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7.A. - Page 86 of 285 2019 Energy Efficiency Ordinance Cost-effectiveness Study Three scenarios were evaluated: 1. 2019 Code Compliant: Compares a 2019 code compliant all -electric home with a 2019 code compliant mixed fuel home. 2. Efficiency & PV Package: Compares an all -electric home with efficiency and PV sized to 90% of the annual electricity use to a 2019 code compliant mixed fuel home. The first cost savings in the code compliant all -electric house is invested in above code efficiency and PV reflective of the Efficiency & PV packages described above. 3. Neutral Cost Package: Compares an all -electric home with PV beyond code minimum with a 2019 code compliant mixed fuel home. The PV system for the all -electric case is sized to result in a zero lifetime incremental cost relative to a mixed fuel home. 3.4.1 Sinale Famil Table 14, Table 15, Figure 9, Figure 10, and Figure 11 present results of cost-effectiveness analysis for electrification of single family buildings, according to both the On -Bill and TDV methodologies. Based on typical cost assumptions arrived at for this analysis, the lifetime equipment costs for the single family code compliant all -electric option are approximately $5,350 less than the mixed fuel code compliant option. Cost savings are entirely due to the elimination of gas infrastructure, which was assumed to be a savings of $5,750. When evaluating cost-effectiveness based on TDV, the Utility Gas Main Extensions rules 50% refund and appliance allowance deduction are not applied and therefore the cost savings are twice as much. Under the Efficiency & PV Package and the On -Bill analysis, the incremental cost of the efficiency and PV is typically more than the cost savings seen in the code compliant case, which results in a net cost increase in most climate zones for the all -electric case. In climates with small heating loads (7 and 15) there continues to be an incremental cost savings for the all -electric home. With the TDV analysis, there is still an incremental cost savings in all climates except 1 and 16 for single family. Utility impacts differ by climate zone and utility, but utility costs for the code compliant all -electric option are typically higher than for the compliant mixed fuel design. There are utility cost savings across all climates zones and building types for the all -electric Efficiency & PV Package, resulting in a more cost-effective option. The all -electric code compliant option is cost-effective based on the On -Bill approach for single family homes in Climate Zones 6 through 9, 10 (SCE/SoCalGas territory only), and 15. The code compliant option is cost-effective based on the TDV methodology in all climate zones except 1 and 16. If the same costs used for the On -Bill approach are also used for the TDV approach (incorporating the Utility Gas Main Extensions rules 50% refund and appliance allowance deduction), the all -electric code compliant option is cost-effective in Climate Zones 6 through 10. The Efficiency & PV all -electric option is cost-effective in all climate zones based on both the On -Bill and TDV methodologies. In many cases it is cost-effective immediately with lower equipment and utility costs. The last set of results in Table 14 shows the neutral cost case where the cost savings for the all -electric code compliant home is invested in a larger PV system, resulting in a lifetime incremental cost of zero based on the On -Bill approach. This package results in utility cost savings in all cases except Climate Zones 1, 14 (SCE/SoCalGas territory only), and 16. For these three cases the Reach Code Team evaluated how much additional PV would be required to result in a cost-effective package. These results are presented in Table 15 and show that an additional 1.6kW in Climate Zone 1 results in a B/C ratio of 1.1. For Climate Zone 14 and 16 adding 0.25kW and 1.2kW, respectively, results in a B/C ratio of 1.2. Neutral cost cases are cost-effective based on the TDV methodology in all climate zones except 16. 3.4.2 Multifamily Multifamily results are found in Table 16, Table 17, Figure 12, Figure 13, and Figure 14. Lifetime costs for the multifamily code compliant all -electric option are approximately $2,300 less than the mixed fuel code compliant option, entirely due to the elimination of gas infrastructure. When evaluating cost-effectiveness based on TDV, 33 © 2019-08-01 338