Many of us feel caught up in the current economic uncertainty. It is pleasant to remember better days when the economy was thriving and corporate resources were being invested in robust expansion. Now those expansions are getting older. Many of the commercial buildings in use today were built pre-1980. At the time they were built few people were thinking about energy costs and the environmental imperative of “going green”. Truthfully, most of us were lusting after the biggest V8s we could afford.
How times have changed – hybrid cars, the whole idea of less is more, recycled everything – but what about these buildings? They were built to last; but not to be efficient.
So what can we expect for today and beyond?
Even as economic conditions improve, today’s executive will be cautious about expansion, especially expansion into more bricks and mortar. They will look to their current buildings and demand ways to increase efficiency and reduce costs. They are conscious of being good corporate citizens and are profit motivated managers.
What is the best way to modernize these buildings, and what will drive the decision-making?
Certainly energy is going to be a key driver. According to the US Department of Energy (DOE), lighting represents 40% of the average commercial building’s electric bill, and an expensive component considering the average commercial retail cost of electricity rose nearly 25% over the past five years to $0.1013/kWh as of November 2008. And according to the Energy Cost Savings Council, lighting upgrades generate an average project payback period of 2.2 years and a 45% return on investment. [New energy estimates indicate continued increases in energy costs, with electric costs rising 10% to 30% in the next 3 to 5 years]
As a result, energy-efficient lighting is generally considered the easiest, most profitable investment in energy saving building systems. Even so, less than 20% of the existing pre-1980 U.S. Commercial building stock has benefited from some form of lighting renovation, according to the 2003 Commercial Building Energy Consumption Survey produced by DOE. The survey found that there were 4.6 million commercial buildings (excluding malls) in the U.S., representing about 65 billion sq. ft. of floor space. About 2.5 million buildings, representing 60% of buildings and 57% of floor space, were built before 1980. Of these, about a million have benefited from some form of renovation.
Of the 1 million that were renovated, was energy efficient lighting a part of the upgrade?
Unfortunately not – Lighting renovations, while a popular form of renovation, have occurred in only 18% of pre-1980 buildings, suggesting that there are about 25 billion sq ft of building floor space still lighted to pre-1980 standards and likely using the least-efficient lighting systems allowed by law. The rest represent today’s best candidates for lighting upgrades.
Lighting efficiency has the potential to be a “winner” in today’s economy. Not only is operating cost savings via lighting efficiency a door opener, but imagine the greater worker satisfaction with a quality lighting design – it can certainly be a ladder that escalates performance on any projects.
Are you wondering if your commercial building is a good candidate for a lighting retrofit? Contact an Aelux Lighting Consultant today to have your questions answered and learn more about lighting rebates.
Warehouse Lighting and the Pennsylvania power rate increases
Generally speaking this is often overlooked, but in light of the recent rate increases in Pennsylvania this is now taking a priority for many businesses.
Many citizens and businesses in Pennsylvania were greeted with a dramatic electric rate increase. The problem is that this rate increase comes at a time of fairly extreme economic difficulties for many companies. .
So what’s the solution?
As noted above, an overlooked part of the electric bill (and fairly expensive one) is warehouse lighting. In recent years there has been more and more advanced technology regarding lighting, and to make this more attractive there are currently many tax benefits and a cost reduction program that come from the power company themselves.
In a nutshell a significant part of the cost of upgrading to energy efficient lighting for your warehouse may be offset by these programs.
Aelux can assist you though the entire process and reduce your electric bills by taking advantage of the existing programs. You really have nothing to lose by exploring this option.
The alternative of course is to continue to pay the huge increase from the electric companies with no reduction in power usage to offset the increased rates.
It’s typically a pretty clear cut option, see what a firm like Aelux can do for you and your company. If the solution presented will reduce your monthly power bill, and due to the tax benefits and financial assistance from the power companies reduce your total cost, then clearly it’s something that your company needs to explore.
Aelux is proud to have helped STTC reduce their carbon footprint and reduce costs. According to the article on Modern Tire Dealer we have saved STTC a total of 1,549640 kilowatt hours annually, which is equal to 3.1 million pound annual reduction in carbon emissions, it’s akin to removing 271 cars from the roads or planting more than 4,700 trees every year,
Something like this could be done for your company as well. Please contact us to see how.
792 US Utility Providers Currently Offer Energy Efficiency (Lighting) Rebates – Does Yours?
Aelux’s turnkey lighting solutions include managing rebate applications in all states where available. Any Aelux team member can assist you in identifying the rebates and financial incentives for which you qualify.
Wondering if it is all worth it, Check out the Energy Savings Calculator, a quick and easy calculator that shows you how much money you can save and how much CO2 you can reduce with a lighting retrofit.
Pennsylvania’s Act 129 requires each of the seven major Electric Distribution Companies (EDCs) in Pennsylvania to adopt a plan to reduce energy demand and consumption within its service territory. The minimum saving requirements for each EDC is 1% by May 2011 and 3% by May 2013.
The 7 EDCs have all filed their proposed plans with Pennsylvania Public Utility Commission (PUC) which is currently reviewing them. In order to achieve the required reductions, the utilities are going to offer rebate incentives to customers to induce them to lower consumption.
When It Comes To Energy Prices, What Goes Up Does Not Necessarily Come Down
Recent press about declining energy prices has confused many. Despite reports to the contrary from reputable sources including the AP wire and Environmentalleader.com, a comparison of January through May commercial electricity prices ranging from $0.10/kWh to $0.102/kWh indicates that prices this Fall actually will be higher with October as much as 6.5 percent higher than the January price. And the price increases are not keeping industry profits from decreasing.
