Category Archives: Energy Efficiency

Many Factors Make Electric Heat Pumps a Good Alternative for Heating and Cooling

Heating and cooling expenses are often the highest energy costs most businesses have to pay for each year. So in these times of looking for ways to both reduce expenses and welcome back employees into the office and customers in your space comfortably and safely, one strategy to consider is investing in electric heat pumps for both your heating and cooling needs. Heat pumps are a cost-effective, energy efficient, and reliable way to reduce your building’s energy bills and also assure your employees and customers are comfortable. It will improve your carbon footprint and existing air quality, too.

When properly installed, heat pumps are efficient in delivering heat to a space. Why? Because a heat pump moves heat rather than converts it from a fuel like combustion heating systems do. Heat pumps have been around for a long time but have gotten a boost in recent years due to improvements for working better in sub-freezing weather.

Here are some basic facts about heat pumps.

How they work. Yes. Although they are called “heat pumps”, they provide both space heating and cooling. Heat pumps are called that because they draw heat from the environment and move it indoors when it’s cold outside or can move heat from rooms outdoors when cooling is needed in your building.

Different types. There are two types of heat pumps – air source or ground source (geothermal), depending on how heat is transferred. Depending on your facility and property features, a qualified contractor will recommend which type is best for you.

In terms of how they are placed in the building, there are ducted and ductless systems. Ductless systems go in an exterior wall and need just a relatively small hole to connect the outdoor condenser and indoor heads. They are good for individual spaces. If a building already has duct work, a heat pump can use the existing duct system.

They’re better for the environment. Unlike conventional heating systems (furnaces or boilers), heat pumps use electricity. Thus, there is no combustion of fossil fuels onsite and, thus, no carbon monoxide emissions to worry about. There is also less need for natural gas lines or storage/delivery of oil. In most parts of the country, depending on how electricity is produced, switching from gas or oil combustion to electric heat pumps results in lower greenhouse gas emissions.

They’re built to last. Heat pumps last longer than conventional furnaces and cooling units and require less maintenance, meaning you’ll spend less money on O&M and can devote your maintenance staff to other matters. Combustion by its nature is a complex, high temperature process that strains a system and will damage components over time.

Others will pay for them. In most parts of the country (and in New York), utilities and governments encourage heat pumps to lessen the costs of upgrading gas distribution lines and to reduce oil truck traffic. Many utilities and agencies have direct incentive programs to pay part of the cost of installing heat pumps in most qualified buildings. Learn about these programs and take advantage. Remember, these incentive funds come from funds in your electric or tax bills, so you are getting your money back.

CCES has the technical experts to assess your heating and cooling system and determine whether heat pumps could be feasible to reduce your energy expenses and, at the same time, provide reliable heating and cooling in the building. We can estimate the costs and savings for your specific space and set up or determine other ways to reduce energy costs. Contact us today at 914-584-6720 or at karell@CCESworld.com.

A Silent Source of Emissions We Pay For

Many of us are concerned about Climate Change and do whatever is reasonable to reduce our greenhouse gas emissions. We buy more energy efficient lights and equipment. Perhaps we drive a little less (and walk more). We consider candidates who care about Climate Change.

However, there are many ways that we contribute to greenhouse gas emissions that we do not realize. Like all Americans, we buy things. Whether it is grocery shopping, some paint to spruce up the house, some toys for our granddaughter’s visit, and a few plants for the yard, each of these items probably got from the places they were made or grown to warehouses and to the stores by being transported by a heavy-duty truck. This is even more true today, as we buy from companies that deliver goods directly to your home.

According to Businessinsider.com, 70% of freight is carried by trucks in the US. Trucks dominate because they are fast, safe, and take goods right to where they need to go. But trucks are not fuel-efficient and thus, are heavy GHG emitters. According to the Energy Information Agency (EIA.gov), the average fuel efficiency of a heavy-duty truck is 6.6 miles per gallon of fuel, which is 27% worse than trucks achieved in 1950 (9.0 mpg)! Trucks, of course, burn a lot of diesel fuel; a truck may use as much fuel as about 50 new passenger cars.

According to The Truckers Report, fuel is the greatest cost for the truck owner, nearly 4 times higher, per mile travelled, than driver’s salary.

