May 30 2008
Getting paid to eat the low-hanging fruit of conservation – Part 2
Amory Lovins, Rocky Mountain Institute founder and conservation guru, frequently comments about the low-hanging fruit available to companies through conservation. He says there’s so much of it that it “is mushing up around our ankles and spilling in over the tops of our waders while the tree pelts our heads with more fruit.”
[intlink id="120" type="post"]Part 1[/intlink] of this two-part post, described some of the great water conservation incentive programs available to Silicon Valley companies. There are also a number of ways to get paid for eating the low-hanging fruit of energy conservation. Some of these programs are so sweet that demand outstrips the budget allocated for the programs. So, businesses are well-advised to act now!
Energy Rebates Pacific Gas & Electric (PG&E) and several municipally-owned utilities (like Silicon Valley Power in Santa Clara and the City of Palo Alto Utilities) provide a wide range of rebate programs for HVAC systems, lighting retrofits, food service equipment, commercial washing machine replacement, and LEED certification of new buildings, just to name a few. Check out the PG&E business rebates and incentives pages for some examples of these great programs.
Beyond Rebates Beyond rebates, there are other significant incentives available through the utility companies. For example, owner incentives for energy-efficient new construction can reach as high as $500,000. PG&E will even customize incentives for an array of retrofits to existing buildings.
Demand response programs provide energy discounts and incentives in exchange for curtailing energy use during severe periods of peak demand. The PG&E Technical Assistance and Technology Incentive Programs provide free-of-charge engineering assistance on how to reduce energy demand and how best to participate in a demand response program. Unfortunately, PG&E is no longer accepting applications for the 2006-2008 TA/TI programs because the budget has been depleted. (The utility is applying for additional funds for the next program cycle which runs from 2009-2011.) You can still participate in demand response programs, you just don’t get the free engineering help until the next funding cycle kicks in.
Building Retro-Commissioning Retrocommissioning, according to Facilities.net, is “an organized process that identifies facility performance objectives, a methodology for testing and verifying those objectives are achieved, and documentation of the process. …Retro-commissioning is performed on facilities that are already in operation…” PG&E has a monitoring-based commissioning program that is offered to members of Silicon Valley Leadership Group and Sustainable Silicon Valley and implemented in partnership with QuEST, an energy efficiency consulting firm. The program includes an energy audit, installation of building monitoring equipment, and a range of incentives for retrofit costs that cover up to 80% of the project costs. 40% of the PG&E incentive funds are disbursed right at the start of the project, before equipment is even installed. Immediate cost savings in the 10-15% are not uncommon, according to Michael Lechner of QuEST.(For a formal cost-benefit analysis of 224 commissioned buildings, see “The Cost-Effectiveness of Commissioning New and Existing Commercial Buildings.”) The PG&E/SVLG Monitoring-Based Commissioning incentive program is only available through 12/31/08, or until program funds are exhausted, whichever comes sooner.
Federal Tax Deductions for Energy Efficiency Upgrades “The Energy Policy Act of 2005 created the Energy Efficient Commercial Buildings Deduction, which allows building owners to deduct the entire cost of a lighting or building upgrade in the year the equipment is placed in service, subject to a cap.” (http://www.lightingtaxdeduction.org/). This deduction is due to expire at the end of 2008, unless The Energy and Tax Extenders Act of 2008 (HR 6049), which extends the deduction for five more years, is signed into law. The House passed the law on 5/21/08 but President Bush has threatened to veto it. Act now to ensure that you can take advantage of the deduction!
For more information about energy tax incentives visit the Tax Incentives Assistance Project.
Even without rebates, incentives and tax deductions, you can still save on energy costs. But if you act now, you can get paid to eat that fruit!