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Drawdown Georgia Project

Marilyn Brown, PhD, NAE, NAS, CEM

Regents and Brook Byers Professor of Sustainability

School of Public Policy, Georgia Institute of Technology

Tracking Climate Solutions Seminar Series:

#5: Heat Pumps & Retrofitting

November 17, 2022

Good afternoon. My name is Marilyn Brown, and with support from RCAF, I have been leading the DDGA research program since 2019, in collaboration with many universities and NGOs across the state. Today’s seminar is part of our initiative to track (and activate) the deployment of climate solutions in Georgia.

I will start off this webinar by giving an overview of our seminar ‘series’ and will highlight some of Drawdown Georgia’s recent accomplishments.

Then we will turn to today’s two fantastic speakers: Garry Harris (President of the Center for Sustainable Communities) and Jeff Smith (Energy Efficiency Manager of Georgia Power).

They will share their thoughts about the opportunities and challenges of rooftop solar in Georgia and the current and evolving policy landscape.

This session is being recorded and your mics and videos will be muted throughout.

Please use the chat option to ask questions or comment. Several graduate students are keeping an eye on the chat and will identify questions that the speakers could answer during the Q&A session.

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Sept 15 (1-2pm): Composting & Reforestation

by Jeff Mullen, Jacqueline Mohan

Oct 14 (2-3pm): Rooftop Solar

by Bryan Jacob, Jeff Pratt

Nov 3 (1-2pm): Recycling and the Circular Economy

by Beril Toktay, Emma Brodzik

Oct 6 (1-2pm): Electric Vehicles

by Rich Simmons, Anne Blair

Nov 17 (11am-12pm): Heat Pumps and Retrofitting

by Garry Harris, Jeff Smith

For more about the roadmap of 20 solutions, go here: https://doi.org/10.1073/pnas.2100008118

Also here: https://climatesolutions.gatech.edu

20 DDGA Climate Solutions & Tracking

Our first DDGA task involved identifying Georgia’s carbon sources and carbon sinks, and assessing promising climate solutions for the state. The 20 high-impact solutions identified for Georgia are shown here, by sector of the economy. Note that we include heat pumps are a key component of the Retrofitting Solution.

We then created an emissions tracker (led by Bill Drummond-SCARP) – that is updated every month for each of GA’s 159 counties. It is driven by the principle that "You can't manage what you can't measure."

Recognizing the importance of the business community, we established the first state-wide climate business compact, under the leadership of Beril Toktay at the Georgia Tech’s Center for Sustainable Business. As of yesterday, the compact has 44 signed members.

Finally, we are now tracking solution activation. This includes opinion surveys of climate solutions in Georgia (in partnership with Professor Cory Struthers at UGA) and the creation of a Climate Solutions tracker. That tracker is under development.

Our approach to its design and content will be influenced by what we learn from this seminar series.

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Inflation Reduction Act Home Improvement Provisions

The High Efficiency Electric Home Rebate Act (HEEHRA) will allow low-income households to install heat pumps for little to no cost.

Income Dependent Tax Rebates for

Heat Pumps ($4,000-$8,000)
Home Insulation Windows/Doors ($800-$1,600)
Updated Breaker Box ($2,000-$4,000)
Updated Electric Wiring ($1,250-$2,500)
Heat Pump Dryer ($420-$840)
Electric Stove ($420-$840)

Tax Credits for

Heat Pumps ($2,000)
Home Insulation Windows/Doors ($600)
Home Energy Audits ($150)

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Current Heat Pump Diffusion and Infrastructure in Georgia

50%

10%

25%

80%

30%

60%

Rate of Heat Pump Use

Rate of Electric Home Heating

Data from American Community Survey 2021

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●Our survey research of ~1,800 GA households in 9/2021 shows that:

DDGA Energy and Climate Survey

The need to replace an old unit and the fact that heat pumps offer both heating and cooling in a single unit were the two most common reasons for adoption
Environmental motivators were not key drivers (in contrast to EVs and rooftop solar)
Key reasons for non-adoption by interested households were high upfront costs and uncertainty

What has motivated adopters of Heat Pumps?

What has hindered interested non-adopters?

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Today’s Presenters:

Garry Harris, President, Center for Sustainable Communities

Jeff Smith, Energy Efficiency Manager, Georgia Power Company

Topics for Discussion Following their Remarks:

Data sources and methods to track solution adoption
Key places and people who are demonstrating success
Critical infrastructure and enabling policies
Consideration of disadvantages communities and equity
Potential for accelerating adoption
Business leaders and others who should be consulted

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November 17, 2022

An Equitable Approach to Retrofits and Heat Pump Installations

Garry Harris, President

Center for Sustainable Communities

Drawdown Georgia

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THE NEED
The clean energy use is on the rise.
Despite more than $125 billion in energy efficiency and renewable energy investments in the US in 2020; 120 million households face energy insecurity
Falling costs of air source heat pumps give hope to an emission's free society
Many face actual cut offs of heat or electricity and face choices between basic needs and improvements
While benefits accrue to the privileged, BIPOC and frontline communities may be left to pay higher costs to stay connected to failing electric grids and aging natural gas infrastructure
How can we safeguard a just transition, so that BIPOC and frontline residents move to the front of the line for clean energy benefits?

