) eligible energy efficiency upgrades greater than or equal to $500 in value must be installed to qualify for the Multiple Rebate levels. Multiple projects with HVAC equipment replacement must include duct sealing or duct replacement on the system that was replaced. Pre-existing conditions must be verified according to established eligibility guidelines. Rebates for upgrades requiring performance testing are contingent upon a complete home performance energy assessment pre and post diagnostic testing, Beacon models, submitted and approved scopes of work and eligibility pre-approval. A $250 testing fee will be deducted from the final rebate amount paid to the Service Provider. Should a project be cancelled after a test-in has been performed, the Service Provider is responsible for paying the full $250 test amount to PSO/ICF. A retest fee of $100 will be deducted from the final rebate amount paid to the Service Provider for any retest and/or visual re-inspection of failed upgrades. Service Providers have seven (7) calendar days to correct a failed upgrade(s) and submit for re-test. If re-test request is not received within seven (7) calendar days, or if the upgrade(s) fails twice in a row, the Service Provider will forfeit the rebate for the failed upgrade(s). At our discretion or upon homeowner request we will hire another Service Provider to correct the failed upgrade(s). All projects must be completed (rebates paid) within 60 days of the signature date on the Homeowner Participation Agreement. Projects that have reached 45 days without a test-out audit request will automatically be cancelled unless an exception has been granted and documented in the project s notes by the TPV or Account Manager.

4 3 Air Conditioner and Heat Pump Replacement Guidelines We recommend that industry best practices be used when designing and installing new HVAC systems. This includes using ACCA Manual J for proper load sizing. Rebates are for system replacements only, new construction system installations are not eligible. Replacement systems may not exceed the tonnage size of the removed equipment. Exception is granted for a half-ton increase for variable speed equipment. Central air conditioning and heat pump systems must be five tons or less. Equipment must surpass current minimum ENERGY STAR SEER and EER ratings. All units must have AHRI verified equipment or ratings verifiable at: Consortium for Energy Efficiency Directory OR AHRI verified equipment This follows CEE s high efficiency Tier 1 Specifications. Information about this specification can be found at HVAC fuel switching (e.g. converting from a gas to electric furnace) installations are not eligible (exceptions are ground source heat pumps and other renewable energy equipment; please check with your account manager for details). Variable Refrigerant Flow (VRF) Bonus: PSO is offering a $500 per system bonus for installed equipment that utilizes VRF technology in Multiple only. This special bonus rebate must be documented with a manufacturer s specification sheet along with the AHRI Certificate. Nameplate photos will be collected onsite by Third Party Verifiers during the test-out inspection. This $500 bonus may be eliminated at PSOs choosing. This bonus is valid from January 1, 2017 through December 31, 2017, or until rebate funds are exhausted. Static Pressure: The standard to ensure proper ductwork sizing, design airflow delivery and electrical power consumption by the blower motor is that the system total external static pressure should be within original equipment manufacturer (OEM) guidelines for the installed equipment. That is usually 0.50 inches water column for most air handling equipment to deliver 400 cubic feet per minute (CFM)/ton at high speed. Air handlers having a variable drive electronically commutated motor (ECM) can usually deliver the design airflow of 400 CFM/ton against static pressures of up to 0.80 inches water column but at a higher cost in motor energy consumption. All Multiple projects with HVAC equipment replacement are expected to meet static pressure guidelines. If additional supply or return capacity is being proposed, static pressure must be verified at the test-in audit to exceed 0.80 inches water column. Air Flow: There are several ways to measure air flow, including: using a manufacturer s fan curve, temperature rise method, flow capture hood, Duct Blaster, Pitot tubes (or hot wire anemometer method), and True Flow method. Flow hoods are used to measure airflow out of supply registers and diffusers and into return grilles. This would be the delivered CFM not necessarily the coil CFM where we actually measure system airflow for coil performance. ACCA/ANSI Standard 5 only allows flow hoods to measure total CFM for commercial applications, not residential. Flow hoods are useful for balancing systems by measuring the CFM of air actually getting to a zone or room (as long as you know what the room or zone is designed to receive). Standard 5 approved procedures will be used. Measuring CFM over the coil can be accomplished in several ways that include using a flow-grid; total external static pressure and an OEM blower table (probably the quickest); traversing anemometer (mini-vane or hot wire); temperature rise (heating only); or most accurately, using the pressure matching procedure with a Duct Blaster.

