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Practical Energy SavingsPractical Energy Savings for Main Street B iBusinesses
Eileen Westervelt, PE CEM SEDAC
University of Illinois at Urbana-ChampaignUniversity of Illinois at Urbana-Champaign
S C C fSEDAC Client Profile
Medium Sized Small Businesseso 8,000 sf floor space
Decatur Club at 158 West Prairie Avenue.o $50k/yr utility billsPublic Sector Businesseso City Buildingso Schools (K-12, community colleges)o Schools (K 12, community colleges)
SMain Street Businesses1-2 story brick1-2 story brick> 50 yrs2400 sf2400 sfCommon wallsSi lSingle pane windows, minimal insulationinsulationOffice, Retail, RestaurantRestaurant, Residential
Energy IssuesIncreasing CostsIncreasing CostsDepleting SuppliesIncreasing Dependence on ForeignIncreasing Dependence on Foreign Sources
Increased Environmental Cost –Pollution, Climate Change, Wastes
Disproportionate Use compared to population & suppliespopulation & supplies
Energy Facts
W h 5% f th ld’ l tiWe have 5% of the world’s population, we use 25% of its productionIncreasing Competition from growing world population & increased standards of livingDomestic Supplies pp(Reserves/Consumption)
3.4yrs oil , 8.4 yrs natural gas3.4yrs oil , 8.4 yrs natural gas
U S E Fl 2006U.S. Energy Flows 2006
Source: DOE/EIA 2007
30US Domestic Energy Production
25
20
15
Qua
ds
10
5
01949 1954 1959 1964 1969 1974 1979 1984 1989 1994 1999 2004
The Path to Energy SSustainability
EfficiencyRenewable EnergyEconomic Attitude Adjustmentso Recognition of External Costs/Benefitsgo Life Cycle Costingo Management of Cash Flowso Management of Cash Flows
EfficiencyEfficiency Cost of efficiency down, price of energy up.Efficiency = cleanest, cheapest, safest, and y , p , ,most secure source energy we have.Substantial efficiency potential untapped.y p ppIncentives EPAct 2005 = tax deductions and credits for energy efficiency and renewable energy. IL Utility Rebates (Commercial Sector already reserved in ’08. IL total: $53M, Next appropriation 6/09:$111M, ’10: $171M)
f C CLife Cycle CostingRecognition that first cost of equipmentRecognition that first cost of equipment is not the only bill to pay
Additi llAdditionally…Operations (fuel and labor) Maintenance (parts and labor) RemovalRemovalDisposal or Salvage
f CManagement of Cash Flows
Pay more now, save year after yearAllow savings to pay for financingg p y gRoll Quick Savings into Long Term Investments
G PlGame PlanENERGY STAR Guidelines For Energy Management
fPerformance Assessment
A ti f E U d C tAccounting of Energy Use and CostsComparison with Similar FacilitiesGoals
Tools:Tools:Energy Star Target Finder
(>5ksf)(>5ksf)Business Energy Analyzer
www.energyguide.com
Energy and Cost Performance Indicators –EUI, ECI
P i i lPrincipal Building Activity
EUI ECI Target Max LPD
kBtu/sf/yr $/sf/yr W/sfy yResidential (IL) 54 1.10
R t il 74 1.93 1.3W/sf+0 9W/ f di lRetail 74 1.93 +0.9W/sf display
Office 93 2.23 0.9W/sfFood Service 258 6.33Service
Typical Energy Costs$/kwh Elec $/ therm NG
Target Svgs ROI
30% 30%$0.11 $1.20
30% 30%
Energy Use IntensityCEnergy Cost Intensity
EUIEUI = 2
ECI = 2
GEnergy Guide
www.energyguide.com
GEnergy Guide
CUtility Cost Breakout
Office RetailHtg6%
ClgOther9%
Restaurant
Htg 11%
Clg 12%
Eqpt20%
Other 7%
Htg 19%Refrig
2%
Eqpt6%
Other 7%
Clg3%
Vent5%
SHW7%
Refrig
Eqpt2%
9%
12%
Vent7%
SHW4%
Ltg
0%
Refrig1%
Clg 11%
Vent5%
SHW3%
Ltg46%
Cook1%
%
Ltg15%
Cook33%
20%
g38%
Energy Guide ECRMsEnergy Guide -ECRMs
Create and Implement a Plan
Energy Cost Reduction Measures(ECRMs)( )
Apply Tried and True MeasuresGet Specialized AssistanceGet Specialized Assistance
S f SSure Bets for Energy Savings
Clean it upTune it up pTurn it downTurn it offTurn it offSeal it up
Investment HorizonsECRM Typical Return of
InvestmentInvestment
Motion Sensors 0.5 yr
Tune Up 1 yr
Programmable T-Stat 1 yr
Lighting 1-5yrs
Sealing 2 yrs
Window Films/ Film Windows
3 yrs
Insulation 7 yrs
HVAC replacement 12 yrs
Renewable Energy 20 yrsRenewable Energy 20 yrs
Windows 25 yrs
R d d ECRMRecommended ECRMs Upgrade Lighting
Zone LightingChange to more efficient sources (from incandescent and old fluorescent to Super T8, CFL LED CMH HIR – display only)CFL, LED, CMH, HIR display only)Add Lighting Controls (Occupancy, photo, dimmer, timers)
Improve Operation and Control of HVAC p pHeater tune-up, Programmable T-stat, Radiator valves, Zoned HVAC
Upgrade Envelope (sealing, insulate, window treatments)Upgrade HVAC and Appliances
CRecommended ECRMs-Restaurant Kitchen Energy Management gy g
Reduce IdleRefrigeration
Plastic strip doorsPlastic strip doorsHigh efficiency fan motorsFloating heat pressure
