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Energy Efficiency It’s Easier Than You May Think
Energy EfficiencyIt’s Easier Than You May Think
$150
Source: http://www.energystar.gov
Saving Energy – The Potential
Energy Star estimates that 30% of energy usedin buildings is wasted.
A utility customer that spends $500 per month on energy bills could save $150 per month.
Wasted
1st Steps
WASTED
Know how you use energyGet an energy analysis done
Do the easy things now Low- and no-cost actions
Make a planEnergy Star’s Portfolio Manager
Find out the financial incentives that are available
Know How You Use Energy
WASTED
Pay attention to energy bills
Chart for a year or more & look for anomalies
Look for opportunities to reduce usage at charge points (peak demand, etc.)
Use energy analysis programs
Online energy audit
On-site energy audit
9 Easy Low- or No-Cost Actions
WASTED
Saver’s Switch
Dial back or up Set it = $50 Turn it off
Plug in & turn off
Keep it clean
Low-flowReplace it -- LED
Lighting
Dial It Back
WASTED
Dial it back 10° for 8 hours each day and save 10% on heating costs this winter
Look for discount coupons for programmable thermostat
Xcel Energy Saver’s Switch
WASTED
Free programDiscount of $5 per ton of air conditioning for each cooling month June – September
Sign Up Today or
Get more information at XcelEnergy.com
Medium-Cost Actions
WASTED
Occupancy Sensors
Vending ControlsLow-Flow Spray Valve
for Commercial Kitchens
Specific Application
Lighting
Broad Application
NEMA Premium Motors
Maintenance Contract
Maintenance Contract
WASTED
Maintain Heating and Cooling Systems
Change or clean filters at least every three months
Have HVAC professional check your system each year
U.S. Department of Energy estimates a savings of 5% to 20% on energy bills
As part of a larger building operations and maintenance strategy
Low-Flow Spray Valve
WASTED
If using 1 hour per day
$300 - $500 savings annually
If using 3 hours per day
$900 - $1,050 savings annually
Product Cost -- $85 or less
Installation Cost -- $0Recommended flow rate of 1.6 gallons per minute or less, & a clean ability performance of 26 seconds per plate or less
Higher-Cost Actions
WASTED
Replace Boiler
NEMA Premium Motors
Energy Management System
Motor Upgrade
WASTED
Motors are very costly to run
Electric motors use over ½ of all electricity in the US
Typically cost 10 times the purchase to run continuously for one year
Variable speed drives reduces this cost
92%+ efficiency NEMA motors
Run about 2,000 fewer hours/year
Almost always cost effective
Usually a better option than rewind
Motor Success StoryUpgraded 16 Motors and 27 Drives
Energy Management System
WASTED
Install an Energy Management System (EMS) & Automated Building Controls
Can control
Lighting
Heating, Cooling & Ventilation
Peak Demand
Building Temperature
Process
EMS – Success StoryImplemented and Energy Management System
Encourage Employee Participation
WASTED
Create a “Green Team”
Involve all FT and PT employees
Consult with contractors and suppliers as needed
Generates good ideas, gets other employees excited
Making the Financial Case
WASTED
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82%Efficient
95%Efficient
EnergyCosts
InstallationCost
Original Source: U.S. Department of Energy BestPractices Training Presentation.
Life-Cycle Costs
(includes purchase, installation, energy & maintenance)
Investing for the Long Term
Includes $2,800 incentive
Est. Saving $7,420
Energy Use Indicators
WASTED
Base MarkersEnergy Use Index Btu/square foot conditioned space/year Energy Cost Index $/square foot conditioned space/year
Building IndexSystem Performance kW/ton cooling, CFM/HP air
Equipment IndexPoint of Use Index POU = (purchase price) / efficiency
Productivity MarkerProductivity Index Energy use/qualifier
Btu/enrolled studentBtu/person employed, etc.
Economic EvaluationsTypes of Financial Incentives
Simple Payback – most common
Return on Investment
Life-Cycle Cost
Net Present Value / Worth
Internal Rate of Return
Simple Payback
WASTED
Simple payback is a good first cut tool
Simple Payback excludes the time value of money
ROI – An Exercise
WASTED
Company X is installing a control system that costs $3,000 and has a life expectancy of 10 years. Their expected rate of return (ROI) on an investment is 15%. How much money will the system have to save each year to meet the ROI? Does this upgrade meet the companies ROI?