5 4 Duct Sealing and Replacement Guidelines PSO s preference would be to replace deteriorated, improperly designed, sized or poorly installed ducts that cannot be successfully repaired with approved duct sealing methods. To ensure high quality, and that installed duct efficiency upgrades meet guidelines, we recommend that industry best practices be used when designing and installing new duct systems. This includes using ACCA Manual J calculation for sizing and ACCA Manual D for duct design when ducts are replaced and Duct Blaster and flow hood measurements for leakage, balancing and making sure that the proper CFM of air is delivered to the proper location in the home. Service Providers should achieve manufacturer specification for external static pressure and leakage guidelines using mastic to seal all joints and plenums and using a nonhardening putty (such as Mortite or Thumb Gum) to seal serviceable cabinet penetrations for wiring, condensate drains and refrigerant lines. No adhesive backed cloth duct tape should be used. On both the Duct Replacement and Duct Sealing upgrades, the total CFM leakage will be measured to determine if the duct efficiency upgrade meets guidelines. In addition, PSO requests duct leakage to the outside along with total duct leakage to be measured and recorded for reporting results to the Oklahoma Corporation Commission. Please see the detailed Duct Replacement and Duct Sealing requirements in the table on page 12. The total CFM pre- and post- leakage thresholds that must be met for both Duct Sealing and Duct Replacement are summarized in the table below: Duct Sealing Duct Replacement Tonnage of HVAC Unit Minimum Pre Total Leakage (CFM) Maximum Post Total Leakage (CFM) Minimum Pre Total Leakage (CFM) Maximum Post Total Leakage (CFM) Note: CFM is calculated based on assumption of 400 CFM per ton, and tonnage represented is the tonnage of the HVAC unit at time of test-out. For example, if a 2-ton unit is replaced with a 3- ton unit, calculate required CFM based on the 3-ton unit. Duct efficiency upgrades require a minimum of 20 percent pre total duct leakage, however, homes that test in between 15 and percent may be accepted with Account Manager approval prior to install, and will be subject to a 50 percent total leakage reduction.

6 5 Ducts in Slab Foundations All duct systems that are installed in slab foundations must meet the same pre-leakage and post-leakage rates listed above for duct sealing or duct replacement. Removing ducts in slab foundations and moving them to the attic: all returns and all new supplies qualify under duct replacement guidelines. Retaining slab ducts: all returns qualify under duct replacement guidelines if replaced OR all returns and one supply qualify under duct sealing guidelines if sealed. Air Infiltration Guidelines Air infiltration upgrades should be permanent solutions. Examples of material and strategies that are prohibited include (but not limited to) peel and stick weather-stripping and taped or Velcro covers for whole house fans. To claim Air Infiltration, a minimum of two (2) or more of the following prescriptive upgrades must be completed: Seal attic hatch and scuttle openings in conditioned space Seal/caulk around all ceiling fixtures, all plumbing penetrations and breaker boxes Repair/patch holes in dry wall Replace door weather stripping, add door sweeps and seal thresholds Caulk/seal around windows and door assemblies on the interior and exterior Insulation gaskets installed to light switches/receptacles Seal heater/domestic hot water closet in conditioned space Seal top plate penetrations Seal can lights or replace with sealed units Add attic fan cover or remove attic fan Seal around the fireplace and mantel Seal attic bypasses and fur downs It is recommended to target an optimal.35 air changes per hour (ACH) and not just attempt to reduce air leakage by 10 to 15 percent. Too much air leakage creates comfort and energy issues, and not enough air changes per hour can create health and safety issues. We use the ASHRAE ventilation standard for any home at or below 0.35 ACH. This standard is developed and maintained by the American Society of Heating, Refrigeration and Air-Conditioning Engineers (ASHRAE). The new standard encourages tightening the house as much as practical and then adding mechanical ventilation in order to maintain proper indoor air quality. Mechanical ventilation rates are determined through a calculation that includes square feet, number of stories, number of occupants, local exhaust fan rates and the envelope infiltration rate. Due to the complexity of the calculation, we will be providing Service Providers additional information as needed to achieve proper ASHRAE ventilation rates.

