Rayco Energy, California's Energy Consultant and Retrofit Contractor presented on facilities energy saving for the Hotel and Lodging Industry at the California Hotel & Lodging Association's annual tradeshow on May 21, 2015 in San Jose, CA

1. Hotel & Lodging Energy Savings
FromConceptto Completion
Northern California Hotel & Lodging Conference
Doubletree Hotel - San Jose, CA
May 21, 2015

2. Speaker Information
Ricky Chu, CO-FOUNDER
Rayco Energy
Twitter: @RaycoEnergy
Email: Ricky@RaycoEnergy.com

3. EstablishedEnergy Retrofit Companyin
NorthernCalifornia
Rayco Energy
• Delivering Projects since
2008 to Niche Markets
• Multi-Family & Non-Profit
• Financial-driven projects
Projects
• $50K-$2Million in Size
• HOA’s & Apartments
• Commercial Buildings
Key Metrics Achieved
• Pay with Savings Model
• PACE Financing
• MCE, PGE, SCE, SDGE
Experienced Team
• Same ownership since 2008
• Optimal market factors for
energy retrofitting

4. What Rayco Does
We provide energy solutions with a pay
with savings approach.
VFD Retrofit – Oakland,Ca LED Lighting Upgrade, Sunnyvale,Ca
Pool Arbor Solar Project, Dublin,Ca

5. A Diversified Approach
6%
10%
35%
22%
27%
Variable Speed
Motors
Other (Energy
Storage, EV
Charging etc.)
LED Lighting
Solar PV
& Solar
Thermal
Building
Envelope
Upgrades
Our experience has shown a shift away from large scale solar projects to energy
efficiency projects. We are flexible enough to change with market factors
compared to solar only companies.

6. Our Secret Sauce – Case Study
• Option 1 – Solar Only Approach
• Energy Savings: $10,000 per year
• Total Project Cost: $74,000
• Project Components: 16kW Solar System
• Option 2 – Whole Building Approach
• Energy Savings: $10,000 per year
• Total Project Cost: $60,000
• Project Components: 10kw Solar System, Full Building LED Lighting Retrofit,
Central Building Monitoring and Controls.

7. PAST

8. Past Approach
• Going Green is “Too Expensive”
• No Budget for It.
• Single Trade Focus
• Limited Rebates by California and DOE
• Little to No Regulation on Energy
Standards

9. PRESENT

10. Filling the Void Today
Combining Simple Energy Efficiency
Measures with Solar Power
Leasing Alternatives
Energy Engineering (Peak Demand)
Balancing Modernization with Going Green
Partnering with Property Owners,
Construction Managers, Architects,
Engineers, Consultants

11. How are wedifferent from Solar City
(oranyotherbigboxsolarcompany?)
Solar City:
• No Energy Efficiency Focus
• Aggressive Sales Rep Based
• All About the Lease
• Most Solar Companies
Our Approach:
• Make the building more efficient before doing any solar
• Develop a project plan that integrates rebates and lifecycle
maintenance costs
• Partner with CM’s, Architects and PM’s to develop win win projects
• SHOW CLIENT THE MONEY (Finance driven projects)

12. Pay with Savings Approach
Annual Energy Savings: ~$40,000
Annual Loan Payment: $36,000
Cash Flow Year 1 to HOA: +$4000
Recent 40kW Solar Project and Energy Retrofit
Project Cost: $225,000
Typical Terms: 6 -10 Years
4.5%-5.5% Interest Rate

13. REBATES & TAX SAVINGS
• Solar Tax Credit
• 30% Tax Credit to Building Owner
• Expiring Dec 31 2016
• MACRS Depreciation Schedule
• Solar energy equipment is eligible for a cost recovery period of
five years.
• Rebates are geographic specific
• SF/SAN MATEO/EAST BAY Energy Watch
• Marin Clean Energy
• Silicon Valley Power

