HVAC EQUIPMENT

Program Description: The Vectren Commercial New Construction (CNC) program offers financial
incentives for projects that are designed to improve upon minimum HVAC installation requirements set
forth in the 2010 Indiana Energy Code. HVAC equipment is eligible for incentive through the custom
rebate offering. Custom projects require submittal of the Rebate Reservation for preapproval.
Best Practices: The mechanical system should be designed to minimize energy consumption while
maximizing occupant comfort throughout the range of building operating conditions. To achieve this goal
the following are best practice guidelines:

Perform load calculations using building shell and interior load assumptions that accurately
characterize the solar loads, lighting loads, ventilation loads, glazing performance and occupancy
based on the specific design characteristics of the project.

Determine fan size by performing zone-by-zone

calculations. Minimize fan horsepower requirements by
determining critical path supply duct pressure loss and
comparing fitting selections at the critical branch.
Wherever possible, avoid high-pressure duct systems
and use round or oval duct to reduce leakage and
pressure loss. Relief fans and automatic dampers should
be used instead of return fans and barometric dampers to
1
reduce fan power and increase barometric relief.
Figure 1: Fan Performance Curve
Source: ASHRAE Standard 90.1-2007

Perform part-load condition calculations using average

daytime temperatures, benchmark data, non-peak solar gain and other applicable assumptions.
Use diversity factors for interior loads to accurately assess part-load operation.

Design the mechanical system to be compliant with ASHRAE Standard 55, 2004-Thermal
Environmental Conditions for Human Occupancy and ASHRAE Standard 62.1 2007-Ventilation
1
for Acceptable Indoor Air Quality.

Further Sources:
Consult the following websites and resources for further information on HVAC system improvements:
ASHRAE:

www.ashrae.com

Energy Star:

www.energystar.gov

CEE Commercial HVAC:

www.cee1.org/com/hecac/hecac-main.php3

Core Performance Guidelines:

www.advancedbuildings.net

U.S. Department of Energy:

www.energy.gov/energyefficiency/buildings.htm

Air-Conditioning, Heating
and Refrigeration Institute:

www.ahrinet.org

Core Performance Guide

Vectren Energy Delivery

HVAC Guidebook

2012

AIR CONDITIONERS AND HEAT PUMPS

Measure Description: The Vectren Commercial New
Construction (CNC) program offers rebates for high efficiency
HVAC equipment including air conditioners and heat pumps
through the custom program. Eligibility requirements are
described below.

Figure 2: Unitary Air Conditioner

Source: Carrier; Unitary Air
Conditioner

Applicability: Rebates are available for air conditioners and

heat pump equipment installed as part of a new construction
project.

Equipment Eligibility: Air conditioners and heat pumps will be

eligible for rebates if they exceed all of the efficiency ratings
required by ASHRAE standard 90.1 2007. Partial eligibility
requirements are detailed in Table 2 and Table 3 on the next page. For specific eligibility requirements
consult the ASHRAE Standard Table corresponding to your equipment or contact the program at
cnc@vectren.com. Window and room air conditioners are not eligible for rebates. Supporting
documentation must be included with the application to receive rebate.
Electric Fuel Source Heating Notice: Projects constructed with space heating equipment utilizing an
electric fuel source, COP efficiencies below 3.0 and exceeding 10% of total building space heating loads
will be ineligible for Heating, Ventilating and Air Conditioning (HVAC) custom incentives. Space heating
loads will be defined by equipment capacities. Examples of space heating equipment include electric
resistance or heat pump equipment.
Instructions for Rebate Application:
1. Submit the Rebate Reservation (RR). Submitting an RR is required for custom projects.
2. Submit the Rebate Application (RA) after equipment is installed.
3. Fill in the Custom Rebate Worksheet with complete description of the HVAC upgrade. Please
provide as an attachment of all assumptions and formulas used to calculate the cost, estimated
energy savings, and electrical demand savings. Please also provide descriptions of all variables
used in these formulas. Supporting documentation must be provided showing how savings were
calculated. Supporting documentation should include but not be limited to the following:

Spreadsheet with engineering calculations

Equipment specification sheets

Proof of building size and operation hours

Items to submit with Rebate Application:

1. Dated sales receipt/invoice
2. Manufacturers specification sheets documenting unit AHRI certified reference number(s) and
efficiency.

Measure Rebate: Efficient HVAC systems are considered custom projects. Completion of the Rebate
Reservation Request is MANDATORY for custom rebates. Incentive levels calculated based on first year
energy savings; Projects earn $0.12/kWh for projects subject to the following conditions:

Incentives provided for measures that provide incremental energy savings as compared to
the requirements of the 2010 Indiana Energy Code.

Vectren Energy Delivery

HVAC Guidebook

2012

Incentive may not exceed 50% of the total project cost;

Incentive does not apply to projects with simple payback less than 1.5 years; Incentive
cannot buy down project below 1.5 years payback.
Incentive is limited to a maximum of $100,000 per customer per calendar year;
Project preapproval subject to cost-effectiveness analysis as determined by Vectren Energy
Delivery.
2

Table 2: Eligibility Requirements for Air-Cooled Unitary Air Conditioners

Minimum Efficiency
Requirements

Unit Size
<65,000 Btu/h (5.4 tons)

14.0 SEER

65,000 Btu/h and <135,000 Btu/h

(11.25 tons)

11.0 EER

Rebates offered to
qualifying equipment
through Energizing
Indiana. Not Eligible for
CNC program.

