p2infohouse.org...this report was prepared as an account of work sponsored by an agency of the...

Putting

EnergyInto Profits

Money Isn't All You're Saving

Putting

EnergyInto Profits

ENERGY STAR ® Guide for Smal l Bus iness

This report was prepared as an account of work sponsored by an agency of the United StatesGovernment. Neither the United States Government nor any agency thereof, nor any of theiremployees, makes any warranty, express or implied, or assumes any legal liability or responsibilityfor the accuracy, completeness, or usefulness of any information, apparatus, product, or processdisclosed, or represents that its use would not infringe privately owned rights. Reference herein toany specific commercial product, process, or service by trade name, trademark, manufacturer, orotherwise, does not necessarily constitute or imply its endorsement, recommendation, or favoringby the United States Government or any agency thereof. The views and opinions of authorsexpressed herein do not necessarily state or reflect those of the United States Government or anyagency thereof.

. . . . . . . . . . . . . . Foreword

Putting Energy Into Profits i

Foreword

A s we embark on the 21st

century, conserving our naturalresources will be a necessityrather than an option. Energy

efficiency will be at the forefrontbecause it is financially, as well asenvironmentally, beneficial. Throughenergy efficiency, we can preventpollution at a profit.

Energy productivity investment is mostimportant to the business world, sincethe difference in gaining a profit ortaking a loss is dependent on having areliable power source and staying“connected.” One also has to pay thebill, so there is no merit to using morethan you must.

This guide – Putting Energy IntoProfits, The ENERGY STAR® Guide forSmall Business – is designed to educateand assist the small business commu-nity in taking advantage of the benefitsof energy efficiency. Whether you ownyour own building or are a tenant, youwant lighting, heating, air-conditioning,and power for office equipment, andother services at the lowest possible

cost. This guide can help you identifybuilding equipment and systems thatneed to be upgraded to help you saveon your bottom line. We call thisenergy optimization; you will just callit smart business.

Along with the ENERGY STAR for smallbusiness program, there are othercomplementary organizations, pro-grams, and resources available to helpsmall businesses stay competitive intoday’s economy. Two of these are theU.S. Department of Energy’s RebuildAmerica program and the NationalTrust for Historic Preservation’sNational Main Street Center program.

Each of these programs offers atremendous list of resources andexperts. You can review some of themin the “Resources” section of thisguide. The paragraphs below providea brief overview of each of the pro-grams that are “strategic partners” inserving small business, and that havecontributed to the development ofthis guide.

ENERGY STAR for small business provides access to a range of technical materialsand services. These services include a toll-free hotline at 1-888-STAR YES, and anaward-winning Web site at www.energystar.gov for free engineering support,including all your questions, product information, and calculations. You canbecome an ENERGY STAR partner through the hotline or Web site, and requestpublications, brochures, and information that you can use to highlight your“success story” for your customers and employees. There is even an annualnational awards program.

You may discover that you can do certain projects in-house after reviewing therelevant publications, or you may decide to enlist the help of professionals.

About ENERGY STAR for Small Business

ENERGY STAR for Small Business6202J

1200 Pennsylvania Avenue, NWWashington, D.C. 20460

1-888 STAR YESwww.energystar.gov

http://www.energystar.gov/


Foreword. . . . . . . . . . . . . . .

ii Putting Energy Into Profits

Regardless, ENERGY STAR will help you become a smarter buyer thorough ENERGY

STAR performance labeled products and free, unbiased technical support.

If you have access to the World Wide Web, we invite you to visit the ENERGY STAR

for small business Web site at www.energystar.gov. From there, you can explorethe success stories, technical information, “tools” and services, as well as links toother energy-efficiency sites throughout the Internet.

ENERGY STAR for small business is part of the overarching ENERGY STAR programfamily, which works with many different facets of the home and workplace. Hereis a list of the other ENERGY STAR offerings you may want to explore in the future:

ENERGY STAR for small business for firms of 100,000 total square feet or less;call 1-888 STAR YES, or visit www.energystar.gov

ENERGY STAR for businesses greater than 100,000 square feet; call 1-888 STAR YES, orvisit www.energystar.gov

ENERGY STAR Service and Product Provider Directory for companies involved in theenergy efficiency business, including Rebuild America Business Partners; visitwww.energystar.gov

ENERGY STAR “store finder” directory of retailers that sell ENERGY STAR labeledproducts; call 1-888 STAR YES, or visit www.energystar.gov

ENERGY STAR-labeled products for companies that sell or use computers, copiers, andother office equipment; call 1-888 STAR YES, or visit www.energystar.gov/products

ENERGY STAR Homes for home builders, home buyers, and home-owners interested ingreater efficiency; call 1-888 STAR YES, or visit www.energystar.gov

The U.S. Department of Energy’s Rebuild America program is a network ofcommunity partnerships made up of local and state governments, schools,universities, housing agencies, and private businesses that save money by savingenergy. These voluntary partnerships, working with support provided through theDepartment, choose the best ways to plan and implement energy efficiencyprojects in the commercial, institutional, and multifamily residential buildingscontrolled by their partners.

Partnerships have access to products, services, and peer experiences on build-ings, energy, finance, and more. Rebuild America provides support nationally andleads by regional teams. It assigns a program representative to each partnershipto help in identifying local resources, financing options, and accessing specialservices from Rebuild America to aid in completing upgrades to effectively usethe performance contracting option, working with the National Association ofEnergy Service Companies for accreditation of ESCOs, and monitoring the impactsof utility restructuring on investment options.

Rebuild America Financial Services aids access to capital by pointing partnershipstoward programs offered by states, associations, or private financing organizationsthat may be able to provide investment capital at the lowest possible rates.

About Rebuild America

Rebuild AmericaU.S. Department of Energy1000 Independence Ave., S.W.Washington, D.C. 205851-800-DOE-3732www.rebuild.org







http://www.energystar.gov/products/

http://www.rebuild.org

. . . . . . . . . . . . . . Foreword

Putting Energy Into Profits iii

The National Main Street Center is part of the National Trust for Historic Preserva-tion. The Trust created the Main Street Approach to downtown revitalization, andpromotes the use of the approach to communities to revitalize their traditionalcommercial areas. It serves as the nation’s clearinghouse for information, techni-cal assistance, research, and advocacy on preservation-based commercial districtrevitalization. The National Main Street Center’s mission is to empower people,organizations, and communities to achieve ongoing downtown and neighbor-hood district revitalization based upon the principles of self-determination,resource conservation, and incremental transformation represented in the com-prehensive Main Street Approach. The National Main Street Center’s primefocus is to:

• Provide direct, on-site technical assistance to towns, cities, and urbanneighborhoods.

• Publish a wide range of training materials (http://www.mainst.org/bookstore/bkmain.htm).

• Offer membership in the National Main Street Network, which includes MainStreet News.

• Sponsor an annual conference, the National Town Meeting on Main Street.

• Offer a professional certification program, the Main Street Certification inProfessional Downtown Management.

• Organize the Great American Main Street Awards annual competition.

About the National Main Street Center

National Trust Main Street Center1785 Massachusetts Avenue, N.W.

Washington, D.C. 20036202-588-6219

www.mainst.org

http://www.mainst.org/bookstore/bkmain.htm

http://www.mainst.org/bookstore/bkmain.htm

http://www.mainst.org

Foreword. . . . . . . . . . . . . . .

iv Putting Energy Into Profits

. . . . . . . . . . . . . . Foreword

Putting Energy Into Profits v

Welcome

When you pay your electric bill or gasbill each month, you probably don’tcare too much about kilowatt-hours ortherms. Whether you own your ownbuilding or are a tenant, you wantlight, hot water, air-conditioning, andother services at the lowest possiblecost. The ENERGY STAR® Guide for SmallBusiness can help you get the mostfrom your equipment and facility, andeven help increase your profits. This isenergy productivity; it is comparable toemployee productivity.

In the “energy crisis ” of the 1970s,conservation meant being colder in thewinter and hotter in the summer.Saving energy meant sacrifice ofcomfort. Since then there have beentremendous advances in equipment,appliance, and product technologysuch as building systems and controls,and office equipment. As a result youcan get reliable, affordable “off-the-shelf” technologies that provide highercomfort, and higher quality businessspace for significantly less than youare currently spending.

Let’s Look at SomeExamplesImagine a warehouse area that youjust can’t keep warm in the winter.Replacing the natural gas unit heaterswith gas-fired radiant heaters canreduce your fuel use by 30 percentwhile keeping your employees com-fortable so they can do their bestwork.

Say you have some incandescentfloodlights mounted outside yourbuilding for security. Replacing thislighting equivalent with high-pressuresodium fixtures could save 80 percent

of the electricity while increasing thelight level (see page 44). That can saveyou big money. In addition, installingphotocell controls will ensure that thelights will always be off during the dayand on at night to deter vandals orburglars who may be lurking in theshadows.

Have you experienced eye fatigue orheadaches from working under theflickering glare of older fluorescentlights? Do you have trouble viewingyour computer monitor because thelighting in the room is too bright?Upgrading your existing lighting withnewer products can increase visualcomfort and allow you and youremployees to get more work donewhile you spend 20 to 50 percent lesson energy than with old equipment.

The ENERGY STAR for small businessprogram will help you apply solutionssuch as these to your business so youcan save money, optimize energy use,and help protect the environment. As apartner in ENERGY STAR for smallbusiness, you have access to unbiasedinformation on building technologiesand the upgrade process.

For more information, call us toll freeat 1-888-STAR YES or visit our Web siteat www.energystar.gov.

Where To Find WhatYou Need in This GuideWe realize your time is critical to yourbusiness, so we’ve designed this guideto get you the information you needquickly. This section is your key tofinding information in this guide.

Section 1, Getting the Job Done, givesyou practical advice on how to

http://www.energystar.gov

Foreword. . . . . . . . . . . . . . .

vi Putting Energy Into Profits

overcome the technical, financial, andmanagerial hurdles that you mayencounter on the path to improvingyour bottom line through energyefficiency. In this section, we give youproven strategies to identify the bestenergy upgrades for your business. Wealso discuss how you can finance theseupgrades, and we give you time-testedguidelines for selecting contractors tohelp you get the job done.

Section 2, Technical Support, describesthe many technologies that can im-prove your energy efficiency. Youprobably expect that lighting, heating,cooling, and water heating are coveredin depth; however, you may be a littlesurprised to find out how much moneyselecting the right office equipmentcan save. And we include a discussionof techniques to optimize your paperuse that will save you money whilepreserving our nation’s forests andlandfill capacity.

Throughout Section 2 we identifysimple measures that you can doyourself in just a few minutes. And forthe more involved upgrades, weexplain the solutions and the terms sothat you can be a smarter shopperwhen interacting with contractors andsuppliers.

Section 3, Supporting Material, containsa glossary that will help you under-stand unfamiliar terms and newtechnologies. There are tables you canuse to compare your energy use andcosts with similar businesses in yourregion. This section also has a check-list of ways to improve your facility’senergy efficiency and a shopping list ofthings to look for when buying orleasing a building. We make celebrat-ing your success easy with a card at theend of this guide that you can use todescribe your upgrade projects. Yourfacility may be featured in an ENERGY

STAR success story, and your companycan be publicly recognized for exem-plary environmental responsibility inaddition to good business practices.

Selected ReadingI’ve got no time.Read “Finding the Time ” and “Learn-ing About Energy Efficiency ” inSection 1. A consultant from one of theprograms will be able to identifyupgrade options for you with only alimited investment of your time.

I have access to in-housetechnical help.Read Section 1 and then pass thisguide to your in-house staff. One weeklater, schedule a meeting to review thetechnologies and upgrades that mightbe appropriate for your business, andestablish a preliminary timeline.

I don’t have technical staff andwould likely contract out all work.Read “Selecting a Contractor” inSection 1, then scan through this entireguide so you can determine whichequipment to focus on and who to callfor help.

ContentsPutting Energy Into Profits: ENERGY STAR® Guide for Small Business

SECTION 1: Getting the Job Done .......................................................... 1Finding the Time ..................................................................................................... 3

Finding the Funding ............................................................................................... 5

Learning About Energy Efficiency .......................................................................... 7

Making a Good Building Even Better.................................................................... 11

Selecting a Contractor .......................................................................................... 15

Profiting From Energy Savings as a Tenant ........................................................... 19

Verifying Savings .................................................................................................. 21

ENERGY STAR® for Small Business ............................................................................ 23

SECTION 2: Technical Support .............................................................. 25Financial Analysis .................................................................................................. 27

Prioritizing Your Projects ...................................................................................... 31

Lighting Part I: Concepts ...................................................................................... 33

Lighting Part II: Upgrades ..................................................................................... 39

Building Tune-Up .................................................................................................. 49

Office Equipment ................................................................................................. 51

Paper .................................................................................................................... 55

Water Heaters and Water Use ............................................................................... 57

Refrigeration ......................................................................................................... 63

Building Construction .......................................................................................... 65

Heating and Cooling ............................................................................................. 71

Other Ideas for Energy Optimization ................................................................... 79

SECTION 3: Supporting Material .......................................................... 87Glossary ................................................................................................................ 89

Free Publications and Programs ........................................................................... 96

Average Energy Use and Costs Throughout the United States ............................. 97

Index .................................................................................................................... 99

Energy-Efficiency Quicklist ................................................................................ 103

ENERGY STAR® for Small Business Building Shopping List ..................................... 105

1Getting theJob Done

. . . . . . . . . . . . . . Getting the Job Done

Putting Energy Into Profits 3

W e understand how importantyour time is to your business.We’re also convinced thatenergy-efficiency upgrades are

well worth your consideration due tothe savings and improved comfortthey bring.

Getting Started WithFew HasslesHere are strategies to jump-start yourenergy savings with a limited invest-ment of your time.

• Ask your utility if they offer free orinexpensive energy audits.

• Invite lighting contractors andheating, ventilating, and air-conditioning (HVAC) contractors to your facility to suggest upgradesand provide free estimates.

• Leverage your time by drawing onthe expertise of ENERGY STAR® andRebuild America Products andServices providers by visiting theirWeb sites:www.epa.gov/smallbiz/map.html.www.rebuild.org/business/business.asp.

• Contract with an energy professionalto coordinate and manage yourproject.

• Select turnkey services from anEnergy Services Company (ESCO);see page 8.

• Unload responsibilities onto energyprofessionals when you discover aparticular project is taking more ofyour time than you can afford.

The Cost of DelayWhile we often think of upgradeprojects in terms of how quickly theinvestment is paid off through thesavings, we don’t usually recognize theother side of this equation. For eachmonth or year that you delay yourupgrade projects, you completely losethat potential savings forever.

Finding the Time

Consider a business with annual energy

costs of $25,000. If a comprehensive

upgrade program could reduce energy

use by 30 percent, this business

could save $7,500 per year.

Assume that the cost of

implementing these

measures results in a

3-year simple payback,

which is typical. In

delaying the upgrade, this

business is forfeiting a low-

risk investment opportunity at

27 percent interest.

http://www.epa.gov/smallbiz/map.html

http://www.rebuild.org/business/business.asp


Getting the Job Done . . . . . . . . . . . . . . .

4 Putting Energy Into Profits

ENERGY STAR publishes “success stories” on actual small business efficiency upgrades online at www.epa.gov/smallbiz. The stories are designed not only to recognize a “job well done” by the small business and itscontractors, but to also show other small businesses what equipment, appliances, and strategies are

commonly most effective. You will find businesses like yours that have overcome the same obstacles you arefacing to achieve bottom line dollar savings, while improving the quality and comfort of their facilities.

There is no substitute for a comprehensive energy survey and analysis of all your firm’s energy-efficiency options,but if you “don’t do anything else” here are some simple, high “return on investment” equipment upgrades. These12 “sure savers” include, 1) turn off lights and equipment when not in use; 2) buy ENERGY STAR labeled products; 3)install lighting occupant sensors in proper locations; 4) adjust lighting to actual needs — use free “daylighting”; 5)tune-up HVAC system with annual maintenance contract; 6) regularly change or clean HVAC filters; 7) install aprogram-mable HVAC thermostat; 8) replace incandescent light bulbs with compact fluorescent lamps (CFLs),wherever appropriate; 9) install LED (light-emitting diode) exit signs; 10) control direct sun through windows; 11)use fans; and 12) plug air leaks with weatherstripping and caulking.

Again, we encourage that your business have a comprehensive, professional energy audit or survey, that will assessall your energy uses, then propose a prioritized (by cost/benefit) list of upgrade investments. Your utility companymay offer such services at no cost, or you can find firms that offer such services with the help of ENERGY STAR. Toread success stories on real small businesses energy savings, or to find finance, products, and services for yourown energy efficiency upgrade, visit http://www.epa.gov/smallbiz/map.html.

Throughout this guide, you will find brief excerpts from ENERGY STAR small business success stories. If your smallbusiness has done a great efficiency upgrade, or you are a contractor with a successful client efficiency upgrade,you can submit a success story and even apply for an ENERGY STAR award at www.energystar.gov.

Success Stories



http://www.epa.gov/smallbiz/




The ENERGY STAR for smallbusiness Web site is aquick avenue to locatefinancial resources andproducts and services foryou to take advantage of:www.epa.gov/smallbiz.

T he key issue is, how do you payfor the upgrades? Not a problem.Energy-efficiency upgradesmake such good business sense

that there are many traditional andnon-traditional financial resources touse in funding that can provide youwith a positive cash flow for yourbusiness.

For inexpensive projects, you’ll wantto fund your upgrades from your owninternal funds. This is the best way tokeep payback time low and returnon investment high. The overheadcosts of financing are too high forsmall projects.

For larger jobs, small businessesoften don’t have the convenient cashreserves or revolving credit plansthat large corporations do. Cash flowlimitations can make capital fundingfrom reserves simply impossible. Insuch situations, financing is the onlyway the project can be implemented.Fortunately, a wide variety of sourcesand mechanisms has evolved over thepast few years to help small businessesmaintain a positive cash flow whileimplementing energy-efficiencyprojects.

ENERGY STAR for smallbusiness Web SiteResources are available through theENERGY STAR for small business programto help you find financing. ENERGY STAR

does not endorse individual lenders,but we provide a growing list of smallbusiness lenders. If you have Internetaccess, the Web site atwww.energystar.gov features the“Finance Directory” (just click on “FindMoney”), which provides lender,

vender, and utility resources, manywith direct Web links. If you do nothave Internet access, call us at 1-888STAR YES, and our “tech support” staffwill check your area for financinginformation.

Conventional LoanSourcesConventional loans are a commonfinancing option for many energyprojects. Several different sources forthese loans are listed below.

Small Business Administrationloans. Your business banker can usethe Small Business Administration’s(SBA’s) 7A loan guaranty programs toback loans for energy-efficiencyprojects. Here are descriptions of someof the loans SBA offers:

MicroLoans: The MicroLoan program

Finding the Funding

The ENERGY STAR for small business Finance Directory is available on-line, withdirect links to participating lenders. Alternatively, you can call the toll-free hotlineat 1-888-STAR YES to request the list for your area; or visit www.epa.gov/smallbiz/map.html.







provides small loans ranging from $100to $25,000. Completed applications areusually processed withina week.

SBAExpress Loans: This programprovides a guaranty on small businessloans of up to $150,000 within 36hours of receiving the completed loanapplication package.

CAPLines Loans: Under this program,small businesses unable to meettraditional credit standards can get arevolving line of credit up to $750,000.

To find out more, call SBA at1-800-8-ASK SBA or see their Web siteat www.sba.gov for more information.

Supplier Loans. Many suppliers offerfinancing in combination withinstallation of their equipment. You’llwant to make sure the interest rate iscomparable to what you can getelsewhere. See “Products and Services”at www.energystar.gov.

Utility Loans. Your local utility mayhave a low-interest loan program orrebates to underwrite energy-efficiencyprojects.

Legislation in the summerof 1996 extended theability of businesses todeduct equipment up-grades as an expense.

Savings Implications

I f you borrow money to pay forenergy-saving measures, keep two

considerations in mind. First, you maywant to arrange the loan period tobe long enough so that you realize apositive cash flow each month. That is,if you implement a $4,000 measurethat saves $1,200 per year ($100 permonth), then you could arrange a loanthat pays back the $4,000 at a rate ofless than $100 per month. This wayyour business will always see a positivecash flow for the measure. This cashflow will be smaller while you’re payingoff the loan but will increase dramati-cally once the loan is paid off.

Second, financing your upgrades with aloan will slightly extend your paybackperiod and reduce your internal rate ofreturn. Be sure to incorporate thisfactor into your business analysis.

Finally, your state energy office may beaware of alternative sources of grantmonies and loans.

Performance ContractingFinancing your project yourself througha cash purchase or a loan requires youto shoulder all the responsibility for theproject’s success. Performancecontracting, available primarily throughEnergy Services Companies (see page8), is an alternative way to financeenergy-efficiency projects. You receivea lower level of cost savings at first buthave assurance that your actual savingswill meet your expectations.Performance contracts are typicallynegotiated with no up-front cost to thebuilding owner, and all projectexpenses are paid for by the energysavings. A detailed explanation ofperformance contracts is found inFinancing Your Energy-EfficiencyUpgrade, EPA 430-B-97-003. Call theENERGY STAR hotline at 1-888-STAR YESfor this or other publications.

Reinvestment of SavingsThe ENERGY STAR program emphasizes astaged approach to energy investmentprojects (see page 32). Part of the reasonfor this is technical, but another part isthat you can use the cost savings fromyour first project to fund your secondproject, your third project, and so on.

Tax ImplicationsLegislation in the summer of 1996extended the ability of businesses todeduct equipment upgrades as anexpense. This can save you money bytaking capital costs that normally wouldbe amortized and deducted from de-clared profit over several years andadvancing the costs into a current yeartax deduction. We suggest that youcontact your accountant for moreinformation on how upgrade projectscan reduce your taxes and improveyour cash flow.

http://www.sba.gov/




Learning About EnergyEfficiency

I f you’re like most small businessoperators, you know a lot moreabout running your business thanabout the intricacies of motors,

lighting, or air conditioning. We under-stand you may be reluctant to take onthe challenges of building upgradeprojects, especially when your existingequipment still works. We will helpyou successfully implement up-gradesby relying heavily on energy profes-sionals and ENERGY STAR resources.ENERGY STAR will help you through theprocess, and we can answer your mostdifficult questions.

Energy-Efficiency BasicsBuilding technologies have beenadvancing at a striking pace over thepast decade. It is now possible toperform upgrades that reduce energyuse by up to 50 percent in some cases.If your building’s lighting and heating/cooling systems are more than 10 yearsold, you could potentially see bigsavings by upgrading them. Some ofthe key opportunities are describedbelow.

Lighting. Even though the light bulbis still the symbol of innovation, oldincandescent bulbs consume 75 per-cent more electricity than compactfluorescent bulbs. There are also newtechnologies to reduce the energyuse of fluorescent fixtures. Andoccupancy sensors, which turn lightsoff in unoccupied areas, have becomesurprisingly inexpensive (see page 45).Look around your building. If you usejust about any fixtures that are morethan 10 years old, your building is agood candidate for a lighting upgrade.

Building Tune-Up. Get your buildingback to its peak performance. Seepage 49 for more information.

Office Equipment and Paper Use.Selecting ENERGY STAR equipment whenyou purchase new computers or officeequipment and encouraging a fewsimple practices among your employ-ees will yield energy savings withabsolutely no investment cost.See pages 51–53 for moreinformation.

Consider Some of the TraditionalMyths About Equipment and Energy Use

Myth: Leaving computers on helps them last longer.

Reality: Today’s computers do not suffer from being turned on and offthousands of times. In fact, turning computers off when they’re notbeing used lowers the amount of dust buildup inside, which helps themlast longer while saving you money.

Myth: Energy costs are an insignificant part of total expenses.

Reality: Typical restauranteurs and grocers spend as much on energyas they earn in total profits. Furthermore, improved employee comfortand productivity (which are common after building upgrades) can leadto much greater profit than is indicated by your reduced utility bills.1

Myth: Fluorescent lights last longer if not turned on and off.

Reality: Switching fluorescent lights on and off does slightly shortentheir life. However, any time the lights will not be needed for morethan about 10 minutes, you save more money by turning them off thanby leaving them on.

Myth: I should replace old equipment with more efficient versions only asthe old systems break.

Reality: With some new technologies, such as T-8 fluorescent lights (20 to 60 percent savings) or light-emitting diode (LED) exit signs(up to 90 percent savings), there’s just no reason to wait. You canstart saving money on energy and maintenance costs right away._______________________

1 American Society of Heating, Refrigeration and Air-Conditioning Engineers Journal, January, 1997.



Water Heating and Water Conserva-tion. You may be paying more thanyou have to for water use or waterheating. Learn more starting on page 57.

Refrigeration. Check your sealsregularly and specify high-efficiencyevaporator fans when you buy newsystems. These and other operationsand maintenance guidelines will keepyour refrigeration equipment workingat peak efficiency. See page 63 foradditional ideas.

Building Construction. Starting onpage 65 is a review of the steps toupgrade your building’s walls, roof,and windows to get the most comfortfrom your heating and cooling units.

Heating and Cooling. Inexpensivemodifications such as installing pro-grammable thermostats and cleaningyour filters can often significantlyreduce your heating or cooling costs.Thinking of replacing your old system?See page 71 to explore the optionsbefore you buy, because it may beworth a little extra to buy a high-efficiency unit. If your existing system isold enough, it may be cost effective toreplace it with a new one immediately.

