Energy Saving Proposal

Transcription

1 Energy Saving Proposal Prepared for: Ron Sega - Director, Office of Energy and Environment - sega.8@osu.edu Dave DeAngelo - Facilities Associate Director - deangelo.1@osu.edu Molly Ergenzen - Business Associate Director - ergezen.1@osu.edu Prepared by: Student Campus Representatives: Chenxi Li li.1178@buckey .osu.edu Emily Holloway - holloway.155@buckey .osu.edu Professional Mentor: Charlie Szoradi CEO, Independence LED Charlie@IndependenceLED.com Support Photo/Research PowerPoint File (Under Separate Cover) This Proposal was developed through the ACE PRIZE: 1

2 Table of Contents: Topic and Background Audience Purpose Design & Layout Research Plan Energy Solutions Financing for End Users Follow Up Steps Reference Independence LED Recent News and Highlights 2

3 1. Topic and Background 1.1 Policy Situation: T12 banned and Go green plan. As of July 2012, The Department of Energy General Service Lamp Legislation has banned the T12 florescence tube lighting system due to its defects in energy efficiency. This change forces many facilities to upgrade their lighting systems and keep up with ever-changing industry standards ( Connexion, 2012). This ban had even sparked movement in Washington, where President Barack Obama s Go Green initiative promotes the replacement of older bulbs with energy-efficient ones in order to reduce electricity cost and emission of carbon dioxide. 1.2 Independence LED Company Independence LED manufactures high-efficiency, industry leading LED products. Their signature Eagle LED Tube System aims to reinforce the replacement of any types of fluorescent products with their Multi-Tube Fixture Options ( Independence LED ). As campus representatives for Independence LED, our project is designed to replace previous fluorescent lighting system with their leading Eagle LED tubes, transforming the lighting market on American college campuses. 1.3 Products Independence LED s products have high qualifications, approved by Buy American Standards of the American Recovery and Rescue Act (ARRA). The company also provides 5-year warranty and quality assurance. ( Independence LED ) 1.4 Past Projects Independence LED has partnered with various organizations to spread its remarkable knowledge on efficient lighting systems. For example, the CASH for Clunkers Lighting Project is a program designed to assist American businesses transition to efficient lighting after the U.S. Department of Energy s ban on inefficient fluorescent tubes. The company successfully completed the Urban Health Plan Project, a movement toward a brighter, more efficient workspace ( Independence LED ). 2. Audience 2.1 RPAC Facility Manager: Dave DeAngelo 3

4 Title: Facilities Associate Director Molly Ergenzen Title: Business Associate Director Our proposal is to promote the energy saving program among Ohio State University. The Recreation & Physical Activity Center (RPAC) is our first targeted building, due to its heavy student and faculty traffic and large square footage; the current lighting system offers vast room for improvement, preferably through the use of LED tubes. Before getting started, we need to get the permission from the RPAC Facility Management Office; therefore, Mr. DeAngelo and Ms. Ergenzen are our primary audience. Because their job responsibility includes the management of all indoor and outdoor recreation facilities and cooperation with the Environmental Services and Maintenance operations for the department, our plan is to present the current inefficient lighting usage within the RPAC facility while presenting advantages of the replacement program. 2.2 Ohio State University Sustainability Department: Ron Sega Title: Director, Office of Energy and Environment The success of this program stems from the support and final estimation from Office of Energy and Environment of Sustainability Department at OSU. We hope to show our research and highlight our project s long-term plan to reduce lighting inefficiency. Since this is an official department directly managed by administrative board, it is rather important to propose our program by official presentation and paper proposal. 3. Purpose Going green is a new concept as public and individuals begin to switch to a more energy efficient, natural lifestyle (Megan, 2012). To achieve the goal of being more energy efficient, we put our eyes on the lighting system of the Ohio State University campus. Replacing ordinary bulbs with more efficient LED tubes will save a significant amount of energy. As one of the largest multifunctional buildings on campus, the RPAC has more than 630,000 gross square feet lit by fluorescent tubes. Our project aims to reduce the lighting power consumption by replacing the existing bulbs with new LED energy saving bulbs. 4