Savings = Cost (A/P, i%, n)
Cost = Savings = % Interest = Equipment life expectancy =
Life-Cycle Costing
WASTED
Life-Cycle CostingThe process of including all of the associated costs over the expected life of an asset.
Why Use LCC?Initial cost of equipment such as motors and compressors is usually equal to one year of energy costs to run the equipment.
• Prove that first cost is not the best measure of a wise investment• Shows that energy costs are a big factor in the overall cost of equipment
Net Present Value / Worth
WASTED
Net Present Value / Net Present WorthDetermines the difference between what the savings are truly worth today and what the costis truly worth today. An NPV of zero or more is good. Let’s do an exercise to determine if a project is a good investment using an NPV calculation.
A condensate line can be installed for $45,000 and is projected to save $4,500/year. The life of the project is 15 years. A return of 15% is expected. Is this a worthwhile investment.
Savings = Cost = % Interest = Equipment life expectancy =
NPV = Annual Saving (P/A, i%, n) - Cost
Internal Rate of Return & PV
WASTED
Internal Rate of Return (IRR)IRR calculates the interest rate that will make present value of the costs exactly equivalent to thepresent value of the savings. Should be greater than the companies minimum attractive rate of Return.
IRR is the “true” value of the project
Present Value (PV)The current value of one or more future cash payments, discounted at some appropriateinterest rate. PV provides a common basis for comparing investment alternatives.
Finding the Money
Financial IncentivesTypes of Financial Incentives
Utility Rebates
Government Grants
Low-Interest Loans
Federal Tax Deductions
Other Opportunities
Xcel Energy ProgramsPrescriptive
Electric
Natural Gas
Custom
$400 / kW or $5 / MCF
Studies
Several offerings
Segment offering
Rates, discounts & other options
Xcel Energy – Electricity ProgramsCooling Energy Design Assistance
Lighting Efficiency Proposal
Compressed Air Electric Rate Savings
Motors Energy Efficient Building
Process Efficiency Data Center Efficiency
Recommissioning
Energy Analysis
Efficiency Controls
Saver’s Switch
Xcel Energy – Natural Gas ProgramsCommercial Heating Energy Design Assistance
Commercial Real Estate Efficiency Proposal
Custom Energy Efficient Buildings
Energy Analysis
Efficiency Controls
Natural Gas Rate Savings
Process Efficiency
Recommissioning
Xcel Energy – Lighting Program Prescriptive rebates
Fixed incentives for installing energy efficient equipment
Retrofit rebates for existing facilities of any size
One-to-one equipment change-outs
New construction rebates(new or major renovations)
New LED Prescriptive Rebates(screw-in bulbs must be Energy Star-qualified)
Lighting controls (Occupancy Sensors, Photo Cells)
Xcel Energy – Compressed Air
Xcel Energy – Compressed Air
Compressed Air Assessment
>50 hp
Thorough analysis, written report & recommendations
Study funding of up to $20,000
Depends on system in place
Custom Rebates
$50 or $400/kW saved
Preapproval required
Prescriptive Rebates
Integrated VDS compressors 10 to 49 hp
No loss drains
Xcel Energy – Success StoryFixed leaks and right-sized the compressor
Grants – Good To Know
Start Early, Read Carefully, and Follow Directions
Compile as much project detail as possible including:• Utility billing history charted out (24 to 36 months)• Current & new equipment size and efficiency specifications• Project cost & simple payback• Projected energy savings in MMBTU or kWh• Annual energy cost saving by fuel type• Improvement start and finish dates• If grant match required, proof of where it’ll come from
Federal Grants
• A good portion of the federal energy stimulus dollars for energy are being funneled through the Minnesota Office of Energy Security
• Current list of DOE Grant opportunitieshttp://www1.eere.energy.gov/financing/business.html
• For new postings, subscribe to RSS Feedhttp://feeds2.feedburner.com/EereFinancialOpportunities
How To -- Federal Grants http://www1.eere.energy.gov/financing/business.html
How To -- Federal Grants
How To -- Federal Grants
The Post on Grants.Gov
The Post on Grants.Gov
State Grants
• Active RFP’s listed at the URL below
• There are no active commercial RFP’s at this time
• Watch for RFP notices at: http://www.state.mn.us/portal/mn/jsp/content.do?programid=536917261 &id=-536893811&agency=Energy
• Sign up for stimulus updates at: http://visitor.constantcontact.com/manage/optin/ea?v=001gYuebWlSSZOLY2_joMRs- A%3D%3D
Sign Up For “Linda’s List”
• Linda Limback at the Minnesota Office of Energy Security
• Sends bi-monthly updates: “New Funding Opportunities in the Fields of Energy and Environment”
• E-mail her at [email protected] and ask to be added
“Linda’s List” – A Post
US DOE: Energy Efficiency in Indian Country
Energy Efficiency Development and Deployment in Indian Country.
