Small Guide to BIG Savings: Energy Efficiency for your Small Business. Julia Sander Leidos Engineering, LLC

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1 Small Guide to BIG Savings: Energy Efficiency for your Small Business Julia Sander Leidos Engineering, LLC

2 TWO KEY MESSAGES 1. Every dollar saved is a profit of one dollar to your business» If you save $5,000 a year on your utility costs and assume your profit margin is 10%, the savings is then equivalent to an annual sale of $50,000» That is you d have to generate $50,000 in products or service sales in order to achieve the same profit» 100% profit 2. Significant savings possible with innovative and practical strategies» Low-Hanging Fruit» Minimum amount of investment and effort» Resources and help available

3 A DOLLAR SAVED

4 TIME IS MONEY» How much time do you spend managing your energy use/utility expenses compared to the percentage of your budget?» Most small business owners know a lot more about running his/her business than the details of water heaters and lighting systems» The conservative use of energy is one of the easiest and most cost effective steps to cut operating costs and increase profitability» Small businesses that invest strategically can cut utility costs 10 to 30 percent without sacrificing service, quality, style, or comfort» Small businesses can typically save as much money and prevent as much pollution, per square foot, as large corporations» Managing your energy use will likely lead to increased profitability, which makes energy efficiency smart business Prof Svcs 4% Mktg 4% Insr 7% Taxes 10% Bldg/Maint 10% Expenses Supplies 4% Utilities 19% Salaries/ Benefits 42%

5 WHERE DOES YOUR ENERGY GO?» Lighting, heating and air conditioning account for up to 70% of energy usage in most facilities 9% 7% 5% 29% Lighting Space Heating Office Equipment 9% Water Heating Cooling 16% 25% Other Ventilation

6 ADDITIONAL BENEFITS» Enhanced employee productivity» Improved comfort» Improved lighting levels» Reduced operations and maintenance expenses» Protection from energy inflation» Increased customer comfort and satisfaction» Improved look of your products, which could increase sales» Increased asset value of your facility» Enhanced image for your business as an environmentally responsible partner in your community a possible competitive differentiator» Sixty eight percent of adults like to do business with companies that are environmentally responsible and more than 80 percent of workers are attracted by an employer with an environmental reputation* * ENERGY STAR Report, Does Green Pay Off?, 2008; and resources/does green pay

7 INNOVATIVE AND PRACTICAL STRATEGIES

8 ENERGY USE BASED ON BUSINESS TYPE» The type of business you run will dictate what equipment and appliances you use most and how much energy you use» Chart illustrates the differing energy demands of small businesses» Based on Energy Use Intensity (EUI) of some common small business types» EUI is highest for those properties that rely on equipment for food service The Different Energy Demands of Small Business Types; Data from Commercial Building Energy Use Survey (CBECS 2013) at: https://portfoliomanager.energystar.gov/pdf/reference/us%20national%20median%20table.pdf?cf

9 WHERE IS YOUR ENERGY USED?» Industry type, equipment, operating hours, size of facility, etc.» There are a wide variety of factors that influence the amount of energy your business uses

10 SOUNDS COMPLICATED Make Commitment» Education» Behavior modification» Practical strategies Assess Performance Set Goals» Operational adjustments» Equipment improvements» Technology advancements» Innovation» Change Recognize Achievements Create Action Plan Implement Action Plan Re-Assess Evaluate Progress

11 LIGHTING» You can achieve energy savings in your lighting system through two main pathways Installing more efficient equipment (bulbs and/or fixtures) Changing the way you operate lighting Turn off lights (and other equipment) when not in use» Ensure that appropriate lighting levels are maintained» Too much light can be as bad as too little» Replace incandescent bulbs with CFLs or LEDs» Upgrade older T12 fluorescent bulbs with magnetic ballasts to more efficient T8 or T5 fluorescent bulbs with solid state electronic ballasts» Install LED exit signs» Install occupancy/vacancy sensors» Install daylight responsive lighting controls» Remember your parking lots and garages have lights too

12 HEATING AND COOLING» HVAC systems represent a significant portion of the utility bills for small businesses» Small and medium sized businesses (depending on the type) typically spend the bulk of their energy budget on HVAC» Keep windows and exterior doors closed while running the HVAC» Install a programmable thermostat to control the HVAC system» Check the accuracy of the thermostats» Change the filters monthly during high use seasons» Clean heating and cooling coils twice a year» Clear any clutter that is blocking vents or air intakes» Use fans when a room/area is occupied» Tune up the HVAC system with an annual maintenance contract

