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Michigan Energy Forum: Energy
Efficient Lighting – Now, the future
          and in Michigan

         October 4th, 2012




                                       © Ann Arbor SPARK
GE Lighting Solutions
Roadway
Lighting
Revolution
Tim Miller, Global Product Manager
GE Lighting Solutions
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
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
Roadway Evolution
 Yesterday    Today   Tomorrow
                         Node
                                    GE
                                  ―Smart‖
                                 Controller




                      Gateway




                           Network
                                                      6/
                                GE Title or job number /
                                               10/4/2012
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
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
BUSINESS ENERGY FINANCING
                      October 4




MICHIGANSAVES.ORG
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
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
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
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
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
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
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
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
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
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
Energy-Efficient Lighting
Michigan Energy Forum
October 4, 2012
Justin Palm
 President
   LED Lighting Products Since 2000

   Founding Member, Michigan Solid State
    Lighting Association

   LED Light Fixtures – Made in Michigan
2000
          ELECTRONICS CONTROL MODULES




       OVERHEAD CONSOLE LED




       TORQUE CONTROL
Early L.E.D. Products -
•   Truck and RV Lights

•    School Bus

•   Commuter Bus

•   Emergency Vehicle Safety

•   Solar Powered Bus Stop Lighting
LED BILLBOARD LIGHT – TIMES
              SQUARE

LED GARAGE LIGHT –Romney Building
2012 – Lumerica - LED Parking Lot Light –
Potential Energy-Efficient
Measures

                             Envelope
                             Lighting
                             HVAC
                             Water Heating
                             Power Systems
                             Refrigeration
                             Miscellaneous
Potential Energy-Efficient
Measures


                             Lighting
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
WHY CHOOSE LED FIXTURES
FOR LIGHTING?
    REDUCE ENERGY COSTS

    REDUCE MAINTENANCE COSTS

    DURABILITY

    ENVIRONMENTAL BENEFITS*
Contact Us



           248-543-8085
        info@lumerica.com
           Lumerica.com
Efficiency
Quality
1357 E. Lincoln Ave Madison Heights, MI 48071
Role of the Distributor

 TECHNOLOGY             CHANNEL EFFICIENCY


 LEGISLATION


 COST
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
SNAPSHOT
(1) Page Summary of
Base System vs.
Proposed System
Photometric Analysis
Quality of Light

High Pressure Sodium     T5 HO Fluorescent
Next Michigan Energy Forum:
 Advanced Energy Storage
    @ The Battery Show

     November 13, 2012




                              © Ann Arbor SPARK

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Michigan Energy Forum - Lighting - October 4, 2012

  • 1. Michigan Energy Forum: Energy Efficient Lighting – Now, the future and in Michigan October 4th, 2012 © Ann Arbor SPARK
  • 2.
  • 3. GE Lighting Solutions Roadway Lighting Revolution Tim Miller, Global Product Manager GE Lighting Solutions
  • 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
  • 9. BUSINESS ENERGY FINANCING October 4 MICHIGANSAVES.ORG
  • 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
  • 22. LED Lighting Products Since 2000  Founding Member, Michigan Solid State Lighting Association  LED Light Fixtures – Made in Michigan
  • 23. 2000 ELECTRONICS CONTROL MODULES OVERHEAD CONSOLE LED TORQUE CONTROL
  • 24. Early L.E.D. Products - • Truck and RV Lights • School Bus • Commuter Bus • Emergency Vehicle Safety • Solar Powered Bus Stop Lighting
  • 25. LED BILLBOARD LIGHT – TIMES SQUARE 
  • 26. LED GARAGE LIGHT –Romney Building
  • 27. 2012 – Lumerica - LED Parking Lot Light –
  • 28. Potential Energy-Efficient Measures Envelope Lighting HVAC Water Heating Power Systems Refrigeration Miscellaneous
  • 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
  • 34. 1357 E. Lincoln Ave Madison Heights, MI 48071
  • 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
  • 37. SNAPSHOT (1) Page Summary of Base System vs. Proposed System
  • 39. Quality of Light High Pressure Sodium T5 HO Fluorescent
  • 40. Next Michigan Energy Forum: Advanced Energy Storage @ The Battery Show November 13, 2012 © Ann Arbor SPARK

Editor's Notes

  1. $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
  2. 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
  3. 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
  4. Can provide list of events to contractors for food biz trade shows and other partnership opportunities