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Real Estate Impacts of Alternative Energy Technology


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ZeroNet Energy Webinar Series #001 - Real Estate Impacts of Alternative Energy Technology and Legislation

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Real Estate Impacts of Alternative Energy Technology

  1. 1. WEBINAR SERIES ZeroNet Energy Solutions March 16 th , 2011 #001 The Impact of Alternative Energy Technology and Legislation on Real Estate brought to you buy:
  3. 3. 2010 2015 2020 2025 2030 <ul><li>LEGISLATION </li></ul><ul><li>AB32 is the Global Warming Solutions Act of 2006, which sets the 2020 greenhouse gas (GHG) emission reductions goals (to 1990 levels) into law. </li></ul>Prop 23 would have suspended AB32, but was soundly defeated in November 2010. Jan 2011 – ARB completes rules regarding market mechanisms, including ‘cap-and-trade’. Jan 2012 – GHG rules and market mechanisms adopted by ARB (incl. cap-and-trade) take effect and are legally enforceable 2012-2015 – Yr. 2012 limits reduced 2% per year, applied to Utilities & large industrial plants. 2015-2020 – Yr. 2012 limits reduced 3% per year, applied to a wider array of businesses/fuel distributors.
  4. 4. <ul><li>LEGISLATION </li></ul><ul><li>Cap-and-Trade: The portion of AB32 imposed by the ARB for purposes of achieving the AB32 GHG reduction goal. It initially impacts Utilities and large industrial plants, then is applied to a wider business audience including fuel distributors, beginning Yr. 2015. </li></ul>
  5. 5. 2015 2020 2025 2030 <ul><li>LEGISLATION </li></ul><ul><li>AB32 is the Global Warming Solutions Act of 2006, which sets the 2020 greenhouse gas (GHG) emission reductions goals (to 1990 levels) into law. </li></ul>
  6. 6. <ul><li>Up to $0.30/sf tax deduction for interior lighting improvements. </li></ul><ul><li>Up to $0.60/sf tax deduction for high efficiency HVAC system </li></ul><ul><li>UP to $1.80/sf combined tax deduction for 50% energy reduction for whole building </li></ul><ul><li>Reduce companies’ and business owners’ energy bills by $40b per year and spur a clean energy renovation boom by implementing a tax credit up to $4.50/sf for energy improvements </li></ul><ul><li>Most of this focus is in California </li></ul>“ CARROTS” CURRENT FEDERAL TAX INCENTIVE FOR UPGRADING COMMERCIAL PROPERTIES TO ENERGY-EFFICIENT SOLUTIONS PENDING LEGISLATION (OBAMA’S ‘BETTER BUILDING INITIATIVE’) ZNE smart - fact HVAC alone accounts for 31% of the electricity usage in the United States.
  7. 7. <ul><li>30% Federal Tax Credit or Grant for Renewable Energy Production implementation (solar, wind, fuel cell). </li></ul><ul><li>MACRS Accelerated Depreciation Benefit – up to $500,000 in 1 st year. </li></ul><ul><li>Various State and local rebates and incentives. </li></ul><ul><li>Various Utility Company rebates. </li></ul><ul><li>Enhanced Real Estate Values. </li></ul>“ CARROTS”
  8. 8. ENHANCED REAL ESTATE VALUE Real Estate Value Real Estate Value Energy Reduction INCREASE IN REAL ESTATE VALUE WITH REDUCTION IN ANNUAL ENERGY COSTS $5,183 $15,548 $31,095 $51,825 $77,738 $108,833 $145,110 $186,570 $233,213 $285,038 $342,045 $404,235 $471,608 $544,163 $621,900 $704,820 $792,923 $886,208 $984,675 $1,088,325 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 ($60,000) ($50,000) ($40,000) ($30,000) ($20,000) ($10,000) $0 Source: Nevin/Watson: evidence of Rational Market Valuations for Energy Efficiency
  9. 9. SAMPLE ANALYSIS John Manion Senior Vice President (949) 468-2306
  11. 11. SAMPLE ANALYSIS <ul><li>Plus immediate $637,456 increase in Real Estate Value. </li></ul><ul><li>Plus $320k+ in 1 st year accelerated depreciation. </li></ul><ul><li>Plus $63k+ savings in 1 st year energy cost. </li></ul>