Other Opportunities. Each businesshas unique opportunities for energysavings based on the particular equip-ment it uses or the processes thatoccur. Many of these measures arediscussed starting on page 79. Youcan also call the ENERGY STAR hotline at1-888-STAR YES for information onmeasures not covered in this guide.

Look to Experts for AdviceThe type of help you will need to startyour upgrade projects depends onthe amount and skill level of in-housesupport, the type of project, projectsize, and how the project will befinanced. To begin, you may need thehelp of a consultant or an energyauditor to identify upgrade opportuni-ties. If your in-house support is ex-tremely limited, you may need somelevel of management or oversight by aconsultant other than the contractorperforming the work. Typically this ismoney well spent, because just likehiring a professional accountant toprepare your tax returns, professionalconsultants or auditors often save youmore money and provide fast andefficient results that allow you to makeknowledgeable choices concerningenergy-efficiency upgrades.

Start with a free energy audit whereavailable. First call your electric orgas utility. Almost half of the country’sbiggest utility companies offer freeor subsidized energy audits for com-mercial customers to identify energy-

Unique opportunitiesfor energy savings areavailable for eachbusiness.

● Energy Services Companies (ESCOs) offer turnkey services that areexcellent alternatives for larger projects. The company will perform an audit(usually free) to identify savings opportunities and will arrange financing,coordinate contractors, and perform all project management. Often theseprojects are financed as performance contracts, where the ESCO receives aportion of the savings generated by the project. The National Association ofEnergy Services Companies (NAESCO) can refer you to the ESCOs in yourarea; call (202) 822-0950 or visit the Web site at www.naesco.org.

● Lighting contractors will be familiar with all aspects of lighting design andcan conduct lighting audits, recommend replacements, and calculate energyand cost savings. Lighting contractors are the best choice when the projectis high profile or requires significant lighting redesign.

● Electrical contractors have skills installing motors, modifying equipment,and performing straightforward lighting upgrades.

● Mechanical contractors specialize in the heating, cooling, and ventilatingsystems at a facility. They can coordinate the work of subcontractors andinterface with installers of Energy Management Systems (EMSs) if required.

● Controls contractors specialize in the automatic controls for heating,cooling, ventilating, lighting, and emergency systems. Installation of a centralcomputerized control system with advanced energy savings functions (alsoknown as EMS) is cost effective for many facilities.

● Operations and maintenance contractors will perform routinepreventive maintenance and improve equipment operating schedules thatcan extend equipment life and reduce energy use.

Installation Support

Lean on outside contractors for expertise and installation.Available resources include ESCOs and conventional contractors:

http://www.naesco.org



efficiency opportunities. Theseaudits may not identify too manyfuel-switching opportunities thatconvert you from the sponsoringutility’s product, but they are anexcellent and objective way to getstarted. Some utilities give out compactfluorescent lamps for free to theircustomers. If you don’t have any luckthere, you can sometimes call yourelectrical or heating, ventilating, andair-conditioning (HVAC) contractors forfree walk-through audits. Just recog-nize that the contractor’s agenda forsuch an audit will include a salespitch; if you don’t have a long-termrelationship with your contractor, youwill want to carefully considercapital-intensive recommendations. Ifyou don’t have a contractor, call1-888-STAR YES and ask for yournearest ENERGY STAR buildings partner.ENERGY STAR buildings partners havereceived training in strategies toupgrade building systems to optimizeperformance.

For large projects outside your realmof expertise, consider hiring consult-ants to prepare bid documents or toverify the work of contractors. Formore information see page 15. As arule of thumb, it is worthwhile to havea management investment of 3 percentto 10 percent of the project cost so anindependent expert can oversee majorprojects. This premium doesn’t detractmuch from your payback and is agood insurance policy. Look in theyellow pages of your phone bookunder “engineering consultants,” orsimilar titles, or call 1-888-STAR YESfor the name of your nearest ENERGY

STAR buildings partner.

For information on financial or techni-cal assistance contact your localsmall business development center orvisit http://www.asbdc-us.org/ for alist, or call the Small Business Adminis-tration at 1-800-8-ASK SBA. You canalso contact your state energy office orask your local Chamber of Commerce.

Where Can I Learn More?For more information on energytechnologies and audit capabilities,contact:

• Air Conditioning Contractors ofAmerica (ACCA): (301) 384-2222

• American Consulting EngineersCouncil (ACEC): (202) 347-7474

• American Society of Heating,Refrigeration, and Air-ConditioningEngineers (ASHRAE): 1-800-527-4723or (404) 636-8400; www.ashrae.org

• American Society of MechanicalEngineers (ASME): 1-800-THE-ASMEor (301) 937-2799; www.asme.org

• American Solar Energy Society(ASES): (303) 443-3130; www.ases.org

• Association of Energy Engineers(AEE): (770) 447-5083, ext. 220;www.aeecenter.org

• The Association of Energy ServiceProfessionals (AESP): (407) 361-0023

• Association of Small BusinessDevelopment Centers (ASBDC):(703) 764-9850; [email protected]

• Center for Renewable Energy andSustainable Technologies (CREST):1-888-44CREST; www.solstice.crest.org/

• Electric Power Research Institute(EPRI): www.epri.com

• The Energy-Efficiency and Renew-able Energy Clearinghouse (EREC):1-800-313-3774 or (650) 855-2000;www.eren.doe.gov

• ENERGY STAR for Small BusinessHotline: 1-888-STAR YES;www.energystar.gov

• Energy User News: (248) 362-3700;www.energyusernews.com

• Lighting Research Center:(518) 687-7100; www.lrc.rpi.edu

• National Association of EnergyServices Companies (NAESCO):(202) 822-0950; www.naesco.org

• National Trust Main Street Center:(202) 588-6219; www.mainst.org

• National Society of ProfessionalEngineers (NSPE): (703) 684-2800;www.nspe.org

• Rebuild America: 1-800-DOE-3732;www.rebuild.org

Look in the yellow pagesof your phone book underengineering consultants,or similar titles, or call1-888-STAR YES. Online,visit the map-based direc-tory of finance, products,and services atwww.epa.gov/smallbiz/map.html or visit theRebuild America BusinessPartners page atwww.rebuild.org/business/business.asp.

http://www.asbdc-us.org/

http://www.ashrae.org

http://www.asme.org

http://www.ases.org

http://www.aeecenter.org

http://www.solstice.crest.org

http://www.epri.com

http://www.eren.doe.gov


http://www.energyusernews.com

http://www.lrc.rpi.edu

http://www.naesco.org

http://www.mainst.org

http://www.nspe.org

http://www.rebuild.org







Success Stories

his water or electricity utility costs are higher in thearea. For the future he’s looking into buying icemakers that have separate condensers so the heatfrom the ice makers can be sent straight outside.

Customer Comfort Comes FirstKaplan wants his stores to be inviting year-roundwith plenty of air-conditioning capacity, so when-ever he opens a new store he replaces the old airconditioner with a high-efficiency unit. The unitsrun year-round so paying a premium for high-efficiency units is well worth it for him. To keep hiscosts down, he also installs ceiling fans. They addto the ambiance, and theslight breeze theyprovide allows him to sethis air conditioner threeto five degrees higherwithout any sacrificein comfort. This saveshim money too.

Upgrades are Piled High WithAll the TrimmingsKaplan has switched from electric to gas waterheaters with just a 1-year payback on the installa-tion thanks to the low cost of gas, even includingthe cost to build a special fire-retardant closet andinstall a roof vent. His windows are all tinted tokeep out heat from the sun. Maintenance is aninexpensive way to save money, and Kaplan takesadvantage by regularly inspecting his refrigeratorand freezer door gaskets.

Rolling in the DoughOverall, Kaplan saves $20,000 per year from hisupgrades. The upgrades also make his food lookmore appealing and keep his customers morecomfortable. Participation in the ENERGY STAR

program helped Kaplan make the right decisionsand gave him free publicity. That’s smart business.

Subway Franchises Make Bread of Another KindTwenty thousand dollars can buy a lot of bread.That’s what Subway franchise owner Steve Kaplanis saving by installing energy-efficient equipment,including lighting, in seven Subway locations inOklahoma. With these improvements he reducedhis energy costs by 40 percent and made hisrestaurants more attrac-tive and comfortablefor customers. Inaddition to properlylighting his restaurants,Kaplan makes his energy-efficientequipment upgrades where he will get a 3-yearpayback or better. Because Kaplan leases thespace for all seven of his Subway franchises, heupgrades only when he plans to renew a leasethat is at least three to five years in length.

Just the Right Light to WhetYour AppetiteKaplan changed his stores’ lighting from 40-wattT-12 lamps with magnetic ballasts to 32-watt T-8lamps with electronic ballasts and reflectors. “AfterI installed the energy-efficient lighting,” he said,“my customers said the produce looked fresherand more appealing” thanks to the better color-rendering of the T-8 lamps heinstalled. Subway franchises arerequired to have a high light level,and Kaplan’s lighting upgradesmaintain this very bright level eventhough each fixture was reducedfrom four bulbs to two.

Cool as a CucumberSandwichThe store’s kitchen equipment generates so muchheat that the air conditioning runs year-round. Icemakers are one of the main heat sources. Toreduce his air-conditioning costs, Kaplan hasinvested in water-cooled condensers for icemakers in some of his stores so the heat fromthe ice makers goes into the water instead of theroom. His choice of stores depends on whether



Making a Good BuildingEven Better

ENERGY STAR partnershave reduced theirbuildings’ energy costs byan average of about30 percent.

E NERGY STAR partners have reducedtheir buildings’ energy costs byan average of about 30 percent,and upgrades at these sites

continue. But even if your buildingis already relatively energy efficient,almost every commercial building canhave its energy costs reduced by atleast 10 percent with measures thatpay for themselves in less than threeyears. Energy cost reduction of 50percent or more will be economicallyprofitable at some sites.

The best way to measure your energyuse is by calculating it per square footand comparing it with other buildingsthat conduct the same type of businessthat you do. Fill out the worksheet onpage 12.

Once you have calculated your electricenergy intensity, look at the pie chartson pages 13 and 14. The charts showthe national average of typical annualenergy use by building type for all-electric buildings. The pie pieces aresized according to total energy use andare labeled according to equipmenttype. Certainly an office in Miami, FL,will use more energy than the sametype of office in downtown SanFrancisco, CA, so be sure to considerheating and cooling variations in yourcomparison.

Keep in mind that the values on pages13 and 14 are averages. An “average”business will typically have profitableopportunities to lower its bills by 30percent. A business using more thanthe average amount of electricitymay have even better opportunities.Even a business significantly below the average can usually find potentialsavings through measures that empha-size the newest technologies (such as

ENERGY STAR office equipment).

To find the best upgrades for yourbuilding and equipment, you will wantto identify the area of your highestenergy use. The best place to start isto review your electric, natural gas,fuel oil, and other energy bills for thepast year. Select your highest bill. Isit highest in the summer? This prob-ably indicates high air-conditioningcosts. Is it highest in the winter? If youcurrently have electric resistance heat,you may save money by converting tonatural gas, fuel oil, or an electric heatpump. Are your electric bills higher inspring and fall than in summer andwinter? Simple modifications to yourheating and cooling systems mayprovide excellent savings.Many times you will discover that yourpeak electricity use occurs during atime of year when rates are highest.In addition, your electric bills mayhave a demand charge component,which is a charge based on your peakrate of electricity use. These factorsmake it especially important to selectenergy-efficiency upgrades that willlower your energy use when theutility’s rates are at their highest orwhen your facility’s demand is atits peak.

If you are charged a “demand charge” on your electric bill, you pay a fee based on yourpeak rate of electricity consumption. Lowering your peak rate of usage can save big.

ElectricUse

(kW)

Midnight Noon Midnight

Peak Demand



Using Utility Bills To Forecast Upgrade Costs

You can use your current utility bills to estimate the total cost of upgrades that may be cost effective. ENERGY STAR’sexperience with energy-efficiency upgrades has shown upgrade savings to be between 10 and 50 percent ofexisting utility bills. Because the typical upgrade costs three times what it saves in one year, youcan anticipate an upgrade budget of roughly 100 to 150 percent of your total annual utility bills.

For example, if your annual utility bill is $24,000 (for all fuels), it may be cost effective toanticipate spending $24,000 to $36,000 on upgrading your equipment. You can findinformation on financing these upgrades starting on page 27. This budget can be a goodreality check once you start getting prices from suppliers and contractors. Of course, youmay encounter savings higher or lower than this depending on your facility.

How Efficient Are You?

Use this worksheet to compute your electric energy intensity, or visit www.epa.gov/smallbiz/calculate.html.

1. Look through a few of your electric bills, (A) _________________ kWh/monthincluding winter, spring, fall, and summermonths if possible. Write the averagekilowatt-hour (kWh) per month on line (A).

2. Multiply (A) by 12 to compute your (B) _________________ kWh/yearapproximate annual electricity use.Write this number on line (B).

3. On line (C), write down the size of your (C) _________________ square feetfacility in square feet.

4. Calculate your electric energy (D) _________________ kWh/sq.ft./yearintensity by dividing (B) by (C) to getthe overall kWh per square foot per year. Write this number on line (D).

5. Compare the number on line (D) with the resultsof similar businesses around the country (yourcompetitors) so you can find out where youstand in relation to your peers. See the pie chartson the next two pages.

The electric energy intensity you just calculated does not include the fuel oil, natural gas, purchasedsteam, or propane your business may use. If you would like to compare your total energy use and costs withsimilar businesses in your climate region, see Average Energy Use and Costs Throughout the United States onpage 95.

http://www.epa.gov/smallbiz/calculate.html



Compare Your Business With the National Averages

Your Business Type Your Electric National Average Typical ElectricEnergy Intensity Electric Energy Intensity Energy Use (kWh/sq.ft./year) (kWh/sq.ft./year)

Warehouse _____ Line (D) 6.5from worksheeton page 12

School _____ Line (D) 9.0from worksheeton page 12

Lodging _____ Line (D) 15.3from worksheeton page 12

Retail _____ Line (D) 15.3from worksheeton page 12

Office _____ Line (D) 16.5from worksheeton page 12

Heating 24%

Cooling 24%

Miscellaneous 10%

Ventilation 11%

Lights 24%

Refrigeration 1%

Cooking 2%

Water Heating 4%

Heating 19%

Cooling 27%

Miscellaneous 5%

Ventilation 6%

Lights 26%

Cooking 3%Water Heating 4%

Heating 26%

Cooling 22%

Miscellaneous 5%

Ventilation 5%

Lights 16%

Refrigeration 4%

Cooking 8%

Water Heating 14%

Heating 40%

Cooling 19%

Miscellaneous 4%

Ventilation 6%

Lights 17%

Refrigeration 2%Cooking 4%

Water Heating 8%

Heating 22%

Cooling 16%

Miscellaneous 5%

Ventilation 7%

Lights 12%

Refrigeration 32%

Cooking 4%

Water Heating 2%

Refrigeration 10%



Your Business Type Your Electric National Average Typical ElectricEnergy Intensity Electric Energy Intensity Energy Use (kWh/sq.ft./year) (kWh/sq.ft./year)

Compare Your Business With the National Averages (continued)

College _____ Line (D) 18.6from worksheeton page 12

Health _____ Line (D) 22.3from worksheeton page 12

Restaurant _____ Line (D) 43.4from worksheeton page 12

Grocery _____ Line (D) 52.5from worksheeton page 12

Miscellaneous _____ Line (D) 12.3from worksheeton page 12

Heating 13%

Cooling11%

Miscellaneous3%

Ventilation 4%

Lights 23%

Refrigeration38%

Cooking 5% Water Heating 2%

Heating 11%

Cooling18%

Miscellaneous 5%Lights 13%

Refrigeration16%

Cooking 21%

Water Heating 11%

Heating 29%

Cooling 19%

Miscellaneous 5%

Ventilation 7%

Lights 13%

Refrigeration 20%

Cooking 3%

Water Heating 4%

Heating 26%

Cooling 25%

Miscellaneous 6%

Ventilation 10%

Lights 18%

Refrigeration 3%Cooking 4%

Water Heating 8%

Heating 26%

Cooling 18%

Miscellaneous 3%

Ventilation 6%

Lights 19%

Refrigeration 7%

Cooking 7%

Water Heating 14%

Note: Pie charts reflect proportions for typical all-electric buildings.Data aggregated from the Electric Power Research Institute’s COMMEND User’s Manual, U.S. Department of Energy’s Commercial BuildingEnergy Consumption Survey, and Aspen Systems Corporation research data.

Ventilation 5%



Y our selection of contractors andother energy professionals willhave a strong bearing on thesuccess of your upgrade pro-

gram. Some contractors may recom-mend upgrades that are less thanoptimum due to either a hidden salesagenda or limited experience withother technologies.

Resources ThroughENERGY STAR, RebuildAmerica, and The NationalMain Street CenterSelecting contractors and other profes-sionals who are affiliated with each ofthese national programs will helpensure that your job will be performedin accordance with the latest energy-efficiency technologies. Here is howyou can contact specific organizationsthrough each program:

ENERGY STAR: Visit the online directoryof finance, products and services foryour state at www.epa.gov/smallbiz/map.html.

Rebuild America: Visit the RebuildAmerica Business Partners Web site atwww.rebuild.org/business/business.aspto search for experts in areas such asfinancing.

The National Main Street Center:Through the Main Street Network, youcan tap into a comprehensive range ofexpertise, from commercial districtrevitalization to economic developmentto building, landscape, and districtdesign. To find out more, visit

Selecting a Contractor

www.mainst.org/technical/technicalmain.htm.

All of these programs also sponsorregional workshops for businesses thatprovide the opportunity to learn howto get upgrades done or to networkand exchange information on what hasworked at their facilities.

Solicit Competitive BidsFor larger projects, an ENERGY STAR

small business should issue a requestfor proposal (RFP) to get competitivebids that are all based on the samescope of work. Although this mayseem like a costly process up front,it could save you a lot of money ondesign and construction costs in thelong run. For smaller projects, it maynot be cost effective to go through theRFP procedure; therefore, you’ll needto rely more heavily on the interviewand reference portions of this exercise(see page 17). The break-even pointfor issuing an RFP depends on projectsize, complexity, and whether in-housepersonnel are sufficiently skilled toprepare the RFP document. At the veryleast, you should get multiple bids onany large job.

The RFP structure depends on howmuch background work has alreadybeen completed on the project. If nopreliminary work has been done onproject development or design, a smallbusiness will need a more completemenu of services than might otherwisebe the case. The RFP invites interestedparties to visit the site and conduct

Any small business,anywhere can benefitfrom the California EnergyCommission’s “Handbooksfor Energy Effiicency”series. Titles include“Energy Accounting,”“How to Hire anEnergy ServicesCompany,” and “How toHire a ConstructuionManager For Your EnergyEfficiecy Projects.”Visit http://www.energy.ca.gov/reports/efficiency_handbooks/index.html formore information.

http://www.energy.ca.gov/reports/efficiency_handbooks/index.html



http://www.mainst.org/technical/technicalmain.htm

http://www.mainst.org/technical/technicalmain.htm






initial audits of the facilities to identifypotential projects. Based on theseinitial audits, the contractors maysubmit details of projects that theyhave identified, including estimatesof energy savings and cost savings,and a description of other benefits.

If a facility’s energy audit identifiesenergy savings opportunities, thepotential bidders can be provided witha copy of the completed audit. Thesecontractors can then base their propos-als on the information provided, orpropose modified or alternativesolutions that are more cost effective.

If a design has been completed ona specific energy measure, a smallbusiness can provide potential bidderswith a set of the design drawings fromwhich they can develop their installa-tion cost proposal.

Evaluation of proposals is a criticalstep in the success of a building up-grade project. To compare proposals,especially those that contain differentenergy-saving strategies or specifiedequipment, a basic knowledge of thetechnologies is required. If this exper-tise is not available within a smallbusiness, an outside source such asan ENERGY STAR buildings partner or an

A critical step in thesuccess of a buildingupgrade project is theevaluation of proposals.

Projects will require a different mix of professionals depending on the job size, your in-house capabilities,and whether you choose to contract with an Energy Services Company (ESCO).

Moving Your Projects Along



engineering consultant should be partof the selection process.

The following guidelines will assistyou in selecting the best contractorsfor your job, regardless of whether ornot you issue an RFP.

Interview ProspectiveContractorsContractors will be eager to discusstheir capabilities and experience withyou. Ask if they have worked onprojects similar to yours. Discuss thetype of work relationship that theylike to establish. Get information onthe complete scope of services avail-able, including project management,consulting, verifying the work ofothers, operations and maintenance,arranging financing, filing utility rebatedocumentation, and so forth. Requestinformation on the number of andexperience of the engineers that wouldbe assigned to your project, and checkto see if they are affiliated with therelevant professional societies. Askcontractors if they received any awardsor had their work featured in maga-zines or journals.

Check ReferencesObtain the phone numbers of threebusinesses where the contractorshave performed work similar to yourproject. Call these businesses andask if they are pleased with thecontractor’s work and how the con-tractor responded to any problemsthat occurred over the course of theproject.

Manage ContractorsDetailed coordination while the projectis under way will minimize the incon-venience to your staff, while allowingthe contractor to perform a profitable,high-quality installation. Regularmeetings with you, your contractor,and other relevant personnel areessential. Well-defined project stages,combined with interim payments, willserve as a mechanism of dialogueduring the project. For example,10 percent of the project cost can bedue upon presentation and acceptanceof the design drawings, 70 percent canbe due as the work progresses, andthe final 20 percent can be due afterperformance verification and stafftraining.

Settle DifficultiesDon’t pay your final bill until you’resatisfied with the work, and rememberthat as a consumer you have everyright to satisfactory service. For big air-conditioning jobs, a revisit to tune upthe system is not unusual. Reputablecontractors often will make the extraeffort to ensure that you’re a satisfiedcustomer.

In the unlikely event that seriousproblems do arise, consider bindingarbitration. Binding arbitration hasbecome common among the buildingtrades because it offers fast resolutionwith little of the expense or unrespon-siveness of the legal system. Werecommend that you consider specifi-cally citing the use of binding arbitra-tion in your contracts.

Detailed coordinationduring the projectminimizes theinconvenience to yourstaff and allows thecontractor to perform aprofitable, high-qualityinstallation.



W hether the cost of utilities isbilled directly to you by theutility companies or is in-cluded in the rent, all tenants

ultimately pay to keep the buildingcomfortable and well lit. Tenantsare often disinclined to invest in thebuilding itself, however, becausethey don’t own the premises. Thissection describes strategies for reduc-ing energy and rent costs for the70 percent of small businesses thatdon’t own their own space.

You Pay Your UtilitiesDirectlyIf you pay your own utility billsdirectly, any upgrade will be worth-while if it meets your investmentcriteria and pays for itself before youexpect to move. Because upgradestypically increase the value of theleased space, you may be able to getyour landlord to subsidize the upgradecost or decrease your monthly rent.The latter possibility makes a goodenergy-efficiency investment evenbetter, and you may wind up witha better deal than if you ownedyour space.

In some leasing arrangements wherethe tenant pays the utility bills, thelandlord marks up the cost of utilitieswith a handling fee of about 10 per-cent. If so, your incentive to reduceenergy costs are higher than if youown the building because you cansave even more.

Profiting From EnergySavings as a Tenant

Utility Costs Are Includedin Your LeaseIf you don’t pay your own utility billsdirectly, ask your landlord if you canget a $100 monthly rent reduction ifyou install new lights that use $90 per

Success Stories

A Home Office in Bethesda, MD

A consulting engineer in Bethesda, MD, used a rented house asher office. When she first moved in, the house was cold anddrafty and had exorbitant utility bills. To improve working condi-tions and save energy, she negotiated an arrangement with herlandlord. The consultant and her husband purchased and installedattic insulation, new double-pane windows, top-quality indoorshades, new doors, and a programmable thermostat. The landlordreimbursed them for materials and also paid for their laborat 50 percent of the market rate. The improvements saved theconsultant about $50 per month during the summer and wintermonths and greatly increased comfort. Furthermore, the landlordreduced the consultant’s rent by 20 percent, or $200 per month,for one year after the renovations to compensate her for herefforts. The landlord benefited as well. He had a stable lease, andonce the consultant did move out, he sold the house in only threeweeks and made a profit of $75,000. An estimated $10,000 of thatprofit was due to the recent renovations.

Costs Benefits

The Tenant Time to install upgrades More comfort$400/year lower gasand electric bills$2,400/year lower rent

The Landlord $3,115 materials $3,115 tax deduction$840 labor $840 free labor$2,400 rent reduction $10,000 capital appreciation



month less energy and increase theproperty’s market value. Your landlordjust might say yes. Alternatively, yourlandlord might pay for the total cost ofupgrade projects if she or he believesthat the upgrades will extend the timethat you remain in the space. Remindthe landlord that capital improvementsare often tax deductible.

Focus on No-Cost orLow-Cost OpportunitiesEven given the rationale above, typicaltenants will not be interested in invest-ing $20,000 in new windows for abuilding owned by someone elseunless the investment is part of a largermarketing “image makeover.” Tenantsare often best served by focusing onmeasures that require little capital andwill help increase comfort. Thesemeasures can save tenants a surprisingamount of money and are ideal forbusinesses that rent their facilities.

Focus on Savings You CanTake With YouENERGY STAR officeequipment representsa lasting investment inyour business. If you buy an ENERGY

STAR computer, fax machine, copier, orprinter, the equipment stays with youeven if you move so that your savingsdon’t depend on the length of yourlease.

Marketing Adds ProfitsMeasures that may enhance yourbusiness, such as improving thelighting in key merchandise areas, areexcellent opportunities. Promotingyour business through the ENERGY STAR,Rebuild America, or Main Streetprograms may increase your visibility,and in turn, your sales.