5 Comparing with the incandescent light bulbs and CFL bulbs, LED light bulbs have two shining characteristics that make them more suitable: low driven current and low energy consumption. In other words, LED bulbs consume much less energy than ordinary bulbs and have 8 times longer lifetime (Sperber, 2012). Considering the concept of Going Green, it is high time to promote a new lighting system with LED technology on campus, which could have remarkable economic and environmental benefits. Because we are targeting a younger generation of energy users, we hope to inspire a new concept incorporated with Going Green: Energy Fitness. Using the makeover of America s largest collegiate recreational facility, Energy Fitness breeds pride is physical and mental health, and we hope this idea of healthiness starts with our lighting takeover. 4. Design & Layout LED, light-emitting diode is a semiconductor device that emits light completely different from the incumbent fluorescent bulb. An LED has several unique characteristics that sets it apart from its competition: Low DC driven current Low supply voltage Low energy consumption To make the installment process as simple as possible, there are just two parts in this LED lighting system: External driver LED tube Figure 1 External driver Figure 2 LED tube It is known that the common supply voltage is 120 volts AC; however, an LED needs a low DC voltage. Thus, a driver for reducing the voltage and changing AC voltage to DC voltage is needed. Some LED tube manufacturers prefer to use an internal driver assembled in the 5

6 fixture. Although it makes whole system more compact, it would create higher maintenance fees because the entire fixture needs to be changed if it breaks down. Therefore, this system prefers to use an external driver. The ballast is an essential part for a fluorescent tube; so previous fixture already has a space for it. To make the replacement process simple and reduce labor hours, the external driver is well designed to fit in the same space. Due to its low driven current, one LED does not produce as much light compared to the fluorescent tube. The LED array is needed and is made into a LED tube. The socket and the length of the LED tube are designed to fit the previous fixture, so it is pertinent for the facility management team members to properly install them. Replacing the tube and switching the ballast with the external driver will allow for optimal efficiency. 5. Research Plan The following research plan is designed to explore possible efficient energy solutions for lighting systems on the Ohio State University s campus. 5.1 Campus Building Research Target Building: Recreation and Physical Activity Center Target Area: Rafters, Hallways, Stairwells, Meeting Rooms, Racquetball Courts, Lockers, MTV Loft, and All Gyms. Target bulb type: 4-inch fluorescent tube and high-bay bulb. Lighting system working hours: weekdays and weekends This research were carried out by counting targeted bulbs in all area of the RPAC building and finding out the corresponding working hours of the lighting system in different positions. The number of fixtures and bulbs per fixtures were recorded. After this research was completed, all raw data was analyzed using Independence LED s developed ROI Calculator, an excel spread sheet with various essential calculations to maximize efficiency and decrease cost during the design process. When the data of existing bulb is typed in, the ROI calculator will automatically generate the replacement LED product as well as the saving reports. Therefore, multiple energy solution options are generated to allow for the best possible purchase option for the University, accounting for the University s budget and preference. 6. Energy Solutions Option A: A comprehensive make-over of the entire RPAC facility s lighting system Option B: A change of only highest-powered bulbs. Excludes stairwells and hallways Option C: A change of only high-bay related lighting fixtures 6

