Welcome to the March 2011
issue of ENERGY MONTHLY
In this issue...
Introduction
We are beginning to experience a new phenomenon in rebates. Over the past several years, trends have been unidirectional… more and more Federal, State, and utility rebates and incentives were being offered in order to increase energy efficiency and spur “green” investment. Today, the news is less predictable. It seems that for every new subsidy we identify, another disappears.
In some cases, as we’ve seen recently in Pennsylvania, the demand for incentives is so strong that funds have been exhausted and may or may not be replenished. In other areas (Texas for example), the PUC has determined that because the Federal government has mandated the obsolescence of T12 technology, there is no longer a need to subsidize their replacement.
What seems clear is that for the first time in recent memory, there is no predictability to the availability of rebates and other sources of public subsidies. In a political climate where both Federal and State legislators are looking for ways to reduce costs in order to balance budgets, business subsidies such as energy efficiency rebates are less of a priority than basic services and other entitlements.
Skip Pasternak
President, Aelux
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Lighting Insight
A Polished Perspective
Helping low margin businesses boost profit
“Consumers are already seeing the fallout from turmoil in the Middle East and North Africa every time they fill their gas tanks. It’s what they don’t see that’s the bigger worry for the U.S. economy.”
“From the farm to the factory, businesses are facing higher costs to grow the nation’s food, ship goods and manufacture products at a time when they’re already cautious about hiring new employees or placing big orders. The added burden of sustained fuel price increases could slow the nation’s already sluggish economic growth, analysts said.” (Source)
As costs for basically anything under the sun continue to rise, it is difficult for businesses to maintain the higher profit returns of just a few years ago. When times get tough, food manufacturing, grocers, and commodity type businesses trying to stay competitive in today’s market really feel the crunch as their small profit margins continue to shrink. A lighting retrofit is just one way for commodity type businesses to reduce energy cost, and boost their profit margin.
According to ENERGY STAR®, a 10 percent reduction in energy costs for the average supermarket can boost profit margins by as much as 6 percent.
Check out a food manufacturing retrofit project with an annual savings of $67,064 and guaranteed light improvement.
Calculating the real cost and benefits of a retrofit
Every project has a goal, and often several goals. When considering a lighting retrofit, possible goals are not only to save energy, but could be to increase employee satisfaction, improve safety, or reduce maintenance cost… just to name a few.
It is easy to start with the low-hanging fruit, but these low-hanging fruits may not be so obvious. To properly analyze the opportunities of a retrofit for you organization, you may want to look to a lighting expert to guide you through options and to help you prioritize the highest yield returns. A lighting retrofit expert will have your company’s best interest in mind, and can also assist in finding you rebates and incentive to provide the highest ROI.
Meet the Team: Taylor Johnson
Taylor is the newest member of the Aelux Team. She is a graduate of York College of Pennsylvania. She comes to Aelux with almost two years of outside sales experience. Her position at Aelux will include prospecting and generating sales leads, performing facility audits, and presenting the most effective lighting solutions to customers.
In her spare time Taylor enjoys being with her family, playing sports, going to the beach, skiing, spending time with her American Bulldog, and planning her May 2011 wedding!
Taylor Johnson
Sales
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