Each of these programs proudlysupports the small businesses of thecountry and can provide recognition toyou. Each program offers manyresources, such as display posters,articles, and publicity and events thatfocus on good community stewardship.The ENERGY STAR for small business Website even has hypertext links so thatvisitors from all over the world canjump straight to your home page!Together, these efforts can give yourbusiness a large and positive presencein your community.

Refer Your Landlord to UsLandlords also can benefit fromparticipation in the ENERGY STAR forsmall business program or the ENERGY

STAR buildings program. Have yourlandlord call the ENERGY STAR toll-freehotline at 1-888-STAR YES to discussmaterials and programs specificallydesigned for property managers.

No-Cost Options

● Turn up or turn back thermostats during unoccupied times (considerinstalling a programmable thermostat; see page 72)

● Turn off lights and office equipment at night and over the weekend

● Take advantage of daylight

● Use e-mail instead of paper memos

● Disconnect unnecessary equipment such as unused freezers, waterheaters, and transformers

Low-Cost Options

● Caulk and weather-strip windows and doors

● Replace light bulbs with more efficient ones

● Install occupancy sensors in areas such as conference rooms andstorage rooms

● Install timers on electric water heaters or other equipment

● Install awnings or shades to keep out the summer sun and lowerair-conditioning costs

● Fix leaking faucets, showerheads, pipes, or toilets

Visit “Energy Efficiencyand Tenants” atwww.epa.gov/smallbiz/tenant.html, or askfor “small businesstech support” at1-888-STAR YES.

http://www.epa.gov/smallbiz/tenant.html

http://www.epa.gov/smallbiz/tenant.html



Verifying Savings

Y ou can’t see energy, so it canbe hard to tell if an upgrade isa success. As a small businessowner, you want to make sure

that the money you invest in imple-menting energy-efficiency measuresprovides the anticipated savings onyour utility bills. This section describesthe features of successful programs andhighlights principles you can apply toquantify savings.

Compare Before andAfter Utility BillsBill comparison provides you with atechnique to quantify your savingsafter implementation of energy-efficientmeasures. Because so many differentfactors affect bills, this approach ismost revealing when you have imple-mented major projects that should saveyou more than 10 percent. Simply addup your energy bills for the year priorto implementation of the measures andfor the year after project completion.Subtract the 12 months of “after” fromthe 12 months of “before” and you willhave your gross cost savings.

You will need to adjust the grosssavings depending on differences inbehavior and changes in energy pricesand weather during the two years. Forexample, if your business expanded 20 percent over the course of the twoyears, then it is likely that your energyuse increased as well. Take this intoconsideration. Many utility bills willinclude a statement about the numberof “heating degree days” that occurredduring the billing period. Bill analysis

should take into account yearly varia-tions in weather. For example, during avery mild winter, your heating systemmight not be running at full capacity;therefore, energy savings associatedwith the heating system might not beobvious.

Spot MeteringSpot metering is particularly applicablefor lighting upgrades. Ask your lightingcontractor to turn on all the old lightsthat are to be replaced and thenmeasure the current leaving the circuitbreaker and leading to the fixtures forat least one circuit. After the upgrade iscomplete, measure the current for thatsame circuit. Then perform the follow-ing calculations:

1. Subtract the lower post-upgradecurrent from the higher pre-upgrade current.

The Keys to a Successful Program

Your chances of truly lowering your costs will increase if you:

● Focus your upgrade projects on the areas of highest energy use forthe facility.

● Focus on proven energy-efficiency technologies.

● Meter before and after the job is complete.

● “Commission” the project; that is, inspect and verify proper installation andoperation.

● Use Rebuild America Business Partners (www.rebuild.org/business/business.html) or the ENERGY STAR Directory (www.epa.gov/smallbiz/map.html).

● Use internal or hired staff that have a track record of success.

● Hire a top-quality contractor.

Bill comparison lets youquantify your savings afteryou implement energy-efficient measures.






2. Multiply the change in currentby the voltage to get watts savedon the circuit.

3. Divide watts saved by the numberof upgraded fixtures to get wattssaved per fixture.

4. Compare the watts saved perfixture to your expectations andthe supplier’s quote.

Insist that the current measurement bedone in your presence. This exercisewill take less than 10 minutes and willgive you a lot more confidence in thesuccess of the project.

Extended MeteringAlthough installing additional meters todirectly measure energy consumptionis usually beyond the scope of energy-efficiency projects, innovative strategiesmay provide some of this information.For example, timers are installed onsome equipment to facilitate scheduledmaintenance. These timers can be re-corded to verify the performance ofenergy savings measures that result inreduced equipment operation hours.

Some programmable thermostats areequipped with simple functions thatestimate the hours of heating orcooling use; these could be usedto test the effectiveness of insulationmeasures. Likewise, many EnergyManagement Systems (EMSs) containsophisticated features for analysis ofbuilding energy use that can be usedto verify predicted savings.

Benefits Beyond the MeterMeasuring the financial performanceof your investment in energy-efficiencytechnologies is important to ensure thesoundness of the project. The benefitsof increased comfort and improvedproductivity may multiply your savingseven though these benefits are typi-cally difficult to measure. The favor-able comments by employees andcustomers can offer an indication ofthe magnitude of this effect.

To ensure the soundnessof the project, measurethe financial performanceof your investment inenergy-efficiencytechnologies. Success Stories

Thomas Mott Bed & Breakfast is a4,200 sq.ft. facility in Alburg, VT.President Patrick Schallert indicatesthat the year before the upgrade, theinn spent $9,362 on electricity;afterwards; the annual electricity billwas $1,370 - nearly an $8,000decrease. How? The owners of theold farmhouse-turned-inn invested inwall space insulation, a state-of-the-art boiler, new windows and lights andswitched the kitchen from electric togas. They also planted trees toprovide shade, which substantiallylowered cooling costs in the summer.The trees also are an attractive asset.

Jose O'Shea's Café and Cantina inLakewood, CO has installed energy-efficient lighting, an efficient HVACsystem and improved insulation. Theresults can be seen and felt by therestaurant's customers, and theemployees particularly appreciate theimproved comfort and appearance.Jose O'Shea's General Manager, JimBurns estimates energy savings ofabout $11,000 annually, and the157,143 kWh saved will preventabout 195,486 pounds of carbondioxide emissions each year.



ENERGY STAR® forSmall Business

ENERGY STAR is voluntary andeasy, and it will help you savemoney. No reporting is required.We’re here to help commercial

and industrial energy users apply cost-effective and proven energy-efficiencytechnologies. Small businesses likeyours will not only save money, theywill also help lay the foundation for acleaner planet for future generations.

The family of ENERGY STAR programs,encompassing buildings, homes, officeequipment, appliances, and manyother areas, aims to reduce pollutionand protect our environment throughapplication of energy-efficiencytechnologies. Making homes, busi-nesses, and industry more energyefficient reduces pollution becauseutilities don’t need to generate as muchelectricity. That means they aren’tburning as much fossil fuel, and that inturn means they aren’t releasingpollutants into the atmosphere.

What Happens If You Quitthe ProgramThe only negative impacts are thatyour business will continue to paymore than necessary for energy andyour pollution prevention contributionwill be missed. Otherwise, there areno penalties. ENERGY STAR wants to helpyou succeed in saving money andpreventing pollution, and as long asyou are willing, we will work with youto make it happen. Your business mayreap the rewards of lower costs, higherproductivity and sales, and improvedprofitability.

Pollution PreventedThrough Energy SavingsFor each kilowatt-hour (kWh) thatyou save through the application ofenergy-efficiency technologies, youare reducing the emissions of carbondioxide, sulfur dioxide, and nitrogenoxides by the amounts shown in yourregion (see page 24). Excessive carbondioxide emission is a primary cause ofglobal climate change; sulfur dioxide isa key constituent of acid rain; andnitrogen oxide is responsible for smog.You will save money and help theenvironment at the same time, andyour customers will appreciate yourefforts.

Pollution prevention varies around thecountry because electric utilities usea variety of fuels and types of powerplants to generate your electricity. Inthe Pacific Northwest, where hydro-electric dams are prevalent, emissionsrates are comparatively low. Theenvironmental impact can be just ashigh, however, because of salmonmigration disruption and other issues.In other regions the mix of “clean”coal, “dirty” coal, natural gas, nuclearpower, and renewable sources such aswind turbine farms affects emissionrates.

An exciting prospect for the deregu-lated future is the marketing of “greenpricing” by electric utilities. Alreadypilot-tested in parts of California, greenpricing allows customers to specifythat they want their electricity to begenerated from renewable sources (so-lar or wind) or from particularly clean-burning power plants. In exchange the

ENERGY STAR wants to helpyou succeed in savingmoney and preventingpollution, and as long asyou are willing, we’ll helpyou make it happen.

ENERGY STAR andGreen LightsProgram ResultsThrough December1998● 19 billion pounds of

pollution prevented

● $800 million in energysavings

Equivalent to

● Taking 1 million cars offthe road

● Planting 2 million acresof trees



EPA PollutionEmission Carbon Dioxide Sulfur Dioxide Nitrogen OxideRegion pounds/year pounds/year pounds/year

1 1,100 8.8 3.12 1,200 7.5 2.93 1,600 7.1 5.54 1,500 15.2 5.55 1,800 22.9 7.76 1,700 4.9 5.57 2,000 7.7 8.68 2,200 7.3 7.19 1,000 2.4 3.3

10 100 1.1 0.7

Map of pollution prevented per 1,000 kWh saved.

customer pays a slight premium for thishigher grade of power. Look for greenpower in the future.

Home OfficesThe growth of the Internet, telecom-muting, and decentralized sales forceshas triggered a huge increase in thenumber of home offices. If you’relooking for a new home office, considerthe benefits of ENERGY STAR homes.ENERGY STAR homes use 30 percent lessenergy than required by the nationalModel Energy Code and have otherhealth and comfort advantages. Seepage 19 for an example of upgradesmade to an existing home office. Call1-888-STAR YES or visit the Web site at

www.epa.gov/appdstar/homes/ formore information.

Final ThoughtYour commitment as an ENERGY STAR

partner demonstrates consideration forour shared environment and determi-nation to address the vexing problemsof global climate change, pollution,and resource depletion. We would liketo thank you for doing your part topass a healthy planet on to futuregenerations while improving yourbusiness’ bottom line.

http://www.epa.gov/appdstar/homes/

2TechnicalSupport

Technical Support . . . . . . . . . . . . . . .


. . . . . . . . . . . . . . Technical Support


Straight to Your Bottom Line

T he savings from your energybills go straight to improvingyour profits. The NationalRestaurant Association reports

that the average restaurant typicallyspends approximately two percentof its revenue on energy. Approxi-mately four percent of revenue be-comes profit. So if a business ownerreduces energy costs by 25 percent(from 2 percent to 1.5 percent), totalbottom-line profit increases from4 percent to 4.5 percent of revenue.This increase in profit is the same asa 12.5 percent increase in sales!

Use the worksheet on this page tocalculate the sales increases requiredto match the value of your savingsopportunities.

Indirect Financial BenefitsIn addition, the total return on yourproject includes these financial compo-nents that are quite real, if indirect:

Enhanced employee productivity. Dueto enhanced comfort and improvedlighting conditions, the productivity ofyour staff may increase.

Operations and maintenance savings.Many energy-efficiency technologiessignificantly reduce your operationsand maintenance requirements, savingmoney and staff time.

Increased customer comfort. Buildingupgrades will improve your facility’sappearance, make your products looktheir best, and help your customersenjoy their visit. This can increasesales.

Increased asset value. Efficient busi-nesses have higher market values thanwasteful ones. Studies on home salesshow an $11 increase in sales price forevery $1 decrease in annual energycosts. Studies on businesses show a 3-percent increase in stock value afterenergy upgrades are announced.The market recognizes the businessbenefits of energy-efficient operation.

Protection from energy inflation. Byperforming energy-saving upgrades,you are replacing the monthly expenseof your energy bills with the fixed costof the capital improvements. Lower

Financial Analysis

Savings from your energybills may directly improveyour profits.

What Is Energy Worth to You?

1. You’ve got a great energy savings idea. How much (A) $____will it save per year?

2. Enter your pretax profit as a percentage of sales: (B) _____ percent

3. Divide A by B: (C) _____

Line (C) shows your equivalent annual increase in sales once your savings havepaid for the cost of the measure. The table below will help you quickly look upthe equivalent sales amount.

Savings for

the Measure 2% 5% 10% 20%

$10 $500 $200 $100 $50

$100 $5,000 $2,000 $1,000 $500

$1,000 $50,000 $20,000 $10,000 $5,000

$10,000 $500,000 $200,000 $100,000 $50,000

$100,000 $5,000,000 $2,000,000 $1,000,000 $500,000

Profit as a Percentage of Sales Annual Cost

Equivalent Annual Increase in Sales



energy use will always result in lowercost—more so if energy prices rise.

Marketing benefits. Your participationin the ENERGY STAR for small businessprogram communicates your commit-ment to environmental stewardship.This message differentiates yourbusiness from those of yourcompetitors.

Your exact mix of indirect benefitswill vary by business type and up-grades performed. For many projects,these indirect benefits will be worthseveral times the money you save inenergy alone.

But Is It Really Worth theTime and Money?Once you are convinced that energy-efficiency investments make financialsense in general, you still have toevaluate individual upgrades to decidewhich to pursue. The two mostcommon evaluation tools are simplepayback and internal rate of return(IRR).

Simple payback. Simple payback isthe number of years it takes to recoverthe cost of the energy upgrade fromthe energy savings. A simple paybackunder four years indicates a worth-while project. Measures with simplepayback times of less than 1.5 yearsare excellent opportunities and shouldbe implemented immediately.

Example of a Simple Payback Calcula-tion. Your utility gives you a freeenergy assessment and tells you thatif you replace 20 100-watt incandes-cent bulbs used 24 hours a day inyour stairways with 30-watt compactfluorescent bulbs (30 watts each) you’llsave $980 per year. The upgrade willcost you $400.

Your simple payback is $400 ÷ $980 =0.4 years, or just under 5 months.

Many businesses use simple paybackto make financial decisions. The onlysignificant shortcoming of the simplepayback concept is that it doesn’t takeinto account the expected life of theupgrade. For example, if the compactfluorescent lamps described abovelasted only as long as incandescentlamps, they would burn out in lessthan three months. Fortunately,compact fluorescent lamps last 9to 13 times longer, so you mightwant your analysis to take that intoaccount.

Internal Rate of Return. Expressingan upgrade in terms of IRR will helpyou compare the financial results of

Spreading the WordThe Uptown Shelby Association in Shelby, North Carolina (pop.14,669) is reaping all of the benefits from their involvement withRebuild America and the ENERGY STAR small business program.Its Rebuild America partnership, Rebuild Shelby, promotes thesmall business program to its downtown, small commerical,business owners. Ted Alexander, the executive director of theUptown Shelby Association states, “As a partner in RebuildAmerica, we wanted to promote the ENERGY STAR small businessservice as an important opportunity that local businesses shouldtake advantage of.” Alexander took the initiative in marketing byrequesting hundreds of small business brochures, and alongwith a letter describing the services offered, sent them to localbusiness and property owners to educate them in the positivesof energy efficiency.

MarginalCombine with other work

Satisfactory Investment

Good Investment

Excellent InvestmentImplement immediately

1.5 – 4 years

0 –1.5 years

4 – 7 years

7+ years

Num

ber

of Y

ears

Bef

ore

Sim

ple

Payb

ack

Simple Payback: A TypicalBusiness Ranking



an upgrade against other investments.(See the glossary for the definition ofIRR.) To calculate IRR you’ll want touse a computer spreadsheet programor a financial calculator; you can usethe table on this page as a generalreference.

You can compare the IRR you calcu-late with the interest rates available atbanks or through other investments. A good rule of thumb is that projectswith IRRs above 20 percent are

excellent investments and should beimplemented.

Example of IRR. Converting yourwarehouse heating system fromnatural gas unit heaters to gas-firedradiant heaters will cost $6,000 andsave $1,500 a year, which is a simplepayback of four years. You cancalculate the IRR for this investment as21 percent (using a 10-year planninghorizon), which makes it a very goodfinancial option. Compare this with

Simple payback is thenumber of years it takesto recover the cost of theenergy upgrade from theenergy savings.

Compare Your Energy-Efficiency Investments to the Interest Rates You Can Get at a BankThis table will tell you the Internal Rate of Return if you have already calculated the simple payback.

8 years 0% 4%

6 years 0% 7% 11%

5 years 0% 5% 12% 15%

4 years 0% 8% 13% 19% 21%

Simple Payback 3 years 0% 13% 20% 24% 29% 31%

2.5 years 10% 22% 29% 33% 37% 38%

2 years 0% 23% 35% 41% 45% 48% 49%

1.5 years 22% 45% 55% 60% 63% 65% 66%

1 year 0% 62% 84% 93% 97% 98% 100% 100%

0.5 years 100% 173% 192% 197% 199% 200% 200% 200%

0 years 1 year 2 years 3 years 4 years 5 years 6 years 8 years 10 years

Lifetime of new equipment or length of your planning horizon, whichever is shorter

Success Stories

The manager of a small restaurant in St. Louis installed new lights androof insulation. The total project cost $600 and saved approximately thesame amount in a year. The business’ overall profit margin was fivepercent profit against revenue.

Because energy cost savings went straight to the bottom line, the mea-sures contributed $600 to the business’ pretax profit after the first yearended.

The savings were worth the equivalent of $12,000 in additional sales. Forthe manager, cost reductions of $600 were easier to achieve than increas-ing sales by $12,000.



Upgrades should generallybe implemented if the IRRis above 20 percent.

Success Stories

Kiddie U, a 15,400 sq. ft. daycare andlearning facility in Orlando, Florida,has the lowest energy costs per sq.ft.of any comparable facility in the state,according to the Energy ConservationAssistance Program at the Universityof Central Florida Small BusinessDevelopment Center, which providedtechnical support for Kiddie U'supgrade. At $1,500 per month forcombined water and energy costs,President Joseph Manella's new facilitycosts about 40 percent less tooperate than his prior building, due tohigh efficiency air-conditioning,programmable thermostats, T8fluorescent lamps with electronicballasts, CFLs, occupancy sensors, andimproved insulation.

bank interest rates or other investmentsyou might make (even including otherways to improve your business such asmarketing or staff training) to decidewhether to do this upgrade.

Where Can I Learn More?Call the toll-free ENERGY STAR hotlineat 1-888-STAR YES and ask for thebrochures listed below:

Introducing Your Company’s NewestProfit Center, EPA 430-R-97-004. Thisis an introduction to the concept thatenergy upgrades are financial invest-ments just like other business uses ofcapital.

Business Analysis for Energy-EfficiencyInvestments, EPA 430-B-97-002. Thisbrochure describes in more detail thebusiness-analysis approach you canuse to decide if a particular upgrade orset of upgrades makes sense to invest.

Financing Your Energy-EfficiencyUpgrade, EPA 430-B-97-003. Thisbrochure describes the many financialand accounting aspects of upgradeprojects in great detail. Use thisinformation to finance your projectswith the best impact on your balancesheet, cash flow, taxes, and ultimatereturn.

Visit special Web pages forrestaurants, grocery stores, lodging,manufacturers, home-based, and otherbusiness types at www.epa.gov/smallbiz, or ask for “small businesstech support” at 1-888-STAR YES.




U se the ENERGY STAR five-stageconcept to help organize astrategy for putting potentialupgrades on a timeline. Each

stage of the program builds uponthe accomplishments of the previousstages to maximize potential energysavings, minimize investment require-ments, and improve comfort andprofitability for your business.

Rebuild America promotes a whole-building, systems approach in order tosignificantly increase energy savingsfor each building and to accommodatethe wide variety of project types andpartnerships in the program. A com-prehensive analysis of the wholebuilding is recommended to take fulladvantage of equipment savings dueto reduced heating and cooling loadsand to develop a total project plan.There also is a big savings in time andeffort, and possibly reduced bids, bycontracting for the total job. A phasedapproach to project implementationmay be necessary for some projects,but building owners often go with thewhole package so they can finishconstruction and enjoy full benefits.

Stage One: LightingMany retailers and offices spend halfof their electric bills on lighting, so itmakes sense to address lighting first.Efficient lighting pays for itself quickly.Lighting upgrades such as installationof compact fluorescent lamps andlight-emitting diode (LED) exit signsare relatively simple to implement andcan reliably deliver the expected costsavings. Upgrade your lighting beforechanging your heating or coolingsystems because increasing yourlighting efficiency lowers your air-

Prioritizing Your Projects

conditioning requirements. In thewinter, heating your building withyour lights is expensive because newlights operate much cooler thanold lights. Use your heating systeminstead. Five years of ENERGY STAR

experience show that successfullighting upgrades provide Partnerswith dramatic savings and positivereinforcement for pursuing furtherprojects. Lighting upgrades oftenimprove lighting quality, which canboost worker productivity and en-hance the appearance of your mer-chandise.

Stage Two: BuildingTune-UpBring your building to its peak designperformance by addressing operations,maintenance, and small repairs. Youcan do many tune-up activities your-self, such as cleaning equipment andreplacing filters. Other measures, suchas adjusting your furnace or repairingmalfunctioning controls, will requirethe services of contractors. Stage Twoupgrades improve occupant comfortand indoor air quality, and the up-grades are no-cost or low-cost strate-gies that lay the foundation for furthersavings later.

Stage Three: LoadReductionLoad reduction strategies reduce theamount of heating, cooling, or electric-ity use through low-cost measures thatare easy to implement. Reducing theamount of heated or cooled air thatescapes from your building throughcracks in windows or ducts will reduceyour heating and cooling costs.

Each upgrade stage buildsupon the previous stagesto maximize -potentialenergy savings, minimizeinvestment requirements,and improve comfort andprofitability.



Window films, shades, and awningswill reduce heat gain in the summer.Or you can take advantage of land-scaping measures such as adding treesand vines to block direct sunlight.

You can take simple steps to ensurethat lights and office equipment arenot left on by accident. And selectENERGY STAR-labeled new equipmentto guarantee the best future savings.

Stage Four: Heating andCooling DistributionSystemIn this stage, you should evaluate theefficiency of the fans and pumpsassociated with the heating, ventilating,and air-conditioning (HVAC) systemsin your building. Upgrades to yourdistribution system will save energywhile improving occupant comfort.

Stage Five: Heating andCooling PlantBy implementing Stages One throughFour, you will reduce the overallheating and cooling requirements inyour facility and will be able to affordsmaller and more efficient heating andcooling units. Because replacingheating or cooling equipment requiresthe largest commitment of capital, werecommend that you implement thesereplacements last. Stage Five is whenall your previous hard work andcommitment will pay off.

The five-stage concept is illustrated inthe chart on this page.

Where Can I Learn More?If you would like more informationon the technical aspects of the ENERGY

STAR five-stage approach to buildingimprovements, call 1-888-STAR YESand ask for the free, more advancedENERGY STAR Buildings Manual.

Stage Five:Heating andCooling Plant● Reduce size after Stages 1 – 4 upgrades● Offers maintenance advantages● High savings potential, but large investment

Stage One: Lighting● Fast payback● Improves comfort● Reduces cooling costs

Stage Two: Building Tune-Up● Low-cost measures● Operations and maintenance● Reduces heating and cooling costs

Stage Three:Load Reduction● ENERGY STAR-labeled office equipment● Windows, window films, awnings● Cracks sealed● Water heater insulation

Stage Four:Heating and CoolingDistribution System● Resize the system to meet new loads● Install advanced controls



A pproximately 75 percent of allsmall business energy upgradesare related to lighting. Becauselighting upgrades are so popular,

we have included this special sectionon lighting concepts. If you have timeto read it, you can be an informedshopper when it comes time to listento contractor upgrade proposals oreven to find your own lighting im-provement opportunities. If you don’thave the time, aren’t interested in thebackground science, or just want tofocus on action, go straight to the nextsection, Lighting Part II: Upgrades. Weintroduce specific suggestions on howto improve your lighting by upgradingyour fixtures.

Whether displaying your merchandise,illuminating your factory, or providingsecurity for your parking lot, lighting isone utility that you as a small businessowner cannot do without. The amountand quality of the light can significantlyaffect the performance of your employ-ees. At the same time, light also formsa significant part of your electric bill.

Fortunately, modern technology makesit possible for many businesses toimprove lighting quality while reducingcosts. This section first reviews how todetermine the “right” amount of lightfor your business, discusses lightingquality issues such as color and glare,and then introduces the different typesof lighting technologies in use.

Light LevelsWhen everyone worked with pencils,paper, and typewriters, architects madesure that working environments had anabundance of light everywhere. Nowthat so many office environments

Lighting Part I: Concepts

require the use of computers, ideallight levels and configurations aredifferent and often lower than in thepast. This means you may have theopportunity to reduce your lightingcosts and improve your workingenvironment at the same time. Sinceremoving lamps often requires nothingmore than getting on a ladder andpulling out the lamps, the cost can benegligible and you can start savingmoney immediately.

Although employee preferences play alarge role in optimizing light levels, theIlluminating Engineering Societyprovides recommended light levels fordifferent activities as shown in thegraph on this page.

Compare your light levels torecommended levels. In order tocompare your lighting to recom-mended levels, you need to knowyour own existing light levels. Callyour lighting contractor and ask themto take the measurements for you.

Proper light levels and lightquality can measurablyincrease sales andproductivity.

