Honda MCHP unitHonda MCHP unit

Boiler, storage tank, Boiler, storage tank, and heat exchanger and heat exchanger unit for Japanese unit for Japanese home markethome market

Over 60,000 Over 60,000 Honda MCHP Honda MCHP Units at work Units at work in Japanin Japan

All in just last 4+ yearsAll in just last 4+ years

Warm Air freewatt SystemWarm Air freewatt System83-92% Efficient Honda MCHP Engine Generator Module

Stage One Stage One Heat 12-13 Heat 12-13 MBH MBH

Electric Electric 1.2 kW @ 1.2 kW @ 240 VAC240 VAC

Coolant Lines

93% AFUE High Efficiency Condensing Furnace w/ ECM Blower

Second Stage Second Stage Heat Full LoadHeat Full Load

Hybrid Integration Module

System Controller

Heat Led Two Stage Heating Heat Led Two Stage Heating SystemSystem

The Heating System That Makes Electricity!The Heating System That Makes Electricity!

Typical InstallationTypical InstallationConnections:

- Gas

- Electrical

- Thermostat

- Venting

- Condensate

- Coolant Lines

- Internet

Installed by Factory Authorized Installed by Factory Authorized Dealers (Heating/Cooling Dealers (Heating/Cooling Contractors)Contractors)

Gas Usage and Electrical SavingsGas Usage and Electrical Savings(Beta Sites)(Beta Sites)

freewattfreewatt uses about the same amount of natural gas as the uses about the same amount of natural gas as the replaced system to make the same amount of heatreplaced system to make the same amount of heatfreewattfreewatt makes electricity as a bonus makes electricity as a bonus – beta units average 3400 kWh per year in the Boston area beta units average 3400 kWh per year in the Boston area – beta units produce only 1.0 kWe versus 1.2 kWe for production model beta units produce only 1.0 kWe versus 1.2 kWe for production model – projected 4000 kWh/year average with production model projected 4000 kWh/year average with production model

The Heating System That Makes The Heating System That Makes Electricity!Electricity!

Reduced CO2 EmissionsReduced CO2 Emissions

CO2 reduction could be 1to 4 or more tons per year CO2 reduction could be 1to 4 or more tons per year depending on average emissions for the local griddepending on average emissions for the local grid

A utility could aggregate the emissions credits for A utility could aggregate the emissions credits for thousands of installationsthousands of installations

Based on average emissions for the New England electric grid

Electrical Generation Only

freewattfreewatt Systems Now On Sale Systems Now On Sale Over 50 Production Model Systems Over 50 Production Model Systems

Installed to DateInstalled to Date

Hydronic freewattfreewatt systems also available

What Can What Can freewattfreewatt Do? Do?

Nearly double the Governor’s energy savings Nearly double the Governor’s energy savings objective -28% immediatelyobjective -28% immediately

Provide 80% of the energy and environmental Provide 80% of the energy and environmental benefit of residential solar electric power at benefit of residential solar electric power at 30% of the cost30% of the cost

Neutralize residential peak demand from gridNeutralize residential peak demand from grid

Produce significant amounts of on-site electric Produce significant amounts of on-site electric power at total costs comparable to typical power at total costs comparable to typical residential utility ratesresidential utility rates

Provide automatic back-up power during grid Provide automatic back-up power during grid outagesoutages

Widely deployable: Over 25 million candidate Widely deployable: Over 25 million candidate home siteshome sites

Siting challenges: NoneSiting challenges: None

Energy Savings withEnergy Savings with freewattfreewatt

The old way – gas fired central The old way – gas fired central heat and grid powerheat and grid power– Typical home heating fuel use Typical home heating fuel use

about 100,000,000 Btu/yr (2500 about 100,000,000 Btu/yr (2500 ft. sq. home)ft. sq. home)

– 70,000,000 Btu heating delivered 70,000,000 Btu heating delivered at 70% efficiencyat 70% efficiency

– Typical annual electricity Typical annual electricity consumption in NY’s single family consumption in NY’s single family homes is about 9,000 kWhhomes is about 9,000 kWh

– Net average delivered efficiency Net average delivered efficiency of grid is 30% with line losses, etc. of grid is 30% with line losses, etc.

– Total energy needed for electricity Total energy needed for electricity generation is about 9,000 kWh x generation is about 9,000 kWh x 3412 Btu/kWh divided by 0.3 3412 Btu/kWh divided by 0.3 which equates to another which equates to another 102,360,000 Btu/yr102,360,000 Btu/yr

– So, total energy consumption is So, total energy consumption is 200,000,000 Btu/Yr.200,000,000 Btu/Yr.