7 6 Combustion Appliance Zone (CAZ) Guidelines When air sealing is performed and CAZ is located in conditioned space, the following requirements must be completed: Isolate the CAZ from conditioned space o Weatherstrip/jamb-up/door sweep the mechanical room door to stop air-infiltration o Seal CAZ penetrations that leak directly into conditioned space o Outside sourced combustion air must meet building code requirements A carbon monoxide alarm(s) must be installed outside each separate sleeping area in the immediate vicinity of the bedrooms. o CO alarm must be Underwriters Laboratory (UL) listed o If the carbon monoxide alarm is not installed at the time of final test-out, the TPV will install the detector and a $30 per alarm fee will be deducted from the Service Provider s final rebate Insulation Guidelines Existing attic insulation must be R-22 or less to qualify. Please see table below for equivalent inches of common materials to meet the R-22 or less requirement. Material Blown-In Fiberglass Cellulose Rockwool Existing Inches 7 inches or less 6 inches or less 7 inches or less Final attic insulation must be R-38 minimum. PSO follows the Building Performance Institute (BPI) measurement of R-3.7 per inch of open cell foam, R-6.0 per inch of closed cell foam, R-3.7 per inch of cellulose, loose fill, and R-2.8 per inch of fiberglass, loose fill. Foam wall applications Insulate 2x4 cavities to R-13 and 2x6 cavities to R-21. Foam crawl space/under floors application Crawlspaces must be sprayed with closed cell foam. The crawlspace floor must have a minimum of 2.25 inches installed. All of the framing members must be completely covered with a minimum of 2.25 inches. Maintain 24-inch clearance to ground. Foam crawl space/walls application The vapor barrier that is installed must achieve a 0 Perm rating. The vapor barrier must be installed to manufacturer s specifications. The vapor barrier must overlap a minimum of 12 inches and sealed at the seams with an approved material for that product. The vapor barrier must be adhered to the walls of the crawlspace a minimum of two feet up the wall and framing pillars.

8 7 A minimum of 2.25 inches of closed cell foam must be applied or 2.25 inches of polystyrene sheets mechanically attached to the crawl space walls. The proper heights at the top and bottom must be determined to allow for insect inspection and drainage issues. A drain must be installed in the crawlspace to the outside for condensation and other moisture that gathers on top of the vapor barrier. Blown insulation attic applications Blown insulation shall be installed at appropriate air pressure and material quantity to ensure complete coverage of the entire ceiling plane, and manufacturers recommended density to achieve a uniform R-38 minimum. Insulation may not be installed in areas of homes where live knob and tube wiring exists. All attic accesses and open areas above the furnace or water heater closets must have insulation dams installed to prevent insulation from falling through the attic access. Where soffit vents are present and access is viable, appropriate blocking or baffles are required to provide protection from wind-washing where insulation exists. Foam attic applications 1 Entire attic must be remediated; foam attic and knee-wall rebates cannot be combined. Foam must fully cover the roof rafters with a minimum of one inch on and around the rafters. Duct efficiency upgrades cannot be claimed for rebates when attic encapsulation is performed. Cavities must meet R-21 minimum. Existing fiberglass/cellulous insulation on the floor must be removed. All exhaust fans and combustion intakes must be ducted and terminate outside (not attic space). Natural draft space or water heating equipment is not allowed in unvented attics. All equipment must be fully sealed combustion with intakes and exhaust vented to the outside. 1 Recent studies have shown some evidence of moisture accumulation in the space between open cell foam and the ridge line of the roof decking. Recommended strategies include adding a supply and return in the conditioned attic space or adding a dehumidification system or ERV in the attic space. Additional information is available upon request. Radiant Barrier Guidelines Efficiency requirements for radiant barriers must meet the standards set by the Reflective Insulation Manufacturers Association (RIMA). Radiant barrier must have an emittance of 0.10 or lower. The radiant barrier must be adhered to the bottom of the roof rafters with mechanical fasteners. A gap of three (3) inches must be left for ventilation at the bottom and a gap of six (6) inches at the peak of the roof. Every exterior surface of the attic must have radiant barrier installed on it including the gables. No roof deck insulation can be installed once a radiant barrier is installed. A radiant barrier becomes defective when it is in contact with other materials. Radiant barrier must not be laid on the insulation surface and/or draped over ductwork. Horizontal installation is not eligible for rebates. While this application, when properly installed, can be effective, dust accumulation over time will reduce the effectiveness of the radiant barrier. Interior radiation control coatings are not eligible for rebates.

