Energy efficient lighting could be the next big thing for investors and manufacturers in Michigan. Lighting efficiency upgrades are estimated to yield 20 times the ROI as compared to other energy investment alternatives. Michigan is projected to invest $270 million annually in energy efficiency projects by 2015. Come to the Michigan Energy Forum to learn how businesses and organizations are working to make Michigan the industry leader in energy efficient lighting.
4. We are in a Lighting Revolution
We have been here before...
1879 - 1940 1960s 1980s 1990s 21st Century
1st Transformation 2nd Transformation 3rd Transformation
More Light Greater Efficiency Total System Solution
Full System efficiency
Rapid LED Adoption
Hyper competition from new
and existing players
Mixed manufacturer ―say-do‖
Regulatory pressure but lagging
Industry performance standards
Introduction of controls
4
GE Lighting: IB Review
2//24/2012
5. Manufacturers Must Provide the
Value That Customers Need
Trends Customer Needs Supplier Must Do’s
Rapid LED Adoption … Education & Consultative input Services
70% penetration by 2020 - Based on current and future - up front education and advice
- Haitz’s Law trends … - expertise in design, app eng,
- 25% cost improvement/yr - Tailored to their apps project mngmnt
- 35% lumen improvement/yr - Relevant to their decision - coordination of install and maint.
criteria … ROI, light quality, operations
Hyper competition from new sustainability
And existing players … mixed Systems expertise & continuity
Manufacturer ―say-do‖ Integrated LED Systems - ―bridge‖ from old to new tech
Smart, efficient and configurable - LED + thermal + optical
Regulatory pressure but lagging products + electronics + ctrls excellence
Industry performance standards - ―future proof‖ … flexible upgrades
Partners with reliability, quality,
and longevity Ease of Ecosystem management
- one stop solutions shop
- reduce complexity and waste
Navigating the LED Shift … Customers Need to get it right!
5
GE Lighting: IB Review
2//24/2012
6. Roadway Evolution
Yesterday Today Tomorrow
Node
GE
―Smart‖
Controller
Gateway
Network
6/
GE Title or job number /
10/4/2012
7. Next Generation - Controls
Node GE ―Smart‖
Controller Market Delighters
Solar – on grid / off grid
Wireless communication
Customizable programing
Gateway
Monitoring
Networked
Motion control
Dimming
Light degradation compensation
End of Life indicator
Fault logging
Adaptive / learning
Network
7/
GE Title or job number /
10/4/2012
8. Summary
- The Lighting Revolution is real … 70% LED
by 2020
- Customer intimacy will be key to value
creation … it starts with the application!!
- Suppliers must deliver what matters most to
customers
8/
GE Title or job number /
10/4/2012
10. BUSINESS ENERGY FINANCING:
KEY FEATURES
• Commercial financing for energy efficiency
improvements through Ervin Leasing
– Special below-market rates and terms through
Michigan Saves program
– Available only through network of Michigan Saves
authorized contractors
• Available to all businesses with focus on food industry
• Statewide
• Fast, easy process
MICHIGANSAVES.ORG
11. FINANCING DETAILS
• Leases of $2,000–$150,000
– Equipment lease or equipment finance agreements
• Rates as low as 5.9%; tiered based on risk, project
size, and term
• Flexible terms ranging from 2–5 years
• Streamlined application and approval
• Prefunding for approved contractors available for
transactions $25,000 and up
• Low fees
MICHIGANSAVES.ORG
12. TYPICAL
IMPROVEMENTS
• Lighting
• HVAC
• Refrigeration
• Kitchen / cooking
equipment
• Controls and preventative
maintenance
• Insulation, windows, and
Photography by Marvin Shaouni
doors
SPECIAL OFFER!
$2,000 rebate for 20% energy savings
(only for businesses in food industry)
MICHIGANSAVES.ORG
13. INCENTIVES
• Michigan Saves offers $2,000 to reduce building’s
energy consumption by 20%
– Whole building MMbtu (electricity and natural
gas, fuel oil, and/or propane, as applicable), not utility
cost savings
– Requires energy audit with review by Michigan Saves
• Utility rebates
• Federal commercial EE tax credits
• Other—USDA, SmartBuildings Detroit, Rebuild Michigan
assessments, etc.
