Increasing Profitability Through Energy Services

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Increasing Profitability Through Energy Services

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Title: Increasing Profitability Through Energy Services

1
Increasing Profitability Through Energy
Services A Comprehensive Program To Deliver
Energy and Sustainability Services
2
Increasing Profitability Through Energy Services
3
Review Quiz
Module 3 Introduction to Energy Audits
Register your answers using the polling window
4
Question 1
What is the best way to deal with cornered
customer syndrome?
5
Cornered Customer

Need ? Reduce costs
Response ? Cut spending
Delay projects
Tighten ROI requirements
Cancel service agreements

6
Question 1
What is the best way to deal with cornered
customer syndrome?

Plan for a 30 drop in service agreement renewals
Drop prices to try and keep the business
Prove to your customers how your services save
them money
Tie bells to your shoelaces

7
Question 2
What is a good rule of thumb for pricing energy
audits?

5 to 10 of the buildings annual energy spend
0.50 per square foot
200 per hour
10,000 x thickness of customers wallet (in
inches)

8
Question 3
Which of the following is typically NOT part of
an ASHRAE Level I energy audit?

Interview with building operator
Walkthrough of facility
Summary of low/no cost ECMs
Detailed measurement of HVAC equipment
operational parameters

9
Answer 1
C. Prove to your customers how your services
save them money.
10
Answer 2
A. 5 to 10 of the buildings annual energy spend
11
Answer 3
D. Detailed measurement of HVAC equipment
operational parameters
12
Module 4 Energy Audits and Retrocommissioning
13
Energy Services Delivery Model
Level III Audit / Retro- Commissioning
Benchmark Energy Performance
Propose and Implement Retrofits
On-Site Energy Audits
Monitor and Verify Savings
14
Trade Offs
Simplicity Complexity
Automation Manual Labor
15
Value Perception of Energy Audits

Assume
40 hrs _at_ 150/hr
Savings Potential 0.30 per sq. ft.

Must develop methods to support required cost
structure
16
Acknowledgments

MSCA Enhancing Energy Efficiency Seminar
Mike Korcal
Associate Professor
Ferris State University

17
Acknowledgments

ASHRAE Procedures for Commercial Building Energy
Audits

18
Energy Audit Process
Document Energy Use
Site survey
Data collection
Analysis
Reporting
19
Document Energy Use

Energy Benchmark
Total energy spend
Comparison to peer buildings
Opportunity for improvement

20
Document Energy Use

Trends in Utility Usage
Utility Rate Structure
Consumption and Demand
Weather Effects
Power Factor Analysis
Sales Tax Exemption

21
Trends in Utility Usage

Are trends up or down?
What has changed in the building?
Occupancy
Retrofits
O M
External factors
Weather

22
Trends in Utility Usage

Weather Effects

23
Utility Rate Structure

How much power do you need?
When do you need it?

24
Consumption and Demand
25
Weather Effects

How does the building respond to changes in
weather

Building A Building B
26
Power Factor Analysis
27
Power Factor Analysis
28
Sales Tax Exemption

Energy used in manufacturing and industrial
processes is exempt from sales tax in most states

29
Sales Tax Exemption Example
30
Sales Tax Exemption Example
2.24 vs. Fully Taxed Rate 6 //
Taxed 37.3
Savings vs. Fully Taxed 2,628
31
Energy Audit Process
Document Energy Use
Site survey
Data collection
Analysis
Reporting
32
Forms, Forms, Forms
33
Site Survey

Floor plans
Space definition
Function
Lighting
HVAC
Building envelope
Sequence of operations
Schedules / setpoints
Special loads

34
Floor Plans
35
Space Definition
36
Function
37
Lighting
38
HVAC
39
Building Envelope
40
Setpoints / Schedules
41
Sequence of Operations
42
Special Loads
43
Trade Offs
Simplicity Complexity
Automation Manual Labor
44
BuildingAdvice Site Survey Form
45
Energy Audit Process
Document Energy Use
Site survey
Data collection
Analysis
Reporting
46
Whats the Difference?
47
What Are We Looking For?
48
What Are We Looking For?
49
Systems Running Unnecessarily
50
Lights are On, but Nobodys Home
51
Detailed Operational Parameters
52
Getting Data Out of the Building
Building Automation System Trend Logs
Data Loggers
Custom Data Acquisition Systems
53
Energy Audit Process
Document Energy Use
Site survey
Data collection
Analysis
Reporting
54
Purpose of Analysis
Compare
55
Trade Offs
Simplicity Complexity
Automation Manual Labor
56
Example

Exhaust fan was found to be running 24x7
Only needed to operate M-F, 6 am to 6 pm
2 week maintenance shutdown in April

57
Assumptions

Fan
5000 cfm
6.77 hp, 85 efficient
Location
Boise, ID
Heating season 31.4 weeks / 38.1 ?F
Cooling season 19.7 weeks / 78.8 ?F
System Design
Space temperatures 70 ?F winter / 75 ?F summer
Cooling system 1.1 kW/ton
Heating system 87 efficient
Utility Costs
Electrical 0.11 per kWh
Gas 1.10 per therm

58
Analysis

Step 1 Hours saved per year
Current hours 365 days/yr X 24 hrs/day 8,760
hrs/yr
Proposed hours 12 hrs/day X 5 days/week X 50
weeks/yr 3,000 hrs/yr
Hours saved 5,760 hrs/yr or 108 hrs/week
Step 2 Electrical Savings from Motor
Step 3 Savings from Excess Conditioning of
Makeup Air (Heating)

/ yr 7,386
59
Analysis, continued

Step 4 Savings from Excess Conditioning of
Makeup Air (Cooling)

1.08 X 5000 cfm X (78.8 75 ?F) X 2128 hrs/yr X
0.11 /kWh X 1.1 kW/ton
/ yr
12,000 btu/ton
/ yr 440
60
Compare
Money You Have to Spend to Achieve Savings
Money You Can Save
Install Timer 2,500
Payback 0.2 years
61
Typical Analysis Methods
Spreadsheets
Hand Calculations
Computer Models
62
Energy Audit Process
Document Energy Use
Site survey
Data collection
Analysis
Reporting
63
The Energy Audit Report
64
You Do Not Get Paid
65
You Get Paid For