Building a case for energy efficiency upgrades

Replies to This Discussion

Permalink Reply by Hal Skinner on July 6, 2011 at 8:56am

The fact that we told them and showed them how we were going to drop their cooling and heating costs in their 200,000 sq ft plant by over 50%, then we did, that certainly helped.  We gave them something to feel and see to demonstrate our product and service.

 

http://www.ct-texas.com   

Permalink Reply by Doris Ikle on July 6, 2011 at 9:15am

Hal, you are absolutely right that "a proposal must be worded so that to NOT sign on the dotted line would be a very bad financial decision".  For the residential sector, where we are faced with consumers rather than investors, an energy report must show that the customer can either continue paying for wasted energy, or make improvements that cost less than the wasted energy. The data we use is to compare the monthly energy savings (at today's prices) for the group of improvements recommended, with the monthly cost for financing the improvements (including interest charges). By comparing one year's savings to one year's costs rather than comparing one year's savings to the total costs, the relevant comparison becomes evident. As a result, the implementation rate soars from about 20% to 80%.     

Permalink Reply by Hal Skinner on July 6, 2011 at 9:29am

Hi Doris. 

 

We always note the fact that a reduced load on the heating and cooling system also extends the life of the AC / heating unit.  If we can get the unit load reduced to the point that it will cycle off and on where it does not now, we just extended the life of whatever that unit had left by 100%.  We also try and find out how much it would cost to have a newer unit installed and what it would mean to them to put that expense off for 5 years, 10 years, etc.

 

On residential we try to establish a rough annual dollar amount.  We then draw that out to 3 years savings, 5-years and then however many years before they expect to retire.  "Could you use an extra 150 grand in 15 years when you retire?  Would that amount allow you to retire a year or two earlier?"  That one always gets their gears churning.

 

http://www.ct-texas.com

 

 

Permalink Reply by David Eggleton on July 6, 2011 at 12:31pm

Many owners do see their houses as investments (not so easy these days).  And it might be possible to convey some of these ideas (entitled Everyone Invests) to others.

Permalink Reply by tedkidd on July 7, 2011 at 10:47am

Nice article Hal.

 

A question to ask is; "are you making the investment anyway?"  

 

Sometimes, by not investing you are spending money that could be put to more productive use.  

 

Let me ask a question: If your window was open in January, and it cost $1 to close it, would you make the investment?  If it cost $100, would you make the investment?  If it cost $1000? 

 

This is exactly what I do, I help people understand what windows they can close for $1, $100, and $1000.  They decide what to do with the information.  If you let me look at your energy history I can get an idea what window you've got open.  

Permalink Reply by Barry NewDelman on April 2, 2013 at 2:38pm

I do not know if this  still an active discussion, since it goes back to July 2011. However, I think it's important for me to indicate to those who have interests that I totally agree with this or that building owners when asked to improved their energy use the excuse that they did not have the necessary funds to make the necessary improvements, and in most instances that is true

I represent a company that in  operates in the deregulated states throughout the country and represents all the alternate retail. Electric suppliers that are licensed in that particular state.

We have been successful in 99% of our negotiations in reducing the cost of energy upwards of 35%  at absolutely no cost to you or the property owner. This then allows the property owner to use this annual savings for reinvestment in other capital expenditures for energy updates.

Take a lookat the following two links and if you have an interest in savings your client significant dollars with abolutly NO invesment give me a call. @ 888.859.1480

http://ow.ly/h4yxc

http://ow.ly/jGn0w

Permalink Reply by Bijou Lulla on April 13, 2013 at 12:49am

Has anyone done a case study post installation - on the benefits that were perceived before investment and the actual benefits that materialized post the Energy Efficient retrofit? Will be happy if you share some details with us.