Equitable Approach to Retrofits and Heat Pump Installations

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Why Heat Pumps Are So Important?

Heat Pump Consume A Lot Less Energy and Are Three Times More Efficient
Heat Pumps Long Heralded As A Solution to Electrification
Installation Costs: $3,500 to $20,000 Average Costs $14,000
Once installed energy savings between 12 to 55 percent
Creating right upfront financing mechanisms for installation
Policy and incentive program changes for manufacturing and distribution
Heat pumps match well with renewables
States and cities showing strong leadership
Building Codes, Heat Pump Incentive Programs, Low Income Electrification Pilot Programs, Pollution Limits for as Appliances, Decarbonization Requirements for Utilities

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How Does a Heat Pump Work

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Homeowners' lack of access to clear and reliable information,
Homeowners’ lack of financing, and
Lack of skilled workers to perform home energy retrofits
Remedies and Solutions

Home Energy Score Card
Power Saver Loans
State and Local Financing Options
Guidelines for Home Energy Professionals Project
Healthy Indoor Protocols for Home Energy Upgrades
SBA On Line Courses
Better Buildings Neighborhood Program

Overcoming Early Barriers to Retrofits and Heat Pump Usage

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Shallow retrofits

Low to Moderate Impact
Less Expensive
Lower Income households May Can Afford , But Need Assistance
Furthermore, programs exist that target these low-cost upgrades.

What Are Retrofits and Why Are They So Important? Retrofits: Shallow

Examples

Change-out of all eligible light fixtures to compact fluorescent lamp (CFL) or light emitting diode (LED) equivalents
Hot water tank and pipe insulation wrap
Cleaning of refrigerator coils
Replacement of eligible, homeowner-selected showerheads with low-flow showerheads
Reduction of pool pump hours
Advanced power strips (APSs) for home offices, gaming consoles, and entertainment centers.

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Deep Retrofits

High impact
More expensive than other measures.
Low-income households do not have the capital to invest in these interventions.

What Are Retrofits and Why Are They So Important? Retrofits: Deep

Examples

Ducted and space coupled heat pump water heater
Supplemental mini-split heat pump (MSHP) / Variable Speed Heat Pumps (VSHP)
Exterior insulation finish system (EIFS)
Window retrofit
Smart thermostat
Heat pump clothes dryer (HPCD)
Variable speed pool pump

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Potential for Carbon Drawdown from Retrofitting in Georgia in 2030 (MTCO2)

From Drawdown Georgia

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From Drawdown Georgia

Retrofitting Barriers and Accelerants

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BEYOND CARBON BENEFITS

According to the 2017 American Housing Survey, Georgia has an estimated 4.2 million homes, with 2.8 million of these being single-family detached residential
Retrofitting and Heat Pumps can reduce energy demand and therefore reduce fossil fuel power generation.
Improved air quality, which has environmental and public health benefits.
Reducing energy demand can also reduce energy burden, the percentage of a household income that is spent on energy costs.
Atlanta ranks fourth highest in median energy burden levels and third highest among low-income household populations compared to other major cities in the United States
Installation of retrofits and heat pumps can create local jobs.
For residential focus, issues to watch include cost and awareness barriers for under-resourced communities and energy burdened customers, necessitating external financing and support solutions.

Beyond Carbon

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LIHEAP
Project Share
Georgia Power Senior Discount Program
Hope Works
Georgia Power Residential Investment to Save (RISE)
Federal Weatherization Assistance Program
Georgia Power Home Energy Assistance
Energy Efficiency Kit

Current Energy Efficiency Programs in Georgia

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Inflation Reduction Act

The Inflation Reduction Act:

1. Lowers energy costs for Americans through policies lower prices on electricity bills
2. Help consumers afford technologies that will lower emissions and energy prices and reduce costs that would otherwise be passed on to them.
3. Increases American energy security through policies to support energy reliability and cleaner production coupled with historic investments
3. Invests in decarbonizing all sectors of the economy through targeted federal support of innovative climate solutions.
4. Focuses investments into disadvantaged communities to ensure that communities that are too-often left behind will share in the benefits of the transition to a clean economy.
5. Supports resilient rural communities by investing in farmers and forestland owners to be part of growing climate solutions

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Inflation Reduction Act Continued

$9 billion in consumer home energy rebate programs

10 years of consumer tax credits to make homes energy efficient and run-on clean energy, making heat pumps more affordable

$1 billion grant program to make affordable housing more energy efficient.

$27 billion clean energy technology accelerator

The Environmental and Climate Justice Block Grants, funded at $3 billion, invest in community led projects

Focus on disadvantaged and low-income communities are also important to environmental justice.

Bonus or set-aside structure to drive investments and economic development in disadvantaged communities.