Typical Electricity UseSchool

Misc. 4%

Kitchen, Work Bench,Handwriting, Cutting

0 10 20 30 40 50 60 70 80 90 100 110 120

Public Areas, DarkSurroundings

Restaurant Dining,Social Hall, Storage

Auditorium Seating,Halls, Restrooms

Conference Room,Cashier, Reading

Graphics Studio

Recommended Light Levels ForSelected Activities

Recommended Overall Ambient Light Levels (in footcandles)



Alternatively, you may want to con-sider buying your own light meter.They cost about $125 and are availablefrom lighting supply catalogs. If youbuy a meter, be sure to have a lightingexpert train you before you use it.Windows, reflections, and shadowswill distort your readings if you’renot careful.

Just try it. You don’t have to botherwith all those technical criteria.Remove a couple of lamps for acouple of days, and if you like thenew arrangement, stick with it.

Consider task lighting. Just becauseyou want bright light at the cashregister doesn’t mean you need thewhole room lit up to that level. Seeif you can reduce light levels in someareas and focus light only where youneed it. This is called “task-ambientlighting.” This type of lighting designprovides a blanket of lower level“ambient” light for orientation aroundlarge objects together with smallfixtures shining on the “task.” Thecurrent IES recommendations forcomputer use, for example, are 25footcandles ambient, with a task ordesk light providing 75 footcandlesat the work surface.

Experiment with daylighting. Turnoff lights near windows during day-time hours; you can do this manually,with a time clock or with special“daylighting” sensors made just forthis purpose.

Light QualityIsn’t it frustrating to stare at yourcomputer screen and constantly findyourself looking at the reflection of aceiling fixture? Have you seen a fellowemployee tape cardboard around themonitor? Does the light in the restroommake your face look pasty and lessattractive than you know you lookedat home this morning? It’s not that

work is bad for your looks. All light isnot the same. It turns out that theseand other problems are lighting flawsthat can often be overcome when youinstall more efficient lighting. Let’sconsider solutions to the problemsone by one.

Solution 1: Task-ambient lighting.Your problem may be fixture location.Moving the monitor is one solution,certainly, but a solution that more andmore interior designers recommend isa combination of background ambientand task lighting. Designers generallyagree that spot lighting gives a pleas-ant ambiance, but it can cost moreto install because it requires morefixtures. Because the overall amountof light produced is lower with a mixof background and spot lighting, thearrangement uses less electricity. Theextra fixture investment can pay foritself quickly in savings on yourelectric bills. Happier employees canbe worth even more.

Solution 2: Upgrade fixtures. Manyolder fluorescent fixtures use a pris-matic plastic lens (see the glossaryin Section 3) to scatter light around theroom. This was great before thecomputer age because it helpedensure that all areas were evenly lit,but lenses can create bright spots inyour field of view. Now that comput-ers are used everywhere, the preferredsolution is often to use fixtures withparabolic louvers that direct lightwhere you need it while loweringglare. If you’re considering an upgradein a room with computers, definitelyask your designer or contractor aboutswitching to fixtures with louvers.

Solution 3: Improve color. All lampsdistort color compared to true sunlight,but some lamps are better than othersat simulating sunlight. This propertyof lighting is called color rendition.Lamps that render close to true colorhave a color-rendering index between

Task lighting focuses extralight just where you need itand can reduce glare andeye strain.

Deep-cell parabolic fixturesare great for offices withcomputers because theyreduce reflections in themonitors.



85 and 100. A CRI of 50 is very poor.If you upgrade to T-8 lamps fromjust about any type of T-12 lamps,your color will improve and yourproduct will look better. And betterlooking merchandise is better sellingmerchandise.

Different Kinds of LightsDifferent types of lighting are availablefor different applications, with a broadrange of lighting efficiencies andvarying degrees to which they distortcolor. The efficiency of lighting (moretechnically called efficacy) is measuredby the light output per unit of energyuse. Common incandescent lamps havepoor efficiencies, while fluorescentlamps have much higher efficiencies.See box on this page for illustrationsof the major lamp types.

Incandescent. Modernincandescent lamps derivefrom Thomas Edison’swork before the turn of the20th century. They areinefficient and usually haveshort lives but produce a

pleasant color rendering similar to thatof natural sunlight.

Halogen. In the past fiveyears, halogens havesurged in popularity.Halogen lamps are abouttwice as efficient as

regular incandescent lamps and havelonger lives. Halogen spotlights focuslight and add a lot of pleasing“sparkle.” However, they are relativelyexpensive to buy, and they cost moreto operate than all types of lampsexcept incandescents.

Compact fluorescent.Compact fluorescent lamps areminiature versions of standardfluorescent lamps and areusually coated to make theircolor more similar to that ofincandescent lamps. Compact

Lighting Technology

Incandescent

Halogen

CompactFluorescent

TubularFluorescent

High-IntensityDischarge (HID)

Low-PressureSodium

Types of Lighting



fluorescents are 4 times as efficient asincandescents and last 10 times as longin many cases, so they too are growingin popularity in the business world.They are relatively expensive to buy.

Tubular fluorescent. Theubiquitous fluorescent lampshave a wide range of effi-ciency and in general areabout four times as efficient

as incandescent lamps. They are cheapto buy, last as long as 20,000 hours,and are the staple for office lightingthroughout the country.

Less than five percent ofthe electricity consumedby an incandescent lampis actually turned intouseful light.

High-intensity discharge(HID). This category oflamp includes mercuryvapor, metal halide, and high-pressure sodium. HID lampshave traditionally been usedmostly in warehouses and

street lighting, but new research anddevelopment have created a marketfor lower power lamps for commercialenvironments. HID lamps offer goodcolor, long life, inexpensive highceiling and security lighting, and newretail options.

Metal Halide

0 25 50 75 100 125 150 175

Ligh

t So

urce

Mercury Vapor

CompactFluorescent

Halogen

Incandescent

Efficiency (lumens per watt)

Tube Fluorescent

High-Pressure Sodium – White HPS – Deluxe – Standard

Low-Pressure Sodium

Least Efficient Most Efficient

Comparison of Lighting Efficiency



Success Stories

Business Saves With the Right Light Levels

A growing software development firm in Portland, OR, signed a 10-yearlease to occupy a 30-year-old, 50,000-sq.ft. office building. The businessplanned to renovate much of the space before moving in. Renovationplans for each 10-ft. by 12-ft. office in the building included replacing apair of old, 4-lamp, 4-ft. fluorescent fixtures in each office with a pair ofnew 4-lamp fixtures that had high-efficiency lamps and electronic ballasts.

Fortunately, the business asked its design consultant to check the lightlevels before signing off on the remodel drawings. The consultantchecked and found that the existing light levels were about 75 foot-candles (units of measure), when 50 footcandles would have been plenty.So at no cost to the tenant, the designer changed the construction specifi-cations to 3-lamp fixtures. There were 200 offices affected by this renova-tion, meaning that the firm saved more than $15,000 in 10 years by askingone simple question. That’s a good deal.

Better Lighting Increases Sales and Productivity

New energy-efficient lighting can do more than just reduce your utility bills.It can also add value by:

● Improving employee comfort and performance. Energy-efficient lighting generates lesslocalized heat than standard lighting, provides more pleasant color rendition, and helpsprevent people from getting headaches by reducing the amount of flicker from thelights. Your employees will work better when their work environment is comfortable.

● Improving sales. Better color rendition means that your merchandise will look moreappealing. Much like Muzak© in grocery stores, improved lighting will make customersfeel more comfortable, and they will choose to stay longer in your store. This leads tomore sales.

● Improving your business’ image as an environmentally responsible partner in your community.Your customers will appreciate your efforts to lower pollution and protect the Earthfor future generations.



W hat’s your share of $17 billion?That’s the amount EPA esti-mates commercial buildingowners and tenants could

profitably save each year from lightingupgrades.

In this section we will help you iden-tify lighting fixtures and controls inyour own facility that can be replacedand add profits to your bottom linewhile keeping your investments athree-year simple payback or less.Many ideas pay for themselves in lessthan one year. Let’s get started!

If you don’t have time to read thewhole section, just take a quick lookat the next page. It’s our ThriftyManager’s High-Speed Do-It-Your-self Lighting Assessment. Take a look atthe action list, and call your lighting orelectrical contractor if you have any ofthe fixtures noted. It’s that easy.

The rest of this section expands onthe ideas in the High-Speed LightingAssessment and explores more com-prehensive upgrades as well.

Remove IncandescentLamps

Replace these lamps withanything else. Of the electric-ity consumed by an incandes-cent lamp, less than fivepercent is actually turnedinto useful light. Althoughincandescent lamps are

appropriate for certain low-use areassuch as closets, in most commercialapplications incandescent lampsshould be replaced.

Incandescent LampReplacement Options

Halogen To highlight yourproduct. Example ofapplication: retail

Compact To keep the sameFluorescent screw-in fixture.

Example of applica-tion: hotel hallway

Tube For generalFluorescent lighting.

Metal Halide For white light inhigh-ceiling areas.Example of applica-tion: warehouse

High- For use outsidePressure or where colorSodium doesn’t matter.

Example of applica-tion: outside security

LED For exit signs.

Note: “Energy Saver” incandescentlamps aren’t much more efficient thanregular incandescent lamps. They saveyou money just by delivering less light.Usually this is not the best solution.

Replace incandescentlamps with halogenlamps. Halogen lamps area type of incandescent

lamp that is about twice as efficient asregular incandescent lamps. They lasttwo to four times longer than mostincandescent lamps, and they havebecome increasingly popular in spotlighting and other decorative applica-tions. Halogen lamps are particularlypopular in jewelry and upscale retailstores because they make gold andgems really sparkle.

Lighting Part II: Upgrades



The Thrifty Manager’s High-Speed Do-It-Yourself Lighting Assessment

Do you have any of the following?

USED AT EXISTING LAMPS LEAST

Incandescent lamps 6 hrs./day

Incandescent exit signs 24 hrs./day

Four or more fluorescent or 4 hrs./day moreincandescent fixtures on a than neededsingle circuit

Incandescent or mercury 10 hrs./dayvapor security lighting

Fluorescent lamps and ballasts 10 hrs./daymore than eight years old

SAVE PAYBACKOLD NEW ($/yr/lamp) IN LESS THAN

Incandescent Compact fluorescent $12 energy + 2 yrs.$3 O&M*

Incandescent exit LED exit signs $22 energy + 3 yrs.signs $11 O&M*

Four or more fluorescent or Occupancy sensor $4 to $16 + 3 yrs.incandescent fixtures on a $4 O&M*single circuit

Incandescent or mercury Metal halide (white) or $40 4 yrs.vapor security lighting sodium (light yellow)

Fluorescent lamps and ballasts T-8 lamp with $5 5 yrs.more than eight years old electronic ballasts

If you do, here are some of your savings opportunities.

* Operations and Maintenance



As an upgrade, the combination ofbetter color, higher efficiency, andbetter cone reflectors means that manyusers can replace 150-watt floodlightswith 35- or 60-watt halogen lamps andstill get brighter, more focused lightthat has better color rendition. Themost popular halogen lamps costabout $7 (compared with $1 forincandescent lamps), but they last fourtimes as long as incandescent lampsand save about $25 in energy costsover their lifetime. They are a gooddeal even before you consider laborcosts and the fact that they help movemerchandise. The high operatingtemperatures of halogen bulbs can bea fire and personal safety hazard insome applications, so ask for advicewhen you first buy and install thelamps.

Halogen lamp retrofits typically payfor themselves in less than three yearsin energy savings alone if the fixturesare used at least two hours a day forscrew-in retrofits or if used at leasteight hours a day for fixturereplacements.

Replace incandescent lampswith compact fluorescentlamps. Compact fluorescentlamps are fluorescent lampsthat have been specificallymade in a compact form to

replace incandescent lamps in tradi-tional screw-in fixtures. Compactfluorescent technology has improvedrecently, and the lamps currentlyavailable in the marketplace arebrighter and have very good colorrendition properties. For example,most modern hotels have installedcompact fluorescent lamps for corridorlighting. The fixture pictured on thispage contains a compact fluorescentlamp and costs less than $40. Compactfluorescent fixtures with reflectorsprovide an excellent substitute forfloodlamps.

The table below shows the equiva-lency of compact fluorescent lamps toincandescent lamps. You can replacethese yourself—most major hardwarestores stock compact fluorescent lampsthat screw right in place of incandes-cent lamps and cost as little as $5 onthe Internet. Utility rebates can reduceyour cost even further.

Replace incandescentlamps with tubularfluorescent lamps.Fluorescent lamps are thecommon tube lamps

found in almost every small business.They are usually about three to fourtimes more efficient than incandescentlamps and can last 8 to 20 timeslonger. With newer fluorescent lamps,you can also specify color correctionto avoid the pasty image traditionallyassociated with fluorescent lamps.

Tubular fluorescent lamps have muchlower maintenance costs than incan-descent or compact fluorescent lamps.

If You Have Replace Them With TheseIncandescent Lamps Compact Fluorescent Lamps

25 watts 5 watts

40 watts 7 watts

60 watts 13 watts

75 watts 22 watts

100 watts 27 watts

Comparing Incandescent Lamps and Fluorescent Lamps

Lamp Energy First MaintenanceType Costs Cost Life Color Costs

Incandescent Much Higher Lower Shorter Good Higher

Fluorescent Much Lower Higher Longer Better to LowerWorse

Would you believe this attractivefixture is made specifically forcompact fluorescent lamps andcosts less than $40?



Replace your incandescent lamps withjust about any variety of fluorescentlamp and your lighting, energy,operating, and maintenance costsmay decrease by about 75 percent.

Replace incandescentexit signs with light-emitting diode (LED)

exit signs. LED exit signs use light-emitting diodes that provide exitlighting and are commonly seen inelectronic devices such as clock radios.

You can buy an upgrade kit to convertexisting exit signs for $15 to $75 anddo it yourself, or you can purchase

new fixtures and install them for lessthan $100. Because the upgrade kitsdon’t require any wiring, they areeasier to install yourself than newsigns if there is room inside the panelto install them. LED exit signs useabout five percent of the energy usedby incandescent exit signs and 20percent of the energy used by compactfluorescent exit signs. LED exit signsalso last 10 to 20 times longer.

The most efficient LED exit signs onthe market today are part of the EPAENERGY STAR LED program. ENERGY STAR

-labeled exit signs save on mainte-nance costs because of their long life.An ENERGY STAR-labeled LED exit signcan last 25 years without a lampreplacement, compared to less thanone year for an incandescent. Look forthe ENERGY STAR label when purchasingyour new exit sign.

Given their installation costs, theirlower maintenance costs, and lowenergy costs, they generally pay forthemselves in one to three years. Formore information on ENERGY STAR

manufacturers you can visit our Website at www.energystar.gov

See the bar chart on this page forannual operating costs for exit signs.

UpgradeFluorescentLamps

Even within the generally efficientcategory of fluorescent lighting, youcan reduce your energy use by morethan 66 percent by changing from theworst to the best type of fluorescenttubes. Fluorescent lamps were intro-duced at the World’s Fair in New YorkCity and San Francisco in 1939.Surprisingly, their designs changedlittle over the years until recentbreakthroughs that have significantlyimproved their efficiency and thequality of the light they produce.

Tech Talk: Components of a Light Fixture

EXIT

Annual Operating Cost Per Exit Sign




T-8 lamps and electronic ballasts.T-8 lamps use their smaller diameters,phosphors, and coating to improveefficiency by about 10 percentcompared with standard T-12 lamps.Electronic ballasts use about 30 per-cent less energy than old magneticballasts. Ballasts are devices thatprovide the proper voltage and currentto fluorescent lamps, which don’tregulate themselves like incandescentlamps. T-8 conversions cost $50 to$100 per fixture, so you might wonder

if it is worth the trouble. The answerdepends on your local electricity costsand how often you use the lights.Generally if you use the lamps 60hours per week or more the answeris “yes” or at least “yes, it’s worthfinding out more information.” All youneed to do is ask your local lightingcontractor or electric utility companyto perform a detailed analysis for you.This can usually be done free ofcharge.

Other ideas. T-8 lamps and electronicballasts aren’t your only solution.Modest gains are achieved from 34-watt “energy saver” lamps. De-lampingand/or reflectors can help also, asdiscussed later in this section. Somedesigners are switching from fluores-cent tubes to lower power metal halidefixtures for a more industrial look.Consider the example scenario shownat the bottom of this page. There arefour different retrofit options. None isthe single “right” answer. They are all

If you’re not usingT-8 lamps and electronic ballasts inyour fluorescent fixtures, you’re usingvintage 1940s lighting technology.

Explore Your OptionsA business has 20 4-lamp, 4-ft. fluorescent fixtures in an office area. They are on about 50 hours a week. The primary tasks ofmost occupants require computer use. Recommended light level is between 50 and 75 footcandles.

Current Light Level 95 footcandlesCurrent Energy Use 9,984 kWh/yearCurrent Annual Energy Costs (at $0.08/kWh) $799

Energy Annual Simplesavings Cost savings payback Light level Light quality

Upgrade options kWh/year $ $ years

Option 1: Install 34-watt “energy saver” lamps.Light level is lowered to about 85 footcandles. 1,664 $360 $133 2.7 Improved Slightly better

Option 2: Install four T-8 lamps and an electronicballast in each fixture. Light level remains the same. 3,744 $1,280 $300 4.3 Still too high Much better

Option 3: Install two T-8 lamps in each fixture,with a specular reflector. Fixtures are“tandem-wired” so two fixtures share a singleballast. Light level becomes 55 footcandles. 6,916 $1,340 $553 2.4 Ideal Much better

Option 4: Install new deep-cell parabolicfixtures with T-8 lamps and electronic ballasts.Fixtures are “tandem-wired” and light levelbecomes 55 footcandles. 6,916 $2,600 $553 4.7 Ideal Ideal



viable, cost-savings, quality-enhancingideas. Choosing between them is abusiness and design decision.

Install High-Intensity LampsIf you work in a warehousewith high ceilings and don’t

have fluorescent lamps, you probablyuse high-intensity discharge (HID)lamps. Mercury vapor lamps use oldertechnology and are less efficient thanother HID lamps, although they doprovide a white light.

Upgrade from mercury vapor. Ata bare minimum, you should replacemercury vapor lamps with more effi-cient metal halide lamps as the oldlamps burn out. Even if you needto replace the ballast or the wholefixture, it turns out to be economicalfor almost everyone and no one caneven tell you’re doing it. Metal halidelamps render colors as well as mercuryvapor lamps. They come in a variety ofpower outputs from 50 to 2,000 wattsand have long life. They also comewith a clear or coated bulb. Thecoated bulb has the best color rendi-tion property and can be used fordisplay lighting.

Use metal halide for retail. You’veprobably seen metal halide lights

without even realizing it. Most of thenew “big box retail” stores are illumi-nated using metal halides. They arethe bright white lights typically hungfrom the ceiling girders at 20 to 30feet. If you have high bay retail, switchfrom fluorescent to metal halide for abrighter look without increasing yourenergy costs. Typical payback: fiveyears, less if it increases sales.

Also, manufacturers have recentlystarted selling small metal halide spot-lights. The bright white light combinedwith the narrow beam and sparkle canmake merchandise really stand out—the benefits of halogen with lowerenergy costs!

Use metal halide or high-pressuresodium in warehouses. Choosehigh-pressure sodium where lightquality is not critical and rock-bottomenergy use is the goal. Typical pay-back based on 12-hour-per-daywarehouse use is about three years.

Use metal halide instead inhigh-profile or color-sensitiveareas or areas where peopleneed to perform detailed work.

Install high-pressure sodiumlamps outside. High-pressuresodium lamps are popular forwarehouse, outdoor, street, and

security lighting. They come in avariety of power outputs from 35 to

If you replace your outsidesecurity incandescentlamps with sodium lamps,your exterior lighting costsmay decrease by 80 to90 percent.

Existing: Five 150-Watt PAR38 Incandescent Flood Lights

(1740 lumens each)

Lamp cost25%

Labor cost15%

Replace With: Two 70-Watt High-Pressure Sodium Wallpacks

(4630 lumens each)

Lamp cost8%

Energy cost15%

Labor cost3%Savings

74%

Energy cost60%



1,000 watts and have about a 20,000-hour life. Sodium lamps are the mostefficient lamps you can buy. Most ofthem have a light yellow tint, but someof the newer lamps have an attractivewhite color rendition and can even beused for display purposes. These newlamps tend to fade from white after acertain number of hours of use, so besure to discuss the issue with yourcontractor prior to installation incustomer service areas.

Carefully consider low-pressuresodium lamps. They are efficient butvery yellow and usually not recom-mended, except for loading docks andsome security uses. Replace youroutside security incandescent lampswith sodium lamps and your costs maydecrease by between 80 and 90percent. The typical payback time isless than two years.

Remove LampsWhat could be a better deal thangetting savings with no up-front cost?In many offices 2 lamps in a 4-lampfluorescent fixture may be removedwhile still meeting recommendedlighting levels. People working oncomputers will probably prefer thelower level because it increases thecontrast on their monitors. You canexperiment to see if removing lampsmakes sense in your facility. Corridorsare also good places to start becausethese areas often are overlit. Cost: $0.Simple payback time: 0.0 years.

Lowering the number of lamps can alsobe an excellent measure when com-bined with installation of reflectors.Reflectors are not for everyone. We’vefound reflectors are best applied toareas that start with about 50 percenttoo much light and 4-lamp fluorescentfixtures. If that sounds like your site,remove half of the lamps and addreflectors to meet your target amount oflight. Ask a lighting professional if theywould be applicable in your facility.

Energy-Savings Potential WithOccupancy Sensors

Application Energy Savings

Offices (private) 25–50%

Offices (open spaces) 20–25%

Rest rooms 30–75%

Corridors 30–40%

Storage areas 45–65%

Meeting rooms 45–65%

Conference rooms 45–65%

Warehouses 50–75%

Note: Figures listed represent maximum energy-savings potential underoptimum circumstances. Figures are based on manufacturer estimates.Actual savings may vary.

Source: California Energy Commission/U.S. Department of Energy/Electric Power Research Institute

Controls To Turn Lights OffOne easy way to save money and helpyour lights last longer is to turn themoff when they are not needed. Occu-pancy sensors detect people in a roomusing ultrasonic or infrared sensors.These sensors cost between $25 and$80 and are an excellent choice forbathrooms or conference rooms thatare likely to be unoccupied for largeportions of the day. Photocells aredesigned to turn exterior lights onautomatically when it gets dark.Motion sensors are suited to exteriorsecurity lighting, loading dock areas,and doorways. These sensors turnlights on automatically when a personis detected.

Automatic dimming systems that adjustlamp output based on measuredsunlight also are starting to findapplication.



How To Calculate Simple PaybackThe Short Version

Simple Payback = Measure cost x 1000 – [(watts before - watts after) x hours/year x energy cost]

Example:

Payback = $400 measure cost x 1000 – [(500w before - 100w after) x 6000 hrs/yr use x $0.08/kWh] = 2.1 years

Remember, you won’t save a dimeuntil the new hardware is installed.Every day you wait, you lose moneythat can never be recovered.

Where Can I Learn More?Call toll-free 1-888 STAR YES and askfor “small business tech support” orvisit lighting products atwww.energystar.gov/products.

..

..

Other Lighting TechnologiesYour lighting needs may be suited toother technologies involving advancedcontrols or alternative lighting equip-ment. Many fixtures can simply havesome of the lamps removed withinstallation of reflectors. You may haveexterior lighting suited to installation oflow-pressure sodium fixtures, whichare efficient types of lighting usedwhen lighting quality is not importantat all. You can find out about theseand other technologies by callingthe toll-free ENERGY STAR hotline at1-888-STAR YES.

Take the First Step TowardImplementationThe following steps will help youdecide whether you should proceedfurther with the lighting upgradeproject.

1. Do the simple lighting assessmenton page 40; or investigate andanalyze other opportunities.

Then, calculate simple payback forthe project. (Refer to the boxbelow.)

2. Call your local contractor if yoursimple payback is five years or less.




Success Stories

Energy for the Kids at Sligo Adventist School

significance of sensors and how to choose theright one for his application. He used passiveinfrared sensors in the classrooms and ultrasonicsensors for the restrooms.

Gair used several innovative ways to fund hisupgrades. He gained the support of the school’sParent Teacher Council and used the money hereceived to finance his first project. Then heapplied for rebates at his local utility. The moneyfrom the rebate was then funneled back to thenext project, and so on. Gair was able to do mostof the work himself. He managed to get extralabor at an affordable price by hiring high schoolstudents from the neighboring school.

Now that Gair has completed the lighting stageof the program (Stage One), he is looking intowindow replacement (Stage Three) and heatingand cooling system upgrades (Stages Four andFive). Although these will be more expensiveupgrades, the success of his early project will helpGair show that energy efficiency really does pay.

When we asked about his next project, he happilymarched us to the schoolyard to show us an all-recycled playground!

When Kenneth Gair, Plant Manager for theSligo Adventist School, talks about his involve-ment with EPA’s ENERGY STAR program, his facelights up. He has good reasons to smile—hisfacility received an ENERGY STAR Partner ofthe Year award in 1995 for the work done toupgrade the lighting system in the school.Maybe his best reason to smile is that all thewasted energy that went into inefficient lightingsystems now helps to power the school’s newcomputer lab!

