Power your business for less with new information on FPL's programs and incentives September 26, 2013
Meet your panelists: Mike Carter, Sr. Engineer, CEM Business Energy Service Kathy Schmitt, Sr. Business Lighting Program Manager, FPL Marilyn L. Arnall National & Franchise Account Manager, FPL 2
Agenda Qualifying for FPL programs and services FPL energy-efficiency programs and incentives Federal incentives Financing opportunities Getting started 3
An FPL Business Energy Evaluation (BEE) identifies energy conservation opportunities and recommends associated programs and services Sample BEE Report Savings Opportunities A BEE is a no-cost performance assessment. 4
BEEs are provided in person by an FPL energy expert or can be completed online Benefits BEE Evaluation Types Online Evaluation In-Person Evaluation Energy expert visits your facility Establish business relation with energy expert Personalized energy report X X X Energy comparison reports X X Multiple location comparison reports X X Energy saving suggestions X X Mailed results X Saves time Instant results Online access Instant printable reports Eligibility required * X X X X X 5 Call 1-800-375-2434 for a free in-person evaluation, or contact your Account Manager, if you have one. * Small business customers on FPL s general service non-demand rate can visit www.fpl.com/obee for an online evaluation.
Your BEE report may recommend FPL programs that are available to help pay for energy-efficient upgrades Air Conditioning (HVAC) Building Envelope Water Heating Chillers Refrigeration Demand Controlled Ventilation (DCV) Energy Recovery Ventilation (ERV) Thermal Energy Storage (TES) Custom Incentive Lighting 6 FPL Energy-efficiency Programs and Incentives Complete business program and incentive guidelines are available at www.fpl.com/business
FPL Energy-efficiency Programs and Incentives Air Conditioning (HVAC) Building Envelope Water Heating Chillers Refrigeration Demand Controlled Ventilation (DCV) Energy Recovery Ventilation (ERV) Thermal Energy Storage (TES) Custom Incentive Lighting 7
A high-efficiency A/C unit reduces cooling costs, which can account for up to half of a Florida business energy costs FPL HVAC Program Qualification Replacements Units installed during new construction FPL Incentive Incentive is based on $165/kW reduction above Florida Energy-efficiency code $.60 cents to $5 per MBTUH * Note: Incentive starts at 7 percent (or more) above current energy code requirements for all systems 8
Even if your air conditioner is only 10 years old, you may save as much as 25 percent on your cooling costs with a newer, more efficient unit Typical Annual Savings Versus EER and Hours of Operation for DX Air Conditioners Annual hours of operation 10 EER 11 EER 12 EER 1000 $ 240 $ 327 $ 400 1500 $ 360 $ 491 $ 600 2500 $ 600 $ 818 $ 1,000 3500 $ 840 $ 1,145 $ 1,400 4500 $ 1,080 $ 1,473 $ 1,800 5500 $ 1,320 $ 1,800 $ 2,200 6500 $ 1,560 $ 2,127 $ 2,600 7500 $ 1,800 $ 2,455 $ 3,000 8500 $ 2,040 $ 2,782 $ 3,400 *Based on an existing 10-ton unit with an EER of 8 and an electric rate of $0.08$/kwh. 9 Upgrading a 10-ton unit from an 8 EER to 12 EER system would produce an annual savings of $1,400 in Miami.