Thus, the Obama administration passed guidelines to raise minimum fuel standards for trucks to as high as 30 mpg for light trucks by the late 2020’s. The Trump administration rolled back those standards, with business support, as too expensive to consumers. But one can state that the lack of mileage standards are themselves very expensive for the American consumer. One estimate states that the average US household pays $1,100 per year to fuel heavy trucks and this does not include the indirect environmental costs (both Climate Change and direct toxic emissions from diesel fuel combustion).

The Biden administration is considering re-establishing mileage standards for passenger cars and an array of trucks.

Therefore, consumers and businesses would benefit from new truck efficiency standards, with freight costs dropping markedly. The Obama standards would have caused a reduction of 270 million tons of GHG emissions annually in the US, cut emissions of air toxics from fuel production and combustion, and reduced oil consumption by 1.4 million barrels a day, more than we currently export from Saudi Arabia.

Americans should examine silent operations that we pay for that contribute significantly to Climate Change and try to implement ways to reduce them (buy fewer products, only those most important) and lobby for fair rules to reduce their numbers and impact.

CCES has the technical experts to identify and estimate the emissions of greenhouse gas and toxic emissions from different applications, analyze the implications on cost and your business, and develop smart ways to reduce it. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Climate Change Laws and Strategies in New York City

New Laws Are Taking Effect

Two laws pertaining to energy efficiency and climate change that were promulgated in 2019 are now sinking in and causing many buildings to change their ways. This could be a portend of things to come in other cities and nationally affecting many businesses.

Local Laws 133 and 95 assign energy grades to large buildings in NYC. These grades are based on Portfolio Manager ratings for which buildings are already required to upload total energy data annually. Buildings are required to post these grades in their front lobbies prominently. Like a restaurant with a grade based on cleanliness, these grades are based on energy usage per sq. ft. And NYC is a tough grader. Even buildings that would qualify for an Energy Star award from the USEPA could get only a B in the NYC system. Even being slightly above the median would give one a D. I have already gotten projects of buildings ashamed of their grades, looking for a better one.

Local Law 97 was promulgated in 2019. While it does not go into effect until 2024, it is beginning to shake up the NYC real estate world now. Initial studies show that buildings that are even in decent shape when it comes to energy efficiency are potentially liable for high annual fines (6 figures) and they only have 2½ years to implement upgrades to comply. Some upgrades may be major construction projects. Therefore, NYC buildings need to assess their energy usage, plan, and begin to implement very soon. Remember that a building’s total energy usage is assessed, even of your tenants who you may have no control over. Therefore, an understanding of their energy usage is critical.

Here are a couple of examples. I reviewed the historic energy usage and equipment of a subject, but relatively small, office building in a poor section of NYC. The temperature the day I visited was about 70⁰F, a pleasant day. Yet, the building’s boiler was on and radiators were hot to the touch. It was so hot in the tenant spaces that several were operating their air conditioners! Think of that: simultaneous heating and cooling when neither should be on (a beautiful day). And the building was full of T12 fluorescent tubes, the most inefficient tubes available. I plugged in their recent historic energy usage and calculated that if they used the same energy in 2024, they would pay a fine of $62,000 that year. This is a building with a lot of small, family-owned businesses; ownership cannot have a high revenue. A $62,000 annual fine would impact them greatly.

On the other end of the spectrum, I reviewed the historic energy usage and equipment of a subject, large office building in the financial district of NYC. Although they went through a major renovation of their heating system, they faced a $132,000 per year fine if their current energy usage continued in 2024. We developed several potential strategies, ranging from modest to robust in impacts. The property manager was wise enough to realize that just meeting their limit was not sufficient. They had to go well below it. What if there is a very severe winter or summer in 2024 and they have to give more heat or cooling that year than in the base year? They realized they had to give themselves a buffer to take into account an unpredictably severe season and are working to install smart strategies to get well under the limit.