14. The Keys HOA 792 Units Walnut Creek,Ca
Common Area Bi-Level LED Lighting, New VFD Pumps
for Pools and Water Features, Pool Cover, Demand
Controls, New Pool Central Heater, In-Unit Water Saving
Measures
BayRen MultiFamily Rebate:$595,000
Energy Savings Per Year: $100,000
Project Cost: $800,000

15. KEYS GARAGE BI-LEVEL LED

16. Modernizing Facilities
Dublin Ranch Golf Community – Dublin,Ca 1400+ SFH
• Size: 400 units – Single Family Community
• Electrical Costs Current: $24,000+ (Pool Meter)
• Electrical Savings: $20,000 per year
• Challenges: Pool deck too hot in summer, electrical costs
increased 6% because of peak demand pricing, pro-active
board
• Solutions: Custom designed steel trellis system with
integrated solar pv, LED bollards.
• Result: Allowed for huge increase in the amount of residents
using the pool.

17. Before

18. Before

19. The Hook

20. During

21. AFTER (West Arbor)

22. After (South Arbor)

25. PACE Financing
• PACE (Property Assessed Clean Energy) is a simple and
effective way to finance energy efficiency & solar energy
upgrades to buildings.
• Hotel/Lodging owners are using PACE because it saves them
money and makes their buildings more valuable. PACE pays
for 100% of a project’s costs and is repaid from 1 - 20
years with an assessment added to the property’s tax bill.
• PACE financing stays with the building upon sale
• Fully Tax Deductible exactly like your property tax.

26. Example – Pasadena,Ca
Hotel Renovation Project
• A $6.8 million PACE project financed the energy efficiency
component of a full scale renovation of the DUSTIT Constance
Pasadena Hotel in downtown Pasadena, CA.
• PACE Project Size: $6.8 million
• Term: 20 years
Project Scope
• Deploy LED lighting and a new highly efficient HVAC system
• Implement a central control of HVAC and lighting system to reduce
wasted energy in unoccupied rooms.
• Increase guest comfort through sophisticated in room lighting and
heating and cooling controls.
• Decrease water use without detracting from the guest experience.

27. ProjectSizes can be $50,000- $6 Million

28. The property owner cited the following
reasons for using PACE financing:
• PACE provided up-front financing which freed up to $6.8MM worth
of working capital
• The deal was closed within 2 months of the initial application
because of the co-operation and communications between all
parties
• PACE is transferable upon sale because the assessment is tied to the
property and not the owner
• PACE financing was treated as an off-balance sheet expense,
preserving borrowing capacity for other capital projects.
• Go Green!

29. Why Rayco? We Are Local
• I am delighted with my new solar system, installed by Rayco Energy.
From end to end, Rayco handled every aspect of the process with great
professionalism and skill. Prior to purchasing the system, Rayco Co-Founder
Ricky Chu met with me twice to present different options and answer my
questions. Ricky knows his business extremely well, is not pushy at all, and most
definitely cares as much about ROI as his customers do.
The installation went extremely smoothly with no surprises, and I am loving
watching my meter run backwards.
I also appreciate that Rayco is a lean, local, owner-operated company, unlike
larger solar companies that deploy armies of very young sales reps who are good
at reciting scripts but not especially knowledgeable about their product (many
have knocked on my door over the years - hopefully the presence of solar panels
on my roof will put a stop to that.)
It's a great time to go solar, and Rayco is a great solar company.
-D. Jonas Livemrore,Ca

30. The Big Players Understand
Clay Nesler, VP of global energy and sustainability, Johnson Controls:
“In our 2013 global survey of 3,000 facility and energy management
executives, we found that 73 percent of organizations had made
internal or public goals to reduce energy consumption. We also found
that organizations that made public goals implemented 50 percent
more efficiency measures last year and were 2.7 times more likely to
increase investments next year than organizations without goals.”

31. For More Information
Ricky Chu, Co- Founder
Ricky@Raycoenergy.com
@Rayco Energy
www.raycoenergy.com