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Energy Efficiency Solutions for Multifamily Housing Clark Energy Group LLC 1
Energy Efficiency Solutions for
Multifamily Housing
Clark Energy Group LLC
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Agenda
› About Clark Energy Group
› Energy Service Company (ESCO) Overview
› ESCO Services
› Utility Rate Forecasts
› Making the Decision to Retrofit
› Energy Conservation Measures (ECMs)
› Benefits to Your Portfolio
› Resident Engagement
› Securing Available Incentives
› Financing
› Typical Project Schedule
› Case Studies
› Questions / Discussion
Agenda
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Clark Energy Group
Clark Energy Group (established in 2007) is an Arlington, VA-based energy service company (ESCO) that works with best-in-class partners to provide turnkey solutions for your energy needs. Clark Energy Group is a member of the Clark family of companies, which includes Clark Construction Group, Clark Realty Capital, & Clark Builders Group.
Above and beyond typical ESCO capabilities, CEG has experience:
• Working in occupied facilities
• Performing energy savings projects in residential buildings
• Collaborating with property management companies to minimize disruption to residents
About the Clark Family:
• Clark Construction Group: Largest privately held construction company in the United States; annual revenue over $4 billion; founded in 1906
• Clark Realty Capital: Diversified real estate development company with approximately $5 billion in development projects completed or underway; founded in 1992
• Clark Builders Group: 4th largest multifamily builder in the United States; founded in 1992
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A reputable ESCO typically implements projects from start to finish by:
› Performing an analysis of facilities to determine which energy conservation measures (ECMs) are
applicable and meet the customer’s needs
› Engineering, designing, and implementing the energy solution for its customers
› Researching programs to obtain any available federal, state, local, and utility-based incentives
or tax credits that may be applicable
› Discussing financing needs with the customer and developing a financing solution that makes sense for the project
› Providing post-installation performance
monitoring to ensure the ECMs perform as planned
An Energy Service Company (ESCO) provides
holistic, custom, turnkey energy solutions.
What Is An Energy Service Company?
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What Does an ESCO Handle?
› Energy assessment
› Savings calculations
› Coordination of financing options (if necessary)
› Review of programs to secure any available incentives
applicable to project on the federal, state, and local utility
level
› Cost reduction through leveraging size and relationships
› Subcontractor proposal and bidding process
› Project management and coordination with property
manager
› Implementation of ECMs and on-site supervision of
subcontractors
› Removal/disposal of old equipment
› Resident engagement*
› Warranty applications
› Post-implementation performance monitoring (if necessary)
› Preventative maintenance
An ESCO provides a customized turnkey solution that meets
its customer’s energy reduction goals.
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How Will Utility Rates Change in the Future?
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› Water Rates: Predicted to continue rising ~10%/year or more
› DC has seen a 37% increase in water rates in 3 years
› Electric Rates: Predicted to rise at rate of inflation
› Gas Rates: Predicted to rise at rate of inflation +0-2% annually
What Should You Consider When Deciding To Retrofit?
› Does the retrofit provide a good return on investment and increase net operating income?
› Does the retrofit increase the value of the property?
› Will the retrofit free up money for other
improvements that the building(s) need(s)?
› Will the retrofit reduce costly maintenance, repairs, and replacements?
› Does the retrofit address the comfort of the
residents?
› Will the retrofit allow the property to make strides towards green certifications?
› Does the community want to showcase its
leadership on environmental issues?
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What Are Typical Energy Conservation Measures?
› Lighting and lighting controls
› Low-flow water fixtures
› In-unit control systems
› HVAC retrofits or retrocommissioning
› Building envelope modifications
› Central boiler and chiller improvements/
replacement
› Solar photovoltaic (PV), solar thermal,
geothermal, and other renewable energy
installations
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What Are The Potential Benefits To Your Portfolio?
› Invest capital reserves wisely and efficiently by making smart energy upgrade choices
› Achieve an above-market return on investment for your reserves
› Reduce maintenance costs
› Lower energy costs and free up money for other uses
› Enhance market value of your property
› Provide newer and higher-performing equipment
› Address resident comfort
› Enhance community pride and reputation
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Energy Efficiency/ Sustainability Points for QAP
LIHTC Applications (Select Examples)
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Washington, D.C. (2012) Points
LIHTC plans meet or exceed DC’s Green Building Requirements (from Green Building Act of 2006)
Required
10,000 feet of gross floor area fulfills Enterprise Green Communities’ 2006 standard/sustainability equivalent
Required
Maryland (2011) Points
20%+ improvement over code efficiency levels (following EnergyStar code) OR 30%+ over code levels (not following EnergyStar code)
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Geothermal heat pumps for common area or in-unit HVAC 1
Solar energy for water heating, heat and cooling, lighting, electric generation 1
Virginia (2012) Points
In-unit heat pump with SEER at least 15.0 & HSPF at least 8.5 OR AC with SEER at least 15.0 & gas furnace with AFUE 90% (Geothermal units qualify)
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Sub-metered water expense 5
WaterSense faucets & showerheads in baths 2
Water Heater – EPA Energy Star qualified 5
Pennsylvania (2012) Points
Solar Thermal (at least 5% of domestic hot water) 5
Solar PV (at least 5% of est. electrical demand) 5
Wind Power (at least 5% of est. electrical demand) 5
Geothermal Heating/Cooling (capable of satisfying heating and cooling requirements for whole development
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Can Energy Efficiency Help You Receive Green Certifications?