NYC PACE Financing

The NYC PACE (Property Assessed Clean Energy) Financing Program has finally released its program guidelines and is beginning to take shape. The program was officially approved in New York City on June 16. This is critical as building owners need to work toward complying with Local Law 97 soon, requiring large capital expenditures for which affordable financing is critical. The NYC PACE Program will provide building owners with low-interest (usually around 6%), long-term (usually 20-30 year) financing for energy efficiency retrofits and renewable energy projects resulting from professional energy audit study recommendations. PACE financing will also result in significant mortgage tax savings.

In summary, new NYC laws are mandating many buildings upgrade their energy usage and equipment to be more efficient, burn cleaner fuels, and consider renewable energy sources with the threat of major fines and embarrassing grades which could affect rentability and asset value for not meeting standards. Yet the tools are coming into place to pinpoint the problems of energy waste, determine smart solutions, and financing to allow implementation sooner, rather than later to avoid Local Law 97 fines.

CCES has the technical expertise to determine your Local Law 97 compliance status and potential fine for non-compliance in 2024. If you provide CCES with complete, concise full-year energy usage, CCES can tell you your LL 97 status FREE of charge. CCES also performs energy audits and project management to provide you the information about numerous smart strategies to comply with LL 97 and improve your energy grade and to implement the strategies most effectively. Contact us today at 914-584-6720 or at karell@CCESworld.com.

Energy Efficiency – A Very Controllable Operating Expense

I was looking at some old articles and found one about energy efficiency from 2014. The principles are still true – even more true than then – given we are getting out of the pandemic and businesses want to return to normal. For many businesses, revenues may not return to pre-pandemic levels for some time. Therefore, a critical way to continue to survive is to reduce expenses. Energy costs are sometimes thought of as uncontrollable. One gets one’s utility bill and pay it and that’s it. No, energy is quite controllable and, if done smartly, can result in major savings in operating costs, while making staff and customers comfortable.

Why is doing something about energy efficiency a great financial investment?

1. $$$$ or, in other words, the return. If done right, an energy efficiency project often leads to returns of 20%, 30% or more per year. The reduction of your payments of energy bills is just like having more revenue. Investing money upfront to get such savings – year after year after year, from one such project – is worth it.

2. Others will pay for it. Reducing energy use is not just good for your company, but also for other entities, such as utilities who need to delay major infrastructure projects by reducing peak demand and cities and states who wish to make certain carbon goals. So very healthy incentive programs and tax breaks exist for qualifying energy efficiency projects. Just one example is the re- and permanent- authorization of Part 179D of the federal tax code which provides tax incentives to those who actually implement energy efficiency projects. Now, incentives will not pay the full cost of a project, but can subsidize a significant portion. What other program that you have to do is subsidized by others in such a way?

3. Lack of risk. Energy efficiency projects, using upgraded technologies are not risky. They are warrantied and guaranteed to work and meet certain criteria. The manufacturer takes the risk. And there is reliability. If you replace a 60-watt light bulb with a 30 watt bulb, you are saving 30 watts or 50% – period! There is no variability that the light won’t work or not be 30 watts. Your projects will work.

4. Borrow the money needed. Given what’s written above – the high return, the support by utilities and government, and the low risk – and the current historic low interest rates, you can get the energy efficiency upgrade and not pay a cent upfront. There are institutions that only give loans for energy efficiency projects. And even for those bigger lenders, they love to lend funds for projects with known high returns and low risk; so lenders will fight to lend for projects like this – to your benefit, in terms of lower interest rates.

5. Greater reliability, reduced maintenance. In general, upgraded products and technologies make your whole system more reliable which means fewer disruptions to tenants or customers, which is better for business. And these products almost always result in reduced maintenance. One example is LED lights replacing fluorescent lights. Fluorescent tube lights often burn out and have to be replaced every couple of years. LED equivalents are warrantied for 7 or more years, meaning less work for your Maintenance staff to stop important projects to replace bulbs elsewhere, pleasing tenants. And that also means fewer trips up and down your ladders, reducing falls and related risks.

6. Positive cash flow. Unlike some projects where one must wait around before beginning to get the financial benefits, energy efficiency projects begin to benefit the bottom line right when it is installed and “turned on.” Quite literally during the first utility bill, ones sees cost reduction and financial benefits.

With all of these reasons and given the fact that many businesses will have a slow go to return to pre-pandemic revenue, reducing costs is critical and doing so in energy with smart energy efficiency projects is so reliable and beneficial.