Modulated Kitchen VentilationDemand Control
Low Flow Pre-Rise SprayerLow Flow Pre Rise Sprayer
Retail Lighting Zones
Existing Lamp Retrofit Lamp
50 W Halogen PAR Accent Light
20% fewer 40W Halogen-IR PAR
50 W Halogen PAR Ambient Light
13W CFL PAR
60W Incandescent
14W CFL
20 W Exit lamp
p1.5 W LED
0.48W Mini Incandescent Holiday Lights 0.08W LED Holiday Lights
E i ti L /B ll t R t fit L /B ll tExisting Lamp/Ballast Retrofit Lamp/Ballast
28W High Efficiency T-834-40W T-12 Lamps w/
Magnetic Ballasts
28W High Efficiency T-8 Lamps w/ Electronic
Ballasts
65 W I d t R fl t (Di bl )
Two 9W CFL w/ additional track for bi-level 65 W Incandescent Reflector (Dimmable) lighting (non-dimmable)
40W Flame Tip
8W Cold Cathode Flame Tip
CLighting Controls
OccupancyPhotoDimmingTimersTimers
Improved Operation and C CControl -HVAC
Heater tune-up, Programmable T-stat, Radiator valves, Zoned HVACZoned HVACFree cooling
CCeiling Fans
Upgrade EnvelopeBuilding Envelopes (beyond code):Building Envelopes (beyond code):
Increased insulation levels.I filt ti i li d d t liInfiltration air sealing and duct sealing.Better windows (Double Pane, Low-E, U-values 0 4 or less)values 0.4 or less).
Equipment ReplacementEquipment Replacement
Heating Ventilating & AirHeating, Ventilating, & Air-Conditioning:
Sealed combustion high efficiencySealed combustion high efficiency boilers and furnaces 92%+.High SEER/EER Air-Conditioning g gunits, SEER15+, EER11.5+.Geothermal heat pumps.Ventilation heat recovery systems.Demand control ventilation, or scheduled ventilationscheduled ventilation.
Upgrade Equipment
Energy Star appliances
Window Treatments
Low-e Window films2 pane film windowspStorm windowsNew windowsNew windowsAwnings
Energy Star G f– A Galaxy of Resources
Product
Product LabelingEnergy Management MethodsBenchmarkingRecognitionecog t o
Getting Technical AssistanceGetting Technical Assistance
SEDAC 1-800-214-7954Small Business or Public Sector8000 sf8000 sf> $50k/yr utility bill
SEDAC Service Providers ListList
SSetting PrioritiesNeedsNeedsTechnically AppropriateBi t E UBiggest Energy UsersBiggest Energy CostsWork from End Use Back to Central PlantCapital for Down PaymentRolling Quick Savings into Long Term Investments
Economic IndicatorsInternal Rate of
Return (IRR & ROI)Net Present Value
(NPV)Simple Payback
(SPB)
Annual interest yield of project during its
lif ti
Total value of project in today’s dollars
# of years to recoup additional costs from
l i
Meaning
etu ( & O )(NPV) (SPB)
10 % IRR$1.5 million NPV5 year simple payback
Example
lifetimeannual savings
IRR > discount ratePositive indicates profitable project
Payback < n yearsCriteria
Can be fooled when
cashflow goespositive-negative-
Good measureUser must specifydiscount rateLong time horizon
MisleadingIgnores financing
& long-term cashflows
Comment
positiveShorter horizon
Use when cash istight
Financial Incentives
GrantsTax CreditsTax Deductions
Commercial Tax Deduction( / )-EPAct 2005 (thru 12/13)
Energy SavingsCategory
Energy Savings
(vs. ASHRAE 90.1-2001)Incentive
Whole Building 50% Deduction of up to $1.80/sq. ft.
Lighting, HVAC/hot water, or Envelope 16.7% per system
Deduction of up to $0.60/ sq. ft. per
system
Lighting savings of at least 25% 25-50%
Sliding scale: $0.30/sq. ft. for 25% savings to $0.60/sq.ft. for q40% and above
Rebates
State Rebate –Solar Thermal 30% up to $10k, 60sf+Solar PV 30% up to $10k , sys> 1kW
Utility Rebates – Electric SavingsPrescriptive MeasuresCustomized Projects
Rebates for NG in Future
Illinois Portfolio Std – ECRM Rebates
State law for Energy Efficiency (EE) and Renewable Energy (RE)
IL Utility Requirements:Elec svgs (kWh) of 0.2%-2%
(2008-2015)(2008 2015)Renewable Power 2-25%
(2008-2015)
Rebates of Tariffs to Customers
IL Utilty Rebate Incentive LevelsIL Utilty Rebate Incentive Levels
StandardSet incentives for a standard list of equipment upgradesupgrades
Custom7 cents/kWh for measures with 1-7 year paybacky p y
Caps$100,000 per program year (June to May)≤ 100% of Incremental Measure Costs (added cost of increasing efficiency beyond standard replacement option)replacement option)≤ 50% of Total Project Costs
ReviewImpetus for Change in Energy MgtImpetus for Change in Energy MgtInformed Response
CommitmentCommitmentAuditEfficiency Improvement OptionsEfficiency Improvement OptionsTechnical AssistanceEconomicsco o cs
Follow Through
Illinois Smart Energy DesignIllinois Smart Energy Design Assistance Center
Web site: www.sedac.org
C t tContact: info@sedac.orgo@sedac o g1-800-214-7954
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