FPL Energy-efficiency Programs and Incentives Air Conditioning (HVAC) Building Envelope Water Heating Chillers Refrigeration Demand Controlled Ventilation (DCV) Energy Recovery Ventilation (ERV) Thermal Energy Storage (TES) Custom Incentive Lighting 10
FPL s Building Envelope program offers incentives on qualifying window treatments, roof insulation and reflective measures, and ceiling insulation FPL Building Envelope Incentive Must be installed by a participating independent contractor FPL Incentives - Example: 5,000 square foot roof earns $2,250 FPL rebate for reflective roof measure Insulation rebates of $.05 per square foot on roof and $.10 to $.15 per square foot on ceiling Reflective roof rebate of $.45 per square foot Window treatment rebate of $.50 to $2.00 per square foot based on shading coefficient Building Envelope improvements help reduce the load on you re A/C system and lower your cooling bills 11
Your roof is one part of the Building Envelope that can help your business save on air conditioning costs Install spray polyurethane (SPUF) to protect your roof from: 12 Energy loss Water leaks Physical damage Install a light-colored metal roof, a rubber-like (thermoplastic) reflective membrane or coating on your existing roof to: Reduce cooling costs by as much as 15 percent Prevent leaks Extend roof life Energy-Saving Roofing Options Downsize your air-conditioning system, if you choose
Get the same reliable supply of hot water for up to half the cost with a Heat Pump Water Heater (HPWH) or a Heat Recovery Unit (HRU) FPL Water Heating Incentive FPL Incentive Up to $500 per kw reduced for Heat Recovery Units and Heat Pump Water Heaters 13
High-efficiency chillers keep energy costs as low as possible while maintaining a comfortable temperature FPL Chiller Incentive FPL Incentive 14
With anti-sweat heater controls and equipment, building owners save energy and money FPL Refrigeration Incentive Qualification Install one or more of these technologies: Electric strip heaters around display case doors using automatic controls 15 With humidistats to turn off heaters when not needed, or With controls that stagger defrost cycles Special glass doors for reach-in display cases Requires minimum or no anti-sweat heat Freezer doors that incorporate hot gas reclaim Reduces or eliminates the need for electric strip heaters normally used for defrost control FPL Incentive Up to $75 per kilowatt (kw) reduction for the installation of qualifying controls and equipment that reduce electric strip heater usage in refrigeration equipment The incentive amount is based on the manufacturer documentation indicating potential kw reduction
Demand control ventilation (DCV) is a more efficient and affordable way to meet fresh air requirements and lower energy costs FPL (DCV) Incentive Qualification Must reduce outside air flow at low occupancy Must be based on real-time sensor readings FPL Incentive Rebate on DCV systems based on: Building type Number of sensors required Square footage of air conditioned space 16
FPL offers incentives for installing a qualifying Energy Recovery Ventilation (ERV) unit installed on new or existing HVAC systems FPL ERV Incentive Qualification Must be an enthalpy wheel or plate type ERV system. Must control humidity using either desiccant or moisture transfer membranes FPL Incentive Rebate on qualifying ERV units: Replacements Units installed during new construction Based on size and efficiency of the ERV unit as well as the heating type for the HVAC system 17
Thermal Energy Storage (TES) reduces peak energy use by producing and storing cold water or ice at night, when power is less expensive, and using it to cool your building efficiently during the day FPL TES Incentive FPL Incentive $2,500 toward a feasibility study by a professional engineer you select - $464 per ton (chiller) - $522 per ton (DX) - $580 per ton (refrigeration) $16 to $20 per ton toward system initial commissioning 18
FPL s custom incentive program is designed for large projects FPL Custom Incentives Qualification Customer submits a proposal to FPL with estimated savings potential and FPL evaluates the proposal Proposed application must remove a minimum of 25 kw from FPL s summer peak demand FPL Incentive Specific incentives for unique energy-saving applications 19
FPL Energy-efficiency Programs and Incentives Air Conditioning (HVAC) Building Envelope Water Heating Chillers Refrigeration Demand Controlled Ventilation (DCV) Energy Recovery Ventilation (ERV) Thermal Energy Storage (TES) Custom Incentive Lighting 20