CCES has the technical experts to allow you to plan and implement a smart and effective energy efficiency project to maximize the cost benefits for your business with the least disruption. Contact us today at karell@CCESworld.com or at 914-584-6720.

Don’t Just Replace; ‘Right-Size’ Your Equipment

You have equipment that is old and perhaps no longer functioning well. It is time to replace it. It is common to make things easy and just procure and install the latest, even most energy-efficient model of the same equipment to take its place. That is good, but here is an idea that is better. Invest a little time to determine whether that equipment was right for the job. Take the time before buying new equipment (which presumably will be in place for many years) to determine what its right size should be for current applications or looking ahead into the future.

This is particularly true of HVAC and other equipment that uses a lot of energy. Many existing buildings are decades old and were designed when energy was rarely a consideration in design of equipment and when energy was cheap. Perhaps that HVAC firm calculated that a particular air conditioning system needed to produce 20 tons of cooling to properly cool a given space. It was common decades ago to include in the design a unit for 25, even 30 tons, to “ensure” that sufficient cooling would be achieved. There is an energy penalty for operating a larger system (more kWh of electricity must be used), but that was not a big deal decades ago, as energy costs were cheap. Well, now, decades later, perhaps that piece of equipment needs to be replaced. Electricity is not cheap anymore and will not be in the future; it is likely to grow in cost faster than inflation. Therefore, when planning to replace that air conditioning unit or boiler, it is important to re-assess and see if you still need that 25 or 30 tons of maximum cooling. Maybe you can still comfortably cool your tenants with 20 tons of cooling. This will reduce capital costs and monthly electricity costs, too, for many years to come.

This is not only true of HVAC, but other equipment, too. Pumps have historically been overdesigned “to be sure” it pumps the material necessary fast. But modern pumps can be designed with variable frequency drives (VFDs) to maintain the amount of movement that is needed, whether maximum or not. New motors with VFDs can significantly reduce energy costs, too.

And take the time to look into the future and estimate what your future needs will be and “right size” equipment for that. What new functions may occur? Perhaps the building has aged such that you need more heating or cooling. Or perhaps the tenant mix and needs have changed over time (especially, with the potential of fewer staff in a space generating heat). Invest in what is truly needed in the future.

Yes, you certainly don’t want to under-design equipment (you want your tenants to be happy and your operations to function reliably), but you also don’t want to needlessly overdesign either, as the costs for doing that could be great.

CCES has the technical experts to help you assess your equipment needs, particularly when it comes to energy efficiency and air emissions. Contact us today at 914-584-6720 or at karell@CCESworld.com.

It’s That Time of the Year – Begin Your Preventative Maintenance Program Now

The harsh winter is over or maybe summer slowdowns are starting or maybe you’re getting back into gear as demand rises in our pandemic “return to normal”. In any case, your viability as a company is dependent on the reliable operation of your equipment. So, don’t just turn them on and take them for granted. Perform the important steps of preventative maintenance and do them thoroughly and properly. Yes, if it costs money to do it, spend the money.

There are so many benefits:

• Increase the life of your equipment. This means not only peace of mind that your equipment will continue to operate successfully and reliably, but this also will reduce your capital outlays significantly in the long-term and reduce your disruptions from replacing equipment.

• Reduce the risk of breakdowns.  Properly maintained equipment will have a lower chance of breaking down, leaving you potentially unable to operate and produce product altogether. And fewer breakdowns means fewer desperate calls to fix equipment, which may take critical time and cost a lot of money.

• Save on energy costs.  Properly maintained equipment will not only operate satisfactorily, but will do so more efficiently, reducing energy usage as it is operating. This will save you costs now. With energy rates rising faster than inflation, this is something to seriously consider.

• Reduce environmental impacts. You very possibly operate your equipment under some sort of air and/or wastewater permit, limiting your discharges, based on normal operation. Equipment not well maintained may be operating sub-optimally, emitting pollutants in excess of your limits, which could result in a violation leading to fines, other punishments, and extra work and testing to prove to the agency that you are back in compliance. And lead to a bad reputation, too.