  12. 12. SOME OF THE CONSEQUENCES <ul><li>PROS </li></ul><ul><li>Dramatic increases in renewable energy investment, with a positive economic impact that favors California. </li></ul><ul><li>Dramatic increases in CRE improvements and transactions, and resultant high multiplier effect. </li></ul><ul><li>Energy savings reduces cost-of-business, offsetting the forced costs of implementation. </li></ul><ul><li>Increased loan size limits to promote energy upgrades and retrofits. </li></ul><ul><li>U.S. begins to reduce foreign oil dependency and adopt energy efficiency measures that are prevalent in many other industrialized countries. </li></ul><ul><li>CONS </li></ul><ul><li>Higher tax burdens with more government involvement and debt. </li></ul><ul><li>Some ‘clean energy’ technologies cause long-term side effects (car batteries, etc.). </li></ul><ul><li>Lenders are slow to react. </li></ul><ul><li>Powerful industries/lobbyists delay implementation. </li></ul><ul><li>Flawed implementation rules associated with ‘cap-and-trade’ and other programs. </li></ul><ul><li>Initial higher costs of business may drive jobs from California. </li></ul>
  13. 13. ZeroNet Energy Solutions (ZNE) offers ENERGY A nalysis, R eduction, P roduction and M onitoring solutions for the following business segments: <ul><li>Industrial </li></ul><ul><li>Commercial </li></ul><ul><li>Residential (master plans) </li></ul><ul><li>Government / Military / Public </li></ul><ul><li>Transportation </li></ul><ul><li>Hospitality </li></ul><ul><li>Continuing Care </li></ul><ul><li>Energy Farms </li></ul><ul><li>Non-profits </li></ul>
  14. 14. <ul><li>Measure your energy demand </li></ul><ul><li>Propose cost effective solutions inclusive of all tax credits, grants, deductions and rebates </li></ul><ul><li>Implement the solution and optimize your system </li></ul>ZNE : OUR PROCESS
  15. 15. Traditional HVAC Systems Inefficient! Set Temp 60Hz Compressor 0Hz 90º F 73º F Long duration! Uncomfortable! 75º F 77º F Conventional ON/OFF control Schematic Design Phase Too cool! Too warm! Too cool! Too warm! ON OFF OFF ON OFF ON High starting current creates energy loss
  16. 16. INVERTER Compressor Advantages Set Temp 75º F 60Hz Compressor 0Hz 150Hz 30Hz Room temperature is steady Adjust rotation speed precisely to keep steady room temperature 90º F ON Very Efficient! Comfortable ! Very Fast! Smooth INVERTER control Schematic Design Phase Starting current at low level High rotation speed up to 100-120Hz generates accelerated performance! Keeps rotation speed at low levels after temperature is stabilized.
  17. 17. ENERGY REDUCTION HVAC (cont.) * Based on EnergyPro Building Energy Analysis | Office Building
  18. 18. ENERGY REDUCTION HVAC * Based on EnergyPro Building Energy Analysis | Office Building V ariable R efrigerant F low (VRF)
  19. 19. ENERGY REDUCTION HVAC (cont.) * Based on EnergyPro Building Energy Analysis | Office Building VRF Systems Worldwide
  20. 20. <ul><li>LED & CFL LIGHTING </li></ul><ul><li>Converting to LED & CFL based lighting offers an 80-600% energy </li></ul><ul><li>savings in the category. </li></ul><ul><li>Why? </li></ul><ul><ul><li>Long Lasting </li></ul></ul><ul><ul><li>Durable </li></ul></ul><ul><ul><li>Cool </li></ul></ul><ul><ul><li>Low maintenance </li></ul></ul><ul><ul><li>Highly efficient </li></ul></ul><ul><ul><li>Cost-effective </li></ul></ul><ul><ul><li>Practical for use with Solar </li></ul></ul>ENERGY REDUCTION LIGHTING ZNE smart - fact Many cities in the US are replacing their incandescent traffic lights with LED arrays because the electricity and maintenance costs can be reduced by 80% or more.
  21. 21. ENERGY PRODUCTION SOLAR Rooftop/Ground Mount Streetlights Carport
  22. 22. ENERGY PRODUCTION SOLAR (cont.) Solar Panel Luminaire Control Board Charge Controller Batteries Motion Sensors
  24. 24. Mark Boud – [email_address] Glen Goodsell – [email_address] Michael Story – [email_address] For a copy of today’s webinar, or a complimentary energy analysis: Contact Michael Story | 949-872-2655 [email_address] ZNE ENERGY SERVICES A nalysis | R eduction | P roduction | M onitoring