› LEED Certification (National)
› Criteria include: Innovation & Design Process, Sustainable Sites, Water Efficiency,
Energy & Atmosphere, Materials & Resources , Indoor Environmental Quality,
Awareness & Education
› Energy Star (National)
› Criteria include: Appliances, Heating and Cooling Equipment, Heating and
Cooling Distribution, Envelope, Garages and Sidewalks, Ventilation and
Infiltration, Domestic Water Heating, Lighting, Pump Motor Efficiency
› EarthCraft (Virginia)
› Criteria include: Building Envelope Tightness, Improvements to Windows,
Improvements to Walls, Improvements to Floors & Foundations, Improvements to
Attics, Improvements/Replacement of HVAC Systems, New Walls, New Attics &
Roofs, New Floors & Foundations, New HVAC, Ventilation, Indoor Water, Fixtures
& Finishes, Waste Management
› Enterprise Green Communities Certification (required for
affordable multifamily in D.C.)
› Criteria include: Integrative Design, Location, Improvements, Conservation,
Energy Efficiency, Materials, Living Environment, Operations and Maintenance
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How Do You Engage Residents During the Process?
› Give them opportunities to save
› Example: PEPCO Energy Wise Rewards (Air Conditioner
Cycling)
› Resident can chose cycling level & receive a $30-80
installation credit + $6-$16/month from June through
October cycling
› Train them on reducing energy usage
› Project kick-off & close-out meetings
› Flyers/ Educational materials
› Engage them before and during renovations
› Open house in sample unit
› Employment opportunities
during renovation
› Community Meetings
How Do You Reduce the Overall Project Cost?
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Part of an ESCO’s role is to help secure
available federal, state, regional, and utility-
based incentives and programs for energy
projects. Available incentives often exist for:
› HVAC upgrades
› Water upgrades
› Lighting upgrades
› Controls installations
› Renewable installations
› Other measures that enhance overall
efficiency
Did You Know There Are Incentives Available in Your Area?
› The DC SEU offers
rebates for installing
energy efficient
equipment in multifamily
buildings (with some free
measures for affordable
properties!)
› The DDOE has monies
available for
weatherization measures
for affordable multifamily
(up to $6500)
District of
Columbia
› Dominion Power requires
an energy audit by a
contractor on their
preferred list before they
will give you any energy incentives
Virginia
Maryland is a leader in
energy efficiency incentives
› LED Exit Sign: $25
› Exterior LED Fixture: $150
› Wall Mount Occupancy
Sensor: $25
› Refrigerator Recycling:
$50 (approved case-by-
case), +$100 for
purchase of energy
efficient refrigerator
› “Smart” Power Strip: $15
› Vending Drink Machine
Control: $75
Maryland
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What Are Some Options for Financing Your Energy Project?
› Upfront payment from property’s
cash reserves
› Payment through energy savings/
shared savings model
› Hybrid model – partial payment
upfront and additional payments
over time through energy savings
› On-bill financing
› Grant monies
› Incorporate into refinancing or major
renovation
Case Study: Hubbard Place Apartments
The Community: › Nine-story, mid-rise building containing 230
residential apartments, 100% of which qualify for
HUD Section 8 rental assistance
› Three distinct retail/office spaces
› Units were fully occupied during implementation
ECMs Implemented: › Efficient toilets and showerheads
› Kitchen and bathroom sink aerators
› Efficient water boiler
› Service area and exterior lighting retrofits
› Common room & service area lighting controls
Costs & Savings: › Financial Cost: $283,550
› Estimated Annual Savings: $80,000
Estimated Annual Savings: $80,000
Simple Payback Period: 3.54 years
Projected Return on Investment: 28%
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Case Study: Columbia Heights Village – Phase II
The Community: › 406-unit, 31-building apartment complex in
Columbia Heights in Washington, D.C.
› Project was completed in 2011
› Units were fully occupied during implementation
ECMs Implemented: › Energy-efficient lighting
› Water upgrades to toilets, showerheads, & faucets
› 20-kilowatt solar photovoltaic (PV) system
› CFL giveaways to residents
Costs & Savings: › Financial Cost: $456,553
› Total Rebates/Incentives: $78,457
› Cost after Rebates & Incentives: $378,096
Estimated Annual Savings: $228,000
Simple Payback Period: 1.7 years
Projected Return on Investment: 59%
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Questions?
Contact:
Morgan Blackwood
Development Executive, Clark Energy Group
703.294.4618
Mark Donig
Associate, Clark Energy Group
703.294.4619
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