The purpose of this solicitation is to develop and demonstrate the impact of a DC-powered HVAC heat pump in a self-contained module that includes solar PV and energy storage, also known as a DC HVAC nanogrid module, in residential and commercial settings. This solicitation aims to reduce building dependency on grid electricity, increase energy efficiency of HVAC equipment operating on DC power, decrease burdens – and enhance access – to solar and heat pump adoption, and create business and manufacturing opportunities for those who develop DC HVAC nanogrid modules.
Projects must fall within one of the following groups:
Group 1: Residential DC HVAC Nanogrid
Projects in this group must develop and demonstrate DC HVAC nanogrid modules in a residential setting. Projects must develop a cost-effective nanogrid mechanical module that does not require an interconnection agreement or building electrical infrastructure improvements. Demonstration site(s) must be residential buildings located in an under-resourced community within IOU service territory. Single-family and multi-family buildings are allowed, and projects should target buildings that currently have an HVAC package unit or rooftop unit installed and have obstacles to solar adoption such as a space-constrained roof.
Group 2: Commercial DC HVAC Nanogrid
Projects in this group must develop and demonstrate DC HVAC nanogrid modules in a commercial setting. Projects must develop a cost-effective nanogrid mechanical module that does not require an interconnection agreement or building electrical infrastructure improvements. Demonstration site(s) must be commercial buildings within IOU service territory, and are encouraged to be located in an under-resourced community. Demonstration site(s) may include commercial buildings used seven days a week, most days of the year, to take advantage of the economics of daily solar production. Examples include grocery stores, urgent care clinics, or facilities used in the evenings to provide services to the community. This group may also include commercial buildings with current solar installations that could benefit from incremental additions without costly modification to the existing interconnection agreement.
Projects in this group should identify building site opportunities where development of a nanogrid mechanical module is most technically and economically feasible from the perspectives of rooftop availability; structural capacity; costs and benefits to the building owner, occupants, and larger community; operations and maintenance; and energy efficiency and resilience. Projects should also identify alternative energy storage methods or materials in addition to lithium ion batteries, such as thermal energy storage or innovative battery chemistries, that could improve economic feasibility and resilience.
In addition to the group-specific requirements described above, projects in both groups must:
- Develop and integrate energy storage, HVAC heat pump, and solar PV panels, provided as a single module, with the goal of streamlining the process, minimizing multiple contractors and onsite labor.
- Demonstrate increased energy efficiency of DC-powered HVAC equipment when compared to conventional AC-powered HVAC equipment.
- Demonstrate improvement in the value proposition of a solar PV-storage-HVAC module, likely from eliminating the need for an interconnection agreement, avoiding electric panel/service upgrades, reducing materials needed for electrification, and reducing onsite labor.
- Meet relevant codes such as National Electrical Code (NEC) standards (UL 67, UL 916, UL 869a) and all other fire and safety codes.
- Have a comprehensive path for market deployment and commercialization of the modules, including equipment servicing and maintenance after the grant is completed.
- Work with the California Technical Forum measure screening committee to add to the Database for Energy Efficiency Resources for potential rebates by electric utilities.
Projects in both groups are also encouraged to include, but are not limited to, the following features:
- The potential to exceed 2022 or later Title 24 building energy efficiency requirements and/or Title 20 appliance efficiency standards.
- The potential to provide seasonal load reduction for other building electrical consumption to avoid solar curtailment and increase onsite solar utilization (such as powering a refrigerator through a smart transfer switch in the spring).
- The potential to offer HVAC as a service through a nanogrid module lease combined with energy reductions.
Amount Available and Minimum/ Maximum Funding Amounts
There is up to $5,000,000 available for grants awarded under this solicitation. The total, minimum, and maximum funding amounts for each project group are listed below.
Project Group | Available CEC funding | Minimum CEC award | Maximum CEC award | Minimum match funding (% of CEC funds requested) | Project must be located in and benefit under-resourced community |
Group 1: Residential DC HVAC Nanogrid | $2,000,000 | $1,000,000 | $2,000,000 | 0% | Yes |
Group 2: Commercial DC HVAC Nanogrid | $3,000,000 | $1,000,000 | $3,000,000 | 20% | Optional; Encouraged for Additional Preference Points |
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