Restores and Greatly Increases Tax Credits for Heat Pumps and Other Appliances

$9 Billion in Consumer Rebate Program With an Emphasis On Underserved Communities

$5 Billion toward pollution

$1 Billion in Grants and $4 Billion in Loans to Make Affordable Housing More Efficient

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Additional Federal Policy Support

Infrastructure Investment Job Act

$3.5 Billion in the Weatherization Assistance Program
$550 Billion in Low Income Energy Assistance Program
$550 Billion for Energy Efficiency Conservation Block Grant
$500 Million State Energy Program
$250 New Energy Efficiency Revolving Loan Fund

American Rescue Plan Act

$350 Billion Coronavirus State and Fiscal Recovery Funds; State Local and Tribal Governments
Spending decisions must be made by end of 2024 and money spent by end of 2026
As of 7/12/22 out of the 329 local governments only 40.8% of SLFRF have been budgeted
Only 67% of funds have been allocated to States and Territories are estimated to have been allocated of 6/3/22

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November 17, 2022

Jeff Smith, Energy Efficiency Manager

Georgia Power Company

Drawdown Georgia

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Learn more about the roadmap of 20 solutions, go here: https://doi.org/10.1073/pnas.2100008118

Go to Climatesolutions.gatech.edu for more about Drawdown Georgia’s research program, trackers, and the business compact:

For more about Drawdown Georgia: www.drawdownga.org

Thank You!

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Extra Material - Broad Flexibility of Uses of SLFRF Funding

SLFRF Funds Can Be Used for a Broad Range of Pressing Needs
Directs a broad range of interventions
Final Rule clarifies that low income should be defined at or below 40% of Area Median Income ( AMI) and that moderate income shall be deemed as 65% of AMI for determining “disproportionately impacted” or “impacted” eligibility
Recipient also can serve populations beyond those mentioned,

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Examples of How ARPA Funding Spent

Connecticut Department of Energy and Environmental Protection
Deeps Weatherization Barrier Remediation Program
Background Due to health and safety issues lower income about ¼ unable to access Weatherization Assistance Program
After competitive RFP, DEEP Selected Local Non Profit to Run Weatherization Barrier Remediation Program
Funding; $12 M; ARPA, SEP, LIHEAP
To remediate health and safety issues that prevent completion of Weatherization ; completed over 1000 homes

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Current Rebates and Incentives (DSIRE)

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Current Rebates and Initiatives

Home Energy Improvement Program (HEIP) - Whole House Improvements
Up to $1,150
The Home Energy Improvement Program (HEIP) helps Georgia Power customers reduce energy use, save on energy costs and improve the indoor air quality and comfort of their homes. Residential customers can earn rebates from Georgia Power for implementing and installing qualifying energy savings improvements through the Whole House approach.

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Barriers and Challenges To Equitable Retrofit and Heat Pump Usage

Currently neither the State of Georgia nor Georgia Power has a comprehensive statewide equity centered retrofit program or policy despite the presence of some of the highest energy burdens in the country.

In addition, Georgia now ranks #42 of 52 according to the ACEEE.

Georgia Power currently offers incentives to retrofit both residential and commercial buildings programs that provide heat pumps, energy efficiency water heaters and heat duct and air sealing, and change out of older inefficient AC units.

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Barriers and Challenges To Equitable Retrofit and Heat Pump Usage

Distributional, Procedural, Inter-generational Equity Issues
Several potential distributional, procedural and intergenerational equity issues associated with applying the solution of building energy retrofits including heat pumps
Affordability, diversity of economic development and jobs; distributions of public health impacts; accessibility of solutions, cultural fit and way of life
Distribution of public health impacts may vary based on the choice of housing stock
. High upfront participation costs, heavy administrative burden; lack of affordable housing and gentrification impacts, poor outreach and engagement, lack of assessment of implications on underserved communities, failure to monitor market penetration and segmentation, failure to concentrate and focus resources, lack of inclusion in supply chain and high proportion of customers facing energy burdens who are already facing major racial disparities including

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Barriers and Challenges To Equitable Retrofit and Heat Pump Usage; Opportunities forProcess Enhancement

Program Administrator,
Equity Centered
Supply Chain,
Customer Engagement
Consumer Protectionism.

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Promising Policies

Potential policies to motivate stakeholders to encourage retrofitting include electricity
Decoupling and rate reform, microgrids, carbon pricing and carbon clubs
Easier access to access capital at capital at attractive interest rates
On-bill financing (especially for lower-income residents), tax credits
Property Assessed Clean Energy (PACE), business partnerships for workforce development
Information campaigns to reduce information asymmetry, and improved standards
Information campaigns to promote more energy-efficient replacements of equipment at end-of-life.

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Promising Policies Example; US Department Of Energy Accelerates National Affordable Housing Upgrades�

Nationally, buildings use 40% of the nation’s energy and 75% of its electricity, making this sector ideal for reducing up to 35% of US carbon emissions.
A total of $32 million will ultimately fund more than 30 next generation building retrofit projects to improve affordable housing and commercial building technologies.
According to the DOE, techniques such as prefabricating walls and drop-in replacements for heating, cooling, and water-heating systems can revolutionize construction and renovation efficiency. They can also provide the means to decarbonize the 130 million buildings in the US at the rate needed to address both the climate crisis and to meet President Biden’s goal of a net zero carbon economy by 2050.