Energy Efficiency. It s Easier Than You May Think

Transcription

1 Energy Efficiency It s Easier Than You May Think

2 Saving Energy The Potential $150 Wasted Energy Star estimates that 30% of energy used in buildings is wasted. A utility customer that spends $500 per month on energy bills could save $150 per month. Source:

3 1 st Steps Know how you use energy Get an energy analysis done WASTED Do the easy things now Low- and no-cost actions Make a plan Energy Star s Portfolio Manager Find out the financial incentives that are available

4 Know How You Use Energy Pay attention to energy bills Chart for a year or more & look for anomalies WASTED Look for opportunities to reduce usage at charge points (peak demand, etc.) Use energy analysis programs Online energy audit On-site energy audit

5 9 Easy Low- or No-Cost Actions WASTED Dial back or up Set it = $50 Turn it off Plug in & turn off Replace it -- LED Low-flow Saver s Switch Keep it clean Lighting

6 Dial It Back Dial it back 10 for 8 hours each day and save 10% on heating costs this winter WASTED Look for discount coupons for programmable thermostat

7 Xcel Energy Saver s Switch Free program Discount of $5 per ton of air conditioning for WASTED each cooling month June September Sign Up Today or Get more information at XcelEnergy.com

8 Medium-Cost Actions Broad Application WASTED Occupancy Sensors Lighting Maintenance Contract Specific Application Low-Flow Spray Valve for Commercial Kitchens NEMA Premium Motors Vending Controls

9 Maintenance Contract Maintain Heating and Cooling Systems Change or clean filters at least every three months Have HVAC professional check your system each year WASTED 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

10 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 Recommended flow rate of 1.6 gallons per minute or less, & a clean ability performance of 26 seconds per plate or less Installation Cost -- $0

11 Higher-Cost Actions WASTED Replace Boiler NEMA Premium Motors Energy Management System

12 Motor Upgrade Motors are very costly to run Electric motors use over ½ of all electricity in the US Typically WASTEDcost 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

13 Motor Success Story Upgraded 16 Motors and 27 Drives

14 Energy Management System WASTED Install an Energy Management System (EMS) & Automated Building Controls Can control Lighting Heating, Cooling & Ventilation Peak Demand Building Temperature Process

15 EMS Success Story Implemented and Energy Management System

16 Encourage Employee Participation Create a Green Team Involve all FT and PT employees WASTED Consult with contractors and suppliers as needed Generates good ideas, gets other employees excited

17 Making the Financial Case

18 Investing for the Long Term Life-Cycle Costs (includes purchase, installation, energy & maintenance) $60,000 $50,000 WASTED $40,000 $30,000 $20,000 $10,000 $0 82% Efficient Est. Saving $7,420 95% Efficient Energy Costs Installation Cost Includes $2,800 incentive Original Source: U.S. Department of Energy BestPractices Training Presentation.

19 Energy Use Indicators Base Markers Energy Use Index Energy Cost Index Building WASTED Index System Performance Equipment Index Point of Use Index Btu/square foot conditioned space/year $/square foot conditioned space/year kw/ton cooling, CFM/HP air POU = (purchase price) / efficiency Productivity Marker Productivity Index Energy use/qualifier Btu/enrolled student Btu/person employed, etc.

20 Economic Evaluations Types of Financial Incentives Simple Payback most common Return on Investment Life-Cycle Cost Net Present Value / Worth Internal Rate of Return

21 Simple Payback Simple payback is a good first cut tool WASTED Simple Payback excludes the time value of money

22 ROI An Exercise 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? WASTED Savings = Cost (A/P, i%, n) Cost = Savings = % Interest = Equipment life expectancy =

23 Life-Cycle Costing Life-Cycle Costing The process of including all of the associated costs over the expected life of an asset. Why Use LCC? WASTED 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

24 Net Present Value / Worth Net Present Value / Net Present Worth Determines the difference between what the savings are truly worth today and what the cost is 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. WASTED 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. NPV = Annual Saving (P/A, i%, n) - Cost Savings = Cost = % Interest = Equipment life expectancy =

25 Internal Rate of Return & PV Internal Rate of Return (IRR) IRR calculates the interest rate that will make present value of the costs exactly equivalent to the present value of the savings. Should be greater than the companies minimum attractive rate of Return. WASTED IRR is the true value of the project Present Value (PV) The current value of one or more future cash payments, discounted at some appropriate interest rate. PV provides a common basis for comparing investment alternatives.