• Safety.  Equipment that is not operating as designed may be a potential safety hazard, leading to workplace injury or worse, leading to very high costs to resolve the problems and OSHA enforcement issues. It is certainly in your interest to have your workers operating in a safe environment.

• Reduced need of spare parts.  Well-maintained equipment requires fewer spare parts around compared to equipment at greater risk of breaking down. Needing to store fewer spare parts frees up space, which, in many instances, is very valuable, and enables better organization.

How do you do this? First, develop an inventory of your equipment. Then simply follow manufacturer’s directions for each. If you cannot find them, contact the manufacturer or dealer. They want your repeat business, so they should cooperate and let you know they’re on your side. Make sure procedures are accessible. Spend some quality time training staff on what needs to be done and how often. Make sure the right people have time to understand the procedures and are properly trained to do them properly. If nothing else, it is good to keep equipment clean, such as by changing filters regularly.

Good luck, establish a preventative maintenance program, and reap the benefits.

CCES has the technical experts to help you maintain and optimize equipment in different areas, including in being more energy efficient. Contact us today at 914-584-6720 or at karell@CCESworld.com.

New Presidential Executive Order on Supply Chains

Lack of US independence in the manufacturing of crucial items, such as personal protective equipment and battery components, has led many to be concerned with how we will respond to the next pandemic or move forward on clean energy. On February 24, President Biden issued an Executive Order focused on shoring up supply chains of critical items. The order will require a 100-day review of the supply chain of many products worked on by government contractors and the private sector. In addition, over the next year federal agencies will be required to develop and begin to implement additional actions to maximize domestic production of crucial items and/or ways to work with allies on a coordinated response to hasten supplies when needed.

For example, the Secretary of Energy, coordinating with other agencies, is required to submit a report identifying risks in the supply chain for items such as, large-scale (industrial and electric vehicle) batteries and policy recommendations to address these risks. Also required is a report on supply chains for the energy sector industrial base.

The US Senate confirmed in a bipartisan vote former Michigan governor Jennifer Granholm to serve as the 16th Secretary of Energy. In a Department of Energy blog post shortly after confirmation, Secretary Granholm outlined her priorities including solar, wind, electric cars, advanced batteries, energy efficient appliances, and a weatherized grid structure. Secretary Granholm is known as an electric vehicle enthusiast.

One of her first actions as Secretary is to jumpstart a $100 million funding opportunity for “transformative clean energy solutions” to identify cutting-edge clean energy technologies to address the climate crisis. Energy officials believe total research in clean energy sponsored by the agency will increase to the billions.

CCES has the experts to help your company be more energy efficient and productive. Contact us today at 914-584-6720 or at karell@CCESworld.com.

The Proposed Infrastructure Plan: Clean Energy

On March 31, 2021, President Biden released his $2 trillion infrastructure plan intended to aid the nation’s economic comeback from the COVID-19 pandemic by raising employment in jobs for necessary projects, such as energy efficiency, renewable energy growth, and grid modernization. This is also part of the government’s strategy to achieve a net-zero emissions power sector by 2035, and a net-zero economy by 2050.

In response to the recent power crisis in Texas, the proposed Infrastructure Plan would invest $100 billion to modernize the electric grid with at least 20 GW of high-voltage capacity power lines. The Plan also proposes creation of a Grid Deployment Authority at the Dept of Energy to manage this effort.

The proposed Infrastructure Plan also promotes the retrofitting of existing residential, commercial, and municipal buildings to be more energy efficient and electrified and a $27 billion Clean Energy and Sustainability Accelerator to mobilize private investment.

The Infrastructure Plan proposes creation of Energy Efficiency and Clean Electricity Standard (EECES) aimed at improving energy efficiency, promoting cleaner energy, and incentivizing efficient use of existing infrastructure and carbon-free energy from nuclear and hydropower. The Infrastructure Plan proposes to invest $174 billion in electric vehicle (EV) development, including building a network of 500,000 EV chargers by 2030, replacing 50,000 diesel transit vehicles, and electrifying at least 20% of the school bus fleet. The Plan also includes a 10-year extension of an expanded direct-pay investment tax credit and production tax credit for clean energy generation and storage.