9 8 ENERGY STAR certified Pool Pump Guidelines The new pool pump must be fully variable speed and replace an existing single speed pool pump (new construction is not eligible). PSO rebates are available for only one primary pump per pool. Pumps for fountains, spas, water features or other auxiliary pumps are not eligible. The pool pump must be ENERGY STAR certified and listed on the ENERGY STAR certified products list (found at The new pool pump must also be equipped with a timed control system and scheduled for optimal energy efficiency. For most pools, the pump should be scheduled to clean at full speed for a total of two hours per day and at low speed the remainder of the time. The timer control schedule must be programmed by a participating PSO Service Provider.

10 Home Rebates Requirements Approved Attic/Ceiling Insulation High Efficiency Water Heater (Electric ) ENERGY STAR certified Windows and Doors Solar Screens AC/Heat Pump Replacement (Split System) AC/Heat Pump Replacement (Package System) Ground Source Heat Pump Replacement Existing Condition Central AC or heat pump; R-22 or less existing condition Electric water heater more than three years old Single or doublepaned clear glass with frame material broken or lacking a thermal break. Storm, garage, and attic windows are not eligible Central AC, E/W/S facing glass 12 SEER or lower, failed or 8+ years old 12 SEER or lower, failed or 8+ years old 13 EER or lower, 8.0 HSPF, failed or 8+ years old Minimum Requirements Insulate to a minimum of R- 38, 14 inches of material using Grade 1 Standards. If encapsulating attic see Insulation Guidelines..95 EF or greater electric water heater with minimum of a 10 year warranty ENERGY STAR certified; must comply with EPA s South-Central climate zone U-factor less than or equal to 0.30 and SHGC of less than or equal to 0.25 Block 65% or more of SHG for E/W/S facing glass ENERGY STAR certified: 15 SEER and 12.5 EER or higher; 8.5 HSPF Multiple equipment replacement must be combined with Duct Sealing or Duct Replacement ENERGY STAR certified:15 SEER and 12.0 EER or higher; 8.2 HSPF Multiple equipment replacement must be combined with Duct Sealing or Duct Replacement ENERGY STAR certified 16.0 EER system; less than 65,000 BTU/hour capacity Performance Testing Depth and R- value measure Photos blower door test at 50 Pascals (if submitted with Multiple ) Photos Airflow verification within 10% of system design Airflow verification within 10% of system design Airflow verification within 10% of system design Documentation installation measure photos AHRI Certificate ENERGY STAR labels/window stickers and NFRC certificates N/A ACCA Manual J and AHRI Certificate (if submitted with Multiple ) ACCA Manual J and AHRI Certificate (if submitted with Multiple ) ACCA Manual J and AHRI Certificate (if submitted with Multiple ) Participant Rebates $400 Single $600 Multiple Not eligible for Single $120 Multiple $30 per window or door Single $45 per window or door Multiple up to $600 maximum $20 per window Single $30 per window Multiple up to $200 maximum See chart below See chart below See chart below

11 Home Rebates Requirements Approved Existing Condition Minimum Requirements Performance Testing Documentation Participant Rebates Furnace Electronically Commutated Motor (ECM) Factory installed in new furnaces only ENERGY STAR certified Airflow verification within 10% of system design AHRI Certificate $100 Single $150 Multiple ENERGY STAR certified Pool Pump Single speed pool pump Variable speed, ENERGY STAR certified and timed control set for optimal energy efficiency N/A Spec Sheet $400 Single Not eligible for Multiple