The lighting system at Sligo was more than 30years old and very inefficient. Gair decided toupgrade the system by starting with the areasthat would give him the quickest payback. Hestarted with the hallways by replacing incan-descent lamps with T-8 lamps and electronicballasts. This upgrade improved light levels andcertainly caught everyone’s attention. Peoplewere very happy with their new workingenvironment. He then moved on to the cafete-ria and the gym. Both areas were lit with 300-watt incandescent lamps, which he replacedwith metal halides. In the gym, for example, hereplaced 36 300-watt incandescent lamps with10 400-watt metal halides. Mr. Gair also up-graded outside lighting to high-pressuresodium fixtures.

Classroom lighting was upgraded to T-8 lamps,and electronic ballasts and sensors were addedto each room. The hardest part about installingthe sensors, Gair says, was fine-tuning thesensitivity and the delay time of the sensor. Atfirst he got a few complaints from teachers andstudents because the lights would typically gooff in the afternoon when teachers were alonein their rooms. Gair was able to establish theright delay time to have the classrooms litwhen needed and to ensure that the lightswould only be off when they were supposedto be off.

Technical information for carrying out theprogram came mostly from the ENERGY STAR

program. Gair received a video explaining the



Success Stories

Something To Dance AboutDuring a periodic review, a dance studio manager in New YorkCity noticed that his total electric bill had gradually increased tothe point of doubling over the course of a year. He was nowpaying about $500 per month instead of the $250 he used to pay.His business hadn’t changed and the rates looked about the same,so he called the local utility for help. The utility company sent outan energy auditor who performed a free assessment. The auditorconcluded that wiring inadvertently allowed the expandingbusiness next door to use the studio’s power. That 5-minutecomparison and free assessment saved the studio $200 per month!

Building Tune-Up

A ll cars should get tune-ups or anoil change every few thousandmiles to keep them runningsmoothly and to help them last

longer. When was the last time yougave your building and equipment atune-up? You’ll get the same kind ofsavings with a building tune-up as youwould with an automobile tune-up—modest savings at a low cost—and anopportunity to extend the life of yourinvestment. Every once in a while youcan even get a boost in horsepower.

Check your timers and thermo-stats. Did you adjust them for daylightsaving time? What about the last timethere was a power outage? Did yourweekly calendar compensate for lastFebruary 29? Does the temperatureseem right? Most mechanical timerswon’t correct for power outages.Resetting them will improve comfortand save you some money. Ask yourheating contractor to recalibrate yourthermostat the next time they visit.

Check your filters. Unless the filtersare inaccessible, you don’t need to callyour heating and cooling contractorout for an expensive visit just to makesure you have clean filters. Check thefilters every month or two. Each dirty$2 filter you replace will make your aircleaner, work your fan less, and keepthe inside of the system cleaner so thatit operates more efficiently. Althougha new filter might only cost $2, eachdirty filter can cost you $5 a month inextra energy consumption and candecrease the life of your system.

Check your bills. Do you know howmuch your electric bill is now com-pared to a year earlier? Once or twicea year, take time to look at and

compare your bills. Perhaps comparethem with your next door neighbor’sbills as well.

A low cost tune-up of your building andequipment will save money on energy costs,extend the life of your investment and keepyour tenants happy.



T here are a lot of mysteriousthings about computers, butenergy use isn’t one of them.The computer that sits on your

desk may look innocent enough, butit silently consumes $40 per year inelectricity. Although $40 isn’t enoughmoney for you to justify throwing outyour old computer and buying a newefficient one, it is enough money thatyou should consider energy use whenyou shop for a new computer.

Office equipment is the fastest grow-ing electrical load in the businessworld. Unfortunately, computers,faxes, printers, and copiers wasteenergy when they remain on and idle.To reduce this waste of energy and thepollution associated with it, manufac-turers of just about every major brandof office equipment have partneredwith EPA to introduce ENERGY STAR-labeled machines that will automati-cally power down when not in use.The chart on this page shows thetypical savings you may achieve ifyou buy ENERGY STAR-labeled officeequipment instead of its inefficientequivalents.

It does add up. What would happen toyour profits if you could cut all of yourcosts by 50 percent?

In addition to its direct energy con-sumption, office equipment gives offheat. Your air-conditioning unit mustwork harder to remove this unwantedheat. Introducing energy-efficientoffice equipment provides the addedbenefit of lowering utility bills due toreduced air-conditioning loads. This isStage Three of the ENERGY STAR pro-gram. Some of the savings will begiven back in the winter.

Here’s the kicker: You don’t haveto spend anything extra to get thissavings. You also don’t have to sacri-fice any performance, and paybacktime is 0.0 years. Your choices remainvirtually the same as before becauseso many major manufacturers havechosen to join ENERGY STAR. Just specifyENERGY STAR products or look for thelogo on display models. ENERGY STAR

offers a number of informational factsheets and brochures on ENERGY STAR

office equipment and maintains adetailed list of qualified products thatis updated monthly. For informationon ENERGY STAR-labeled office equip-ment, visit www.energystar.gov/products.

I Don’t Want To WaitTo SaveModify user behavior so that it in-cludes turning off computers, printers,and copiers at night, over the week-end, and even when the equipment isnot being used for a considerableamount of time.

Office Equipment

Office Equipment Annual ENERGY STAR- Percentage ofLabeled Office Equipment Total Operating

Cost Savings Cost

Computer $19 49%

Fax Machine $13 52%

Printer $39 65%

Copier (Medium) $57 57%

Copier (Large) $130 58%

Typical Savings If You Buy ENERGY STAR-LabeledOffice Equipment

Energy-efficient officeequipment can lower utilitybills due to reduced air-conditioning loads, as wellas the lower energy cost ofthe equipment itself.





Consider networking your computersto share printers so that fewer printersremain idle during the day.

Your computer may already haveenergy saver software installed; if so,make sure that it is enabled.

How Does It Work?The following facts on ENERGY STAR

office equipment will help you to bea better shopper and decisionmakerwhen buying and operating newequipment.

Computers. ENERGY STAR-labeledcomputers automatically power downto 30 watts or less when not in use andare available from almost everymanufacturer. To optimize your ENERGY

STAR-labeled computer, make sure thatthe power management feature isenabled and that you have set it to theshortest acceptable time for youroperation. Laptops use less energythan desktops.

Monitors. These are among thebiggest savers. When not in use,ENERGY STAR-labeled monitors automati-cally power down to 30 watts or less.If you are going to implement a screensaver, make sure you select one that iscompatible with the monitor’s powermanagement feature. Most screensavers available in the market actuallyprevent the monitor from going intosleep mode. Furthermore, turningmonitors off at night and during the

Make the Right Call. A typical 20-computer telemarketing center uses a lot ofenergy for computers and cooling. ENERGY STAR-labeled computers would cut theannual electric bills by about $500.

What You Will SaveEnergy Cost Savings per Year PercentSavings at Different Electric Savings

(kWh/yr) Rates ($/kWh)$0.06 $0.08 $0.10

Save Now

Turn 24-hour equipment off at night so it runs only 9 hoursper day.

Savings per Computer 675 $41 $54 $68 61%

Savings per Large Copier 6,600 $396 $528 $660 56%

Save Later

Replace older 24-hour equipment with new ENERGY STAR

equipment that is used 9 hours per day.

Savings per Computer 795 $48 $64 $80 72%

Savings per Large Copier 8,910 $535 $713 $891 75%



weekend is a practice that will provideyou dual benefits. It not only reducesenergy costs but in fact extends the lifeof the units by preserving the phos-phorus substance that screen saverswere designed to save. Finally, whenbuying a new monitor, consider thesize of the unit as part of your pur-chasing criteria. Large monitors usemore energy, so buy the smallestmonitor that suits your operation.

Copiers. Approximately 7 millioncopiers are in use in homes andbusinesses across the United States.Copiers are the most energy-intensivetype of office equipment, because theysit idle for long periods of time. ENERGY

STAR-labeled copiers are equipped witha feature that allows them to automati-cally turn off after a period of inactiv-ity, which reduces their annual elec-tricity costs by more than 60 percent.There are also several strategies thatyou can implement regardless of thetype of copier you operate. You canpurchase a correctly sized copier, usethe 1- to 2-sided copy option to ensurethat the duplexing feature is beingused, and run copies in batches todecrease the time your copier spendsin the high-powered mode.

Printers. ENERGY STAR-labeled printerscan cut your electricity use by over 65percent. ENERGY STAR-labeled printersthat have double-sided printingcapabilities will reduce your papercosts by $30 a month and paper use,which also helps to save trees. Net-working one printer for several users isone of the best strategies you canimplement to reduce energy consump-tion and save your business money.Not only will you benefit from reduc-ing your energy costs, but you willalso lower your capital expendituresby purchasing fewer printers. ENERGY

STAR printers also automatically powerdown to less than 10 to 100 watts,depending on the number of pagesper minute produced and printer type(i.e., standard-sized, color, large/wide-

format, and impact). This automatic“power-down” feature cuts theprinter's electricity use. Using thepower-management feature meansyour printer will produce less heat.This contributes to a cooler and morecomfortable work space, and reducesair-conditioning costs. By generatingless heat, your printer may last longerand be more reliable.

Facsimile Machines. Because faxmachines remain on 24 hours a day,they hold huge energy savings poten-tial—up to 50 percent. ENERGY STAR-labeled fax machines save energy intwo ways. They go into sleep modeafter being idle for a set period oftime, and they scan double-sidedpages. You will not miss any faxes ifthe fax machine goes into sleep mode.For example, a medium-speed ENERGY

STAR-labeled fax machine uses 25percent less energy in sleep mode thanin standby mode when it is immedi-ately ready to send/receive faxes.

Scanners. Scanners are one of thefastest growing segments of the officeequipment market. ENERGY STAR-labeledscanners enter “sleep” mode after 15minutes of idle time, which savesenergy and money on utility bills.

Multifunctional Devices. The ENERGY

STAR program also qualifies multifunc-tional devices. A multifunction device’sprimary function is copying, but it isalso able to print, fax, or both. ENERGY

STAR-labeled multifunction devicespower down to a low-power modethen a sleep mode when not in use.Many small businesses are takingadvantage of this type of equipment,so you should make sure you alwayslook for the ENERGY STAR label whenpurchasing this type of office equip-ment.

Networking severalcomputers to one printercan reduce energyconsumption and saveyour business money.

If everyone used thedouble-sided feature ofENERGY STAR labeledcopiers, we could save onemillion tons of paper –enough to go around theworld 1,400 times.



Y ou may not think of your paperuse as an area to save energy,but it is. Paper producers inthis country buy more than

$3.5 billion of energy each year. Infact, every $5 ream of paper you avoidusing eliminates about $0.34 worth ofenergy production and related emis-sions by a paper mill, not to mentionthe energy spent to harvest and shipthe trees and to ship the paper toyour desk. In this section, we reviewsimple steps to optimize your use ofthis valuable resource. You will savemoney, reduce waste, and protect ournation’s forests so they can be enjoyedby generations to come.

Double-Sided CopyingCopy machines often have the capabil-ity to automatically copy on both sidesof a piece of paper. Selecting 2-sidedcopying for long documents, articles,or drafts can instantly reduce yourpaper use without adding any associ-ated inconvenience. For more informa-tion, see the chart on this page.

Recycled PaperMany paper products currently containsome recycled content. Recyclingallows fibers to be reused in theproduction cycle so that fewer treesare required to provide the sameamount of paper. Cardboard andnewsprint may contain as much as75 percent recycled content, whilestandard copy paper often has lessthan 5 percent recycled content.Selecting papers with high recycledcontent can be the simplest way youcan help preserve our forests.

Paper

Double-Sided Copying MakesGreat Business Sense Because It:

• Reduces the amount and cost of paper used.

• Lowers mailing costs because the paper amount and weightare reduced.

• Produces less paper output, which takes up less storage spacein offices.

• Often has a more professional appearance.

• Reduces the environmental impacts of paper throughout thepaper production process; therefore, fewer trees are harvested,there are lower chemical and energy inputs during pulping, andtransportation and storage costs are reduced.

• Shows a business’ commitment to environmental protection.

_______________________

Andrew Duncan, Greening of the Campus Conference Proceedings. Ball StateUniversity, Indiana. 1996. Page 162.

Recycled papers and other productsare rated by their “post-consumercontent” and “total recycled content.”These percentages are usually in verysmall print on the paper packages.“Post-consumer content” is the moreimportant factor and refers to fibersthat have been used and are thencollected through recycling programs.“Total recycled content” refers to thetotal nonvirgin content of the paper,including production scraps and post-consumer fibers. Paper does not haveto be conspicuously labeled “environ-mentally friendly” to have a highrecycled content, so a little researchcan identify some real bargains.

Paper can have a highrecycled content even ifit is not conspicuouslylabeled “environmentallyfriendly.”



0

2

4

6

8

10

12

14

16

Ener

gy p

er s

heet

(w

att-

hour

s)

Production Printingusingink-jetprinter

Printingusinglaser

printer

RecyclingMany municipalities sponsor programsto collect paper and fiber productssuch as corrugated cardboard, paper-board (cereal boxes), white, colored,or glossy paper, newsprint, and booksbound with glue. Collecting andreturning your used paper to a recy-cling center will return that fiber forreuse and may reduce your wastedisposal costs. If you are a large userof one or more of these products, youcan set up your own collection pro-gram with a local salvage company.You will be paid by the ton for thematerials that you collect, and you willsave from reduced disposal costs.

Be sure to include a statement such as“Printed on 50 percent recycled papercontaining 20 percent post-consumerwaste” on printed materials to highlightyour company’s commitment to theenvironment.

There are also creative ways thatcompanies are reducing their paperuse and streamlining their operations.Some items that are routinely issued asmemos to all employees can simply beposted on area bulletin boards. Andinstead of making a copy for eachperson, you can circulate many doc-uments using a routing tag containingthe names of relevant personnel. Anemployee checks off his or her nameand passes the material to the nextperson on the list.

Many businesses have revolutionizedtheir operations through corporatee-mail and local area networks (LANs).In addition to greatly improving inter-nal communication and facilitatingteam projects, these tools can signifi-cantly reduce paper use by replacingmemos, time sheets, forms, and draftdocuments.

Energy for Paper Production and Use

Conserving paper is an important step in saving energy, lowering pollution, andensuring the long-term health of our forests.



M ost small businesses usehot water even if only foremployee hand washing.Restaurants, hotels, and other

businesses that use hot water forbusiness purposes such as dishwashingand doing laundry can spend 25percent or more of their total energybill on hot water. Fortunately there aremany low-cost, easy-to-apply methodsfor reducing your hot water costs.

Water HeatersTurn off your water heater. Al-though this may seem obvious, itreally is a great idea. Buy a 7-daythermostat (you can get one for about$30) to turn off your electric waterheater at night and on weekends andto turn it back on one hour beforeyour business starts up in the morning.If you have a big water heater, youcan get even more aggressive and turnit off an hour or two before quittingtime. The already-heated water will besufficient for late-day needs. You’llsave anywhere from $10 to $50 peryear with a water heater timer.

Along the same lines, consider shuttingoff a dedicated water heater that israrely used and turning it on onlywhen it is needed.

If you use a circulating pump, be surethat it is shut off when the facility isunoccupied. Again, a timer will helpyou remember. Circulating pumpsincrease heat loss through pipes thatcirculate hot water. A 1/8 horsepowerpump that is turned off for 2,000 hoursper year will save you $25 in pumpenergy alone.

Water Heaters andWater Use

Lower the thermostat setting. Thehotter the water temperature, the fasteryou lose energy through the pipes andwater heater tank walls. Therefore,lower the thermostat to provide hotwater at the lowest acceptable tem-perature. Some tasks, such as doinglaundry or washing dishes, and somebusinesses, such as health care facili-ties, require higher water temperaturesthan others. These temperatures maybe set by state and local codes. Asmall office with an electric waterheater that is used only for hand-washing purposes would save about$10 per year if the setting is changedfrom 130 degrees to 120 degrees atno cost. See the chart on page 58 forsome recommended hot watertemperatures.

If one task, such as laundry, requiressignificantly higher temperatures thanother tasks, it may be more efficient toreconfigure your piping to include ablending valve. (The hottest watershould be piped directly from theheater to the high-temperature task;the water for the remaining tasksshould branch off and pass through ablending valve, which mixes in cold

Summary

To optimize energy use of your water heater:

● Minimize hot water use.

● Provide hot water at the lowest temperature thatis acceptable for the task.

● Insulate the tank and pipes.

● Obtain hot water from the most efficientsources.

● Perform periodic maintenance procedures.

The hotter the watertemperature, the quickeryou can lose energythrough the pipes andwater heater tank walls.



water to reduce the water temperaturefor the other tasks.) Alternatively, youmay wish to install separate heaters forhigh-temperature and low-temperaturetasks or to provide booster heatersfor high-temperature tasks. Somemachines provide their own booster-heating mechanisms.

Insulate your tank. To reduce heatlosses in your hot water system, makesure that your hot water storage tankand the hot water pipes connected toit are insulated. Few hot water tanksare totally uninsulated nowadays.

Move your water heater. If you areremodeling, take the opportunity torelocate your water heater as close aspossible to the main point of waterconsumption. This will reduce heatloss from the pipes.

Buy a new water heater. If you buya new water heater, be sure to consultthe EnergyGuide label on the appli-ance so that you select an efficientmodel. Consider using a heat pumpwater heater, particularly in situationswhere the simultaneous cooling itwould provide would be useful. Arelatively new and more efficienttechnology, heat pump water heatersremove heat from the surrounding airand transfer it to the water. Becausethese water heaters also cool anddehumidify the surrounding air, theyare particularly beneficial in warm,

Typical Recommended Hot Water Temperatures

TemperatureProcess (degrees Fahrenheit)

Hand Washing 105Showers 110Laundry * 160Dishwasher Rinse ** 180–195

_______________________

* Check code requirements.** Many dishwashers have booster heaters. Check with the manufacturer to determineminimum temperature requirements.Source: American Society of Heating, Refrigeration, and Air-Conditioning Engineers

humid areas such as kitchens andlaundry rooms. Another excellentalternative is tankless, instantaneous,on-demand water heaters, which arequite popular in Europe. They aregrowing in popularity here, too,especially in areas where relativelysmall amounts of hot water are usedon occasion. Tankless water heaterseliminate tank losses and are great foroffice buildings that only have sinks.Tankless water heaters typically supplyup to two gallons per minute of hotwater, about the same as required fora shower and more than enough formost office sinks. One catch is thatthey may require heavier wiring, socheck with your contractor beforemaking a decision.

Or, don’t buy a new water heater.Consider turning your standard wateroff except for emergencies and using“free” waste heat recovery to meetsome of your water heating needs.Waste heat sources include laundryor dishwashing rinse water, steamcondensate lines, and refrigerationequipment.

MaintenanceTo maximize savings and keep yourhot water system operating efficiently,you should perform periodic mainte-nance procedures. Storage-type waterheater tanks should be flushed outabout annually to remove sedimentsthat reduce system efficiency. (Flush-ing involves opening the drain valve atthe bottom of the tank and drawing offwater until the water runs clear. Followyour manufacturer’s instructions. Inareas with high mineral content in thewater, you may need to do this moreoften.) The burners of gas- or oil-firedwater heaters should be tested andadjusted annually to make sure thatthe fuel is being burned as efficientlyas possible. In addition, it is goodpractice to periodically flush your fix-tures with very hot water to controlbacteria growth.

Before you buy a newwater heater, consult theEnergyGuide label so thatyou select an efficientmodel.



Solar Water HeatingYou really can’t do any better thansolar energy for energy savings and forthe environment. Solar water heatersare simple devices that capture thesun’s energy to heat water for ordinaryuse. They are often piped directly intosystems with conventional waterheaters, lowering your energy costswhile still providing hot water onovercast days. Solar water heaters areextremely cost effective for heatingswimming pools, where other types ofheating can be very expensive.

Solar water heating is an establishedtechnology used throughout the world.In California, solar systems are theonly type of pool water heatingallowed by many local codes. Even thepool built for the Atlanta Olympics isheated with a solar system, though thiswas a unique, showcase system. Whileyou may think of the large number ofunits in sunny areas like Florida orCalifornia, you may be surprised thateven in the rainy areas of the PacificNorthwest, solar water heaters can payfor themselves in less than 10 years.Check with your local utility, yourstate energy office, and your taxpreparer to find out about incentivesor tax benefits that apply to solarenergy systems. You can get moreinformation, locate a solar installer,or find a supplier for a do-it-yourselfsystem by contacting the AmericanSolar Energy Society at (303) 443-3130(www.ases.org) or the Solar EnergyIndustries Association at (202) 628-7745 (www.seia.org).

Water UseYou may wonder why an energymanual is discussing water use.Certainly within your own facility itcosts money to heat the water. But thewater company also spends a lot ofmoney on energy to pump and purifythe water it delivers to you. So aportion of your water bill is actually an

energy bill. The same logic holds truefor sewage treatment. If you have abusiness such as a restaurant, bakery,food-processing plant, hotel, nursinghome, or laundry and your businessuses large amounts of water, you willbenefit even more from water useoptimization.

Like everything else, savings fromwater measures can vary. You can saveon the cost of the water, you can saveon sewage, and you also can save onenergy costs for pumping or heatingprocesses. Because savings come fromso many sources, water reductionupgrades are frequently profitable.

Efficient showerheads and faucetaerators are inexpensive devices (theygenerally cost between $2 and $20)that screw into existing pipe fittings tohelp reduce water consumption. Thesedevices reduce the amount of waterused in common daily tasks. If yourbusiness is a hotel, motel, or restau-rant, you can use these devices tosignificantly reduce your water-heatingbills as well as your water bills.

By repairing a seal that leaks a dropof electrically heated hot water everyfive seconds, you can save about 400gallons of water, 85 kilowatt-hours

Solar water heaters usethe sun’s energy to heatwater and can help youlower your energy costs.

Solar water heaters are simple devices that capture the sun’s energy to heat waterfor ordinary use. They are often piped directly into systems with conventional waterheaters, lowering your energy costs while still providing hot water on overcast days

http://www.ases.org

http://www.seia.org



(kWhs) of electricity, 125 pounds ofcarbon dioxide, and $10 per year.

Automatic controls such as valves orsprings with sensors that turn faucetsoff can also help save water. Thespring-loaded valves will automaticallyturn the water off when the userreleases the handle. Photocell-equipped sensors are gaining popular-ity in controlling water use in rest-rooms. Almost all major airports haveinstalled them due to their high inten-sity of use and because luggage andother articles tend to tie up travelers’hands. These sensors detect motionand shut the water off after theuser leaves.

The amount of water used when flush-ing toilets can be drastically reducedwithout compromising efficacy byusing new-design, low-volume toiletfittings. These fittings can reduce theamount of water used per flush byabout 66 percent by using improvedwater flow characteristics. High-quality,pressurized, low-volume toilets tendto cost about $200 more than gravitytoilets, but they are worth the premiumif the toilets will be flushed more than20 times per day.

New washing machines with a hori-zontal axis design use much lesswater than the older types of washing

machines. The new machines can helpsave water as well as reduce waterheating costs for laundries, hotels, andnursing homes. They also can reducethe amount of detergent that is usedfor washing the same amount ofclothes. The newer design machinesoccupy less space and do not produceas much heat as the older designwashing machines, which use muchmore hot water; thus, your rent andair-conditioning requirements canalso be reduced. New machines alsoremove more water from the laundryduring the spin cycle, thereby greatlyreducing drying time and energy use.

Xeriscaping and Gray WaterWouldn’t you rather be having fun inthe summer instead of taking care ofthe landscaping around your facility?Xeriscaping (xer means “dry,” fromGreek) is the technique of utilizingnative, hardy, low-maintenance plantsfor landscaping. Xeriscaping can saveyou money on your water and mainte-nance costs. And because native plantscope better with your particular soil,climate, and insects, they require fewerpesticides and less fertilizer (somethingyour 4-legged neighbors and featheredfriends will appreciate). A generalInternet search for “Xeriscape” willprovide many resources, includingseveral state programs. Also visitwww.greenbuilder.com/sourcebook/xeriscape.html and www.xeriscape.org.

We also recommend:

• Colorado Spring Utilities (XeriscapeDemonstration Garden): www.csu.org/xeri.

• South West Florida Water Manage-ment District (Xeriscape): www.swfwmd.state.fl.us/conservation/xeris/swfxeris.html.

• Green Building Program (Sustain-able Building Sourcebook): www.greenbuilder.com/sourcebook/xeriscape.html.

Repairing a seal that leaksa drop of electricallyheated hot water everyfive seconds can save youabout 400 gallons ofwater, 85 kilowatt-hours ofelectricity, 125 pounds ofcarbon dioxide, and $10per year.

Success Stories

Water Heater Tune-Up

Consider the case of an office manager of a 2,000-sq.ft. officebuilding who discovered a leak in the pipes from a 40-gallonelectric water heater. While repairing the leak, she decided toinstall an insulated blanket wrap around the water heater toprevent additional heat loss. The cost of the installation, theinsulation, and the repair was approximately $40. By setting thewater heater thermostat to a setpoint of 120 degrees Fahrenheit,the office manager saved $35 per year and had a 1-year payback.That extra $35 goes to business profit year after year.

http://www.greenbuilder.com/sourcebook/xeriscape.html

http://www.xeriscape.org


http://www.csu.org/xeri/

http://www.csu.org/xeri/

http://www.swfwmd.state.fl.us/conservation/xeris/swfxeris.html








Water from sinks or washing machinesthat may contain soap but is otherwisestill clean is called “gray water.” Manydrought-prone areas of the countryhave encouraged use of this graywater for landscaping purposes. St.Petersburg, FL, has even installed acity-wide system that provides re-claimed water for 7,000 homes andbusinesses. Other cities do not permitreuse of gray water at all because ofwater quality concerns. For moreinformation on promotional programsor restrictions on gray water use, callyour local building permits officeor check out the EPA Web site atwww.epa.gov.