The Infrastructure Plan proposes both a $10 billion investment in public land and water conservation, community resilience, and environmental justice through a new Civilian Climate Corps and a $5 billion investment in remediation and redevelopment of Brownfield and Superfund sites in disadvantaged communities.

The Infrastructure Plan rebuilds research in climate areas that was decimated under the previous administration, setting aside $35 billion for research and development of new, beneficial technologies, such as energy storage, carbon capture and storage, hydrogen, EVs, floating offshore wind, and biofuel products.

One of the criticisms of the Plan is what will happen to the industries that will be harmed or ruined by the switch to clean energy, such as coal and oil & gas. The Plan proposes to address this by training fossil-fuel industry workers to apply their skills for clean energy and for employment to plug oil and gas wells and clean abandoned mines.

As one sees in the news, the Infrastructure Plan faces political hurdles, as many feel it is too expensive for a government already high in deficit spending. Democrats believe that the economic benefits and savings to the private sector will lead to economic growth that would raise revenues and eventually would pay it back plus some. It is likely some compromise (cutting back) of some of the ambitious goals (clean energy and others) will occur before it is promulgated.

CCES has the experts to help your firm manage energy (yes, manage this important resource), assess your energy profile, and move toward cheaper, cleaner energy choices and energy efficiency to reduce your energy waste, save you significant costs, and improve productivity. With the likelihood of financial incentives from the federal and many state governments, even the initial investment to reduce your energy and carbon profile can be quite affordable. Contact us today at karell@CCESworld.com or at 914-584-6720.

IRC Section 179D Tax Incentive Is Permanent

As part of the Consolidated Appropriations Acts, 2021 signed into law on December 27, 2020, the energy efficient commercial buildings deduction (IRC Sec. 179D) is now made permanent.

What Is IRC Sec. 179D?

Internal Revenue Code (IRC) Sec. 179D is a tax incentive that provides building owners and eligible designers/builders the opportunity to claim a tax deduction of up to $1.80 per square foot for installing qualifying energy efficient systems and buildings. Tenants may be eligible if they make the construction expenditures. The tax deduction applies to both new construction and retrofits. Qualified buildings include:

• Commercial buildings, including warehouses and parking garages;
• Multifamily properties with four stories or more; and
• Government-owned buildings, such as public universities, libraries, etc.

To qualify, the energy efficient property must reduce the energy and power costs of a building located in the US by 50% or more in comparison to the minimum requirements of ASHRAE Standard 90.1 of the time. If the 50% target saving is not met, the provision allows partial deduction of $0.60 per square foot for each of the following components:

• Interior lighting systems meeting a 25% saving;
• Heating, cooling, ventilation, and hot water systems meeting a 15% saving; and
• Building envelope meeting a 10% saving.

The deduction cannot exceed the cost of the qualifying property. There are also alternative guidance for partially qualifying property of lighting systems.

If a deduction is allowed under IRC Sec. 179D with respect to the energy efficient property, the property’s basis will be reduced by the amount of allowed deductions.

Illustration of Potential Tax Saving from IRC Sec. 179D

Multiple energy projects covering lighting, HVAC, and building envelope costing $19,500,000 is completed for a commercial building with 600,000 square feet. Typically, the improvement is depreciated over 39 years and provides annual depreciation of $50,000. However, with the qualified IRC Sec. 179D deduction, additional depreciation can be taken in the year that the energy efficient projects are placed into service, resulting in significant benefit to the taxpayers:

600,000 sq ft x $1.80 benefit rate = $1,080,000

The basis of the energy efficient property will reduce by $1,080,000, and the remaining basis of $18,420,000 will be depreciated over 39 years.

How to Apply

One cannot just do an energy efficiency project and claim the deduction. In order to qualify under 179D, energy efficiency project(s) must receive proper certification by licensed engineers as meeting appropriate energy efficiency standards. The qualified individuals will certify perform field inspections in accordance with guidelines from the National Renewable Energy Laboratory (NREL) and calculate the energy and power cost savings with software approved by the US Dept of Energy.

Taxpaying building owners can take the IRC Sec 179D deduction in the current tax year if they receive the proper certification and/or allocation letter at tax filing time. The renewal of the rule allows a building owner to take the deduction retroactively for energy efficient projects completed in prior years. Such a situation will require eligible tax payers to amend their prior tax returns in order to take the deduction.