Areas of interest include:
1) Feasibility studies to assess and determine the technical and economic feasibility of energy efficiency improvements to existing Tribally-owned buildings, and
2) Installation of energy efficiency improvements at existing Tribally-owned buildings. Up to $4 million expected to be available, up to 20 awards anticipated.
Responses due 3/16/11. Refer to Sol# DE-FOA-0000423.
https://www.fedconnect.net/FedConnect/?doc=DE-FOA-0000423&agency=DOE
City or County Grants
• City of Minneapolis Great Streets Program
• Matching grant of up to $5,000 for facade improvements visible from a public street—not necessarily energy related
• Match must be paid before grant check is issued
• Contact your local EDA, business association or local chamber
Low Interest Loans
• Energy Audit by Xcel Energy
• Blueprint for specific projects -- engineering study 75% paid by Xcel Energy, 25% by customer
• 100% of capital improvement paid for by Xcel Energy, St. Paul Port Authority and local EDA’s.
• Loan payment structured so that monthly payment is less than estimated energy savings.
• First come, first served
• Contact the Xcel Energy Business Solution Center at 1-800-481-4700 or Pete Klein at the St. Paul Port Authority at 651-204-6211
Trillion BTU Energy Efficiency Program
Low-Interest Loans
• Maximum of $5,000 -- unsecured low-interest loan for lighting efficiency project
• Supported by local electric utility, local EDA and a grant from the DOE
• First come, first served
• Contact your local EDA, business association or local chamber
Business Tax Incentives
Tax deduction of up to $1.80 per square foot
New or existing commercial buildings that are constructed or reconstructed to save at least 50% of the heating, cooling, ventilation, water heating, and interior lighting energy cost
Buildings must meet ASHRAE Standard 90.1-2001.
Partial deductions of $.60 per square foot
Can be taken for improvements to one of three building systems that reduce total heating, cooling, ventilation, water heating and interior lighting energy use by a certain percentage below ASHRAE 90.1-2001
building envelope (10%), lighting (20%), or heating and cooling system (20%)
These deductions are available for buildings or systems placed in service from January 1, 2006, through December 31, 2013.
Federal Tax Deduction
Business Tax Incentives
Eligibility
The person or organization that makes the expenditures for construction is generally the recipient of the allowed tax deductions. This is usually the building owner, but for some HVAC or lighting efficiency projects, it could be the tenant. Deductions can be taken for the year the property was placed in service.
How do they work
The building or system must be certified by qualified individual
Inspection and testing to ensure that energy goal is met must also be completed
How to qualify
Know square footage and when building was placed in service
Provide certification by qualified individual stating which targets have been met
http://energytaxincentives.org/business/commercial_buildings.php
Federal Tax Deduction
Useful ResourcesMinnesota
Your local utilityYour city economic development departmentYour county or regional economic development programYour local bankMinnesota Office of Energy Security (State Government)
Energy Smart
NationwideU.S. Department of Energy (Energy Efficiency & Renewables)U.S. EPA Energy Star ProgramUSDA Rural Energy for America Program
Energy EfficiencyTracking Your Building’s Energy Performance
The 7 Steps of an Energy Management PlanStep 1: Make a commitment
Step 2: Assess performance
Step 3: Set goals
Step 4: Create action plan
Step 5: Implement action plan
Step 6: Evaluate progress
Step 7: Recognize AchievementsSource: http://www.energystar.gov/index.cfm?c=guidelines.guidelines_index
Guidelines for Energy Management
What is energy benchmarking?
