ENERGY EFFICIENCY FOR LinkedIn

2010

ENERGY EFFICIENCY AS “FIRST FUEL”

• Quickest, safest, most cost-effective way to:

– Deliver immediate permanent energy cost savings

– Improve facilities’ infrastructure, environs, and value

– Reduce greenhouse gas emissions and improve sustainability

– Create “green” jobs

– Bolster national security by reducing dependence on foreign oil

The Cleanest and Greenest Energy Is Energy Not Used The Cleanest and Greenest Energy Is Energy Not Used

CRISIS, WHAT CRISIS?

• Last year it was rising ingredient costs and limited raw material supply.

• This year it is healthcare and global warming. Here is what people are doing about it:

– Cost management

– Lean manufacturing

– Production efficiency

– Energy efficiency

• We call this ENERGY PRODUCTIVITY and we all should live it every day

THE FUTURE

Lake Mead is Falling

The World’s Glaciers are Melting

AIR POLLUTION

“Years from now, when my grandchildren look back at what I did today, will they know I did the right thing?”

The Grandchildren’s Test – Jim Rogers, Chairman of Duke Energy

“Years from now, when my grandchildren look back at what I did today, will they know I did the right thing?”

The Grandchildren’s Test – Jim Rogers, Chairman of Duke Energy

EFFICIENCY CAN IMPROVE YOUR BOTTOM LINE

• Efficiency: According to Webster’s dictionary, the word efficiency in a business context means the use of resources in such a way to maximize production of goods and services

• Energy is being wasted

• In our world today, we have a business problem and at the same time, an environmental problem

• WHY NOT WORK TOGETHER TO SOLVE BOTH?

OUR DNA

• Lime Energy was established in 2006, bringing together

– Energy engineering

– Energy project construction and implementation

– Sales and marketing

• Today we have over 400 employees in 23 offices

• We do work for private business, the federal government, military bases, schools, hospitals, offices and factories

We have collectively completed energy upgrades for over 2 billion square feet

DRIVERS for SUSTAINABILITY AND ENERGY EFFICIENCY

Low Cost FinancingLow Cost Financing

Need for strong ROI and long-term cost savingsNeed for strong ROI and long-term cost savings

Increasing pressure on corporations for sustainability and corporate social responsibility

Increasing pressure on corporations for sustainability and corporate social responsibility

Existing and prospective regulatory mandates including energy efficiency resource standards

Existing and prospective regulatory mandates including energy efficiency resource standards

Migration towards low carbon economy, with expected carbon emissions cap

Migration towards low carbon economy, with expected carbon emissions cap

PERFORMANCE PERIOD

DELIVERY PROCESS

Opportunity Assessment

IMPLEMENTATIONDEVELOPMENTORIGINATION

Site Survey

Conceptual Design

Final Cost & Scope

Execute scope of work

Demonstrate ROI

Handle documentation for rebates and incentives

Provide ongoing energy use monitoring

WHO DO WE DO IT FOR?

• Commercial and Industrial Businesses– Corporations, Manufacturers, Property Owners, Property Managers, Utilities

• Energy Service Companies (“ESCOs")– Federal, State and Municipal Government Agencies

• US Post Office, Schools K-12, Private and Public Universities, Public Housing, Correction Facilities, Military Facilities

NATIONAL PRESENCE IN KEY METROPOLITAN/ GOVERNMENT TARGET MARKETS

Allentown, PA

San Jose, CA

Lee, MA

Greensboro, NC

Charlotte, NC Locust, NC

Saddle Brook, NJ

Redmond, WA

Salt Lake City, UT

Elk Grove Village, IL

Ventura, CA

San Diego, CA

Glendora, CA

New York, NY

Austin, TX

400+ employees in 23 offices

16%

13%

67%

4%

Construction/Installation

Administrative

Sales

Engineers

By Function

Denver, CO

Phoenix, AZ

Dallas, TX

South Plainfield, NJ

Bronx, NY

Buffalo, NY

Emeryville, CA

Hilo, HI

CHALLENGES FOR ORGANIZATIONS IN EXECUTING FACILITY ENERGY EFFICIENCY PROJECTS

Lack of understanding of opportunities to reduce operating costs/ carbon emissions

Lack of in-house expertise/ independent analysis

Concern about cost of up-front capital expenditure requirements

Lack of understanding about tax incentives and rebate programs available

Lack of understanding about financing opportunities

Limited number of energy efficiency services solution providers

Lime Energy addresses all of the challenges in executing energy efficiency projects

Lime Energy addresses all of the challenges in executing energy efficiency projects

ENERGY EFFICIENCY TODAY

• Start with your bill – what is your energy cost at each plant?• Audit your buildings, what are the biggest categories of energy use?

