Energy Efficiency in Corporate Facilities City of Industry April 7, 2009
The Cleanest and Greenest Energy Is Energy Not Used Energy efficiency is the quickest, safest, most cost-effective way to immediately reduce the emission of greenhouse gases Immediate Verifiable Economical Lime:Less Is More Efficient
Who Are We? Leading provider of energy efficiency and renewable energy design/build solutions with: National footprint 370 employees in 14 offices throughout the U.S. Broad array of services energy engineering, lighting, HVAC, water, weatherization, renewable energy Blue-chip customer base Over 75 years combined experience in energy conservation and efficiency
What Do We Do? Design, engineer, and install proven best-of-breed technologies in existing facilities. These measures: Reduce direct operating expenses Provide immediate financial results with high ROIs Improve work space and employee productivity Enhance the value of the facility Reduce environmental footprint
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 5
Opportunity Services Lime is focused on delivering high ROI energy efficiency solutions that target some of the largest energy expense line items on its customers’ P&L. Energy Savings HVAC/ Mechanical Electrical Lighting Water Weatherization Renewable Energy
Delivery Process Performance Period Development Origination Implementation
Handle documentation for rebates and incentives
Why Lime Energy? Why we win… Intellectual capital and experience to identify and analyze opportunities Systems and processes in place to deliver efficiently & cost-effectively Strong, referenceable relationships Ability to develop on a national scale but implement locally
Promote energy efficiency as available now – no need to wait for promising new technology.
No matter how you measure financial merit, energy efficiency probably has the highest return on investment of anything you can do in your business.
Other Reasons Beyond Payback A recent survey of 538 senior business executives and 18 in-depth interviews that “almost three-quarters (73%) of firms polled will make energy efficiency a high or moderate priority over the next two years in a bid to cut costs.” A warehouse operation in Seattle improved their selection accuracy from 99.4% to 99.9% after the lighting retrofit. An office tower will be using their new lighting fixtures to reduce glare and avoid worker complaints – and the new fixtures will be paid for out of energy savings. A food products factory in Chicago installed the new lights when their primary customer asked them what they are doing to help the environment.
Energy Efficiency Today Building energy costs run $1.50 to $3.50 per square foot. What is your energy cost per square foot? Find out and track it. Create a team to investigate options. Act on projects that have a good return on investment
Your Energy Costs Your energy cost today does not have to be as high as it is. Make an objective Manage as if you want to reach that objective
Seven Reasons for Energy Efficiency Reason number 1 Don’t throw your cash in the trash
Seven Reasons for Energy Efficiency Reason number 2 Your employees will be happier “The new lights seem to have energized the workers. I have been here 20 years and I can’t say enough good things about how this went, plus it was very economical with a fast payback,” said Bill Fuson, Facilities Maintenance Manager, Orcon Aerospace Co.
Seven Reasons for Energy Efficiency Reason number 3 Tax deduction
Seven Reasons for Energy Efficiency Reason number 4 You get new stuff
Seven Reasons for Energy Efficiency Reason number 5 Your facility is more valuable “If you look at the impact, you are getting higher rent, lower energy costs and lower vacancy costs,” says [CoStar CEO Andy] Florence. “You have three things working on the income statement to the positive. You are going to have a much higher valuation of the building.” Higher Building Valuations How much higher valuation? The report found that an ENERGY STAR building sold for an average of $351.60 per square foot in 2006, 30 percent higher than a non-ENERGY STAR building, which sold for an average of $270.15 per square foot. Since 2003, ENERGY STAR buildings also have been appreciating in value faster than non-ENERGY STAR buildings. Source: CoStar report on Energy Star performed for the US DOE
Seven Reasons for Energy Efficiency Increase in NOI $100,000 = = 0.10 Cap Rate Reason number 5 (continued) Net Operating Income and Value Go UP Increase in Value = NOI goes up because expenses go down. Imagine a project that saves $100,000 per year. $1 million Also, a higher NOI helps you on your debt coverage ratio.
Seven Reasons for Energy Efficiency Reason number 6 Do some publicity Join the companies that make a point to promote their sustainability agenda to their customers.
Seven Reasons for Energy Efficiency Reason number 7 Make it a financial winner
Some Good Projects Available Today Lighting retrofit – production area Metal halide to fluorescent has a 30% to 50% return on investment – save $0.50 to $1.00 per sf every year. Lighting retrofit – office area Even if you have T-8 you can get a 20% to 30% ROI and upgrade your fixtures to indirect/direct for less glare. Lighting retrofit – dock area, outdoor 30% return on investment and lights last a decade.
Some Good Projects Available Today HVAC Controls Use web-based tools to be sure units only operate when you want them to, and watch for signs that they need service HVAC unit change-out For units that are more than 10 years old, consider replacing them for higher efficiency and less maintenance Process motor Are your motors that operate all of the time the highest efficiency possible? Air compressor Compressed air networks leak and have giant pressure drops if they have been added onto – don’t pay for leaky air and higher pressure
Motors and Drives Speed Kills so change your speed if you can If you pump twice as much, you will use 8 times more energy. If you pump ½ as much, you will use 1/8 of the energy. Use the premium efficiency motors if over 4,000 hrs/yr Use the right belts (V, cogged, or synchronous) Be sure you are pumping the right amount and with the best choice motor and drive.
Operate at the lowest pressure allowed Find and eliminate leaks Reduce system pressure drop (2 to 4 PSI is ideal) Re-circuit if needed Use lower delta P devices such as oil separators Improve part-load performance Right-size the compressor and tank Variable speed drive Replace timer solenoid drains with zero air loss drains Replace outdated compressors and motors Compressed Air
Our industry is hiring while others are firing. Our installations have a payback. Our product improves the air quality and fights global warming. Energy efficiency makes companies more competitive. Significant federal money is available to our industry. Our installations provide benefits beyond simple payback. The Future of Energy Efficiency