Upgrading to a more efficient system decreases operating costs, results in better quality lighting and offers aesthetic improvements FPL Lighting Incentive FPL Incentive Rebates of up to $4 per lamp on technologies such as T8, High Performance T8, T5HO or pulse-start metal halide lamps Incentive will be an upfront discount on the cost of the job 21
Lighting accounts for about 28 percent of a typical business energy consumption. Here s an example of how simple upgrades can produce signification savings. Installation rebate Sample Lighting Payback Four lamp, 34-watt T12 with energyefficient magnetic ballast retrofitted to a 4 lamp T8 with electronic ballast 4 lamps x $0.65 per lamp = $2.60 incentive $8.00 incentive if using HPT8 lamps Long-term savings A 23,000 square foot athletic club in Sarasota replaced 131 fluorescent fixtures with T8 lamps and electronic ballasts Received a $294 FPL incentive Decreased energy consumption by 26 percent Resulted in $5,387 yearly savings! 22
Federal lighting standards have increased minimum standards for manufacturers and importers. Less efficient bulbs and lighting systems are being phased out through 2014. Obsolete Bulbs & Ballasts PS MH Fixtures 2009 Reflector Lamps; T12 Lamps 100w Inc. 75w Inc. 60/40w Inc. 700 Series T8 Lamps 2010 2011 2012 2013 2014 Mercury Vapor Ballasts 2008 T12 Magnetic Ballasts T8 Ballast BLE The Energy Conservation Program (ECP) 2009 Lamp Rule began July 14, 2012. Most 4-foot T12 and 8-foot (F96) T12 lamps were effectively eliminated. There is a two-year reprieve for 700 series (first generation) T8 lamps. 23
Simple, inexpensive lamp and ballast upgrades comply with new standards while generating significant savings immediately and over time Fluorescent Lighting Savings Opportunities Replace With Full-wattage F32T8 lamps 23W lamps 28 percent Standard 54W T5HO lamps Magnetic ballasts Reduced wattage lamps 49W lamps 51W lamps NEMA Premium Electronic Ballasts Realize Estimated Annual Savings of Six to ten percent Five to seven percent efficiency improvement Standard fluorescent lamps can be hidden in your facility. Be sure to check: Suspended and recessed troffer fixtures, recessed can fixtures, wall sconces, suspended fixtures, lamps and task lighting, illuminated exit signs and exterior and facade 24
Light Emitting Diodes (LEDs) are getting a lot of attention. Good LED options exist to replace linear fluorescent bulbs LED Retrofit Kits Volumetric Leviton Zipline TM LED Platinum Series 2x4 models offer 5700 lumens at 60 watts 2x2 models offer 3400 lumens at 37 watts Strips LED Living Technology CLARIS LED Retrofit Kits 2090 lumens@22 w 4180 lumens@44 w 90 lpw with isotropic diffuser Source: Leviton Lighting & Energy Solutions Source: LED Living Technology 25
Tubeless LED troffers now offer equivalent performance to linear fluorescent troffers Purpose-built Linear LED Troffers Type Watts Lumens LPW CCT (K) CRI T8 32 3,300 90 3,300 82 Cree CR Series 44 4,000 90 3,500 90 Cooper Corelite 51 4,300 85 3,500 85 LED 2X2 (Rd 13) 43 3,469 80 3,152 94 Source: Cree Source: Philips Ledalite Source: Cooperlili 26
Thin LED Light Guide products offer better vertical illumination than traditional troffers Light Guide Products GE Lumination LED Luminaires EL Series LED Light Guide Products Source: GE Lighting Solutions 27
Although expensive, LED replacement bulbs offer equal light output with lower energy consumption and longer life Omnidirectional LED Options Brand Name Wattage Lumens LPW Life (Hrs) LEDzworld Professional LED Bulb CTA 6.5W 250 38 35,000 GE Energy Smart LED 9W 450 50 25,000 Source: GE Lighting Philips AmbientLED 12.5W 800 64 25,000 Sylvania LED A-Line 12W 810 67 25,000 Switch 100 16W 1,700 100+ 20,000 Source: Switch Bulb Co. Source: LEDzworld 28
CALiPER tested 38 different directional LEDs and found them to be much better than halogen bulbs and competitive with CMH LED PAR and AR Product Options Type Watts Lumens LPW CRI LED PAR30 12 732 59 86 LED PAR38 18 1,286 73 82 CMH PAR38 25 1,504 60 86 HIR PAR38 75 1,060 14 100 Source: Round 16 & 20, CALiPER 29 http://www1.eere.energy.gov/buildings/ssl/caliper.html
In addition to FPL programs and services, many federal, state and local organizations and policies exist to support your energy management efforts Agency Policies and Programs Small Business Administration (SBA) American Recovery and Reinvestment Act of 2009 Energy Improvement and Extension Act Energy Policy Act of 2005 Commercial Building Tax Deduction ENERGY STAR U.S. Department of Energy Building Technologies Program FEMP Programs LEED Programs Renewable Energy Production Tax Credit Renewable Energy Technologies Investment Tax Credit Florida State Sales Tax Incentives 30
