Comprehensive Energy Evaluation<br />By Paul Hulsey, VP of Energy Sales<br />Core Energy Group<br />
Topics<br /><ul><li>Why Energy Conservation?
Where do we start?
Historical Utility Usage / Benchmarking</li></ul>Identify Energy Conservation Opportunities<br /><ul><li>Building Envelope...
The Energy Efficient Commercial Buildings Tax Deduction
Questions</li></li></ul><li>Why Energy Conservation?<br />Commercial buildings account for 40% of total U.S. energy consum...
One Year of Electricity consumption History<br />
One Year of Gas Consumption History<br />
One Year of Water Consumption History<br />
Identify Conservation Opportunities<br />
Thermal Imaging to locate Heat Lose<br />
Examples of Energy Efficient Upgrades<br />• Lighting<br />– Energy efficient lighting systems (reduced wattage)<br />– Li...
Examples of Energy Efficient Upgrades (continued)<br />•HVAC<br />– High efficiency heating systems (condensing boilers)<b...
EPAct 2005 and Section 179D<br />What is EPAct 2005?<br />The Energy Policy Act of 2005<br />Added section 179D (the Energ...
Lighting Study for EPAct 2005<br />
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Core energy group comprehensive energy evaluation

  1. 1. Comprehensive Energy Evaluation<br />By Paul Hulsey, VP of Energy Sales<br />Core Energy Group<br />
  2. 2. Topics<br /><ul><li>Why Energy Conservation?
  3. 3. Where do we start?
  4. 4. Historical Utility Usage / Benchmarking</li></ul>Identify Energy Conservation Opportunities<br /><ul><li>Building Envelope, HVAC, Operations and Maintenance, Lighting Interior and Exterior and Site Specific Equipment and Machinery, Water and Renewables.</li></ul>Federal, State and Local Utility Incentives<br /><ul><li>EPAct 2005 and Section 179D
  5. 5. The Energy Efficient Commercial Buildings Tax Deduction
  6. 6. Questions</li></li></ul><li>Why Energy Conservation?<br />Commercial buildings account for 40% of total U.S. energy consumption<br />In a typical office building, energy use accounts for 30% of operating costs, the largest single category of controllable costs.<br />According to the U.S. Department of Energy, lighting represents 40% of the average commercial building’s electric bill, followed by motors/HVAC (40%) and other equipment (20%).<br />Energy conservation = reduced consumption = $ (cost savings) <br />Typical Savings of 25% to 35% of Annual Utility Costs with an investment that pays back in 1 year of less.<br />
  7. 7. One Year of Electricity consumption History<br />
  8. 8. One Year of Gas Consumption History<br />
  9. 9. One Year of Water Consumption History<br />
  10. 10. Identify Conservation Opportunities<br />
  11. 11. Thermal Imaging to locate Heat Lose<br />
  12. 12. Examples of Energy Efficient Upgrades<br />• Lighting<br />– Energy efficient lighting systems (reduced wattage)<br />– Lighting control system (occupancy sensors/dimmable lighting)<br />• Envelope<br />– Energy efficient windows (Low-E)<br />– Highly reflective roofing<br />– Enhanced roof and wall insulation<br />– Light shelves<br />
  13. 13. Examples of Energy Efficient Upgrades (continued)<br />•HVAC<br />– High efficiency heating systems (condensing boilers)<br />– High efficiency cooling systems<br />– Direct and/or indirect evaporative cooling systems<br />– Energy recovery units<br />– Geothermal heat pumps<br />– Premium efficiency motors<br />– Variable speed fans and pumps<br />– Building management systems<br />– Solar systems (PV and water)<br />
  14. 14. EPAct 2005 and Section 179D<br />What is EPAct 2005?<br />The Energy Policy Act of 2005<br />Added section 179D (the Energy Efficient Commercial Buildings Tax Deduction) to the Internal Revenue Code<br />Is a special financial incentive created and designed to reduce the initial cost of investing in energy-efficient lighting and other building systems via an accelerated tax deduction.<br />Allows building owners (or tenants) to write off the complete cost of upgrading a building’s indoor lighting, HVAC/hot water and building envelope in the year the new equipment is placed in service, capped at $1.80 square foot. Alternately, the owner (or tenant) could upgrade one of these three systems capped at $0.60 square foot. <br />
  15. 15. Lighting Study for EPAct 2005<br />
  16. 16. Federal, State and Local Utility Incentives<br />Both local utility companies have what they call Prescriptive and Custom Incentive programs for energy efficient upgrades done to commercial and industrial buildings.<br />Program details and incentive amounts are very similar<br />Program incentives are limited customer, per facility and per year. The customer is defined as the business entity, with a taxpayer ID number, that is responsible for the utility bill for one or more facilities.<br />A facility is defined as a single meter or multiple meters on a single property for which a single customer is responsible for paying the electricity and/or gas bill.<br />(DTE example) Customers saving electricity may receive up to $150,000 per facility per program year; the total customer cap (across all facilities saving electricity) is $500,000 per program year. Customers saving gas may receive up to $25,000 per facility per program year; the total customer cap (across all facilities saving gas) is $100,000 per program year.<br />
  17. 17. So What Does all This Mean with Regards to Upgrading the XYZ Building?<br />Based on what we know and what is specified to be installed/upgraded to the lighting and HVAC systems within the building, the potential tax deduction would be between $0.55 to $1.05 per square foot<br />This means the benefit could be between $75,984.15 - $145,060.65<br />In addition, incentives from DTE Energy & Consumers Energy would be applicable, most likely under their Prescriptive programs<br />Increased ROI<br />
  18. 18. Questions?<br />Paul’s contact info<br />(888) 706-4646 Ext. 321 office<br />(248) 515-2320 mobile<br />phulsey@coreadvisors.net<br />

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