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Saving Money Through Energy Efficiency An Overview of Energy Policy Act and the Utility Company Incentive Programs Eric W. Sank, P.E., RCDD. Design Collaborative,

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Presentation on theme: "Saving Money Through Energy Efficiency An Overview of Energy Policy Act and the Utility Company Incentive Programs Eric W. Sank, P.E., RCDD. Design Collaborative,"— Presentation transcript:

1 Saving Money Through Energy Efficiency An Overview of Energy Policy Act and the Utility Company Incentive Programs Eric W. Sank, P.E., RCDD. Design Collaborative, Inc. October 25, 2012

2 2005 In an attempt to combat growing energy problems, Congress passes The Energy Policy Act, providing tax incentives and loan guarantees for energy production of various types.

3 3 Areas - Lighting - Building Envelope - HVAC Maximum Deduction - $.60/ft 2 ($1.80/ft 2 total for all 3) Renovated Area Up to Total Material Cost

4 2 Methods to Qualify 1. Building-wide Energy Model - largest deduction, more complicated to certify 2. Interim Lighting Method - simpler to calculate, better suited for lighting retrofits

5 Building-Wide Energy Model - ASHRAE/IESNA Standard Requires software modeling of building energy usage

6 Compliance - ASHRAE/IESNA Standard 90.1

7 Interim Lighting Method - Out with the old…

8 Requirements - Consumption & Building Type

9 EPACT Deduction - How do I qualify? 40% >25% PRO-RATED

10 EPACT Deduction - How do I qualify?

11 Lighting Controls - ASHRAE 90.1 (2001) - Bi-Level Switching

12 Additional Savings Methods - Rebates/incentives through local power company - Fixed rebates or custom incentive packages

13 Utility Co. Incentives Restaurant & Grocery Audit Program - Free audit of refrigeration system - Incentives for: Automatic door closers LED case lighting Motion sensor on case lighting Night covers

14 Utility Co. Incentives Commercial & Industrial Incentives - Custom program, tailored to individual customers - Retrofit only, new construction does not qualify - Must save at least 100,000 kwh/yr - Rebate of $.05 per kwh saved

15 Utility Co. Incentives Commercial & Industrial Rebates - Administered by 3 rd party (Energizing Indiana) for several utilities throughout the stateI&M, Duke, NIPSCO, & others - 3 Rebate areas: Lighting, HVAC, & Food Service Equip. Lighting - replace T12 or HID light fixtures - no LED rebates (yet) HVAC - min. efficiency of HVAC equipment, add VFDs to motors Food Service – Replace with energy star equipment -New construction qualifies for rebate Baseline is minimum design that meets building & energy codes

16 Additional Savings Methods

17

18 Utility Co. Incentives Emergency Demand Respond Rider - Customer agrees to reduce demand at critical times and receives monthly payment from I&M - Minimum 250 kva reduction - Benefit for customers with generator backup - $2.50/kw/month

19 Utility Co. Incentives HVAC Rooftop Tune-Up - Incentivesfor adding economizer, CO 2 sensors, multi-stage cooling

20 Certification & Documentation - Site Visit - Calculations - Fixtures - Saving

21 Example - 200x 200 Warehouse - Existing 400 watt Metal Halide 25 O.C watts/ea = 29,184 watts 26.1 footcandles,.73 watts/sq ft. 29, hrs/day = $31.05/day or $11,333.00/yr

22 Example - Replace 1 for 1 With 6-lamp T5HO Fluorescent Hi-Bays + Dual Level Switching + Instant On + Less Lumen Loss + Longer Lamp Life w/ea = 23,104 watts 34.0 footcandles,.58 watts/sq ft. 23, hrs/day = $22.67/day or $8,273.00/yr

23 Example - Replace 1 for 1 with (6) T5HO Fluorescent Hi-Bays + Switching + Instant On + Lumen Loss + Lamp Life w/ea = 23,104 w & 34.0 f.c. 23, hrs/day = $22.67/day or $8,273.00/yr $3,060/yr SAVINGS OF

24 SAVINGS - 24 hour operation savings$5,245/yr - Reducing the number of new fixtures to maintain current light levels leads hrs/day$9,500/yr

25 TAX SAVINGS/TOTAL COST Material costs (assume in-house labor)-$11520 Tax Savings Max. Allowable – 40,000 ft 2 × $.60$24,000 Actual Cost$11,520 Allowable Deduction$11,520 Typical Corporate Tax Rate 30% Tax Savings $3,456 I&M Rebate $51/fixture x 64 $3,264 Total Initial Savings+$6,720 TOTAL COST $4,800

26 1 FOR 1 14/day operation, payback = /day operation, payback =.9 yrs W/ EXISTING F.C. LEVELS (30% Fixture Qty 14/day operation, payback =.6 24/day operation, payback =.4 yrs PAYBACK

27 Saving Money Through Energy Efficiency An Overview of Energy Policy Act and the Utility Company Incentive Programs Thank you!


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