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NJ Building Decarbonization - Phase 2

WHES Building Decarbonization Program - Ground Source Heat Pumps and Heat Pump Water Heaters

Who this is for: NJ Building Decarbonization program administrators configuring the program and auditors working on jobs.

This article covers only the features introduced in Phase 2. For the existing incentive workflow, see NJ Building Decarbonization: Phase 1.

What's new in Phase 2?

Phase 2 adds three features:

  1. GSHP incentives based on BTU/h
    Ground source heat pump (GSHP) incentives can be calculated from the improved system's heating output capacity, such as $300 per 10,000 BTU/h.

  2. HPWH exclusion from Total Energy Savings (TES)
    An Exclude from Total Energy Savings percentage setting prevents an incentivized heat pump water heater (HPWH) from being counted twice

  3. Electrical Circuit + Full Panel Upgrade warning
    Non-LMI jobs receive a warning when incentives are attached to both Electrical Circuit and Full Panel Upgrade line items.

Note: Phase 2 features are enabled by program. If you don't see a feature described here, contact Snugg Pro support.

Part 1: Program configuration

1. Create the BTU/h incentive template

Go to Program Settings → Incentives → Incentive Templates and create an incentive template as you would in Phase 1.

Configure the following Phase 2 settings:

Field

What to enter

Incentive calculation

Choose Relative to job data.

Amount ($)

The dollar amount paid per unit of capacity. Example: 300.

Per HVAC Output Capacity (BTU/h)

The capacity that earns that amount. Example: 10000. Together with the Amount, this reads "$300 per 10,000 BTU/h."

Up to ___ % of costs

Optional. Caps the incentive at a percentage of the cost of the line items it is attached to. Leave blank for no cap.

Allow incentive amount to exceed calculated maximum amount

Same as Phase 1. Choose Yes only if auditors may override the calculated amount.

Eligible Measures → Applies to

All Measures, or Specific Measures with Upgrade Heating System checked.

Important considerations

  • Relative to job data is available only for eligible HVAC measures. If using Specific Measures, you must include Upgrade Heating System or Upgrade Cooling System. Otherwise, the calculation resets to Relative to costs, and the Amount and Per HVAC Output Capacity values are cleared.

  • The calculation uses the improved system's Output Capacity (BTU/h).

  • The incentive template does not identify GSHP systems by system type. It can calculate an incentive for any HVAC system. For a GSHP-only incentive, clearly name the template and attach it only to GSHP line items.

  • Each template supports one rate. Create separate templates if different rates are needed.

  • Existing Fixed and Relative to costs incentive calculations are unchanged.

2. Configure Cost Templates

Go to Program Settings → Cost Templates.

GSHP line items

The BTU/h calculation requires the line item to be associated with a specific HVAC system.


For GSHP Cost Templates, include Upgrade Heating System under Applicable Measures. This allows the auditor to add the line item to the heating-system recommendation and select the applicable HVAC system.
​

Important: BTU/h incentives require Detailed Costs. Simple Costs cannot be associated with a specific HVAC system.

Electrical upgrade naming

The Electrical Circuit + Full Panel Upgrade warning identifies line items by name. Cost Template names should therefore follow the patterns below.

Electrical Circuit

The name must contain Electrical, followed by Circuit, in that order and separated by spaces. Capitalization does not matter.

Name

Triggers alert?

Electrical Circuit Upgrade

Yes (recommended)

Electrical Circuit

Yes

New Electrical Circuit (240V)

Yes

Electrical Panel Circuit

Yes

Electrical Circuit (240V, 50A)

Yes

Electrical-Circuit

No

Electrical/Circuit

No

Circuit, Electrical

No

Electric Circuit

No

Full Panel Upgrade line item. The name must contain Full Panel (those two words together, in that order), followed (optionally after other plain words) by the word Upgrade. Capitalization doesn't matter.

Name

Triggers alert?