– Indoor lighting– Outdoor lighting– Process motors– Air conditioning / refrigeration– Heating– Other electrical

• Decide what you want your bill to be next year • Take the steps to get there• Track your progress

ENERGY COSTS TOMORROW

• Commodity 2009 2010 2011 % Chg.

• Electricity 11.6 11.5 11.7 < 1%

• Natural Gas $4.06 $5.36 $6.12 34%

• Gasoline $2.35 $2.84 $2.96 21%

• Natural gas prices are sure to go us as electricity generation switches from coal to natural gas in response to pressure about global warming.

CASE STUDIES

National BakeryEntenmann’s – Orowheat

South San FranciscoCompleted Summer 2007

PROJECT

• Facility audits, rebate procurement and lighting upgrades completed in 17 large facilities

• $660,000 annual savings• Overall payback in 2.7 years (range: 1.3 to 7.1 yr)

• Lighting audits, rebate procurement, lighting redesign and installation in South San Francisco

• $140,000 project, payback in one year

LIME ENERGY SCOPE

• Comprehensive lighting audits• Identified energy-efficient replacement

opportunities• Outlined energy and dollar savings• Secured $132,500 in utility incentives across the

country• Implemented projects

• Replaced/retrofit 790 fixtures• Ensured that new lighting was

compatible with the food industry• Installed sensors where appropriate

to turn off lights when not needed

REPEAT/ FOLLOW-UP BUSINESS WITH SAME CLIENT

• Similar work planned for other large facilities and smaller distribution buildings

CASE STUDIES

Regional GroceryAssociated Foods

Regional Bakery(Franz – Seattle area)

PROJECT• Energy efficiency in a dry warehouse

and 165,000 square foot freezer• Design, engineering, implementation

LIME ENERGY SCOPE

• Energy efficient lighting, lighting controls in a large warehouse

• Annual savings $310,000 per year

• Energy efficient lighting and controls that are compatible with a food production facility

• Seven sites total, annual savings $85,000 per year

•REPEAT/ FOLLOW-UP BUSINESS WITH SAME CLIENT

• Energy efficiency design and installation at several Associated Foods grocery stores

• Started with a bakery in 2007 under Lime Energy Installment Payments, then corporate goals for sustainability together with new budget created six other opportunities in depots

SIMPLE LAMP AND BALLAST CHANGE

• No change in light levels• Mainly three-lamp fixtures• No new controls

Example Result after Upgrade– 80 watts per fixture– 4,000 or more hours/year– 320 kWh per fixture– 4 to 5 kWh per square foot– Annual cost 50 to 60 cents per SF

ENGINEERED UPGRADE

• Correct light levels for the task• Mainly two-lamp fixtures where appropriate• Occupancy/daylight/total building controls

Example Result after Upgrade– 50 watts per fixture– 3,000 hours per year– 150 kWh per fixture– 2 kWh per square foot– Annual cost 25 cents per square foot

TWO PATHS TO FOLLOW

EXAMPLE ENERGY EFFICIENCY PROJECTFACILITY LIGHTING

EXAMPLE ENERGY EFFICIENCY PROJECTFACILITY LIGHTING

SIMPLE ONE FOR ONE REPLACEMENT• No change in light levels• No repositioning• No interaction with other controls• Often a single fixture type

Example Result– Spend $200,000– Save $80,000 per year– 2 ½ year payback

ENGINEERED UPGRADE• Correct light levels for the task• New fixture locations where appropriate• Occupancy/daylight/total building controls• New fixtures to meet new needs• Lighting simulation study

Example Result– Spend $350,000– Save $180,000 per year– 1.9 year payback

TWO PATHS TO FOLLOW

The Engineered Upgrade saves $100,000 more per year(Equals additional profits from $3 million in new sales)

The Engineered Upgrade saves $100,000 more per year(Equals additional profits from $3 million in new sales)

EXAMPLE ENERGY EFFICIENCY PROJECTFACILITY LIGHTING

SIMPLE LIGHTING CHANGE OUT

• May overlook the best utility rebates• May overlook the latest tax treatment• May overlook the opportunity to

redesign• May overlook the latest technology, or

spend too long researching

ENGINEERED SOLUTION

• Up on the latest technology, tried and proven

• Maximize utility rebates• Maximize tax benefits• May offer several options for redesign,

each with superior financials• Be sure to choose a qualified resource

TWO PATHS TO FOLLOW

THIS GETS EVEN MORE COMPLICATED WHEN YOU GO BEYOND LIGHTING.

