Post by account_disabled on Mar 15, 2024 20:27:56 GMT -7
We recently worked with a company with multiple sites across New England. They initially thought their biggest energy challenge was the inefficiency of their rooftop HVAC units. But they had other problems: they didn’t have the capital to invest in new units, and they were paying above market rates for their electricity and gas. By looking together at their energy situation whole cloth, we came to a business solution that turned energy management into a catalyst for profit.
First, we reviewed their energy supply contracts across states and identified a significant opportunity for savings. They happened to still be on the utility paying high CG Leads rates that we knew competitive suppliers could beat. We put their load up for bid and ran a series of online energy auctions that attracted multiple suppliers and netted the customer a six-figure savings.
Second, while that was a great start, it wasn’t enough to solve their capital equipment problem. So, as part of the procurement, we embedded a fee on their supply bill that would cover energy efficiency project costs.
Third, we worked with local utilities to on-bill finance interest-free loans for new high-efficiency HVAC equipment.
While this may all sound very expensive, the significant success of the initial energy procurement meant that their resulting electricity bills were less than their old ones. And, in concert with the loans, we secured several hundred thousand dollars in utility incentives – free funding – for these projects. In all, the building owner received over $, in efficiency upgrades and is anticipating over $. million in energy savings over the next years, with nominal out of pocket costs. Even better, the company is projecting their energy management initiatives will increase profits this year by .
None of this can happen without the right plan and the right skills to execute it, a plan with a specific batting order of tactics that makes the total benefit equal more than the sum of its parts. For this customer, trying to tackle energy efficiency first – even though that was the obvious pain point – was a non-starter. Only by looking holistically at their energy situation did a breakthrough solution result.
Developing the right plan is one key to success in energy management. Execution is another. I look forward to exploring these and other topics related to lowering your total cost of energy in future articles, and I also look forward to hearing from you about your current challenges, successes and strategies.
First, we reviewed their energy supply contracts across states and identified a significant opportunity for savings. They happened to still be on the utility paying high CG Leads rates that we knew competitive suppliers could beat. We put their load up for bid and ran a series of online energy auctions that attracted multiple suppliers and netted the customer a six-figure savings.
Second, while that was a great start, it wasn’t enough to solve their capital equipment problem. So, as part of the procurement, we embedded a fee on their supply bill that would cover energy efficiency project costs.
Third, we worked with local utilities to on-bill finance interest-free loans for new high-efficiency HVAC equipment.
While this may all sound very expensive, the significant success of the initial energy procurement meant that their resulting electricity bills were less than their old ones. And, in concert with the loans, we secured several hundred thousand dollars in utility incentives – free funding – for these projects. In all, the building owner received over $, in efficiency upgrades and is anticipating over $. million in energy savings over the next years, with nominal out of pocket costs. Even better, the company is projecting their energy management initiatives will increase profits this year by .
None of this can happen without the right plan and the right skills to execute it, a plan with a specific batting order of tactics that makes the total benefit equal more than the sum of its parts. For this customer, trying to tackle energy efficiency first – even though that was the obvious pain point – was a non-starter. Only by looking holistically at their energy situation did a breakthrough solution result.
Developing the right plan is one key to success in energy management. Execution is another. I look forward to exploring these and other topics related to lowering your total cost of energy in future articles, and I also look forward to hearing from you about your current challenges, successes and strategies.