26 Finding the Money

27 Financial Incentives Types of Financial Incentives Utility Rebates Government Grants Low-Interest Loans Federal Tax Deductions Other Opportunities

28 Xcel Energy Programs Prescriptive Electric Natural Gas Custom $400 / kw or $5 / MCF Studies Several offerings Segment offering Rates, discounts & other options

29 Xcel Energy Electricity Programs Cooling Lighting Compressed Air Motors Process Efficiency Energy Design Assistance Efficiency Proposal Electric Rate Savings Energy Efficient Building Data Center Efficiency Recommissioning Energy Analysis Efficiency Controls Saver s Switch

30 Xcel Energy Natural Gas Programs Commercial Heating Commercial Real Estate Custom Energy Design Assistance Efficiency Proposal Energy Efficient Buildings Energy Analysis Efficiency Controls Natural Gas Rate Savings Process Efficiency Recommissioning

31 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)

32 Xcel Energy Compressed Air

33 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

34 Xcel Energy Success Story Fixed leaks and right-sized the compressor

35 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

36 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 opportunities For new postings, subscribe to RSS Feed

37 How To -- Federal Grants

38 How To -- Federal Grants

39 How To -- Federal Grants

40 The Post on Grants.Gov

41 The Post on Grants.Gov

42 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: &id= &agency=energy Sign up for stimulus updates at: A%3D%3D

43 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 her at Linda.Limback@state.mn.us and ask to be added

44 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

45 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

46 Low Interest Loans Trillion BTU Energy Efficiency Program 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 or Pete Klein at the St. Paul Port Authority at

47 Low-Interest Loans Maximum of $5, 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

48 Business Tax Incentives Federal Tax Deduction 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 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 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.

49 Business Tax Incentives Federal Tax Deduction 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

50 DSIRE

51 Useful Resources Minnesota Your local utility Your city economic development department Your county or regional economic development program Your local bank Minnesota Office of Energy Security (State Government) Energy Smart Nationwide U.S. Department of Energy (Energy Efficiency & Renewables) U.S. EPA Energy Star Program USDA Rural Energy for America Program

52 Energy Efficiency Tracking Your Building s Energy Performance

53 Guidelines for Energy Management The 7 Steps of an Energy Management Plan Step 1: Step 2: Step 3: Step 4: Step 5: Step 6: Step 7: Make a commitment Assess performance Set goals Create action plan Implement action plan Evaluate progress Recognize Achievements Source:

54 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)

55 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. Natural Gas used (therms) October November December January February March April May June July August September Month

56 First Steps Understand your utility bills What to look for Meter # Reading dates Electric usage kwh Natural gas usage therms

57 Utility Bill Example -- Electric

58 Utility Bill Example -- Electric

59 Utility Bill Examples

60 Utility Bill Example Natural Gas

61 Utility Bill Example Natural Gas Minnesota Energy Resources

62 Utility Bill Analysis WASTED

63 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.

64 CBECS Commercial Building Energy Consumption Survey WASTED

65 Next Step if > CBECS? If your building uses more energy than average Consider starting with Step 3 of the US EPA Energy Star Energy Management Plan Step 3: Step 4: Step 5: Step 6: Set goals Create action plan Implement action plan Evaluate progress

66 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

67 Energy Star Eligibility To be eligible for an Energy Star rating, you must meet several eligibility requirements To be eligible you must own 90% of the building.

68 Energy Star Buildings & Plants WASTED

69 Energy Star Portfolio Manager Login WASTED

70 Energy Star Portfolio Manager Add a new property WASTED

71 Energy Star Add Your Property WASTED

72 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

73 Energy Star Information Needed Choose the appropriate space type.

74 Energy Star Information Needed Required information for benchmarking (specifically for an office space).

75 Adding Energy Meters Add a meter and choose the energy type Natural Gas Electricity Propane Others

76 Adding Energy Meters Choose units Therms Kwh KBtu Others

77 Adding Energy Meters Enter utility bill information

78 Find Your Rating Ratings range from is eligible to receive an Energy Star Rating

79 Get the Energy Star Label Other requirements: Engineer Verification Fees Costs? Besides paying for engineer verification, Energy Star has no application fees.

80 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

81 Where to Turn for Help

82 Useful Resources in Minnesota Energy 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

83 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)

84 Questions?

85 Contact Info Jill Curran (651)