12 Home Rebates Requirements Requiring Performance Testing Approved Existing Condition Minimum Requirements Performance Testing Documentation Participant Rebates Knee Wall Insulation Central AC or heat pump; R-11 or less existing condition; multilevel home Insulate 2x4 cavities to R- 19 and 2x6 cavities to R- 21; cover attic side of wall with air barrier, 75 sq. ft. minimum. All knee walls should be remediated Photos/IR N/A $525 Wall Insulation Central AC or heat pump; R-0 existing condition Insulate to R-13 on 2x4 walls and R-21 on 2x6 walls. Minimum 500 sq. ft. Photos/IR N/A $450 Floor/ Crawlspace Insulation Central AC or heat pump; R-0 existing condition Insulate to R-14 or 2.25 inches minimum of closed cell foam maintaining 24 clearance to ground, entire floor/crawlspace must be remediated Photos/IR N/A $450 Radiant Barrier Attic insulation must be R-19 Emittance of 0.10 or lower as required by the standards set by the American Society for Testing and Materials Visual/ Photos N/A $450 Air Infiltration Central AC or heat pump Minimum 10% reduction at CFM50 in compliance with BPI guidelines and completion of two treatments listed on page 5. When CAZ is in conditioned space, CO Alarm(s) must be installed, and CAZ must be isolated from the conditioned space. blower door test at 50 Pascals; target is.35 air changes per hour Homes testing.35 air changes per hour or less are required to follow ASHRAE ventilation standard manometer reading pictures % reduction: $150 15% or more reduction: $500

13 Home Rebates Requirements Requiring Performance Testing Approved Existing Condition Minimum Requirements Performance Testing Documentation Participant Rebates Duct Replacement Central AC or heat pump More than 50% of total surface area of ducts and plenums in unconditioned space Total leakage greater than 20% Existing insulation R-4 or less Replace and insulate ducts in unconditioned attics and wall cavities, insulate to R- 8 with total leakage less than 10% Duct Blaster at 25 Pascals; post-test must show total leakage less than 10% of total air handler fan flow Static Pressure testing must confirm system is less than or equal to 0.80 IWC manometer reading pictures; ACCA Manual D $120 per supply register drop replaced $150 per return register drop replaced Duct Sealing Central AC or heat pump More than 50% of total surface area of ducts and plenums in unconditioned space Total leakage greater than 20% Seal ducts register boots and plenum in unconditioned attics and wall cavities. 15% post total leakage required 50% total leakage reduction allowed by exception only 1 Duct Blaster at 25 Pascals; post-test must show total leakage less than or equal to 15% of total air handler fan flow 50% leakage reduction allowed by exception only 1 Static Pressure testing must confirm system is less than or equal to 0.80 IWC manometer reading pictures $75 per supply register drop sealed $120 per return register drop sealed Duct Sealing Adding Additional Return Performed with Duct Sealing upgrade only Static Pressure testing must confirm need for additional return Add additional return Static Pressure testing must confirm system is less than or equal to 0.80 IWC manometer reading pictures $150 per additional return added 1 Fifty (50) percent leakage reduction is only applicable to ducts in interstitial spaces or difficult two story homes or unique architecture issues, and will only be allowed as an exception on a case by case basis with approval of the account manager. This exception must be requested prior to pre-approval. Interstitial spaces are building cavities used as supply or return ducts and do not contain hard ducting. Examples include basement pan flashing, floor joists in two-story homes, toe kicks under cabinets and HVAC closets as return chases.

14 13 Criteria for Qualified Central Air Conditioners and Air Source Heat Pumps Product Type SEER Multiple SEER Single Split System EER HSPF Additional Requirements Must be a matched set, documented by an AHRI reference number Package System Gas/electric package units and all electric package units HSPF criteria is applicable to heat pumps only Central Air Conditioner and Heat Pump Rebate Amounts Packaged and Split System HVAC Replacement Rebates (per SEER Rating) SEER Single Not Eligible $500 $550 $600 Single Application Rebate (available to Service Providers only) Not Eligible $75 $100 $125 Multiple $600 $750 $825 $900 Criteria for Qualified Ground Source Heat Pumps Product Type EER COP Closed Loop Water-to-Air Open Loop Water-to-Air Closed Loop Water-to-Water Open Loop Water-to-Water Direct Geo Exchange (DGX) Multistage equipment must use the full-load EER and COP to meet the minimum criteria. Single Multiple Ground Source Heat Pump Rebate Amounts Ground Source Heat Pump HVAC Replacement Rebates $600 + $350 per ton $900 + $525 per ton

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