If your business is involved in anytype of manufacturing or processingthat uses water, you should considerreusing the waste water in some otherprocess where your water qualityrequirements are not as stringent. Forexample, a growing microbrewery inPortland, OR, implemented an upgradein 1992 that allows it to use its extraprocessing water for washdown. Theplumbing was tricky, but the upgradewas ultimately very low in cost andsaved a lot of natural gas.

Where Can I Learn More?If you want more information on smartwater heating, the Gas ManufacturersAssociation publishes a Consumers’Directory of Certified Efficiency Ratingsfor electric, gas, and propane waterheaters.

Businesses involved in anytype of manufacturing orprocessing that uses watershould consider reusing thewaste water in some otherprocesses where waterquality requirements arenot as stringent.

We also recommend:

• Department of Energy: http://www.eren.doe.gov/erec/factsheets/watheath.html.

• Indoor Water Efficiency Spreadsheet(contains information on calculatingenergy savings): (413) 253-1520;http://solstice.crest.org/environment/gotwh/general/indoor-water/index.html.

• Iowa Energy Center (for informationabout buying, installing, andupgrading hot water systems):http://www.energy.iastate.edu/.

• Water Wiser, The Water EfficiencyClearinghouse (for information onwater efficiency and conservation):1-800-559-9855; www.waterwiser.org.

• Wisconsin Energy Bureau (forgeneral information on waterheaters plus a compilation of theGMA ratings): www.doa.state.wi.us/depb/boe/index.asp.

Success Stories

Community Mercantile, an 18,000sq.ft. grocery in Lawrence, KS, issaving about $55,000 yearly, and the714,286 kWh saved will preventabout 1,002,857 pounds of carbondioxide emissions. Andy Lewis,owner, says, "I was frankly amazed atthe quality of savings, and how thattranslated into coal not being burnedand carbon dioxide and sulfur notbeing released into the atmosphere."The upgrade included high efficiencyHVAC units, programmable thermo-stats, a new white, reflective roof,more insulation, T-8 fluorescent lampswith solid-state ballasts, low-Einsulated windows, refrigerated casecovers, "tankless" water heaters,compact fluorescent lamps (CFLs),and LED exit signs.

http://www.eren.doe.gov/erec/factsheets/watheath.html



http://solstice.crest.org/environment/gotwh/general/indoor-water/index.html



http://www.energy.iastate.edu/

http://www.waterwiser.org

http://www.doa.state.wi.us/depb/boe/index.asp

http://www.doa.state.wi.us/depb/boe/index.asp

http://www.epa.gov



Refrigeration

R efrigeration equipment is oneof the highest energy users inthe competitive, low-marginsupermarket, convenience store,

deli, and restaurant businesses. Up-grades that reduce your refrigerationcosts can make your small businessmore competitive.

There have been many great develop-ments over the past 25 years to makerefrigeration systems more efficient. Thedown side of all these innovations iskeeping up with them. Big chains haveexperts with full-time responsibility forsuch matters. You don’t. So look forhelp. If your equipment is more than 10years old, call a local refrigeration casesupplier and request a checkup. You’llbe surprised at all the possibilities.A typical new residential refrigeratoruses about 800 kilowatt-hours per yearand costs about $64 per year to run.This is less than half what you’d pay forthe same size unit that is 20 years old.

No-Cost Action Items forthe Refrigeration AmateurKeep the doors shut. Repeatedfluctuations in temperature will damageyour food quality and will cost youmoney.

Check the temperature settings. Ifyour settings are lower than necessary,chances are you are wasting energy.The most common recommendedsettings are between -14 degrees and-8 degrees Fahrenheit for freezers andbetween 35 degrees and 38 degreesFahrenheit for refrigerators.

Properly load your refrigerator.Overloaded units disrupt air flownecessary to cool the products effi-

ciently, and allows deterioration tooccur. On the other hand, under-loaded units waste energy. If you havepartially filled units, consolidate them.

Properly position refrigerationunits. Don’t put your soda displaycase right next to your deli bunwarmer or in direct sunlight. Extra heatmakes your refrigerator work harder tomaintain the desired cool temperature.Make sure that there is enough venti-lation for your refrigerator’s mechani-cal equipment. A 1-inch gap on thesides and a 4-inch gap at the back arerecommended for refrigeration units toallow the condenserand fan to have accessto a steady flow of air.

Clean the coolingcoils. Dirt accumulationimpairs heat transferand lowers refrigerationefficiency and capacity.

Check the door seals.Tight seals and properlyclosing doors preventwarm air from enteringthe unit, which reducescooling energy andprevents frost buildup.Use this rule of thumb:If you can easily slide adollar bill into the seal,have the seal adjusted.

The above actions cansave you between $5and $25 per year. Theseactions can also im-prove your productquality and extend theunit life. At no costexcept a few minutes of

Inn at WiccoppeeRick Stein owns and operates the Inn at

Wiccoppee, a well-known restaurant in thequaint Hudson River area of HopewellJunction, NY. With a free energy audit andadvice from his local utility, CentralHudson Gas and Electric, Stein is saving$1,869 annually and preventing about25,000 pounds of pollution. His paybackon upgrade costs was about seven months.

Stein's biggest single savings opportunitycost him nothing to implement. Hereduced his frozen food inventory andcombined it into two freezers, allowing himto unplug three other freezers. And whilethis simple move didn't affect the restau-rant at all, Stein is saving almost $800 ayear, money that goes straight to hisbottom line.

Other savings required small investmentsbut delivered good savings. These includeda lighting upgrade, and replacing an electricdeep fryer with a similar natural gas (orpropane) fired unit, because these fuels arecheaper than electricity.

Success Stories

ENERGY STAR

CommercialRefrigerator

A new Energy Star Com-mercial Refrigerator (50cubic feet) uses about2,500 kilowatt-hours peryear and costs about $205dollars a year (@$.08/kWh) to run. Compared tostandard commercialrefrigerators, that is about30 percent in savings!



your time, these actions are abargain.

Shorten defrost cycles. Thisis starting to get a bit techni-cal. Fifteen minutes an hourisn’t perfect for everyone orfor every season. If you’re in adry climate or season, gradu-ally decrease your defrostcycle time until you see hintsof frost buildup on the coils.Back the setting up a bit, andyou are optimized. Thisprocedure, like others, canhelp extend the unit life.

Refrigeration CapitalInvestmentsSpecify glass doors when

you buy new display cases. Theybring a modern look to your store andkeep cold air where you want it (withthe food) and warm air on your cus-tomers. If you can find a low-costcontractor, upgrading your open displaycases by adding glass doors to themwill reduce your energy costs by asmuch as 40 to 50 percent.

Request a humidistat instead of atimer to control the anti-sweatheaters in large display cases. Thisis similar to the defrost cycle ideamentioned earlier, but it involvesautomation.

Upgrade your “rack” system with afloating head pressure system. Thesepressure systems allow the compressorto work less when it is cool outside,and they consistently demonstratesavings of 20 to 30 percent.

Heat recovery to water heaters orspaces is almost standard now ingrocery stores that have large systemswith substantial hot water needs, suchas delicatessens. In most cases, you candisconnect your old water heater.

Order new units with efficientlighting for new display cases. The

lower wattage lights will reduce coolingcosts by reducing the work done by thecompressor to cool the heat generatedby the lamp and may even improve theproduct appearance.

If you are in the market for a newrefrigerator, look for the ENERGY STAR®

logo—your guarantee of savings. Anduse the EnergyGuide label to help youidentify how a particular model com-pares with others in the market andwhat its annual operating costs are. Youcan then base your purchasing decisionson the price you can afford to pay andthe highest efficiency available in thatrange. Calculate the simple payback forthe cost premium to see how muchincreased efficiency you should buy.

Specify high-efficiency evaporatorfans when buying new display cases.At less than 1/10 horsepower, youwouldn’t think that these little fans area very big deal, but when consideringthat a grocer may use a hundred ofthem, it adds up. It is normally worthpaying the incremental price premiumwhen buying a new unit.

Purchase freezers and refrigeratorswith an Energy Efficiency Ratio betweenseven to nine for medium-temperaturesystems and from five to six for low-temperature systems.

A Note About CFCsThe major challenge that the refrigera-tion industry has faced is the mandatedphaseout of chlorofluorocarbons (CFCs).Until recently, many refrigerators usedCFC-based refrigerants. The foaminsulation built into older refrigeratorsalso contains CFCs. Because CFCsdeplete the ozone layer and contributeto global warming, new refrigerantshave been developed to replace CFCsand are currently available in new unitsor as replacements for CFCs in oldunits. Call the EPA Stratospheric OzoneHotline at 1-800-296-1996 for informa-tion on converting your existing refrig-erators or disposal methods.

Refrigeration heatrecovery to water heatersor spaces is almoststandard now in grocerystores with substantial hotwater needs.

Compare the Energy Use of this Refrigeratorwith Others Before You Buy.

Use the EnergyGuide label to select efficientresidential-size refrigerators. (Also availablefor other appliances.)

This Model Uses776kWh/year

Energy use (kWh/year) range of all similar models

Uses Least Uses MostEnergy Energy776 1467

Refrigerators using more energy costmore to operate. This model’s estimatedyearly operating cost is:

$64



T he phrase “set in stone” isfrequently used to describethings that cannot be changedand must be accepted as a fact

of life. This may be how you viewyour building’s construction and theway it affects your energy bill. Justbecause your building is set on a firmfoundation doesn’t mean that you can’tmake some changes—large or small—that can reduce the impact that yourbuilding’s exterior has on what youpay to heat and cool it. What’s more,most of the changes you make toreduce your energy costs will alsobring along improvements in comfortand in your building’s appearance.

Fortunately there are many small-scaleupgrades that you can make to yourbuilding’s envelope (the walls, roof,and windows) that can make thebuilding cost less to heat and cool.Unlike the equipment inside yourfacility, simply changing a wall or aroof just because the original equip-ment isn’t efficient enough isn’t reallya feasible solution. Sometimes win-dows of opportunity do occur toupgrade your building’s constructionat relatively little extra expense. Forexample, roofs need to be replacedperiodically, and the additionalexpense of adding insulation orreflective coverings at that time canbe justified by the savings they willprovide. Similarly, energy-savingwindow upgrades may be worthwhilewhen your building’s facade is beingremodeled to modernize its appear-ance. In turn, when it is time to re-place your heating or cooling system,you may find that by investing somemoney in wall or roof improvements,you can reduce your building’s heatingand cooling needs enough to reduce

Building Construction

the size and cost of the unit equipmentyou need to buy. Alternatively, if yourcurrent system can’t quite heat or coolenough on extreme temperature daysbut is still new enough that you wouldrather not replace it, you can makebuilding improvements to reduce yourheating and cooling loads enough toallow your current system to meetyour needs.

Most of the upgrades that you canmake to your facility involve reducingheat losses in winter, reducing heatgains in summer, and reducing airleakage throughout the year. Theparticular envelope upgrades thatmake the most sense for your buildingdepend on both the climate and thelayout of your facility. A businessowner in Phoenix, AZ, will be moreconcerned about what the summersun is doing to his cooling bill than hewould be if his business were locatedin Caribou, ME. Similarly, the businessowner with a 1-story building will

You can reduce heat lossesin winter, reduce heatgains in summer, andreduce air leakagethroughout the year byupgrading your facility.



probably be more concerned with roofupgrades than a business owner with a10-story building because the roof hasa much larger impact on the 1-storybuilding.

WindowsWindows are one of the most appeal-ing parts of any building, providing its“look” and, of course, the covetedwindow offices. But windows are alsoan area where a lot of your heatingand cooling costs can go literally outthe window. Windows typically havelow insulating levels, as anyone whohas sat next to a large, single-panewindow on a cold winter day canattest. In addition, windows can alsoallow a lot of unwanted summer heatgain, especially if they’re located onthe west or south side of the building.In recent years, window manufacturershave developed low-emissivity (low-E)windows with dramatically higherinsulating values and reduced heatgains, but it is unlikely that these arebeing used in your building if it wasbuilt before 1990.

Unless you have single-pane windowsand live in a cold climate, the savingsfrom replacing your windows withmore efficient windows are hard tojustify financially unless the replace-ment is done as part of a largerrenovation. You can improve theefficiency of your existing windows,however, by installing window films.

Window films are thin coatings thatcan be applied to the interior surfaceof windows to help block radiant heatgains and losses. These coatings aresimilar to those used in low-E win-dows. Their primary benefit is inreducing summer heat gains, becausethey can prevent from 61 to 80 percentof the incoming solar radiation fromentering your building. In winter thesecoatings can help reduce heat lossesby preventing 19 to 44 percent of

Success Stories

By replacing the existing windows, this Rebuild America partnership school improvedindoor comfort while reducing winter heating requirements.

Window R-Values*

Single Pane 1.0

Double Pane 2.0

Triple Pane 2.9

Decrease R-Values by at least 20 percent ifaluminum frames.Increase R-Values by about 30 percent if lowemissivity.

* See page 69 for more information on R-Values.

Envelope Modifications Provide “Cool” Savings inEastern North Carolina

A comfortable atmosphere in the classroom is essential to learning.An elementary school in North Carolina was faced with unbearableheat in the summer and erratic temperatures and drafts in thewinter; neither condition was conducive to learning. To help easethe uncomfortable atmosphere, the administrators decided toprovide air conditioning by replacing the school’s existing steamheat system with fan coil heating and cooling units that hadindividual room thermostats. They also replaced the single-panewindows with double-pane windows and insulated panels. Thenew windows, coupled with insulation added to the roof in animprovement project a few years earlier, reduced the size of theair-conditioning equipment needed, which resulted in a lowerinstallation cost. What was the result of this air-conditioning andwindow replacement project? The school reduced its heating coststhat winter by nearly 35 percent. And the benefits from replacingthe windows were not limited to cost savings; the increasedcomfort levels created by eliminating drafts and the newer, moremodern appearance of the school have boosted the teachers’morale and the children’s pride in their school.



indoor heat from escaping out thewindow. In addition to providingenergy-cost savings, window filmsimprove comfort by moderating heatlosses and gains, reducing glare andoverheating, increasing privacy byrestricting visibility from the outside,improving the appearance of thewindows, and reducing the fading ofcarpets, furniture, and merchandise.Window films typically cost between$1.35 and $3.00 per square foot toinstall, and they generally have alifetime of 7 to 12 years. They must beinstalled properly to avoid bubbles,cracks, or damage to your windows.

Window accessories also affect yourenergy costs. White roller shades andVenetian blinds, when fully drawn,reflect heat. Draperies or curtains,when made of a tightly woven,opaque material in a light, reflectivecolor, can reduce heat gain. If a curtainfits tightly against the window, it canalso reduce winter heat losses. Aw-nings on the south, east, and westsides of your building can reducesummer heat gains; trees planted onthe east and west sides of the buildingcan also reduce summer heat gains.The chart below provides the simpleguide to when you should use yourshades, depending on the season andthe time of day.

Roofs and WallsYour building’s roof can generally beimproved two ways: by improvingthe insulation and by improving itsreflectivity to reduce heat gains. Yourpriorities will depend upon the typeof building you have and where yourbusiness is located. Roofing improve-ments are generally better investmentsfor buildings that currently have apoorly insulated roof and in locationswith extreme temperatures in eithersummer or winter.

If heating costs are a priority at yourfacility, or if you work in a warmclimate and have an attic, roof insula-tion could be a good investment. Ifyour business has attic space, insula-tion may be added at any time to theattic floor at a relatively low cost eitherby blowing in insulation or by install-ing batts of insulation on the atticfloor. Depending upon the type ofroof, insulation may be added oneither the inside or the outside of theroof. If you have a flat roof, your bestbet will probably be to wait until yourroof needs replacement and to installrigid insulation on the roof exteriorwhen the roof is being replaced.

How much insulation is enough? Yourstate or local building codes willusually require a minimum level ofinsulation, but keep in mind that thisfigure is a minimum required amount.Because codes have gradually in-creased the amount of insulationrequired, many old buildings will haveless than the amount required bycurrent codes. To get a better idea ofadvisable insulation levels for energycost savings in your area, check withyour state energy office or localelectric utility. The American Societyof Heating, Refrigerating, and Air-Conditioning Engineers recommendsan R-Value between 25 and 30 foroptimum energy efficiency. See thechart on page 68 for some roofingrules of thumb.

Pull Your Shades

SUMMER Down Block the sun

WINTER Up Let in the sun

DAY

NIGHT

SUMMER Up Let buildingheat out

WINTER Down Keep buildingheat in

Roof insulation could be agood investment if heatingcosts are a priority at yourfacility or if you work in awarm climate and havean attic.



If your air conditioner runs signifi-cantly more than your heating system,ask your roofing contractor aboutreflective roof coverings for your area.Recovering the roof with a light-colored stone, coating, or membraneis less expensive than a full roofreplacement. The lighter color willcause your roof to absorb less heatand will extend the life of the roofby slowing its deterioration. Anotheralternative is a roof spray system,which has moisture sensors thatcontrol a spray of water over the roofto keep temperatures down. If yourbuilding has an attic space, you maybe able to install a radiant barrier. Aradiant barrier is essentially a layer ofaluminum foil that can be tacked to theunderside of your roof deck with theshiny side facing down toward the airspace in your attic. It blocks 95 percentof the heat that would otherwise beradiated downward from your hot roofdeck. All of these options result inlowered roof or attic temperatures,which make your upper floor a muchmore comfortable place during thesummer. In one application in NewOrleans, for example, the installationof a radiant barrier and attic ventsdropped the attic temperature by 50

Roofing Rules of Thumb

Existing Condition Cost Effective To Add Insulation?

New Construction Yes, always. R–19 to R–38 depending onlocation and codes.

Existing Buildings:

Current Insulation Level

0–1 inches Yes, always.

2–4 inches Yes, if attic is accessible or if built-up roofis being repaired.

5–9 inches No, in moderate climates. Just add whenremodeling.

Yes, in extreme climates and where theattic is accessible.

More than 9 inches No.

degrees. You can imagine the effecton comfort downstairs.

Finally, forced ventilation in attics candrop temperatures by 30 degrees ormore for a big increase in comfortand savings.

Reducing Air InfiltrationWhen unconditioned air from outsideslips into your building, or conditionedair seeps out, you have to pay to heator cool that extra or replacement air.Consequently, it pays to minimize thisinfiltration, especially because themethods to reduce it are generallyinexpensive and easily applied.Reducing infiltration will also improveyour occupants’ comfort becausenobody is comfortable sitting next toa draft.

Use caulk to seal air-leaking cracks andinstall or replace weather strippingaround doors and operable windows.Small air gaps may look inconsequen-tial, but they add up. A 1/8-inch airgap along the opening of a pair of6-foot-8-inch doors is equivalent toa 10-square-inch hole in the wall.Replace the glass in any brokenwindows as soon as possible. Makesure all doors and windows closeproperly and—an often forgottenprocedure—cover the exterior portionof any window air conditioners inthe winter.

If you have a loading dock, severalmeasures can potentially cut your costsand increase the occupants’ comfortand productivity. When the loadingdock door is open, make sure that anydoors that separate the loading areafrom the rest of the facility are closed.(If there are no such doors, you maywish to install some.) If the opening islarger than needed, consider making itsmaller. Have trucks back up as closeas possible to the opening to reducethe amount of heated air escaping thearea. If the loading dock door is

When unconditioned airfrom outside slips intoyour building, orconditioned air from insideseeps out, you have to payto heat or cool the extraor replacement air.



regularly left open, install a curtain ofplastic strips or an air curtain to helpreduce heat loss. Alternatively, con-sider radiant heaters, as discussed onpage 77.

If You Plan To RemodelYour options for reducing yourbuilding’s energy costs are limited tosome extent by the choices that weremade when your building was built.Making the decision to use energy-efficient windows and appropriateinsulation levels is far less expensivewhen a building addition is still onthe drawing board. At this point theactual cost for each upgrade shouldbe considered the incremental costbetween the more and less efficientalternatives. The options that providethe best return on investment can beidentified by comparing the incremen-tal cost with the energy cost savingsthat will accrue over the lifetime ofthe building. Software packages areavailable and can be used to analyzethese choices. If your architect isunfamiliar with these methods, youmay wish to hire a consultant to helpyou make the optimal choices.

Increasing the insulating value ofexisting walls may be difficult to justifyfrom a cost-savings point of view. If acold wall is a significant comfortproblem, however, you may wish todo so. If you have frame walls, youcan have insulation blown into thewall cavities. Otherwise, you canincrease the insulating value by addinga layer of insulation over the existinginterior wall and covering it with newwallboard. (You will also need tomove out any light switches or electricboxes.) This solution will decreasethe size of the room slightly. See thefigures on this page for variations ofwallboard coverings.

Consider installing a vestibule at yourprimary entrance, particularly if yourbusiness sees a lot of visitors. A

vestibule consists of a spacebetween two sets of doors that actsas an airlock to reduce the amountof air that enters or escapes fromthe building as people enter orleave. You may be able to createone by installing an extra set ofdoors inside your building, or youmay wish to build it as a smalladdition. This area does not need tobe heated or air conditioned. Inaddition to reducing energy costs,this modification will dramaticallyincrease the comfort of anyone whoworks near the doors. Studies showthat vestibules can reduce relatedinfiltration by more than half. Sucha measure likely will not be justifi-able solely on energy cost savingsunless it is part of a larger upgrade,but it is justifiable when youconsider the added comfortablework space it provides.

Technical Closeup: R-Values

R-Values measure the effectiveness of insulation. Thehigher an object’s R-Value, the better it resists heat loss

(or gain). Heat loss through an object is inversely propor-tional to its R-Value, so you get more bang for your buckfrom increasing the R-Value of a building component thatinitially has a lower R-Value than you would with a higherone. Increasing insulation from R-1 to R-20 will save you alot more money than increasing from R-20 to R-40. Forexample, adding an R-Value of 1 to a window that currentlyhas an R-Value of R-1 represents a 50-percent decrease inheat loss; adding R-1 to an R-15 wall decreases its heat lossby 6.25 percent.

R-Value

Without WithInsulation Insulation

Drawing 1 R-5 R-12

Drawing 2 R-4 R-8

Drawing 3 R-5 R-9



H eating, ventilating, and air-conditioning (HVAC) systemsaccount for 39 percent of theelectric energy used in commer-

cial buildings in the United States.Consequently, almost every businesshas the potential to realize significantsavings by improving its control ofHVAC operations and improving theefficiency of the systems it usesthrough proper design, installation andscheduled maintenance.

1970s-Style Conservation:It Still WorksThe most straightforward method forsaving on your HVAC bill is simplyto operate the systems less, both byturning the systems off (or back) whenthe building is not occupied and bychoosing more efficient temperaturesetpoints so that the systems runless often.

A week contains 168 hours. If yourbusiness operates during only 40, oreven 80, of those hours, you occupyyour facility during only a fraction ofthe week. Consequently, savings areavailable by setting back your thermo-stat when the building is unoccupied.The term “setting back” is used toindicate both changing the tempera-ture setting (setting back to a lowertemperature in winter and setting upto a higher one in summer) andmaking sure that the fan switch on thethermostat is set to “auto” rather than“on.” A fan left in the “on” mode runsnonstop 24 hours per day; in “auto”mode, the fan cycles on only whenheating or cooling is being supplied.In some instances the fan savings canbe significant even when only minimal

Heating and Cooling

temperature setback changes aremade. If your system draws in ventila-tion air from outdoors, cycling the fanduring unoccupied hours can also helpwith humidity control in humid areas.

How much can you save? That de-pends upon your climate, the size andshape of your building, how much youset back your thermostat, and howmany hours per week your businessoperates. Substantial savings are alsoavailable by adjusting your tempera-ture setpoints—lower in the winterand higher in the summer. Changeyour thermostat settings gradually, nomore than a degree or so per week, tosee how low (or high, for summer) asetting you need to maintain a com-fortable facility. Make these changeswithout advertising the fact that youare doing so to avoid having staffersbegin grumbling about changes beforethey can actually feel them. Thismethod can also help identify problemareas in your system. Check out theareas where you first receive com-plaints about comfort to determinewhether the problem is one of inad-equate air supply, excessive drafts,or intense sunlight.

The Consortium for Energy Efficiency(CEE) reports that up to 50 percentmore energy could be saved withproper installation, sizing, andmaintenance of commercial central airconditioners and heat pumps.

Save on your HVAC bill byturning the systems off (orback) when the building isunoccupied.



HVAC Tune-UpThe Air Conditioning Contractors ofAmerica recommends scheduledmaintenance on your heating and airconditioning systems twice annually bya licensed HVACR contractor. Thesescheduled maintenance programs andsystem checks should include thefollowing:

• Check the system’s connections.

• Check for proper refrigerant charge(and combustion efficiency whereappropriate in the fall.

• Inspect and clean coils, straightenfins, and replace filters.

• Inspect and oil fan motors.

• Inspect and repair ductwork leaksand insulation voids inunconditioned spaces.

• Check for proper ventilation andeconomizer operation.

• Check for proper airflow at unit andeach zone.

• Check for proper control settingsand safety shut-down functions.

Note: These maintenance and systemchecks are just as important aschanging the oil in your vehicle every3,000 miles.