The new way - generate 5,000 The new way - generate 5,000 kWh/yr by replacing old heating kWh/yr by replacing old heating system at 70% efficiency with a system at 70% efficiency with a freewattfreewatt Micro-CHP systemMicro-CHP system– No actual increase in gas No actual increase in gas

consumption due to increase in consumption due to increase in total efficiency to 90% (70% for total efficiency to 90% (70% for heating with added 20% for heating with added 20% for electricity for a total of 90%) electricity for a total of 90%)

– 5,000 kWhr is 55% of total 5,000 kWhr is 55% of total electricity needed per year.electricity needed per year.

– So now consuming 145,000,000 So now consuming 145,000,000 Btu/yr, i.e. 100,000,000 Btu/yr for Btu/yr, i.e. 100,000,000 Btu/yr for heating and 45,000,000 Btu/yr for heating and 45,000,000 Btu/yr for electricity. electricity.

– 55,000,000 Btu/yr saved.55,000,000 Btu/yr saved.

– Percentage reduction in Percentage reduction in total home energy use is total home energy use is 55/200 = 28%55/200 = 28%

Nearly double the Governor’s objective! (15 Nearly double the Governor’s objective! (15 by 15)by 15)

Winter Spring Summer Fall

1 kW

2 kW

Power Generation Profile Grid-Connected Home with freewattfreewatt Micro-CHP

Power Produced While Heating Home ~ 4,000 hours per year, controlled by

home thermostat and hot water demand

Power Produced During Summer or Winter Peaks ~ 100 hours per year,

controlled by aggregatorPower Produced

during grid outage

Consumer Selling pointsConsumer Selling points

• Significantly reduced electric billsSignificantly reduced electric bills

• Improved thermal comfortImproved thermal comfort

• Ultra-quiet operationUltra-quiet operation

• Payback on their investmentPayback on their investment

• Reduced impact on the environmentReduced impact on the environment

• Internet connectivityInternet connectivity

• Energy SecurityEnergy Security

Benefits to the HomeownerBenefits to the Homeowner

Choice to Make a Positive Change in Energy Use Choice to Make a Positive Change in Energy Use and Environmental Impact without Sacrificeand Environmental Impact without Sacrifice

Compares to : Switching from SUV to compactCompares to : Switching from SUV to compact

Downsizing your homeDownsizing your home

Turning off about half of all your Turning off about half of all your appliances appliances

Climate Energy freewatt vs. Solar PVClimate Energy freewatt vs. Solar PV Northeast Residential ApplicationNortheast Residential Application

Solar PV:Solar PV:

4 kW capacity4 kW capacity

CE Micro-CHPCE Micro-CHP

1.2 kW capacity1.2 kW capacity

Utilization Utilization 10%10% 50%50%

ApplicabilityApplicability < 25%< 25% Near 100%Near 100%

Incremental Cap. Incremental Cap. CostCost

$35,000$35,000 $10,000$10,000

CO2 Reduction CO2 Reduction for Electric for Electric GenerationGeneration

~ 50%~ 50% ~33% ~33%

NONOx x ReductionReduction 50%50% >40%>40%

Primary Energy Primary Energy SavingsSavings

~50%~50% ~30%~30%

Bonus Feature Bonus Feature for Customerfor Customer

Decorated RoofDecorated Roof Comfort and Comfort and SecuritySecurity

Design Basis: Reduce Grid Power Use by 50%Design Basis: Reduce Grid Power Use by 50%

Conclusion:

Freewatt provides about 80% of the benefit of Solar PV for less than 30% of the cost.

What can AEE do to help fulfill the What can AEE do to help fulfill the promise of Micro-CHP?promise of Micro-CHP?

Let your legislators and the PSC know Let your legislators and the PSC know that you support…that you support…

Net metering: keep it simple and low cost Net metering: keep it simple and low cost to interconnect and measureto interconnect and measure

Capacity Aggregation: allow thousands of Capacity Aggregation: allow thousands of homes to combine to provide dispatchable homes to combine to provide dispatchable MegawattsMegawatts

Incentive parity with “renewable” energy Incentive parity with “renewable” energy

EducationEducation

Contact Contact InformationInformation

Karl MayerBusiness Development ManagerClimate Energy, LLCNew York OfficeECR International, Inc.85 Middle RoadDunkirk, NY 14048Phone: 877-386-5475 Ext. 3474 or 716-366-5500 Ext. 3474 Fax: 716-366-3049E-mail: karlm@ecrinternational.comWebsite: www.climateenergy.com

Thank You!Thank You!