All of the SBA s 7(a) bank loans can be used to fund energy efficient equipment and upgrades Types of SBA 7(a) Loans SBAExpress 50 percent SBA backed guaranty Average loan = $35,000 Maximum loan = $350,000 Streamlined application process for easy access Response to application given within 36 hours Other 7(a) loans Export loan programs 90% guaranty + no fee Maximum loan = $2.0 million Rural lender advantage program Special purpose loans program Eligible items Retrofit facilities New installations Energy efficient equipment ENERGY STAR Other Savings small businesses make from adopting energy improvements also include federal energy tax savings 31
The SBA s CDC / 504 loan program is good for making significant capital improvements SBA Certified Development Company (CDC) 504 Loan Program SBA CDC / 504 loans finance energy-efficient improvements Long-term financing tool for economic development within a community Job creation/retention requirement (1 job/$35,000 loaned) Can only be used for purchase of fixed assets Major portion of funds must be for real estate purchase Provides financing with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization Financing is provided by a Certified Development Company Non-profit corporation set up to contribute to the economic development of its community Eligible products Energy-efficient appliances Alternative fuel for vehicles Replacing transportation fleet with hybrid vehicles Purchase of improved-mileage vehicles Increased efficiency, HVAC, heat pumps, geothermal energy Energy-efficient doors, windows, skylights Increased insulation Wind and solar power Energy-efficient light bulbs 32
The Energy Conservation Loan is designed for the entity who builds, installs or services qualified energy measures SBA Energy Conservation Loan Energy Conservation Loan For the following small businesses that work with energy devices or techniques to conserve energy: Design Engineer Manufacture Distribute Market Install Service Not designed for end users Eligible devices or techniques Solar thermal equipment Photovoltaic cells and related equipment Products or services that increase the energy efficiency of existing equipment 33
The SBA s Micro-Loan Program is appropriate for small, quick projects Micro-Loan Program Small, short-term loans Average loan = $13,000 Maximum loan = $35,000 SBA Loan Programs May be used for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment Obtained through intermediary lenders Non-profit, community based lenders Required to provide business training and technical assistance to borrowers For more information on SBA programs available, please visit: http://www.sba.gov/financialassistance 34
Once a company has met SBA requirements, the loan qualification process is similar to the one used for bank loans Loan Eligibility Eligibility requirements For profit Meet SBA size standards (NAICS/SIC) Not engaged in lending, real estate development, investments or speculation Credit requirements Good character Management expertise Feasible business plan Adequate equity or investment No 100% financing Sufficient collateral Ability to repay debt from earnings Collateral Personal guaranty of principals owning 20 percent or more Personal assets may be required Loans will not be declined solely for insufficient collateral, but loan will be secured to the maximum extent possible Ineligible use of proceeds Speculation Partial change of ownership Payment to principals of the business Delinquent payroll / sales taxes 35
Time is running out to take advantage of Federal incentives for building energy efficiency upgrades Energy Policy Act of 2005 Commercial Building Tax Deduction ( 179D IRS Code) Through 2013 Must save at least 50 percent of the energy cost of a building that meets ASHRAE Standard 90.1-2001 Up to $1.80 per square foot Sum of any two qualifying partial systems Building envelope ($0.60/ft 2 ) Heating, cooling, ventilation ($0.60/ft 2 ) Interior lighting ($0.60/ft 2 ) Lighting HVAC Bldg. Envelope 16 2/3% 16 2/3% 16 2/3% 20% 20% 10% 36
Verification and certification is required to receive the CBTD incentives Interim lighting rules Verification DOE software tools Prescriptive Trade-off EPAct 2005 CBTD ( 179D IRS Code) Performance Certification requirements Qualified individual (impartial and licensed) Benefit available to tenants or designers Reduct Beyond 90.1 25% 30% 40% 50% Eligible Deduction/ft 2 $0.30 $0.40 $0.60 $0.60 37