1980s EfficiencyImprovements:ProgrammableThermostatsAlthough night-setback andtemperature-setpoint changes aresimple enough to be done manually, anautomatic control is much more effi-cient and reliable. Electronic, pro-grammable thermostats, which allowyou to program in desired setpoint andcutoff times for a 7-day week, areavailable for $50 to $200. Most modelsinclude manual override features, so anexecutive who needs to come in on aSunday afternoon when the system is insetback mode can override the setbackand work in comfort without having toreprogram the system. Be sure to locatethe thermostat in a location where thetemperature is representative of theentire area served by the system—notnext to the air-conditioning diffuser or acoffee pot. Many businesses find itworthwhile to install a locking enclo-sure around their thermostats to avoidunauthorized tampering with thesetpoints. If you have a heat pump, besure you get a heat-pump-program-mable thermostat with a “smart recov-ery” feature, which will bring yoursystem on early enough to minimize theuse of electric strip heating. Heat-pumpthermostats cost about twice as much asother thermostats because they have tocontrol multiple types of heating.

Success Stories

Programmable Thermostats BringNeeded Comfort in Seattle

Centerplex, a Seattle-based ENERGY STAR® small business partner,owns a 26,500-sq.ft. commercial office with 43 tenant firms and100 occupants. Centerplex’s owner, Jonathan Pool, has imple-mented a variety of energy-saving modifications that have reducedhis electric bill by 50 percent. Among these modifications is theinstallation of ten programmable thermostats, which save energyby resetting the heating and cooling setpoints when sections ofthe facility are unoccupied. The programmable thermostatsprovide the added benefit of reducing tenant complaints abouterratic temperatures. The programmable thermostats, along withenergy-efficient lighting and window improvements, have netted asavings of $23,000 per year within an overall payback period ofonly 1.5 years. Mr. Pool made an interesting observation about hisefficiency efforts and their ultimate effect on his bottom line.“I think there is a spillover effect. When you rent space to othersthe practices that you engage in attract compatible people.Conservation attracts people who support conservation. Theygenerate less waste and are easier on both each other and thephysical plant.” His overhead goes down, and his profit goes up.



1990s and Beyond:Whole-Building EnergyOptimization andManagement SystemsProgrammable thermostats are effec-tive and work quite well, especiallywith individual-unit air conditionersand heaters. If your facility uses larger,central systems such as boilers andchillers, you may wish to use anenergy management system (EMS)instead. As we approach the nextmillennium, the EMS market will likelyexpand into smaller and smallerfacilities. In addition to the setpointand night-setback features, whichcan be handled by a programmablethermostat, an EMS can be used toprovide savings in many other ways.Depending on the type of system youhave, an EMS might be used toprovide some of the following money-saving automatic control functions:

• Consider installing an economizer.There may be times when you needcooling in the building but theoutside temperature is low. Aneconomizer allows your system tocirculate outdoor air for free coolingduring these periods. Rooftop unitshave had economizer options thatcan provide free cooling for manyyears. If your rooftop(s) haveeconomizers, they need to bechecked for proper adjustment andoperation with your scheduledmaintenance. If your rooftop(s) donot have economizers, considerhaving them installed by yourHVACR contractor. The paybackperiod is typically very short.

• Adjust supply-air temperaturesbased on indoor and outdoortemperature and humidity to letthe heating and cooling systemsoperate most efficiently.

Approximate Percentage Savings FromThermostat Setback

Degree-Days* Setback Temperature

60° F 55° F 50° F

1,000 13% 25% 38%

2,000 12% 24% 36%

3,000 11% 22% 33%

4,000 10% 20% 30%

5,000 9% 19% 28%

6,000 8% 16% 24%

7,000 7% 15% 22%

8,000 7% 13% 19%

9,000 6% 11% 16%

10,000 5% 9% 14%

*Look up your degree-days on the map below or call your utility for exact data.For a definition of “degree-day,” see the glossary in section 3.

Savings based on 65 degrees Fahrenheit and assuming setback for 14 hours perweeknight and all weekend.

Source: “Reducing Energy Costs Means a Better Bottom Line.” National Frozen FoodsAssociation/U.S. Department of Energy.

Zone 1 — Greater than 7,000 heating degree-days

Zone 5 — Less than 4,000 heating degree-days and greater than 2,000 cooling degree-days

Zone 4 — Less than 4,000 heating degree-days

Zone 2 — Between 5,500 and 7,000 heating degree-days

Zone 3 — Between 4,000 and 5,500 heating degree-days



• Adjust chilled-water and hot-watertemperatures based on indoor andoutdoor temperature and humidityto let the cooling and heatingsystems operate most efficiently.

• Implement holiday period automaticsetpoint adjustments.

• Monitor space temperatures tominimize overheating or over-cooling of spaces on a zone-by-zone basis.

An EMS can be used to control otherfunctions in your building as well, suchas lighting. It can be monitored andcontrolled from a console in a remotelocation, such as your homeor your maintenance manager’s home.EMS suppliers typically estimate thattheir EMS can cut the heating andcooling bills of a business with acentral chiller and heating systemby 10 to 50 percent (many estimatesare clustered in the 20-percent range).

An EMS also can manage your electri-cal loads, prevent peak loads andoptimize your electrical rate with yourelectric utility.

Improving Your SystemEfficiencyThe remainder of this section offerssuggestions on how to improve theefficiency of various types of HVACsystems. Because advice is offeredon a variety of different systems, notevery suggestion will apply to yourfacility. One piece of advice doesapply uniformly to every business,however, regardless of the type ofHVAC system: Maintain yourHVAC system.

Regular maintenance is an often-overlooked key to saving on yourHVAC costs and improving the perfor-mance of your system. Although somemaintenance jobs may require callingin an outside technician, many can be

accomplished inexpensively using in-house staff. Because it also extends thelife of your HVAC equipment, regularmaintenance provides significant costsavings for minimal investment.

Most procedures will be included inyour bi-annual comprehensive mainte-nance agreements with your licensedHVACR contractor. This type of systemcheckup will typically cost less than$100 for a single system, with addi-tional units included at a discount.Some examples of systems checks andstandard maintenance procedures thatyou or your contractor should do onHVAC systems include:

• Replacing your air filters regularly.Accumulated dirt and dust makeyour fans work harder. Clean filtershelp system performance and helpreduce allergens in your office. Youcan do this without a whole systemcheckup.

• Cleaning the heat-transfer coils inheat pumps, air conditioners, andchillers. Make sure that leaves andplants are not obstructing outdoorcoils and have any bent coilsstraightened. In addition to savingenergy, this measure will increasethe capacity of your system.

• Inspecting ducts and piping forleakage and missing or damagedinsulation and making the indi-cated repairs. Insulation is especiallyimportant in unconditioned spacesand leaky ductwork is one of thebiggest contributors to cooling lossin buildings.

• Making sure that furniture or otherobstructions do not block air flowaround radiators, convectors, andair intakes and diffusers.

• Identifying any areas in yourfacility that are unused but arebeing conditioned. Consider turningoff the HVAC to these areas orclosing the vents.

If you plan to upgradeany heating or coolingequipment, first implementyour other ENERGY STAR

upgrades. Earlier upgrades(such as lightingreplacements or buildingconstruction improve-ments) may change thesize requirements for yournew heating or coolingsystem.



• Adjusting temperature and humid-ity setpoints seasonally. Unless it isabsolutely required for humiditycontrol, consider turning off“reheat” from late spring to fall.

• Having your fuel-fired boiler orfurnace checked out at least annu-ally, before the heating season starts.Have the technician check thecombustion efficiency and reportthe results along with any sugges-tions for improving boiler efficiency.

• Repairing your old valves and steamtraps. A steam trap costs approxi-mately $50. If broken, it can wastehundreds of dollars each winter.One supplier estimated that anaverage of 20 percent of traps arebroken nationwide. Broken steamtraps not only waste money andenergy, but they also cause extremediscomfort.

In addition to the maintenancechanges suggested here, makingoperational changes and/or upgradingsome aspects of your HVAC systemmay result in significant savings. Theseupgrades are more complex in scopeand should be undertaken only afterconsultation with an engineeringprofessional.

Things to look for in an HVACRcontractor:

• The contractor complies with stateand local codes and regulations andcarries the proper business andworkers’ compensation insurance.

• The contractor is prompt andcourteous and provides fast, reliableservice while attempting to performservice at your location.

• The contractor has the skill andknowledge not only to service yourequipment, but also, if necessary, todesign and install the right systemfor you.

When consulting an HVACRcontractor:

• Ask the contractor for references.Current and former customers arean excellent source of information.Call these individuals and ask ifthey were (are) pleased with thecontractor’s work. Make sure thereferences are recent or currentcustomers so that you get timelyinformation on the contractor’sbusiness practices.

• Ask the contractor about his or herlicense. If a license is required inyour area, ask for the licensenumber.

• Always ask for a written price quoteand information on servicemaintenance agreements (SMAs).

• Compare warranties and SMAs. Theterms and coverage of warrantiesand SMAs can vary greatly.Compare them carefully. Are partsand labor included, or only parts, oronly labor? Ask what type ofrepairs and parts are included.The cheapest SMA is not always thebest buy.

Tips for SelectingHeating and CoolingSystems• Proper sizing is critical to

efficient performance.

• Check if utility rebates areavailable.

• When buying properlysized heating/coolingequipment, look for theENERGY STAR label – yourguarantee of savings. Formore information, visitwww.energystar.gov/products or ask for “smallbusiness tech support” at1-888 STAR YES.

• Call the ENERGY STAR

hotline (1-888-STAR YES)to request all the materialsyou need to make you an“energy smart shopper.”

The Air Conditioning Contractors of America Web site is one ofmany with useful information about how to find a quality contractor.See page 9 for a list of others.





• Ask the contractor if he or she is amember of a national professionaltrade organization such as the AirConditioning Contractors of America(ACCA). Such affiliationsdemonstrate that contractors haveaccess to the latest technicalinformation regarding HVACsystems, and make quality anintegral part of their companyoperations.

This is Stage FiveDo you remember the five-stageapproach from pages 31 and 32? If youplan to upgrade any heating or coolingequipment, be sure to do this afteryour other ENERGY STAR upgrades havebeen implemented because yourearlier upgrades (such as lightingreplacements or building constructionimprovements) may result in a changein size requirements for your newheating or cooling system. If you havea large or architecturally unique site,insist that the contractor complete asizing worksheet or run a computer-

Success Stories

HVAC Equipment Pays Back in North CarolinaThe cost of replacing HVAC equipment can be a burden for asmall business, but a smart shopper can use the replacement asan opportunity to reduce operating costs by purchasing energy-efficient equipment.

Sud Associates, an engineering firm in Durham, NC, needed toreplace HVAC equipment in its 2,200-sq.ft. office building. The 23-year-old system was a gas furnace with a continuously burningpilot light and an open flue. Cooling was provided by a condens-ing unit with a poor seasonal energy efficiency ratio (SEER) of 7.

The new heating system included a gas furnace with electronicignition and a forced draft fan. Cooling equipment with a SEERof 12 was installed. This new system outperforms the old one,cutting both electric and gas usage while increasing comfort. Theelectronic ignition eliminates the continual gas use by the oldpilot light, and the forced draft fan contains any heat lost throughan open flue. The new gas furnace has cut gas usage by morethan 20 percent in its first heating season. Elimination of the pilotlight’s energy use will add to the total savings. As the system is inits first year of installation at the time of this writing, actualcooling savings results are not available. However, electric savingsdue to the increased energy efficiency of the cooling equipment ispredicted to be approximately 40 percent.

Technical Talk: Special Types of Heating and Cooling Systems

Systems That Simultaneously Heat and Cool. In reheat systems, air that is colder than required is supplied to a specific area and thenreheated before it enters the room. In dual-duct or multizone systems, heated air is mixed with cooled air. Although these systems providegood temperature and humidity control, this simultaneous heating and cooling is inherently wasteful and should be minimized. If this is beingdone for humidity control, consider alternatives such as desiccants and heat pipes.

Single-Zone Chilled-Water Systems. Consider reducing the air volume and, during relatively dry seasons, raising the cooling supplytemperature. Also consider conversion to a variable-air-volume (VAV) system.

Water-Side Systems. Consider downsizing oversized pumps and motors, installing variable-speed drives on pump motors, and convertingsingle-loop configurations to a configuration with primary and secondary loops.

Water-Cooled Centrifugal Chillers. If your chiller predates 1990, it may be using R-11 or R-12 refrigerants. Manufacture of these has beenbanned due to the Clean Air Act Amendments of 1990, reducing their availability and making their prices skyrocket, so any upgrade shouldconsider converting the chillers to utilize newer refrigerants. Consider replacing your chiller if it is more than 20 years old.

Boilers. Consider replacing an oversized, inefficient boiler with a smaller, more efficient boiler. Also consider upgrading an existing boiler withenergy savings options such as a newer, more efficient burner (which will also reduce emissions), baffle inserts (to increase the efficiency offire-tube boilers), combustion controls (to optimize efficiency each hour), warm-weather controls for hot-water boilers (to reduce the watertemperature during milder weather), economizers (to preheat feedwater), and condensate return systems (for open-loop steam boilersystems). If you have multiple boilers, keep in mind that it is more cost effective to run one of them at full load than both at part load.

Large Central Systems. If you have a large central system and you find that one area of your facility operates for substantially more hoursthan the others, it may be cost effective to install a smaller, dedicated system in that area.



ized sizing analysis for your facility inits current state of repair. If you thinkthe results inflate your needs, seekanother quote.

Never buy oversized heating or coolingequipment on the theory that morecapacity is better. This simply is nottrue. Grossly oversized cooling equip-ment will cycle too often and will beunable to sufficiently dehumidify yourspace, which creates a serious comfortissue. Such equipment will also costmore to run all year long. Heatingequipment will be equally inefficientif oversized. This advice is difficult,perhaps the most difficult in this wholeguide, to follow. Nobody wants tospend $5,000 on a new air conditionerand find themselves sweating whencooling is sought. But both comfortand costs are at stake. Get the rightsize, not the right size plus one, andyou’ll be happy.

If your system was properly sizedbefore making any ENERGY STAR im-provements, your contractor may findthat your system is now oversized andsavings can potentially be realizedby downsizing portions of it. If yoursystem was undersized before youbegan your ENERGY STAR upgrades,you may find that your improvementshave, in effect, balanced your loadsand capacity by reducing your buildingloads and increasing your equipmentcapacity.

Hot New Technologies:Variable-Speed Drives,Heat Recovery, andRadiant HeatingVariable-Speed Drives (VSDs). If youhave a larger system in your building,you may be able to take advantage ofthe savings available through installingVSDs on air blowers or even pumps.VSDs allow sophisticated control ofhow much air or water is provided by

heating and cooling equipment, whichhas a significant effect on how muchenergy is consumed.

Heat Recovery. Your business mayrequire high levels of fresh air (forexample, a laboratory with fumehoods). Installing heat recovery equip-ment will allow you to recapture someof the energy you have invested inheating or cooling that air and transferit to the fresh air stream.

Radiant Heating. For areas wherehigh ceilings, high infiltration, or lowinsulation levels make heating the aircostly, natural gas-fired radiant heating(which heats occupants directly) is theanswer. For warehouses, shop areas,and loading dock areas, installingradiant heaters can lead to big savingson your heating bills.

To find out more about these and othertechnologies, call the toll-free ENERGY

STAR hotline at 1-888-STAR YES and askfor materials suited to your business.And remember, we’re here to provideyou with unbiased technical informa-tion for all your energy- efficiencyupgrades.

Time for Another Repair?Due to the high cost of large HVACequipment, the energy savings alonemay not justify replacement of equip-ment that is in good working order.If your equipment requires frequentrepairs or is nearing the end of its lifeexpectancy, however, it may be wise toconsider replacing it from a preventivemaintenance standpoint and an energysavings standpoint, as a scheduledreplacement can generally be negoti-ated at a lower cost and with lessinconvenience than the emergencyreplacement of a failed unit. Call yourutility to find out if it offers rebates onhigh-efficiency equipment.

For more information onheating/ventilation/air-conditioning, and links toinformation on other energyefficiency/renewableresource technologies, aswell as related industrytrade associations, institutes,and organizations, visit theUS Department of Energy'sEREN (Energy Efficiencyand Renewable EnergyNetwork) Web site athttp://www.eren.doe.gov/consumerinfo/assn.html.

http://www.eren.doe.gov/consumerinfo/assn.html

http://www.eren.doe.gov/consumerinfo/assn.html



Success Stories

A Successful Recipe in RenovationJan and Eddie Malone knew they had a challenge ahead of them whenthey purchased the Hotel Alice in 1999. Not only did the Malones haveto become educated in the world of small business, but they had tocontend with a complete renovation of the Hotel Alice. The Malones’vision was to turn the abandoned, three-story, 11,500-square foot historicbuilding into a Bed and Breakfast, with a coffee shop/restaurant andantique shop on the first floor. Built in 1902, the building was alsoeligible for membership in the National Historic Registry, entitling theMalones to a 20-percent tax credit. The Malones also worked with alocal architectural firm to review the existing building structure and makerecommendations to keep the building’s charm and historical features.

In March 2000, the Malones learned about the Rebuild Mississippi team,which performed technical analyses on the building envelope, lighting,windows, plumbing, gas and electric systems, heating and coolingsystems, roofing, and insulation and made numerous recommendationsfor improvements.

After reviewing all of the improvement recommendations, the Malonesdecided on a number of retrofits and renovations, which included theinstallation of a new HVAC system, energy-efficient windows, hot waterheaters, and reflective roofing. The approximately $350,000 in privateinvestments needed to complete the retrofits has already yielded signifi-cant savings for the new hotel, which also serves as a meeting place forconferences, receptions and a variety of community activities. Utility billsfor the business are proving to be 50 percent less than that of compa-rable enterprises in the area. In March 2001, Rebuild America honoredthe Hotel Alice Project with its Energy Excellence in CommercialBuildings Award.

To learn more about the Hotel Alice Project and track their progress, visitwww.hotelalice.com.

A view of the front of the Hotel Alice in Ellisville, MS.

http://www.hotelalice.com



Other Ideas for EnergyOptimization

Should You Buy a High-Efficiency Motor?Example: 25 Horsepower Motor

$208 Cost Premium for High-Efficiency Motor$1,028 Total Cost for High-Efficiency Motor

$0.05 $0.08 $0.10 $0.12

1,000 $28 $44 $56 $67

2,000 $56 $89 $111 $133

4,000 $111 $178 $222 $267

6,000 $167 $267 $333 $400

8,760 $243 $389 $486 $584

Motor UseHours/Year

Annual Cost Savings at Electric Rate Shown ($/kWh)

Always buy standard efficiency.

Buy high-efficiency motor upon burnout.

Buy high-efficiency motor immediately.

I deas on energy optimizations andrelated profit enhancements arefar more numerous than the onespresented in this guide. The

possibilities are endless. In this sectionwe will point out a few more specificideas, but don’t let us constrain you.Anywhere energy is used can be anopportunity for improvement.

MotorsThe rules of thumb here are simple.First, buy high-efficiency motorswhenever you replace old motors.Second, if you use a standard effi-ciency motor (less than 100 horse-power) 24 hours every day, replace itwith its high-efficiency equivalent rightaway and your profits will increasein less than five years. Beyond that,your decision is mainly a factor of themotor-cost premium, hours of use, andyour electricity cost, shown in the tablein dollars per kilowatt-hour ($/kWh).

Cooking EquipmentDon’t preheat your cooking equip-ment. Don’t preheat your electric orgas equipment for more than a fewminutes. Although chefs are not likelyto appreciate your telling them how torun their kitchens, it’s worth a try.

Use the microwave or gas stove inplace of electric resistance cookingwhen possible. Both cost less.

Buy the efficient version. Manyfryers, broilers, soup kettles, and otherequipment have optional controls andfeatures that minimize their energy use.Often they are worth the additionalcost, but we cannot offer a guarantee.

Improve kitchen ventilation. Turnoff your makeup air unit whenever youare not cooking and especially at night.These units, together with the exhausthoods, demand tremendous amountsof energy. You need to provide a safeand comfortable environment withoutodors and smoke, but turn bothsystems off when they are not needed.

When buying newequipment or appliances,look for the ENERGY STAR

label, your guarantee ofsavings. For moreinformation, visitwww.energystar.gov/products or ask for “smallbusiness tech support”at 1-888 STAR YES.




Fuel ConversionsElectric resistance heating is typicallythe most expensive option whencompared with natural gas, propane,and other fuels. If you already havegas onsite but still use electric-resistance heat for water heating,clothes drying, cooking, or other pro-cesses, ask your plumbing or generalcontractor to tell you what it will costto convert your equipment. It could bea very good investment for equipmentyou use often or were going to replaceanyway.

Vending MachinesLet’s face it, vending machines areeverywhere. They are in places suchas office buildings, cafeterias, theatres,auto repair shops, congregation hallsand various other locations. In otherwords, if you are thirsty and in need ofa cold drink, you do not have to lookvery far to find a vending machine thatmeets your needs.

That’s the good news, the bad news isthat with so many vending machinesoperating 24 hours a day, energy wasteis inevitable. In addition, this waste isundoubtedly causing stress on ournatural resources and environment.A typical vending machine consumesabout 3,000 kWh per year; four timesthat of a residential refrigerator!

But there’s hope! Today manufacturersare rethinking the design of vendingmachines with more of a focus onenvironmental impacts. And now withthe emergence of new and exciting“smart controls”, the industry has theopportunity to reduce energy wasteeven further. Major energy savingadvancements have been made in thefollowing areas:

Efficient Lighting. Lighting accountsfor one third of the total powerconsumption in a typical vendingmachine. Traditional T12 fluorescent

lamps can be successfully replacedwith higher quality and more efficientT8 lamps. (Note, de-lamping issometimes an option, but there areconcerns of possible negative impactson product sales)

Improved Refrigeration & Seals.Improvements in compressor efficien-cies and reductions in thermal leaks(through seal and insulation advance-ments) have led to machines that canminimize demand, usage and waste,while maintaining a superior productfor customers.

“Smart Controls”. Timers and newcontrol advancements employingsensors are now being used to reduceenergy waste without posing a risk tothe products’ ideal temperature andenvironment. These controls can“sense” when a product is needed andnot waste energy consumed duringlong stand-by periods.

On a less technical note, the heatingeffect of the sun will cause a vendingmachine to consume more energy tocool its products. If your business’svending machines must be outside,locate them in a shaded area ifpossible.

Saving energy in vending machinescan be achieved by both the purchaseof new efficient models or by retrofit-ting existing models with “smartcontrols”. Employing these tactics cansave anywhere from 20 to 50 percentof the machines’ energy consumption.Now that’s a lot of soda!

Point-of-Use andPressurized Water CoolersPoint-of-use (POU) and pressurizedwater coolers use a common refrigera-tion cycle to chill water for on-demanddrinking. POU is the more commontype of cooler typically using five

Lighting accounts for onethird of the total powerconsumption in a typicalvending machine.



gallon bottles of water and dispensingthe water through a tap using gravityto force out the water. Some of thesePOU coolers have heaters built in toprovide on-demand hot water as well.Typical energy consumption of thesedevices may be 300 to 400 kWh/yearwith cooling only or 500 to 1,000kWh/year with a heater. Pressurizedwater coolers use potable water from abuilding’s domestic water supplyproviding on-demand chilled waterusually by depressing a mechanicalbutton or bar. Typical energyconsumption for these is 300 to 400kWh/year as well.

Water coolers are only needed duringbusiness hours. Your water coolermay be running even when no de-mand for drinking water exists. If youinstalled a simple plug-in timer set forbusiness hours only, you could cut theoperating cost for your water cooler inhalf. Energy consumption would dropfrom 300 to 400 kWh/year to 150 to200 kWh/year as a result of this simpleenergy efficiency measure. If yourbusiness is only open during theworkweek, your energy savings couldbe even greater as the timer shutsdown your water cooler on theweekends. Currently ENERGY STAR isworking on a performance standardfor an ENERGY STAR labeled watercooler. The basis of the proposedlabel is simply adding a timer to thewater coolers to qualify the manufac-turer for an ENERGY STAR label. Yourbusiness can be ahead of the programby simply adding a timer today.

Many POU water coolers have anadditional feature of providing instanthot water. This is an expensive optionwhen you consider the energy con-sumption. Just cooling the waterrequires about 100 W of coolingpower, but heating the water mayrequire 500 W of heating power, fivetimes as much energy! Considerwhether or not your business really

needs this option. If it does, again,consider adding a timer to reduceenergy consumption during idleperiods. Also, if your business’s POUwater cooler has a hot water option,look for a small switch on the back ofyour unit. Many manufacturersinclude this switch to turn off the hotwater feature. If so equipped, con-sider turning off the hot water supplyif your business does not use the hotwater feature.

IcemakersIcemakers are found in most hotels,gas stations, restaurants, and conve-nience stores. Icemakers use acommon refrigeration cycle to produceice cubes for general use. Mosticemakers use air-cooled condensers,like refrigerators, to reject heat. Someuse potable water to cool the con-denser making them more energyefficient, but costing the user addedoperating costs with water and sewagefees. Icemakers range in size from 100to 1,500 lbs/24 hrs of ice generation.

Success Stories

Spaan's Cookie Company's 4,500sq.ft. office building was built in theearly 1900s in the historic town ofGalt, CA. The Spaan family hasowned the firm since 1896. Whileprotecting their history and architec-ture, Spaan's implemented a majorlighting retrofit (inside and out), newHVAC controls, insulation, flooring,and windows. Annual savings of morethan $2,300 are projected, with the30,570 kWh saved preventing 38,000pounds of carbon dioxide emissions.Sharon Spaan says, “A very clearbenefit is the example of what can bedone to bring an old building up todate and make it efficient, whilemaintaining the historical presence.”