Full Panel Upgrade

Yes (recommended)

Full Panel Upgrade (200A)

Yes

Full Panel 200A Upgrade

Yes

Full Electrical Panel Upgrade

No ("Full" and "Panel" are separated)

Full 200A Panel Upgrade

No ("Full" and "Panel" are separated)

Full Panel (200A) Upgrade

No (parentheses between "Panel" and "Upgrade")

Recommended names:

  • Electrical Circuit Upgrade

  • Full Panel Upgrade

If additional information such as amperage is needed, add it after the matching words.

Important: Any line item matching these naming patterns counts, including custom line items entered by an auditor. Avoid using these patterns for unrelated items.

Changing a Cost Template name does not update line items already added to jobs.

3. HPWH Exclude from TES

No additional program configuration is required.

The Exclude from Total Energy Savings percentage setting appears when all of the following are true:

  • The water heater is switching from a non-electric fuel to Electricity.

  • The improved water heater type is Heat Pump.

  • Phase 2 is enabled for the program.

Part 2: Using Phase 2 on a job

A. GSHP incentive based on BTU/h

1. Enter the HVAC system

Go to Input → HVAC and add the ground source heat pump.

On the Improved side, enter the system's Output Capacity (BTU/h).

For example: 50,000 BTU/h.

If Output Capacity is blank or 0, the estimated incentive is $0.

2. Add the GSHP line item

Go to Refine → Upgrade Heating System and use Detailed Costs to add the GSHP line item.

Set Applies to to the GSHP system entered in Step 1.

Important: Applies to starts blank. If an HVAC system isn't selected, the estimated incentive is $0.

Simple Costs cannot be used for a BTU/h incentive because they cannot be linked to a specific HVAC system.

3. Attach the incentive

Attach the Relative to job data incentive to the GSHP line item using either:

  • the incentive options on the line item, or

  • Incentives from the job menu.

This works the same as the Phase 1 incentive workflow.

4. Apply the calculated estimate

On the job's Incentives page, click Use $X estimated amount under Incentive Amount.

This option appears when the calculated estimate differs from the amount currently entered.

How the incentive is calculated

Improved Output Capacity ÷ Per HVAC Output Capacity × Amount

If Up to % of costs is configured, the result is then limited to that percentage of the attached sum of attached line items cost.

Improved Output Capacity

Calculation

Estimate

50,000 BTU/h

50,000 ÷ 10,000 × $300

$1,500

50,000 BTU/h, with a 50% cap and a $2,400 line item cost

$1,500 vs. cap of $1,200

$1,200

B. HPWH Exclude from Total Energy Savings

Go to Input → Hot Water (DHW) and add a heat pump water heater with a fuel switch, such as gas to electricity.

Then:

  1. Attach an incentive to the Water Heater recommendation.

  2. If Exclude from Total Energy Savings percentage is No, a Heat Pump Water Heater Incentive Warning appears.

  3. Set Exclude from Total Energy Savings percentage to Yes.

  4. The warning clears and the HPWH savings are excluded from TES.

The setting defaults to No.

The warning appears whenever an incentive is attached and the setting is No. It clears when either:

  • the setting is changed to Yes, or

  • the incentive is removed.

To verify the impact, compare TES on the Metrics tab with the setting on and off.

C. Electrical Circuit + Full Panel Upgrade warning

The Potential Electrical Upgrade Incentive Issue warning appears when all three conditions are met:

  1. Household income is neither LMI nor LMI 80–120.

  2. An incentivized line item matches the Electrical Circuit naming pattern.

  3. An incentivized line item matches the Full Panel Upgrade naming pattern.

It doesn't matter whether the two line items use the same incentive or different incentives.

What auditors see

When the conflict first occurs:

  • A pop-up appears. Once dismissed, the pop-up does not appear again.

  • A job alert displays:

Potential Electrical Upgrade Incentive Issue
​Electrical Circuit Upgrade and Full Panel Upgrade cannot both be selected for non-LMI households. Select only one to remain eligible.

The View incentives button opens the job's Incentives page.

Resolving the warning

Remove the incentive from either the Electrical Circuit or Full Panel Upgrade line item.

The warning does not prevent the job from being saved.

When the warning doesn't appear

No warning appears when:

  • Household income is LMI or LMI 80–120.

  • Only one of the two line item types has an incentive.

  • The line item names don't match the required naming patterns.

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