7 6.1 Option A: Comprehensive RPAC LED Replacement In this option, Independence LED products will replace the entire RPAC lighting system. The counting results are listed in Table 2. The original entire lighting system contains 4-inch standard fluorescent tubes (29 watts and 35 watts) and high-bay fixtures (342 watts). According to the Table 2, after replacement, 29 watts and 35 watts tubes will be reduced to 15 watts and high-bay fixtures wattage will be decreased to 100 watts. Assuming the cost of electricity to be $0.12 and with 3.0% annual increase, the results presented in the Table 3 indicates that with Independence LED products, $89,310 electricity cost can be saved annually. The sum of additional operating savings including bulb replacement saving, maintenance saving and reduced heating loading is calculated to be $16,663. As a result, the annual total saving is able to reach $105,973. $1,038,601 can be saved over a lifetime. Furthermore, the total net cost to the costumer including installation cost and bulb cost is estimated to be $459,332. With 52 months payback period, the return of investment is 23%. The financing options suggested by Independence LED involve 36 months and 60 months with 8% interest rate for both options. For the 36-month financing period, the monthly payment is estimated to be $14,394 and the net cash flow is -$5,563. However, for the 60 months payment, the monthly net cash flow will only be -$482. In addition to the capital saving, Independence LED products are also able to tremendously reduce the carbon dioxide emission with 9,624,372 lbs for the whole lifetime, which will fuels the Energy Fitness campaign. 6.2 Option B: Highest Powered Bulb Replacement Excludes Stairwells and Hallways In this option, 29 watts bulbs will not be replaced and only 35 watts and 342 watts bulbs will be changed to Independence LED products. With the same electricity price assumption, THE annual total savings are $89,840, and the total net cost is $350,936. Within a 47-month payback period, the return of investment is 3 percent higher than option A at 26%. For a 60-month financing period at 6% interest rate, positive monthly net cash flow is measured to be $702. This means the LED savings is $702 higher than the purchase payment. All detailed information is listed in Tables 4 through Option C: High-Bay Replacement Only Only 342 watts high-bay bulbs will be replaced by Independence LED products in this option. According to the saving report listed below, the total annual saving is $16, 064, and the total net cost is $41,647. With a 31-month payback period, 39% of return of investment is measured. For 36 months and 60 months financing period, the monthly net cash flows are estimated to be $72 and $533 respectively. All detailed information is listed in Tables 7 through 9. 7

8 Table 1: Option A: Comprehensive RPAC Job Information 8

9 Table 2: Option A: Audit of the RPAC's Available Lighting Fixtures 9

10 Table 3: Option A: Saving Report Table 4: Option B: Job Information 10

11 Table 5: Option B: Audit of the RPAC's Available Lighting Fixtures 11

12 Table 6: Option B: Saving Report Table 7: Option C: Job Information 12

13 Table 8: Option C: Audit of the RPAC's Available Lighting Fixtures Table 9: Option C: Saving Report 13

14 6.4 Comparison Among Three Options The following data is summarized in Table 10, which includes: total annual saving, total net cost, ROI, and net cash flow. As can be seen from the table, Option A has the highest annual saving with the lowest net cash flow. Option B generates the highest net cash flow with a relatively high return of investment. Option C provides a low net cost but high return of investment and net cash flow. In conclusion, Option B and Option C should be considered. Total Annual Total Net Cost ROI Net Cash Flow Saving Option A $105,973 $459,332 23% (with 52 month) -$482 (60 8%) Option B $89,840 $350,936 26% (with 47 month) $702 (60 6%) Option C $16,064 $41,647 39% (with 31 month) $533 (60 Table 10: Comparisons Among Three Options 7. Financing for End Users On the financing front, Independence LED works with multiple lender companies such as De Lage Landen, Green City Finance, and NextGen Partners. De Lage Landen is able to lend $50K or larger purchase orders up to $2M. Green City Finance lends up to $100M, and their target is $250K or larger for purchase orders. Next Gen Partners is able to provide full service and managed service contracts. 8. Follow Up Steps If the energy solutions were approved by The Ohio State University, the following steps are necessary to continue the project s next stages: Completion of a credit application to determine the interest rate and approval Assessment of the opportunity by The Lenders and preparation of proposals for review by OSU Selection of the most appealing program and signature of an agreement Completion of payment on the LED s to Independence LED and the installer if relevant by The Lenders Completion of the first monthly payment (which is less than the current cost of electricity) and the subsequent monthly payments Payment $1 at the end of the term to own the LED equipment. 14

