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7.A. - Page 65 of 285 <br />2019 Energy Efficiency Ordinance Cost-effectiveness Study <br />Table 4: Incremental Cost Assumptions <br />12 <br />RE <br />2019-08-01 <br />317 <br />Incremental Cost (2020 PV$) <br />Multifamily <br />Performance <br />(Per Dwelling <br />Measure <br />Level <br />Single Family <br />Unit) <br />Source & Notes <br />Heat Pump <br />16/13/9 vs <br />$411 <br />$411 <br />SEER/EER <br />14/11.7/8.2 <br />0 <br />Costs from online retailers for 2 -ton unit. Replacement at year 15 assumes a 50% reduction in <br />18/14/10 vs <br />$1,511 <br />$1,511 <br />/HSPF <br />first cost. <br />14/11.7/8.2 <br />Tankless <br />Equipment costs from online retailers for 40-kBtu/h unit. Cost saving for 6 -feet of venting at <br />Water Heater <br />0.96 vs 0.81 <br />$203 <br />$203 <br />$26/foot due to lower cost venting requirements for condensing (PVC) vs non -condensing <br />Energy Factor <br />(stainless) furnaces. Replacement at year 15 assumes a 50% reduction in first cost. <br />HPWH <br />NEEA Tier 3 vs <br />$294 <br />$294 <br />Equipment costs from online retailers. Replacement at year 15 assumes a 50% reduction in <br />2.0 EF <br />first cost. <br />PV + Battery <br />First costs are from LBNL's Tracking the Sun 2018 costs (Barbose et al., 2018) and represent <br />costs for the first half of 2018 of $3.50/W -DC for residential system and $2.90/W -DC for non- <br />residential system <_500 kW -DC. These costs were reduced by 16% for the solar investment tax <br />credit, which is the average credit over years 2020-2022. <br />PV System <br />System size <br />$3.72/W -DC <br />$3.17/W -DC <br />Inverter replacement cost of $0.14/W -DC present value includes replacements at year 11 at <br />varies <br />$0.15/W -DC (nominal) and at year 21 at $0.12/W -DC (nominal) per the 2019 PV CASE Report <br />(California Energy Commission, 2017). <br />System maintenance costs of $0.31/W -DC present value assume $0.02/W -DC (nominal) <br />annually per the 2019 PV CASE Report (California Energy Commission, 2017). <br />10% overhead and profit added to all costs <br />$633/kWh first cost based on the PV Plus Battery Study report (Statewide Reach Codes Team, <br />System size <br />2018) as the average cost of the three systems that were analyzed. This cost was reduced by <br />Battery <br />varies by building <br />$656/kWh <br />$656/kWh <br />16% for the solar investment tax credit, which is the average credit over years 2020-2022. <br />type <br />Replacement cost at year 15 of $100/kWh based on target price reductions (Penn, 2018). <br />12 <br />RE <br />2019-08-01 <br />317 <br />