135,000 Btu/h and <240,000 Btu/h

(20 tons)

>10.8 EER

240,000 Btu/h and <760,000 Btu/h

(63.3 tons)

>9.8 EER
>9.5 IPLV

760,000 Btu/h

>9.5 EER
>9.2 IPLV

Table 3: Eligibility Requirements for Air-Source Unitary Heat Pumps

Minimum Efficiency
Requirements

Unit Size

<65,000 Btu/h

14.0 SEER

65,000 Btu/h and <135,000 Btu/h

(11.25 tons)

11.0 EER

Rebates offered to
qualifying equipment
through Energizing
Indiana. Not Eligible for
CNC program.

135,000 Btu/h and <240,000 Btu/h

(20 tons)

>10.4 EER

240,000 Btu/h

>9.3 EER
>9.0 IPLV

Units with electric resistance heating are ineligible.

Vectren Energy Delivery

HVAC Guidebook

2012

OTHER ENERGY EFFICIENT HVAC SYSTEMS/EQUIPMENT

Measure Description: The Vectren Commercial New Construction (CNC) program offers rebates for
efficient HVAC systems designed to improve on Indiana Energy Code. Eligibility requirements are
described below.
Applicability: Rebates are available for systems installed as part of a new construction project that save
energy when compared to Indiana Energy Code requirements.
Equipment Eligibility: Equipment will be eligible for rebates if it exceeds all of the efficiency ratings
required by ASHRAE standard 90.1 2007. For specific eligibility requirements consult the ASHRAE
Standard section corresponding to your application or contact the program at cnc@vectren.com.
Equipment that is rebated through Energizing Indiana is not eligible for rebates through this program.
Supporting documentation must be included with the application to receive rebate.
Electric Fuel Source Heating Notice: Projects constructed with space heating equipment utilizing an
electric fuel source, COP efficiencies below 3.0 and exceeding 10% of total building space heating loads
will be ineligible for Heating, Ventilating and Air Conditioning (HVAC) custom incentives. Space heating
loads will be defined by equipment capacities. Examples of space heating equipment include electric
resistance or heat pump equipment.
Instructions for Rebate Application:
4. Submit the Rebate Reservation (RR). Submitting an RR is required for custom projects.
5. Submit the Rebate Application (RA) after equipment is installed.
6. Fill in the Custom Rebate Worksheet with complete description of the HVAC upgrade. Please
provide as an attachment of all assumptions and formulas used to calculate the cost, estimated
energy savings, and electrical demand savings. Please also provide descriptions of all variables
used in these formulas. Supporting documentation must be provided showing how savings were
calculated. Supporting documentation should include but not be limited to the following:

Spreadsheet with engineering calculations

Equipment specification sheets

Proof of building size and operation hours

Items to submit with Rebate Application:

3. Dated sales receipt/invoice
4. Manufacturers specification sheets documenting unit AHRI certified reference number(s) and
efficiency.
Measure Rebate: Efficient HVAC systems are considered custom projects. Completion of the Rebate
Reservation Request is MANDATORY for custom rebates. Incentive levels calculated based on first year
energy savings; Projects earn $0.12/kWh for projects subject to the following conditions:

Incentives provided for measures that provide incremental energy savings as compared to
the requirements of the 2010 Indiana Energy Code.
Incentive may not exceed 50% of the total project cost;
Incentive does not apply to projects with simple payback less than 1.5 years; Incentive
cannot buy down project below 1.5 years payback.
Incentive is limited to a maximum of $100,000 per customer per calendar year;
Project preapproval subject to cost-effectiveness analysis as determined by Vectren Energy
Delivery.

Vectren Energy Delivery

HVAC Guidebook

2012

Bibliography:
2009 International Energy Conservation Code and ANSI/ASHRAE/IESNA Standard 90.1-2007 Energy
Standard for Buildings except Low-rise Residential Buildings. Washington, D.C.: International
Code Council, 2009. Print.
International Energy Conservation Code, 2006. Country Club Hills, IL: International Code Council, 2006.
Print.
"Solid Side Packaged Terminal Air Conditioner." Comfort Solid Side ThruWall PTAC System. Web. 6 Jul
2010. <http://www.residential.carrier.com/products/roombyroom/ptac/solidside.shtml>
"48PD CENTURION." Commercial Home / 48PD . Web. 6 Jul 2010.
<http://www.commercial.carrier.com/commercial/hvac/product_description/0,,CLI1_DIV12_ETI43
4_PRD1661,00.html>.
"CEE Commercial Unitary AC and HP Specification." Consortium for Energy Efficiency. Consortium for
Energy Efficiency, Inc, 01 16 2009. Web. 7 Jul 2010. <http://www.cee1.org/com/hecac/hecactiers.pdf>.

Vectren Energy Delivery

HVAC Guidebook

2012