Legislation and updated green building codes are driving energy efficiency investment Executive Order 13514 Federal leadership in environmental, energy and economic performance Reduce direct greenhouse gas emissions by 28 percent by 2020 OMB scorecards Federal Incentives Strategic sustainability performance plan New federal buildings designed in 2020 achieve zero net energy by 2030 ASHRAE 90.1-2010 8.4.2 Receptacle Control At least 50 percent of receptacles for offices and classrooms Control by an automatic device (scheduled, sensor signal) 38
Federal incentives are also available for customer-owned generation such as renewable energy investments and CHP Energy Improvement and Extension Act of 2008 8 year extension (through 2016) of 30 percent investment tax credit (ITC) Commercial solar installations Solar pool-heating systems are not eligible Small wind power ( 100 kw) Biogas digesters ( 150 kw) Geothermal heat pumps Can take ITC or production tax credit (PTC) but not both PTC applies to wind ($0.022/kWh produced) and digesters ($0.011/kWh), but not solar Fuel cell tax credit limit is tripled to $1,500 for each 0.5 kw Creates a new 10 percent tax credit for certain combined heat and power systems 39
The Federal government also offers favorable depreciation terms and RECS for renewable energy investments Federal Modified Accelerated Cost Recovery System (MACRS) Title 26, Section 168 5 year depreciation Federal Incentives 50 percent first year bonus depreciation up to December 31, 2013 Eligible for Renewable Energy Credits (RECs) Food Conservation and Energy Act of 2008 (Farm Bill) Mandatory funding for the Rural Energy for America Program (REAP) more than doubled from $115 million to $255 million Since 2003, USDA Rural Development has awarded more than $40 million for anaerobic digestion systems REAP Section 9007 grants up to $500,000 Advanced Biofuel Payment Program (production only) 40
The state of Florida has and is creating many energy programs that may benefit your business State Incentives Local government grantees will be putting together energy efficiency and conservation strategies to determine: How to spend the money to increase energy savings How to reduce greenhouse gas emissions in their communities The state of Florida is also creating several new energy programs funded by ARRA that will help expand energy efficiency projects and renewable energy investments in the state For more information, visit: http://myfloridaclimate.com 41
Bank loans are the most common method of financing equipment purchases Description Organization avoids expending cash on hand Goal is to negotiate terms where the payments are lower than the cash savings from the project Private Loans Considerations Equipment loans normally require a down payment of 20 25 percent Secured by a lien on the items purchased Lenders look at organization s financial strength to determine if additional security is required Borrower s ability to negotiate favorable terms depends on lender s perception of risk... Makes sense when monthly energy savings are enough to cover finance charges. 42
Financing with bonds is common in the public sector Bonds Description Debt instruments sold by public and private-sector organizations to borrow money from capital markets Considerations Complex agreements with a high transaction cost Issuing municipal bonds requires approval by legislative bodies and voter referenda Some state energy programs raise money with bonds to create pools of money for funding smaller projects sponsored by local governments and school districts Public-sector organizations should check with the state government to determine if their projects are eligible. 43
Leasing is a good alternative to purchasing by providing access to low-cost, and in some cases, tax-exempt funds 44 Description A loan in which the lender retains legal title to the property being leased Different types of leases: Operating Lease Capital Lease Municipal Lease (tax exempt) Leasing Considerations Available from commercial lenders Equipment manufacturers or their affiliates will often set up the lease and arrange for equipment purchase and delivery The financial accounting and tax rules for operating and capital leases differ significantly Ideally structured so that energy savings are enough to cover finance charges Lease periods range from 5 to 10 years Leases are fairly quick to set up and administer compared to other forms of financing.
For more information on whether your company qualifies for FPL programs, services and incentives, schedule a BEE How to Start Your Energy-Saving Plan Schedule a Business Energy Evaluation Call 1-877-748-4BEE or contact your FPL account manager if you have one Visit www.fpl.com/business for complete business program and incentive guidelines 45