additional savings from energy management–beyond utility bill cost reduction

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Additional Savings from Energy Management–Beyond Utility Bill Cost Reduction

Steve Heinz, PE, CEM, Founder and CEO

©2014 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com

Credits:Energy Conservation Also Yields: Capital, Operations, Recognition and Environmental Benefits“CORE” Benefits are Highly Probable and Worth a Double-Digit Improvement to Energy Savings

Published in Energy Engineering, Vol 109 (5), 2012Eric A. Woodroof, Ph.D., CEMWayne C. Turner, Ph.D., PE, CEMWarren Heffington, Ph.D., PE, CEMBarney Capehart, Ph.D., CEM

The “Secret Benefits” From Energy ConservationContribute Value Worth An 18% Improvement to Energy Savings

Published in Strategic Planning for Energy and Environment, 2008Eric A. Woodroof, Ph.D., CEMWayne C. Turner, Ph.D., PE, CEMSteven D. Heinz, PE, CEM

©2014 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com

We all recognize the conventional utility bill cost reduction savings that result from energy management activities.

©2014 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com

But is that all? There are additional savings that seldom are included in ROI or payback calculations but improve your ROI, shorten your payback time and help you win project approval from your CFO.

©2014 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com

1. Reduced maintenance material costs due to reduced runtimes

©2014 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com

2. Reduced maintenance labor costs due to reduced runtimes and longer service intervals

©2014 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com

3. Avoided capital investment due to reduced runtimes and reduced HVAC loads

©2014 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com

4. Avoided procurement costs due to less to buy

5. Avoided purchases of carbon offsets–lower carbon footprint without buying it down

©2014 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com

6. Enhanced organizational image, public relations or recognition

©2014 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com

©2014 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com

7. Non-tariff savings on utility bills such as reduced sales tax and surcharges (often overlooked in energy savings calculations)

©2014 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com

8. Improved building value

©2014 EnergyCAP, Inc. ▪ @energycap ▪ www.EnergyCAP.com

Facility Managers Agree