Air Conditioning Distributor Market Transformation Program

The Air Conditioning Distributor Program has been developed as a market transformation program to comply with the Energy Efficiency Rule §25.181 implementing Senate Bill 7. The Air Conditioning Distributor Program provides incentives for the installation of high-efficiency air conditioning units less than 20 tons in size installed in residential, small commercial, and large commercial applications. Incentives are paid to air conditioner distributors on the basis of deemed savings. The program also provides information and identifies resources to improve air conditioning installation practices, including proper unit sizing, improved duct efficiency, proper refrigerant charge, and proper coil air flow. To ensure proper unit sizing, the program requires that a Manual J or Manual N sizing worksheet be submitted with each air conditioning unit before an incentive is paid. The program targets upstream distributors of high-efficiency air conditioning equipment, instead of installers directly, to limit administrative costs and maximize market impact.

The primary objectives of this program are to increase the market penetration of high-efficiency air conditioning units and to improve installation practices in order to provide cost-effective reduction in peak summer demand. Additional objectives of the program are to:

• Achieve customer energy and cost savings
• Encourage private sector delivery of energy efficiency products and services

The AC Distributor Program has been suspended for 2007 please check January 1, 2008 for program updates.

Only distributors of air conditioners are eligible to receive incentives directly under this program as project sponsors. For purposes of this program, a distributor is defined as any entity that sells or sources equipment to contractors or dealers. This definition includes manufacturer's representatives, wholesalers, or entities commonly referred to as "supply houses."

To receive program incentives, each air conditioning unit sold must be installed at a customer site that receives power distribution service from Xcel Energy. It is the responsibility of the distributor to collect information about the ultimate customer through its dealers and to provide this information to Xcel Energy. A Manual J or Manual N sizing worksheet must also be submitted for each unit in order to receive an incentive.

To ensure that the program's incentive budget is allocated to projects that are likely to meet with success, all project sponsors will be required to demonstrate a commitment to fulfilling program objectives and competency in completing the proposed project. Project sponsors will be required to submit such information as part of the application process.