The $1.80 per square foot deduction will rise with inflation in future years. Therefore, this rule does not have to be reauthorized every year or two. It is permanent.

Non-Tax Paying Buildings

For energy efficient property installed on or in buildings owned by an entity that does not pay taxes, such as federal, state, or local governments or not-for-profits, the 179D deduction can be allocated to an external person primarily responsible for the project’s design, such as designers, architects, engineers, contractors, or energy consultants. The person needs to secure an appropriate allocation letter to transfer the benefit.

CCES has the technical experts to design, perform, and certify energy upgrades that would qualify for IRC Sec. 179D. CCES has successfully done such work in the past under the 179D deduction program. Contact us today at karell@CCESworld.com or at 914-584-6720.

Need To Save Energy? Lighting Is A Sure Winner

For many building owners and managers, effort is being made to prepare for the return to “normal”. Rules are loosening and there is the general feeling of optimism that people will soon return to their offices, stores, movie theaters, etc. While it is a separate debate about whether this will happen, many business owners are now gearing for occupancy again. And given the harsh truth that for most businesses it will take time for revenue to return to pre-pandemic levels, it will be crucial to reduce costs. One good way is to reduce energy waste, as energy rates are rising beyond inflation.

A great low hanging fruit to save energy costs is to convert your current lighting stock to light emitting diodes (LEDs). You’ve probably heard of them and, yes, they do produce the same or more light using much less energy, one-tenth the power of halogen lights, one-quarter the electricity of incandescents, less than half compared to fluorescents. LED lamps can be controlled (color temperature, dimness, etc.). Prices have dropped as their market has grown recently. Switching to LEDs is such a good deal that many utilities and agencies are cutting back or eliminating LED incentive programs. Paybacks are so good, why should they spend money on such programs and not other programs?

And there are other things to consider when considering lighting.

Are you lighting critical operations properly? Might you be under- or over-lighting certain areas? For example, I performed an energy audit and when I walked into the office, I was blinded for a couple of seconds, the office too bright. I recommended the company de-lamp; remove some critically-placed tubes. The area was still well lit, yet they saved energy costs (the best energy-saving light is the one not on if unneeded).

Once you decide to replace your current lights with LEDs, you need to take a close look at your ballasts, the equipment that holds your tubes. They use electricity. Do they do so efficiently? Are they compatible with the LED tubes you wish to procure? Many old ballasts damage new LED tubes and suppliers will insist they be replaced or their warranty will not be valid. It’s in your interest to upgrade, if it will lengthen their lifetimes.

Another area to consider is lighting controls. As mentioned above, the most energy efficient lights are those that are off when not needed. Timers turn on and off lights at times of non-occupancy, more than making up their cost. Occupancy sensors turn on and off lights depending on occupancy of the space, ensuring lights are used only when people are present. These are inexpensive alternatives for solid energy cost savings.

Back to LEDs, another significant advantage to switching is that LEDs last much longer than fluorescent or halogen lights. LEDs use less electricity and, therefore, generate less heat, causing less damage. Many LED lights have warranties for 7-10 years, while fluorescents often last only 2-3 years. This means more work for your O&M staff, taking them away from other, important projects, just to change a light bulb. Therefore, if you have lights in hard-to-reach places, LED lights would really be beneficial here. And by taking fewer trips up and down the ladder or cherry picker, health risk drops, too.

Finally, LEDs are “cool” in two regards. They use less electricity and thus, emit less heat, reducing a room’s heating load. In some cases, switching to LEDs reduces the fuel used for heating a building or space by 2 to 3%. And LEDs are particularly good for providing lights at low temperatures, even well below freezing.

Good luck in trying to reduce your energy usage and costs as you return to “normal”. Do a thorough analysis of your energy and lighting needs. Consider upgrading to LED lights and other tips, too. If you do decide to do so, do it soon – before incentives disappear.

CCES has the experts to help you assess your total energy needs and lighting needs and recommend beneficial changes to save you energy costs and still provide for your staff and customers. Contact us today at 914-584-6720 or at karell@CCESworld.com.