15 Reference Bellantoni, Christina. "Obama: Go green, grow economy - Washington Times." Washington Times - Politics, Breaking News, US and World News. N.p., n.d. Web.6 Nov < my/>. Connexion. (2012). T12 Phase Out: T12 Fluorescent & Incandescent Lamp Phased Out. Retrieved from Independence LED. (2011). About Us. Retrieved from Independence LED lighting. (2011). New LED tube standard: External drivers. Independence LED Lighting. Retrieved November 5, 2012, from /q3_2012_report_external_drivers_are_%20new_standard Megan. (2012). Green Baby Items. Retrieved November 16, 2012, Retrieved from Ohio State Recreational Sports. (n.d.). The Ohio State University. Retrieved from OSU Sustainability Department. (n.d.). Office of Energy and Environment. Retrieved from Recreation & Physical Activity Center (RPAC): Ohio State Recreational Sports. Retrieved From Sperber, A. N., Elmore, A., Crow, M. L., & Cawlfield, J. D. (2012). Performance evaluation Of energy efficient lighting associated with renewable energy applications. Renewable Energy: An International Journal, doi: /j.renene

16 INDEPENDENCE Recent News and Highlights Independence LED Lighting, LLC Independence LED is a leading U.S. Manufacturer of high-efficiency LED tubes and fixtures that replace the less efficient fluorescent tubes and metal halide high bay fixtures that dominate commercial and industrial lighting. U.S. NEWS: Q3 2012, Independence LED celebrated the completion of the Largest LED tube Retrofit in U.S. history: International NEWS: On Thursday 11/15/12, Independence LED received the confirmation that the company had won the 30,000 tube order from a European bid on seven Hospitals. This is a $2.4 M account that has been six months in the making. Independence LED was among five LED manufacturing finalists world-wide that was then narrowed to two. The buyers said that Independence LED won the bid, because the other finalist (one of the largest lighting companies in the world) has an internal driver LED tube and only a three year warranty. Independence LED has the more robust external driver technology with the deep fin aluminum heat sink, over 50,000 hours of life, and a five year warranty. Highlights: Independence LED moved the manufacturing of its LED tubes from China to Boyertown, PA in Q The company has seen a tremendous lift in demand resulting in revenues tripling over each of the past two years. Clients range from industrial Distribution Centers to Fortune 100 Companies and from independent businesses to National Chains. Over the course of 2011 Lockheed Martin s engineering team conducted the reviews and approved the Independence LED tube system over others for the coveted Con Edison Rebates in the NYC Metro Market. The Independence LED External Driver system has set a new standard, and it also earned the Underwriters Laboratories (UL) and the Compliance European (CE) Listings on the complete driver and tube retrofit kit system. Their Deep Fin thermal management and Flex Density system provide cost-effective U.S. manufacturing with scale and reliability. For property owners and managers, the LED tubes cut the cost of electricity by 50% or more over fluorescent tubes. Installation accounts range from Morgan Stanley to MetLife and from Distribution Centers like Davis and Warshow to national auto service chains like Monro Muffler. The recent retrofit of 50 different Monro Muffler locations across CT and NJ includes over 6 miles of tubes and the Distribution Center may stand as the largest facility installation of LED Tubes in the U.S. Market to date. The Cushman and Wakefield management team for MetLife has specified the Independence Eagle LED tubes for its properties, resulting in multiple new orders across the U.S. In 2011, the Company won the Green Business of the Year Award from the Main Line Chamber of Commerce. 16

17 To review their Technology Differentiation, Spec Sheets, and Retrofit Photo files, plus Videos, please see this page of their website: /BootCamp Here is the link to a recent Newsletter: Innovative Financing: Independence LED offers a groundbreaking Lighting Service Contract, which enables facility owners and operators to benefit from energy savings without any initial costs or on-balance sheet liability: See 17