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