MICHIGANSAVES.ORG
14. PREFUNDING
• Contractor receives special approval from Ervin Leasing
for prefunding
• Contractor signs Contractor Prefund Agreement
• Customer signs additional document agreeing to pay
interest charges from prefund date to job completion
date
• Maximum prefunding is 50%
• Minimum transaction size is $25,000
• Prefunding is optional
MICHIGANSAVES.ORG
15. MICHIGAN SAVES QA PROCESS
• Review documentation
– Certificate of Completion
– Specification Sheet
• Site inspections upon project completion
– Inspect installations against Specification Sheet
– Will try to coordinate with Ervin, utilities, and other
programs to avoid multiple inspections at single
location
MICHIGANSAVES.ORG
16. MARKET RESEARCH:
IMPORTANT FEATURES FOR FOOD INDUSTRY
• Low interest rate and flexible payments
• Easy application and approval
• ROI less than three years
• Qualifying for other incentives, rebates
• Monthly energy savings > finance charge
MICHIGANSAVES.ORG
17. MARKETING APPROACH
• Program designed to be marketed by contractors and
other partners (e.g., utilities, state of MI)
• Marketing support from Michigan Saves with focus on
food industry
– Michigan Saves ads, trade shows, and other
promotion through food trade associations
– Direct outreach to businesses in some cases
– Marketing materials available for contractors:
brochure, $2,000 rebate ―coupons‖, posters for trade
show
MICHIGANSAVES.ORG
18. CUSTOMER BENEFITS
• Turn-key
– Speed of process
– Simple, easy, and convenient
– Funding available
• Great deal
– Below-market rates & terms
– Lowest available payments
– Lowest cash down
• New source of capital
– No need to disrupt current bank lines
• Cash rebate
MICHIGANSAVES.ORG
19. RESOURCES AND CONTACTS
• Go to www.michigansaves.org
– Contractor application packet and instructions
– Program guidelines and forms
– Training details and online RSVP
– Program updates
• Key contacts:
– Program coordinator: Todd
O’Grady, togrady@michigansaves.org or 734-494-2126
– Contractor application and processing: Todd
Parker, registration@michigansaves.org or 517-484-6474
– Ervin Leasing: Doug Jones, Jones@ErvinLeasing.com; (800)
348-9196
MICHIGANSAVES.ORG
30. WHY LIGHTING FOR ENERGY
EFFICIENCY?
1. EASY TO ASSESS
2. QUANTIFIABLE RETURN ON INVESTMENT
3. ATTRACTIVE ROI/LOWER COST –
COMPARED TO OTHER PROJECTS
4. EASY TO IMPLEMENT – RETROFIT EXISTING
FIXTURES
5. ENVIRONMENTAL BENEFITS
31. WHY CHOOSE LED FIXTURES
FOR LIGHTING?
REDUCE ENERGY COSTS
REDUCE MAINTENANCE COSTS
DURABILITY
ENVIRONMENTAL BENEFITS*
32. Contact Us
248-543-8085
info@lumerica.com
Lumerica.com
35. Role of the Distributor
TECHNOLOGY CHANNEL EFFICIENCY
LEGISLATION
COST
36. Support Functions
Knowledge Sharing and Engineering Support
Educational Seminars & Training Classes
Safety and Lean Manufacturing Assistance
Storeroom Management Programs (CAP)
eCommerce Solutions
Construction Solutions
Vision & Traceability Group
$2,000paid by Michigan Saves to business owner when job complete; can use to offset cost of audit or other costs Michigan Saves marketing through food trade associations and other partners
NOTE on $2,000 INCENTIVE: Audit needs to identify per measure savings and costs and identify package(s) of measures that meet 20%Extensions may be granted if progress being made - cannot hold funds indefinitely $2,000 per building/facility – no limit on how many buildings per businessRebate NOT applied to financing Rebate can be assigned to contractor Rebate can be combined with utility rebates Additional details on reservation and payment process discussed later under forms sectionContractors expected to combine financing with all available utility rebates and other incentives such as manufacturer discounts and federal tax credits for commercial buildingsMichigan Saves resources to help businessesLinks to utility rebate programs and tax credit details for businesses on Michigan Saves websiteProgram coordinator (Todd O’Grady) to help identify partnering programs
QA objectives – Verify that work is completeVerify that there are no fraudulent actions Confirm customer satisfaction Verify that program requirements are met Qualifying improvements Follow audit and installation guidelinesForms submitted accurately and completelyTest of building energy systems
Can provide list of events to contractors for food biz trade shows and other partnership opportunities