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Tips To Sell Your Energy Projects Eric Woodroof, Ph.D. 888-563-7221 ©2016 EnergyCAP, Inc. ▪ www.EnergyCAP.com
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Correlating Energy Usage and Weather Data
Tips To Sell Your Energy Projects
Eric Woodroof, Ph.D.888-563-7221
2016 EnergyCAP, Inc. www.EnergyCAP.com
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Eric Woodroof, Ph.D.400 Energy Audits $150 Million in Savings>25% ROICEM InstructorCertification Boards (CEM, CRM, PCF)Past President of AEE- 87 CountriesAssociate Editor:EE JournalBuildingsYoungest Member- Energy Managers Hall of Fame
2016 EnergyCAP, Inc. www.EnergyCAP.com
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Our Clients
2016 EnergyCAP, Inc. www.EnergyCAP.com
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2016 EnergyCAP, Inc. www.EnergyCAP.com
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2016 EnergyCAP, Inc. www.EnergyCAP.com
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Promotional Discount CodeECAP20% off (this week)
2016 EnergyCAP, Inc. www.EnergyCAP.com
2016 EnergyCAP, Inc. www.EnergyCAP.comSelling Energy Projects Agenda2016 Tax BenefitsNon-Utility BenefitsReal Estate Value ImprovementReward vs Penalty
TAX Deductions/Rebates2016 Year OnlyCase StudyProject Cost: 120,000Utility Rebates:-18,000Fed Tax Credit:-63,000310 Tax Deduction:-49,000NET COST:-10,000PLUS $27,000 per year Savings2016 EnergyCAP, Inc. www.EnergyCAP.com
Value of Tax Benefits2016 EnergyCAP, Inc. www.EnergyCAP.comNormal
Cost: 120,000 Savings: 27,000/yr22% Return/YrOver 10 Years: You Save $2 for every $1With Some of the Tax Benefits
Cost: 39,000 Savings: 27,000/yr69% Return/YrOver 10 Years: You Save $7 for every $1
2016 EnergyCAP, Inc. www.EnergyCAP.comSelling Energy Projects Agenda2016 Tax BenefitsNon-Utility BenefitsReal Estate Value ImprovementReward vs Penalty
2016 EnergyCAP, Inc. www.EnergyCAP.com
2016 EnergyCAP, Inc. www.EnergyCAP.comPeople are like BuildingsDont Over-EatBeyond Lower Food Costs:Live LongerLess Medical BillsDont Waste EnergyBeyond Energy $ Savings:Equipment Runs Less (lasts longer)Less Maintenance (Material & Labor)Other Benefits
Additional Benefits of Energy ConservationReduced maintenance material costsReduced maintenance labor costsPermanently avoided capital investmentAvoided procurement costsAvoided purchases of carbon offsetsEnhanced image, public relations and recognitionReduced sales taxes/environmental penaltiesImproved building value2016 EnergyCAP, Inc. www.EnergyCAP.com
Via Example Application, we calculate:Additional Benefits (most are annual)% Improvement to Energy SavingsReduced maintenance material costs4.8%Reduced maintenance labor costs6.2%Permanently avoided capital investmentAvoided procurement costsAvoided purchases of carbon offsets10%Enhanced image, public relations and recognitionReduced sales taxes/environmental penalties10%Improved building valueTotal Additional Value from this ECM% Additional Value Improvement Beyond Energy Savingsof $75,000/year31%
2016 EnergyCAP, Inc. www.EnergyCAP.com
2016 EnergyCAP, Inc. www.EnergyCAP.com
2016 EnergyCAP, Inc. www.EnergyCAP.com
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.comSelling Energy Projects Agenda2016 Tax BenefitsNon-Utility BenefitsReal Estate Value ImprovementReward vs Penalty
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.comQuestion: What is an Actionable ROI?(aka: Hurdle Rate)10% ~ 10 year Payback20% ~ 5 year Payback33% ~ 3 year Payback
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.comExample: Two Identical BuildingsOperating Costs$1 M/year $1 M/year
AB
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.comWe Retrofit BReduce Op. Costs by $200k/yearOperating Costs$800K/year $1M/year
AB
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.comIs B worth more?Operating Costs$800K/year $1M/year
AB
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.com
Increased sale value= (Annual Savings) x (Simple Payback Criteria)= $200k x 5= $1 Million in increased sale value
and Green Buildings have higher rent and occupancy (30% higher)
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.comAnother Tip:
Simple Payback vs ROI
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.comCompare:Simple Payback = 4 YrsCustomer Thoughts:I have to wait 4 years;How long will equipment last? What is my planning horizon?ROI = 25% per yearCustomer Thoughts:Wow, that is more than my 401k!!Wow, that is better than our companys return!Even if I financed it at 10%, I would still get a 15%, which is better than doing nothing.
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.comSelling Energy Projects Agenda2016 Tax BenefitsNon-Utility BenefitsReal Estate Value ImprovementReward vs Penalty
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.comPsychology:Reward vs Penalty
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.comConsider this reward:
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.comPenalty
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.comHow do you present?Reward vs Penalty
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.comSelling Energy Projects Agenda2016 Tax BenefitsNon-Utility BenefitsReal Estate Value ImprovementReward vs Penalty
2016 EnergyCAP, Inc. www.EnergyCAP.com2016 EnergyCAP, Inc. www.EnergyCAP.com
Thank you
Eric Woodroof, Ph.D.888-563-7221
2016 EnergyCAP, Inc. www.EnergyCAP.com
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Utility Bill Data Helps You Get Buy-in For Energy Projects
Steve Heinz, PE, CEM, CMVPFounder & CEOEnergyCAP, Inc.
2016 EnergyCAP, Inc. www.EnergyCAP.com
Steve Heinz title slide
Include picture from this page on the title slide:http://info.energycap.com/options-and-methods-for-correlating-weather 33
2016 EnergyCAP, Inc. www.EnergyCAP.com1. Identifies inefficient buildingsNational and organizational benchmarking provides identificationand corroboration Increases the confidence of decision-makers in energy management investmentsBut benchmarking alone is not granular enough for mostproject-level decisions
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2016 EnergyCAP, Inc. www.EnergyCAP.comNational Benchmarking ENERGY STAR
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2016 EnergyCAP, Inc. www.EnergyCAP.comNational Benchmarking ENERGY STAR
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2016 EnergyCAP, Inc. www.EnergyCAP.comOrganizational Benchmarking
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2016 EnergyCAP, Inc. www.EnergyCAP.comOrganizational Benchmarking
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2016 EnergyCAP, Inc. www.EnergyCAP.comOrganizational Benchmarking
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2016 EnergyCAP, Inc. www.EnergyCAP.com2. Verifies success of prior projectsM&V (IPMVP-compliant Measurement & Verification of savings) increases the confidence of decision-makers in energy management investmentsAn ESCO may have proprietary black box M&V process; EnergyCAP provides owner-operated validation of cost avoidance
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2016 EnergyCAP, Inc. www.EnergyCAP.comCost Avoidance Reporting
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2016 EnergyCAP, Inc. www.EnergyCAP.comCost Avoidance Reporting
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2016 EnergyCAP, Inc. www.EnergyCAP.comCost Avoidance Reporting
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2016 EnergyCAP, Inc. www.EnergyCAP.comCost Avoidance Reporting
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2015 EnergyCAP, Inc. @energycap #energyleader www.EnergyCAP.comSteve Heinz, PE, CEM, [email protected] & CEOEnergyCAP, Inc.
Thank you for attending todays webinar.
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