Product Indexing Data for the Money Back Tool
Information and Caveats
1. Payback Period
- The payback period calculations are simple (i.e., they are not discounted).
- Payback period incorporates the rebate.
- A range of payback periods exists due to variations in savings, costs, and rebates for different situations. For this analysis, the data and results represent the lowest calculated payback period based on our data.
- Flat electricity and gas rates based on the average 2011 rates are used: $0.169117/kWh, $0.637117/therm.
- Rates do not account for Time of Use (TOU) pricing effects which could result in additional savings; results may vary.
- Actual savings numbers vary by building type, climate zone, building vintage, and more. Actual results may vary.
- Savings are relative to a baseline. Often this baseline is technology required by codes and standards, but the actual technology may be older and less efficient than the baseline used.
- Energy savings are based on values from PG&E’s 2012 program year. Work papers and savings values are in the process of being updated and are subject to change.
- Savings numbers are designed for program administration and accreditation, not to realistically represent savings values.
- Savings that PG&E is able to claim are based on conservative estimates. Actual savings values are likely to be higher than what PG&E can take credit for.
- Net to gross ratio, a factor that represents PG&E’s influence on adoption, has not been incorporated into this analysis.
- Incentives for some projects are capped at 50% of project cost.
4. Measure Costs
- The incremental measure cost (IMC), a relative cost difference between the baseline technology and the energy efficient technology, is used to calculate payback periods. In some cases, the IMC is equal to the full cost of the measure, such as in the case of lighting controls where the baseline is to not have lighting controls.
- Like savings values, IMC values used are designed for program administration and may not accurately reflect actual incremental costs.
- The IMC is not necessarily representative of the cost of the energy efficiency of a product. For example, with clothes washers the additional cost sometimes includes non-efficiency related advanced features such as being front-loaded or being larger in size.
- Multipliers for labor rates exist by area; these are not taken into account for this analysis.
5. Useful Life
- The maximum useful life allowed for reporting purposes is 20 years, which may be inappropriately low for some items such as the Commercial Griddle, and motors which are often repaired rather than replaced.