The government will soon give savvy building owners a chance to smile all the way to the bank—twice. Will you be one of them?
On February 23, President Obama unveiled a “Better Building Initiative” (BBI) with incentives to reduce energy consumption of commercial buildings. These include tax credits for retrofitting efficiency improvements and financing assistance via SBA loan guarantees. Too, the initiative calls for state and local government to get involved with their own incentives and revisions to building codes. The goal for all this: a 20 percent improvement in the efficiency of commercial buildings by 2020.
Although details of this initiative are not yet final, government funding for such programs is typically capped at a pre-determined amount. When funds are exhausted, the program is terminated. Wise business owners take advantage of BBI as soon as details are announced. What can you, “Mr. Business Executive,” do now to prepare for this opportunity?
First, get a firm handle on your current energy use. The best way to do this is by comparing your building to those of similar size in your industry across the U.S. This is commonly known as an “energy benchmark.” (The ideal is “Energy Star,” a designation of the U.S. Department of Energy.) Armed with benchmark information, you will have a reasonably accurate idea of your potential for savings.
Generally, savings will consist of two types:
- Operations and maintenance (changing temperature set points, adding occupancy sensors, installing weather-stripping and caulking, repairing faulty equipment, etc.)
- Capital equipment upgrades (replacing HVAC equipment, retrofitting lighting, replacing windows, roofing improvements, etc.).
Generally, your staff can take care of operations and maintenance items without any capital investment. I’ve seen energy savings up to 30 percent simply by doing the kinds of things mentioned above. As for capital upgrades, certain lenders will fund such projects based on the energy savings generated. This is a win-win scenario. The financial institution profits from the loan, you realize savings, and your capital is not diverted from other critical business needs. Top it all off with tax credits and other incentives, and you may be saying to yourself, “this seems too good to be true.”
Since 1998, FME has helped business owners operate buildings more cost-effectively. We are closely monitoring the progress of BBI. I recommend you get ahead of the game now with an energy benchmark, followed by an assessment of savings opportunities in operations and maintenance versus capital upgrades. When the details of BBI are announced, you will be ready to submit an application and take advantage of the program before its funding is exhausted. You can smile all the way to the bank.
Get the ball rolling today with your free energy benchmark from FME.