13 OFFICE EQUIPMENT» Office equipment presents an often overlooked opportunity for significant energy and cost savings» Includes computers, printers, copiers, televisions, and even small appliances such as coffee makers» Evaluating your office equipment use will help your business realize energy and monetary savings.» Buy ENERGY STAR products for your business when new equipment is needed» Set computer power settings to save energy when not in use» Utilize Smart Power Strips

14 KITCHEN AND FOOD SERVICE EQUIPMENT» Restaurants use five to seven times more energy per square foot compared to other commercial buildings, such as office buildings and retail stores» Many other types of small businesses have kitchen areas where staff can prepare coffee, lunch, snacks, or dinner» Microwave ovens, coffee machines, stoves, and refrigerators are common in these areas and are important to consider when looking at overall energy use» Purchase ENERGY STAR certified commercial food service equipment» Check refrigerators for leaks and to see if a newer, more efficient model is available» Have walk in refrigeration systems serviced at least annually» Use multiple refrigerators only when necessary» Buy ENERGY STAR certified vending machines and water coolers» Turn off appliances (such as the coffee maker) when not in use

15 BUILDING ENVELOPE» Your property s building envelope or shell includes windows, walls, roof, and insulation» Addressing leaks that allow unwanted air infiltration into the building envelope can often eliminate a major energy drain» Outside air can enter a building through a variety of places, most commonly the windows, doors, walls, and roof» At the same time, cooled or heated air will be lost» Outside fresh air can be good, but only as controlled ventilation, not as accidental infiltration» Investigate the following options to improve your building envelope: Plug air leaks Replace windows and window shadings Minimize unconditioned air flow through doors and windows

16 WATER HOT AND COLD» Energy and water efficiency are closely tied together» In most cases, electricity or natural gas is used to heat water, and this costs money» The more hot water your business consumes, the more it will save from optimizing water use» Conduct a water assessment to identify major water uses within the property» Find and fix leaks» Insulate water heaters» Purchase certified products when replacing water heaters and fixtures such as faucets, showerheads, toilets, and urinals» Set water temperature only as hot as needed» Optimize the amount of water used in heating and cooling systems» Practice water efficient landscaping

17 CALCULATE SIMPLE PAYBACK» To calculate simple payback,» Divide the installed cost of the improvement by the annual energy savings» The result is the payback period in years» Example Replace - # watt incandescent bulbs with 26-watt CFLs Costs - $56 Savings* - $530 a year 56/530 = 0.1 and 12 x 0.4 = 1.2 or just over 1 month» Any project with a simple payback of 1.5 years (18 months) or less is an excellent opportunity and should be implemented immediately» In fact, any simple payback of less than four years is a worthwhile investment * Savings calculator for ENERGY STAR qualified light bulbs (see resources)

18 RESOURCES

19 ActOnEnergy FOR YOUR BUSINESS» ActOnEnergy.com/Business Find incentives for your equipment Find incentives for your industry Shop online and save Customer case studies Find a contractor Education and training Newsletter signup Talk to an Energy Advisor

20 ActOnEnergy ENERGY ADVISORS» Located throughout the Ameren Illinois service territory» Can meet with you to discuss the program and answer your questions» Can conduct your FREE energy assessment» Call » ActOnEnergy.com

21 U.S. SMALL BUSINESS ADMINISTRATION» SBA.gov» Running a Business Energy Efficiency» Become Energy Efficient» Energy Saving Tips» Calculate Energy Savings» Sustainable Business Practices» Energy Efficient Upgrades» For Specific Businesses Auto Dealers Construction Contractors Grocery and Convenience Stores Small and Medium Sized Manufacturers Home Based Businesses Lodging Restaurants Retail Stores

22 ENERGY STAR» energystar.gov» Energy strategies for buildings and plants Facility owners and managers ENERGY STAR for small business Service providers EE program administrators Tools and resources Energy tracking tool quick start guide ENERGY STAR action workbook for small business Savings calculator Industrial insights Data trends Training Live training Recorded training Express videos

23 DATABASE OF STATE INCENTIVES FOR RENEWABLES & EFFICIENCY (DSIRE)» dsireusa.org» Find policies and incentives by state» Currently 99 programs listed for Illinois» Federal and state» Financial Incentives Rebates Grants Loan programs Energy and tax credits Corporate depreciation/deduction» Regulatory policy Building energy codes Energy standards for public buildings

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