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Electric Heat Incentives, New Homes

Residential High Efficiency Heat Pump Program Guidelines

The following guidelines will generally apply. Exceptions will be handled on a case-by-case basis.

  1. All HVAC equipment must be permanently installed in a residential single-family dwelling. A mobile home must be on a permanent foundation.
  2. Qualifying equipment is ENERGY STAR qualified equipment which requires 14 Seasonal Energy Efficiency Ratio (SEER) and 8.2 Heating Seasonal Performance Factor (HSPF), or higher (ARI listed). This is the minimum efficiency level for both the homeowner and dealer (installing contractor) incentive.
    Note – For installation after September 1, 2008, the predecessor dealer incentive program ($150 for 13 SEER and higher heat pumps) is terminated.
  3. An incentive payment will be paid to the owner of a residence after the equipment is installed, operating, and a performance verification has been submitted by the dealer. No incentive(s) will be paid without the completion of the application form, which requires that a performance verification be conducted on the system. The application form must then be signed by both the dealer and the homeowner. This form will then be submitted to the homeowner’s electric utility.
    Note – For installations between 9-1-08 and 12-31-08, the performance verification is encouraged but not required, after 1-1-09 the performance verification is required for any installation to qualify.
  4. If the system is operating within 10% of manufacturers specifications for the test conditions, the system is assumed to be installed and operating correctly – thus “passes”. For systems that pass, both the homeowner and the dealer is eligible for the incentive. If the system is not operating within 10% of manufacturers specifications, it does “not pass”, which may be the case with some existing home installations. In these situations, the homeowner is still eligible for their incentive as they chose higher efficient equipment, but the dealer is NOT eligible for their incentive.
  5. The incentive payment to the homeowner will come directly from their local electric utility. The incentive payment to the dealer will come from NPPD as they will be paid once a month for the qualifying systems that have been submitted through the local electric utilities. Accompanying the check will be a report providing information about the qualifying system information, such as; customer name, address, and electric utility involved, etc.
  6. For duplexes and condominiums that are separately metered, they will be considered residential, thus requiring two separate applications. If they are master metered, they are considered multi-family and not eligible. Apartments are considered multi-family.
  7. “New” refers to new construction with new equipment.

    “Conversion” means that the primary source of heat had been a fossil fuel system.

    “Upgrades” refers to the installation of new equipment in which the system being directly replaced is currently a heat pump.
  8. In those cases where combinations of two or more heat pumps are installed in the same house, both or all are eligible for the full incentive amount. The dealer is also eligible for their incentive if the system qualifies and passes.
  9. To be eligible for an incentive, a cottage/cabin must be heated during the winter months of October through May.
  10. If electricity is the primary source of heat for a residence, the use of solar panels, wood stove or fireplace will not affect the eligibility for an incentive payment.
  11. Additions and supplemental systems are not eligible for incentive payments unless they are large enough for their own dedicated heating and cooling system.
  12. Package Terminal Heat Pumps (PTHP’s) are not eligible. Only split system heat pumps with a ducted supply and return system and the duct-less mini-splits are eligible.
  13. “Dealer” is the term used in this document to identify the installing contractor. Most often this will be the heating and cooling contractor that performs the load calculation, sizes the system, installs it, and performs the verification test. Final determination will be made by NPPD.
  14. NPPD reserves the right to do random spot checks of the performance verifications to ensure program compliance. In situations where dealers submit applications that are incorrect or fraudulent, NPPD has the right to cease participation of that dealer - in dealer and customer programs going forward.
  15. Participating electric utilities are those that are wholesale customers of Nebraska Public Power District.
  16. NPPD will make final determination of program compliance decisions and reserves the right to cancel the program with 30 day notice.
For program compliance questions or concerns, contact:
Sam Reinke: Energy Efficiency Manager – Southern Power District
800-579-3019.

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