In addition to rising prices, if utility rate caps have not already been lifted in your state(s), legislation is in place to eliminate them in the
near future. As we reported in July, increasing power rates make NOW the right time for a lighting retrofit. The “Energy & CO2 Savings Calculator” on our website will give you a preview of the money you will save.
Additional information and assistance is available from any Aelux consultant.
CASE STUDY – Sikorsky Global Helicopters Reduces Lighting Costs by 49%
Sikorsky Aircraft Corporation is a world leader in the design, manufacture and service of military and commercial helicopters.
CHALLENGE
Sikorsky engineers in Coatesville, PA were seeking an improved lighting system using the fewest total watts and the fewest number of lamps and
ballasts.
SOLUTION
Aelux developed a 2xT8 lamp Direct Indirect office fixture solution that substantially reduced glare and increased savings over an alternative 4 lamp fixture under consideration and a fluorescent solution for their industrial area. The Aelux solution provided improved lighting, substantially reduced maintenance costs, and will result in an annual energy reduction of nearly 240,000 kilowatt hours. This reduction provides for a 240 ton annual reduction in carbon emissions, the equivalent of removing 41 cars from the roads or planting more than 5,626 trees.
Lower Energy Bills Are Just The Beginning of Energy Efficient Lighting Paybacks!
What business isn’t looking for cost–effective ways to increase productivity and safety? And yet few executives realize that upgraded lighting provides a broad range of benefits in addition to substantially reducing energy expenses. The documented benefits include:
Optimum employee performance.
Proper lighting levels contribute to employees working better and longer. Older, more experienced employees might develop impaired vision as their eyes lose the ability to adjust to insufficient lighting. Improvements to help them and all employees maintain their effectiveness will have a real payback in value added to the organization.
Improved safety.
Good lighting enables employees to adjust to changing conditions more quickly. The sooner a worker sees a hazard, the longer he or she has to adjust and avoid it. Well–lit workplaces are safer workplaces.
Improved morale.
Well–designed lighting makes the workplace brighter and more attractive.
Increased productivity.
Proper lighting levels allows employees to maintain focuses, see tasks more clearly and catch mistakes earlier. As a result, they perform less
non–productive work. Quality improves, and the cost of quality declines.
Less fatigue.
Straining to see causes more energy use, stress and fatigue. Eliminating this controllable form of stress can heighten employees’ energy levels by reducing the amount of nervous energy expended trying to see in poor lighting conditions.
Cleaner facilities.
Under dark, shadowy conditions, it is easy to overlook problems, such as waste build–up in corners behind furniture and equipment, and in
stairwells.
For additional information on the benefits and paybacks of a lighting upgrade, please contact an Aelux Lighting Solutions Manager.
CASE STUDY – Lighting Improvement Pays for Itself in Less than Five Months at Solo Cup
CHALLENGE
Solo Cup, a global manufacturer of food and beverage single-use products, wanted to reduce their six figure annual lighting energy costs for their Hempstead, MD Distribution Center.
Facility managers were also concerned about the potential disruption of lighting renovations on the M-F 24 hour operations of the center.
SOLUTION
Aelux developed a lamp and sensor retrofit solution that nearly halved wattage and reduced annual lighting energy costs by 69%. The significant savings covered the cost of the improvements in less than five months. Aelux managed the 1,000,000+ sf facility installation so that it was completed in 3 weeks with minimal disruption to operations.
Solo’s Hempstead Distribution Center energy savings also result more than a 2,500 ton annual reduction in carbon emissions, the equivalent of removing 430 cars from the roads or planting more than 60,000 trees.
According to the National Electrical Manufacturers Association, the average compact fluorescent lamp (CFL) contains 4 milligrams (mg) of mercury. 5 mg is just enough to cover the tip of a ballpoint pen. Some products have reached as low as 1.5 mg. The Environmental Protection Agency (EPA) advises that in the event of bulb breakage, most of the mercury will remain bound to the lamp with the amount escaping estimated from 1.2 to 6.8 percent. This means if a CFL containing 4 mg of mercury is not recycled and breaks, 0.05–0.27 mg may be emitted.
As scary as that may sound, Craig DiLouie of Electrical Contractor Magazine reports that incandescent bulbs are actually substantially worse than CFLswhen it comes to mercury emissions. DiLouie explains that coal-fired power plants produce about one-half of all electricity in the United States and are the largest source of human-caused mercury emissions in the country—more than 50 tons in 2006. A portion of these emissions are airborne, oxidized and water-soluble; some mercury ends up deposited in the United States, while the rest enters the global cycle (more than half the mercury deposited in the United States, for example, originates at Asian factories). Mercury released into the air is the main way it gets into water; eating contaminated fish is subsequently the main way humans become exposed.
And, incandescent lamps consume three to four times more energy than a CFL. Therefore incandescent bulbs cause more atmospheric mercury emissions at power plants that burn coal. DiLouie reports that a 75W incandescent operating over a period of 10,000 hours—the rated life of a competitive 18W CFL—will, therefore, generate an average 9.2 mg of atmospheric mercury emissions nationally, while the 18W CFL will generate 2.2 mg (plus possibly up to another 0.27 mg if the lamp is broken).
Accordingly, CFLs produce less mercury nationally. They also slash carbon emissions and provide substantial energy cost savings. DiLouie also reported that Yale University has demonstrated the same finding for states that don’t burn coal for power and mercury emitted during lamp production.
Additionally, manufacturers continuing to reduce the amount of mercury in their products, attention to lamp recycling is increasing and the EPA’s Clean Air Mercury Rule goes into final implementation in 2018 will contribute to substantial reductions in mercury emissions from coal-fired plant.
The Aelux team continuously monitors findings related to environmental safety and cost efficiency. Many are posted on the Aelux Energy Savings blog. Also feel free to contact us with any questions on these topics or any others.