Consulting

EnergyEngineering

Implementation

OVERVIEW OF LIME’S SERVICES

• Opportunity assessment

• Review of sites

• Execute scope of work• Facility construction services• Project management

• Site survey (energy master planning)

• Conceptual design• Final cost & scope

LED lighting

Fluorescent office lights

Warehouse high-bay

Exterior decorative and parking lot lighting

Water saving fixtures

Insulation / Weatherization

Window Film

Building Envelope

Mechanical & Electrical Efficiency

Photovoltaic

Solar thermal

Wind

LIME ENERGY NATIONWIDE SERVICES

Investment-grade audits and engineering

Regional Construction & Installation Services Lime Energy

implements Renewable Energy

Solutions when appropriate for our

customers.

Water Efficiency & Weatherization

Energy Efficient Lighting

Central plant boilers and chillers

Controls and Monitoring

Energy Productivity

Fire safety

Security

Energy Engineering

Solar

Scoping studies

BENCHMARKING UTILITY USAGE AND COSTS

Know where to spend time and effort ….and as important, where not to!

Low-hanging fruitLow-hanging fruit

• Quickly identify buildings that need immediate attention

Utility Trac from Lime Energy is a complete reporting and analysis tool for tracking, identifying trends, benchmarking, and spotting opportunities from

your utility consumption patterns.

UTILITYTRAC SEQUENCE OF EVENTS

• You provide us with 2 years of historical bills.

• We enter historical data into our analysis program. (a low data entry fee may be required if data is not in electronic format)

• Our energy experts analyze the data and develop suggestions for energy efficiency opportunities.

• We meet with you to discuss analysis results and suggested actions.

• We continue to monitor your bills for ongoing integrity.

Energy Efficiency

\e-n r-jē\ \i-ə fi-sh n-sē\ə“The cost-effective investment in the energy we don’t use to produce our nation’s goods and services.”

Global Sustainability 50 Index (GSI)

Global Sustainability 50 Index (GSI)

Benefits of Energy Efficiency

• Reduce operating costs• Increased profitability• Increased competitiveness• Corporate public image• Attracting future workforce

“The future belongs to those who understand that doing more with less is compassionate, prosperous and enduring, and thus more intelligent, even competitive.”

- Paul Hawken, entrepreneur and

environmental author

Consumer Demand

• Your customers are increasingly Gen X and Gen Y

• 60% of American consumers say they're seeking out green products, and 66% say they haven't curtailed their green spending in this economy

Consumer Demand

Traditionalist Boomer Generation X Generation Y

Born 1928-1945 Born 1946-1965 Born 1965-1980 Born 1980-2000

Today 65 plus Conformity Stability Upward mobility Security Respects Authority

Today 45-64 Personal and social

expression Idealistic Questions Authority Materialistic Workaholic

Today 30-45 Free agency and

independence Street-smarts E-Mail Cynicism Work Life Balance

11-30 years old Hope about future Instant “everything” Social activism Demand for diversity Family centricity

WHAT SHOULD YOU BE DOING?

GET ON THE RIGHT SIDE OF THE GREEN ISSUE

• Set up a “green team” and put senior executives on it

• Make some quick “wins” that save meaningful operating costs

• Publicize your “green” efforts externally

• Encourage more savings projects internally

WHY LIME ENERGY WINS

Extensive Intellectual Capital & Technical ExpertiseExtensive Intellectual Capital & Technical Expertise

Independent Service Provider Using Best-of-Breed TechnologiesIndependent Service Provider Using Best-of-Breed Technologies

Financing and Rebate Procurement CapabilitiesFinancing and Rebate Procurement Capabilities

National Service CapabilitiesNational Service Capabilities

Diversified Across Service Lines and End MarketsDiversified Across Service Lines and End Markets