Track energy consumed each month & compare it to similar buildings
Calculate the energy used per square footage
Btu/conditioned square feet
Weather Normalizing – based on location of building
Compare your energy use:
Energy Use Index (EUI)
Commercial Buildings Energy Consumption Survey (CBECS)
(Other Indices)
Benefits of Benchmarking
Once you know where you stand, finding energy-saving opportunities becomes easier.
Know where you stand compared to similar buildings.
Track your building energy use.
Catch unusual spikes in energy use.
See the effects of energy improvements already made.
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First Steps
Understand your utility bills
What to look for
Meter #
Reading dates
Electric usage
kWh
Natural gas usage
therms
Utility Bill Example -- Electric
Utility Bill Example -- Electric
Utility Bill Examples
Utility Bill Example – Natural Gas
Utility Bill Example – Natural Gas
Minnesota Energy Resources
Utility Bill Analysis
WASTED
British Thermal Units (BTUs)
British Thermal Unit (BTU) is the common denominator used to measure energy consumption
Convert energy units on your utility bills to BTU.
kWh
1 kWh = 3,412 BTUs
Therms:
1 therm = 100,000 BTUs
To determine BTUs per building square foot
BTU/conditioned (heated or cooled) sq. ft.
CBECS
WASTED
Commercial Building Energy Consumption Survey
If your building uses more energy than average
Consider starting with Step 3 of the US EPA Energy Star Energy Management Plan
Step 3: Set goals
Step 4: Create action plan
Step 5: Implement action plan
Step 6: Evaluate progress
Next Step if > CBECS?
If your building uses less energy than average, consider more improvements
Review Energy Management Plan
Step 6: Continue to evaluate progress
Step 7: recognize achievements
Recognition?
Leadership in Energy and Environmental Design (LEED)
Energy Star Label
Next Step if < CBECS?
To be eligible for an Energy Star rating, you must meet several eligibility requirements
To be eligible – you must own 90% of the building.
Energy Star – Eligibility
Energy Star – Portfolio Manager Login
WASTED
Energy Star
WASTED
Portfolio Manager – Add a new property
WASTED
Energy Star – Add Your Property
Energy Star – Information Needed
Add a space.
A building can be made up of different types of spaces.
50% must fall under a single eligible space type.
“Other” space cannot exceed 10% of building
Energy Star – Information Needed
Choose the appropriate space type.
Energy Star – Information Needed
Required information for benchmarking (specifically for an “office” space).
Adding Energy Meters
Add a meter and choose the energy type
Natural Gas
Electricity
Propane
Others
Adding Energy Meters
Choose units
Therms
Kwh
KBtu
Others
Adding Energy Meters
Enter utility bill information
Find Your Rating
Ratings range from 1 – 100
75+ is eligible to receive an Energy Star Rating
Get the Energy Star Label
Other requirements:
Engineer Verification
Fees
Costs?
Besides paying for engineer verification, Energy Star has no application fees.
Energy Star Benefits
Less energy consumed = lower operational costs
Energy Star buildings use 35% less energy than the average building
Use of Energy Star Portfolio Manager
Track energy and water consumption
Track progress of projects
Calculate greenhouse gas emissions
Monitor costs
Gain EPA recognition
Marketing and promotions
LEED points
Where to Turn for Help
Useful Resources in MinnesotaEnergy Smart
Center for Energy and the Environment (CEE)
Minnesota Technical Assistance Program (MnTAP)
Retired Engineers Technical Assistance Program (RETAP)
Clean Energy Resource Teams (CERTs)
The Green Institute
Minnesota Office of Energy Security
Xcel Energy
Your city economic development department
Your county or regional economic development programs
Useful Resources (Nationwide)U.S. EPA Energy Star Program
U.S. DOE -- Energy Efficiency & Renewable Energy
U.S. DOE -- Industrial Technologies Program
Rocky Mountain Institute (CO)
Focus on Energy (WI)
Flex Your Power (CA)
Alliance to Save Energy (Washington, D.C.)
ASHRAE
Building Owners and Managers Association (BOMA)
Questions?