Using ENERGY STAR labeledwater coolers can saveyour business as much as$47 per unit!

If your business operatesicemakers, you have atremendous opportunity tosave energy byselecting an energy-efficient model.



Energy consumption is rated in kWh/100 lbs of ice. Typical energy con-sumption ranges are from 4 to 13kWh/100 lbs of ice. Remote condens-ers (located outdoors) are available onsome icemakers. These types oficemakers are advantageous becausethe condenser’s heat rejection is to theoutdoors rather than inside yourbusiness where the air-conditioningequipment has to remove this heat.Remote condensing is usually availableon large units only.

Annual energy consumption of amedium sized icemaker may be up to5,000 kWh. Compare this to theenergy consumption of a standardsized, residential refrigerator. Moststandard sized refrigerators consumeabout 700 kWh/year or less. A singleicemaker may consume as muchenergy as several standard refrigerators!If your business operates icemakers,you have a tremendous opportunity tosave energy by selecting an energy-efficient model. Some of the mostenergy efficient models available in themarketplace may be up to 30 percentmore efficient. Shopping for the mostenergy efficient one will help yousave money and increase the profit inyour business.

When purchasing an icemaker for yourbusiness, inquire about the energyconsumption in kWh/100 lbs of iceand compare this energy level withseveral competitors. Compare air-cooled units with water cooled todetermine which is best for yourbusiness. Water-cooled units use lessenergy per pound of ice, but may costyou more operating dollars given theadded cost of water and sewage.

A typical brewing elementmay consume 1,400watts of energy, morethan twice that of aresidential refrigerator!

Commercial CoffeeMachinesCommercial coffee machines are usingmore energy than you think.

Typical commercial coffee machinesuse energy both to maintain a supplyof water at a certain temperature forinstant brewing and to keep multiplepots of prepared coffee warm foremployee consumption. The problemwith this is that some coffee machinesare designed to maintain a very hotwater temperature at all times, evenwhen not brewing coffee. Themachine’s energy-intensive brewingelement turns on and off a few timesan hour automatically to maintain thattemperature. A typical brewingelement may consume 1,400 watts ofenergy, more than twice that of aresidential refrigerator! The only wayto stop the brewing element fromactivating is to manually turn off thepower switch (usually in the back ofthe machine) when it is not needed,i.e., overnight and weekends. The redindicator light switches that control thepot warmers do not control thebrewing heating element. So evenwhen all those red indicator lights areout and there is no coffee activity andyou think everything is fine – you arestill using energy!

To make sure that your coffee machineis not wasting energy, always checkthat the main on/off switch is in the offposition when not in use. Manuallyperforming this function is probablythe simplest way to proceed, but forthose of you that like gadgets, thereare always timers that can be used toautomate the process. One last thing toremember though, if you do turn offthe coffee machine for the night orweekend, allow several minutes(consult your coffee machine operatormanual) in the morning to let themachine warm up.



Vending Machines Prove to be Prosperous

The Moscow, Idaho School District was looking for a quick andeasy way to begin to save energy and their facilities budget andthe Avista Utility Corporation had just what they were lookingfor. Avista was offering VendingMiser units free of charge tocommunities in their service territory throughout northern Idahoand southern Washington. Avista’s program would provide new,energy-saving technology, but allow their clients to take advan-tage of the payback costs.

The VendingMiser, which is manufactured by Bayview Technolo-gies, Inc., uses a customized infrared sensor that limits theenergy supplied to the machine when the surrounding area isunoccupied. The machines also are equipped with smart controlsthat “learn” the temperature of the room, increasing the power tothe machine when necessary and ensuring the products remainat an optimal temperture. Taken together, these energy-savingmeasures reduce maintenance costs and extend the useful lifeof the vending machine. Each VendingMiser saves about1,500 kWh of electricity a year, averaging approximately $75 ayear per machine.

In 2000, Avista installed 20 units in six of Moscow’s schools.During the first six months of use, an additional 110 units wereinstalled throughout the community. Currently, there are plans toinstall an additional 130-140 units. Once all of these machinesare installed, Moscow, Idaho, will save about $375,000 kWh or$18,750 a year.

Success Stories

Each vending machine, that takes advantageof the VendingMiser (shown below) can saveup to $75 a year in energy costs.



ENERGY STAR and Rebuild America advocate thatoptimal energy and dollar savings are the result ofcomprehensive efficiency upgrades. Comprehen-sive upgrades address all efficiency opportunitiesthat offer an acceptable return-on-investment. Theenergy productivity of equipment can be en-hanced just as the productivity of labor and capitalcan be managed for improvement.

This can sound complicated, and achievingoptimal energy efficiency almost always requiresprofessional technical assistance. However, if therequirements for comprehensive upgrades maystop a small business from taking action, there aretwelve reliable, low-risk, high-return actions thatare relatively simple.

Let’s overview the comprehensive approach, first.In addition to the facility’s “shell” (doors, win-dows, roofing, walls, floor, with their varyinginsulation/resistence values, reflectance, andthermal mass), the facility has “systems” (such aslighting, chillers, space heating/ventilation/air-conditioning, water heating). The facility’s energycosts are also driven by equipment (computers,copiers, printers, fax machines, water heaters,water coolers, etc.) appliances (refrigerators,washers/dryers, dishwashers, stoves, vendingmachines, etc.). And, of course, the hours ofoperation, climate, type of business, and localutility rates, are also major factors in energy costs.

Sound complicated? Sure it does, but the highestsavings require a strategic investment of time andmoney. That’s why many of America’s largestinstitutions and corporations have not yet imple-mented all the financially viable actions possibleto save money with energy efficiency, even withon-site facility managers, and easy access tocapital for improvements.

The above comprehensive list can be somewhatoverwhelming for the smaller facility owner/operator, who probably lacks a professionalfacility manager “down the hall,” or faces toughdecisions on capital improvement and mainte-nance budgets. An applicable perspective here isthat “perfection is the enemy of good.” Meaning...if comprehensive efficiency upgrades are “too

If You Don't Do Anything Else... 12 Simple, Sure Energy Savers:

much,” then key, strategic upgrades are a lotbetter than doing nothing, even if targeted up-grades are not optimal and comprehensive.

To this end, Rebuild America and ENERGY STAR forSmall Business suggest that “if you don’t doanything else” at least implement all you can fromthis list of twelve simple energy savers.

1) Turn off lights and equipment when they are not inuse. Seems obvious, but high utility costs ofteninclude paying for energy that is completely wasted.To automate this function, read on.

2) Buy ENERGY STAR labeled office equipment, and otherproducts, when needed, and be sure the “stand-bymode” function is activated. This automatic “sleepmode” saves energy and money when the equip-ment is not in use, by reducing the “vampire” effectof “instant on” (always on) equipment, which isconstantly drawing power.

3) Install “occupant sensors” in the proper locations toautomatically turn off lighting when no one ispresent, and back on when they return. Sensors addconvenience as well as save money. But, even goodequipment can be installed wrong, so don’t installthe sensor behind a coat rack, door, or book case. Itmust be able to “see” the motion of occupantapproaching an unlit area to turn on the light before,or as they enter. The savings come when peopleleave an area, and the sensor ensures that the lightsare always, automatically turned off, until someonereturns. Although, you, personally, never forget toturn off the lights, just think about all those otherpeople wasting money.

4) Adjust lighting to your actual needs; use free“daylighting.” This means turn off or dim your lightswhen daylight is adequate, or use automatic“daylight dimming” ballasts/controls to do this foryou. To prevent computer screen glare, eyestrain,and headaches, use limited “task lighting” and do not“over-light” the area. Too much light can be as badfor visual quality as too little light - and it costs alot more.

5) “Tune-up” your HVAC system with an annualmaintenance contract. Even a new ENERGY STAR

labeled HVAC (heating/ventilation/air-conditioning)



system - just like a new car - will decline in perfor-mance, without regular maintenance. A yearly “mainte-nance contract” will cost about $100, but can saveeven more than it costs, and the contract automati-cally ensures that your HVAC contractor will provide“pre-season” tune-ups before each cooling and heatingseason.

6) Regularly change (or clean if reusable) the HVACfilters with your own “do-it-yourself” labor for a high“return-on-investment.” During peak cooling orheating season, change or clean your filters everymonth; they cost about $2-3 each. Dirty filters cancost up to $5 a month extra, overwork the equipment,and result in dirtier indoor air. Consider purchasing“electrostatic” filters, which are washable, long lasting,and provide cleaner air. Clean or change filters moreoften if smokers, or pollution sources are present.

7) Install a programmable thermostat to automate yourHVAC system. An “old-fashioned” thermostat turnsthe HVAC on and off based on temperature, notwhether the building is occupied, or whether youbenefit from the cooling/heating. This solid-state,electronic device can optimize HVAC operation “24/7” based on your needs. For example, instead ofheating or cooling all night, so you can enter acomfortable building in the morning, this “smartthermostat” can turn on the HVAC one hour beforeyou arrive, based on your daily/hourly needs. The costcan be $100 to $200, and it could cut your HVACcosts about 30 percent.

8) Replace incandescent light bulbs with compactfluorescent lamps (CFLs), wherever appropriate. CFLscost about 75 percent less to operate, and last about10 times longer. Enough said.

9) Install LED (light-emitting diode) exit signs. Yourcurrent fixture may accept a simple, “screw-in” lightingelement to replace the small incandescent bulbs thatburn out with frustrating frequency. This string ofLEDs will cost about $15 to $20, will last decades, givebrighter light, and end risky ladder climbing to replacebulbs. If your current exit sign will not accept thescrew-in lighting element, a new LED exit sign fixturecosts about $100, and will still save about 90 percentover incandescent bulbs’ operating costs.

10) Control direct sun through windows. During coolingseason, block direct heat gain from the sun shiningthrough glass on the East, and especially West sides of

the building. Depending on your situation, there areseveral options such as “solar screen,” “solar film,”awnings, and vines. Over time, trees can attractivelyshade the glass and building. Interior curtains ordrapes can help, but it’s best to prevent the Summerheat from getting past the glass and inside.

During heating season, with the sun low in the South,unobstructed Southern windows can contribute heatgain during the day, but should be covered at night.

11) Use fans. Comfort is a function of temperature,humidity, and air movement. Moving air can make asomewhat higher temperature and/or humidity feelcomfortable. Fans can help delay or reduce the needfor air-conditioning, and a temperature setting of only3-5 degrees higher can feel as comfortable with fans.Each degree of higher temperature can save about 3percent on cooling costs.

Ceiling fans can even be reversed in the Winter, andon low speed will pull warmer air down from theceiling. When the temperature outside is morecomfortable than inside, a “box fan” in the window,or “whole house” fan in the attic can push air out ofthe building and pull in comfortable outside air. Inbusinesses, like restaurants, with high heat andhumidity from cooking, fans can make a hugedifference in employee and customer comfort, bygiving a boost to air-conditioning. Fans can increasecomfort and save money year round.

12) Plug the leaks with weatherstripping and caulking;another cheap “do-it-yourself” job. Caulking andweatherstripping let you manage your ventilation,which is the desirable, deliberately controlledexchange of stuffy inside air for fresher outdoor air.Most commercial buildings require 15-20 cubic feetper minute (cfm) ventilation per person for healthyindoor air. Exceptions and details can be found in“Building Air Quality” at www.epa.gov/iaq.

However, “air infiltration” in the uncontrolled“leaking” or exchange of inside air (which you paid toheat or cool) at a high rate through cracks aroundwindows, doors, utility switches/outlets, and anyother holes between the inside and outside. This canmake heating or cooling a building very expensive,and still leave it uncomfortable, “drafty” or “clammy.”

http://www.epa.gov/iaq/

3SupportingMaterial

. . . . . . . . . . . . . . Supporting Material


Supporting Material

GlossaryAHU: See Air Handling Unit.

Air Diffuser: A device used to distribute heated or cooled air to a space.

Air Handling Unit (AHU): A unit that usually contains filters, fans, and othercomponents to heat, cool, humidify, or dehumidify interior air.

ASHRAE: American Society of Heating, Refrigerating, and Air-ConditioningEngineers.

Ballast: A device in fluorescent and high-intensity discharge (HID) lighting unitsthat modifies incoming voltage and controls current.

Blending Valve: A valve that mixes hot and cold water to provide water at alower temperature.

Boiler: A vessel designed to transfer heat produced by combustion or electricresistance to water. Boilers may provide hot water or steam, depending on designand settings.

British Thermal Unit (BTU): A unit of heat energy equal to the amount of heatrequired to raise the temperature of one pound of water by one degree Fahren-heit at sea level. This is roughly equivalent to the heat given off from burning awooden match.

Building Envelope: The exterior surface of a building’s construction—the walls,windows, doors, roof, and floor. Also called the building shell.

CFL: See Compact Fluorescent Lamp.

CFM: Cubic Feet per Minute, a measure of air flow.

Chiller: A device that generates a cold liquid that is circulated through anair-handling unit’s cooling coil to cool the air supplied to the building.

Color-Rendering Index (CRI): A scale indicating the effect that a given lightsource has on the apparent color of objects viewed under it. It is expressed on ascale of 0 to 100, where 100 represents the color appearance of the object indaylight or under incandescent lights. Values of CRI above 80 indicate goodcolor rendition.

Compact Fluorescent Lamp (CFL): Small fluorescent lamps frequently used asmore efficient alternatives to incandescent lighting. They typically have 10 timesthe rated life and 3 to 4 times the efficacy of incandescent lamps.

Condensate Return System: A system of piping that returns the heated watercondensing within steam piping to the boiler and thus saves energy.

Supporting Material . . . . . . . . . . . . . . .


Condenser: Heat exchanger in a refrigeration system that rejects heat fromthe system.

Convector: A heating unit that circulates heated air by means of natural convec-tion. Normally consists of a heating element within an enclosure, with an air inletbelow and an air outlet opening above.

Cooling Tower: A device that dissipates the heat from water-cooled systems byspraying the water through streams of rapidly moving air.

CRI: See Color-Rendering Index.

Dampers: Single or multiple blades that are opened or closed in order to controlthe amount of air entering or leaving an air-conditioning system. Control can beeither manual or automatic.

Deep-Cell Parabolic: A type of fluorescent fixture recommended for areas withcomputers. These fixtures direct light down, minimizing glare and reflections incomputer monitors. See also louvers.

Degree-Day: A rough measure used to estimate the amount of heating requiredin a given area. A degree-day is defined as the difference between the meandaily temperature and 65 degrees Fahrenheit (F). This is based upon the assump-tion that no heating is required when the temperature is above 65º F, and thatproportionately more heating is required the further the average temperature isfrom 65º F. Cooling degree-days may also be calculated to estimate coolingrequirements.

Demand: The average rate of electrical usage used over a specified period oftime (typically a 15-minute, 30-minute, or 1-hour period). Measured in kilowatts(kWs).

Demand Charges: Fees charged by a utility company for electric demand.These charges are often highest during weekdays in summer.

Desiccant: A substance that is capable of extracting and retaining water fromhumid air.

Dual Duct: A type of heating, ventilating, and air-conditioning (HVAC) distribu-tion system that involves simultaneous heating and cooling. Two supply ducts(a “hot deck” and a “cold deck”) serve each space, and the hot and cold airfrom them are mixed in the appropriate proportions before being supplied tothe space.

Economizer: A mode of HVAC operation using outdoor air for cooling whenoutdoor temperature and humidity levels are suitable.

Efficacy: A measure of how efficiently a light source can produce light,expressed in lumens (of light output) per watt (of power input). For example, a100-watt light source producing 9,000 lumens of light output has an efficacy of90 lumens per watt.

Glossary



Efficiency: A measure of how much of a desired output is produced per unit ofinput; typically calculated as the amount of useful energy supplied divided by theenergy consumed.

Electric Resistance Heat: Heat produced by a flow of electricity through high-resistance wire, tape, or film.

Electronic Ballast: A ballast for fluorescent lights that uses semiconductorcomponents to increase the incoming electrical frequency from 60 hertz (Hz) tomuch higher levels (20,000 to 40,000 Hz), allowing lamps to operate with virtuallyno flicker and consume 12 to 25 percent less power than with standard ballasts.

Electronic Dimming Ballast: An electronic ballast that allows variable levels oflight output.

EMS: See Energy Management System.

Energy Management System (EMS): A control system capable of monitoringenvironmental and system loads and adjusting HVAC operations accordingly inorder to conserve energy while maintaining comfort. It may also be used for othercontrol and monitoring, such as lighting and security.

Engine-Driven Chiller: A type of chiller that uses an engine fueled by naturalgas, fuel oil, or diesel fuel instead of an electric motor.

Envelope (Building): The exterior surface of a building’s construction—the walls,windows, doors, roof, and floor. Also called the building shell.

Feedwater: The water that is fed into a boiler to be heated.

Filter: A device that removes fine particles from the air stream in an air-handlingsystem.

Footcandle (fc): A unit of measurement of the lighting levels on a surface,equal to one lumen per square foot.

Geothermal Heat Pump: See Ground Source Heat Pump.

GPM: Gallons Per Minute, a measure of flow rate for water or other liquids.

Gravity Dampers: Devices that close off a duct automatically by force of gravitywhen not kept open by fan-forced air flow.

Ground Source Heat Pump: Also called “Earth Coupled” and “Geothermal,”these heat pumps use underground coils to transfer heat from the ground to theinside of a building. Compared with conventional heat pumps, ground source heatpumps can have 40-percent higher efficiency but cost more to install. See alsoWater Source Heat Pump.

Halogen: A type of incandescent lamp with higher efficiency than standardincandescent lamps. Halogen produces a bright white light ideal for retailapplications.

Glossary



Head: Pressure that a pump or fan has to work against for liquids to flow.

Heat Pipe: A passive heat exchanger that uses a refrigerant as the heattransfer medium.

Heat Pump: An electric device with both heating and cooling capabilities.It extracts heat from one medium at a lower temperature (the heat source) andtransfers it to another medium at a higher temperature (the heat sink), therebycooling the first and warming the second.

Heat-Transfer Coils: A component of heat pumps, air conditioners, and chillersthat is used to transfer heat. They must be kept clean and clear of obstructions tooperate efficiently.

HID: See High-Intensity Discharge.

High-Intensity Discharge (HID): A generic term used to describe mercuryvapor, metal halide, and high-pressure sodium lamps and fixtures. Low-pressuresodium lamps, although not technically HID, are sometimes informally includedin the use of this term.

High-Pressure Sodium (HPS): An efficient type of lighting often used forwarehouse and exterior lighting. HPS fixtures emit a slightly yellow-orange light.

HPS: See High-Pressure Sodium.

Humidifier: A device that adds moisture to air.

HVAC: Heating, Ventilating, and Air Conditioning.

Hydronic: A ventilation system that uses heated or cooled water circulated bypumps throughout the building.

Illuminance: A measure of the amount of light incident on a surface or plane,expressed in lumens per square foot (footcandles) or lumens per square meter(lux). Commonly referred to as “light level.”

Internal Rate of Return (IRR): IRR is the interest rate that is equivalent to thepresent value of expected future cash flows after considering the initial cost ofthe project.

IRR: See Internal Rate of Return.

Kilowatt (kW): Unit of power (demand) equal to 1,000 watts.

Kilowatt-hour (kWh): A unit of electric energy equal to the energy consumedby a 1-kilowatt load operated for one hour.

LED: See Light-Emitting Diode.

Lens: A translucent or transparent piece of glass or plastic that shields the lightsource and redirects and scatters light passing through it.

Light-Emitting Diode (LED): An illumination technology used for exit signs thatrequires very little power and has a rated life greater than 80 years.

Glossary



Louver: Grid type of optical assembly used to control light distribution froma fixture. Can range from small-cell plastic louvers to the large-cell anodizedaluminum louvers used in parabolic fluorescent fixtures. See also Deep-CellParabolic.

Low-Emissivity (low-E) Windows: A new window technology that lowers theamount of energy loss through windows by inhibiting the transmission of radiantheat while allowing plenty of light to pass through.

Low-Voltage Halogen: An incandescent lamp that produces bright white light ata higher efficiency than standard incandescent lamps. The high “sparkle” fromlow-voltage halogen lamps makes them well suited for retail spot lighting.

Lumen: A unit of measurement of light flow or luminous flux (the quantity oflight emitted from a light source).

Luminaire: A complete lighting unit, consisting of one or more lamps, a housing,the optical components to distribute light, and electrical components (ballasts,starters, etc.) necessary to operate the lamps.

Megawatt: One million watts.

Metal Halide (MH): A type of lighting that combines high efficiency and anappealing bright white light. MH fixtures can be used for interior and exteriorlighting. They are becoming the fixture of choice for retail areas with highceilings.

MH: See Metal Halide.

Mixing Box: A component of an air-handling system in which air streams fromtwo different sources are combined to form a uniform air stream.

Modified Bin Method: A method for calculating the required heating or coolingfor a building based on determining how much energy the system would use ifoutdoor temperatures were within a certain temperature interval (or “bin”) andthen multiplying that energy use by the amount of time that the temperatureinterval typically occurs at the site. Bin weather data for a variety of sites aretabulated by both the U.S. Air Force and ASHRAE. The energy use for all of theapplicable temperature bins is summed to determine the total estimated energyuse by the system.

Multizone: A type of HVAC distribution system that involves simultaneousheating and cooling. Hot and cold air are supplied at the multizone unit andmixed in appropriate proportions to provide the supply-air temperatures neededin each zone.

Occupancy Sensor: A device that detects the presence (or absence) of occu-pants in an area and causes equipment to be adjusted accordingly.

Payback, Simple: A traditional measure of the economic viability of a project,generally defined as the length of time it takes for savings from an investment toequal the cost. Although frequently used because of its ease of calculation,

Glossary



payback frequently does not give an accurate representation of the total lifecyclevalue of an investment.

Photocell: A light-sensing device used to control light fixtures and dimmers inresponse to detected levels.

Prismatic Plastic Lens: The cover installed on many standard fluorescentfixtures. These lenses are often bright light sources that create uncomfortablereflections in computer monitors.

Programmable Thermostat: A control device for HVAC systems that allows theuser to program in various temperature and fan settings for various times.

Radiant Heaters: A technology that heats building occupants by radiating heatfrom an electric or combustion source. Because radiant heaters use radiationinstead of convection to transfer heat, they are very efficient in areas where highceilings or high infiltration make heating the air costly.

Refrigerant: A substance used to provide cooling, either as the working sub-stance of a refrigerator or by the direct absorption of heat.

Reheat: A type of HVAC air distribution system in which air maintains comfort ina building by cooling the air to a low temperature (typically 55 degrees F) at theair handler and then reheats it near its point of use. This system provides goodtemperature and humidity control but wastes considerable energy.

Retrofit: Upgrading a fixture, room, or building by installing new parts ofequipment.

R-Value: A measure of thermal resistance or the ability of a material or group ofmaterials to retard heat flow.

Setback: Setting a thermostat to a lower temperature when the building isunoccupied to reduce heating energy consumption. This may also refer to settingthe thermostat to higher temperatures (“setup”) during unoccupied periods in thecooling season and operating the fan in “auto” mode (rather than constantoperation) during unoccupied periods.

Shading Coefficient: The amount of the sun’s heat transmitted through a givenwindow compared with that of a standard 1/8-inch-thick single pane of glassunder the same conditions.

Static Pressure: The condition that exists when an equal amount of air is beingsupplied to and removed from a space.

Steam Trap: A valve that allows condensed water to flow out of a steam supplyline without allowing any of the steam to escape.

Supply-Air Diffuser: A device used to evenly distribute supply air to a space.

Tandem Wiring: A wiring option in which a ballast is shared by two or morefixtures. This option reduces labor, material, and energy costs.

Glossary



Thermostat: A device typically contained in heating, cooling, and refrigerationsystems which automatically responds to temperature changes and activatesswitches controlling the equipment.

Ton: A unit of measure of refrigeration or air-conditioning capacity; by definitionequal to 12,000 BTU/hour. This is a holdover from when refrigeration wasprimarily used to make ice (for people to use in home iceboxes). A “three ton”refrigeration unit could make three tons of ice from 32 degrees F water in a day.

T-12 Lamp: Industry standard nomenclature for a fluorescent lamp which istwelve 1/8 of an inch (1 1/2 inch) in diameter. Other standard lamp sizes includeT-8 (1 inch), T-10 (1 1/4 inch), and T-5 (5/8 inch).

Variable Air Volume (VAV): A type of air-handling system that maintains comfortin a building by supplying varying quantities of air throughout the building basedupon the needs of individual spaces.

Variable-Speed Drive (VSD): A device that is used to adjust the speed of an ACmotor to match load requirements. Since motors require less power to operate atslower speeds, this provides energy savings.

VAV: See Variable Air Volume.

VSD: See Variable-Speed Drive.

Waste Heat Recovery: Recovering heat that is discharged as a byproduct of oneprocess to provide heat required by a second process. For example, recoveringheat going up the flue of a boiler to be used to preheat boiler feedwater.

Water-Side Systems: HVAC systems in which water is used to provide heating orcooling, including pumps, chillers, boilers, and other equipment.

Water Source Heat Pump: Heat pumps that use wells or heat exchangers totransfer heat from water to the inside of a building. Although most of these unitsuse ground water, a small number of installations use surface water, such asponds or streams. Compared with conventional heat pumps, water source heatpumps can have 50-percent higher efficiency, but cost more to install. See alsoGround Source Heat Pump.

Watt (W): A unit of electric power. It defines the rate at which electricenergy is consumed.

Xeriscaping: (From the Greek xer, which means dry.) A technique of utilizingnative, hardy, low-maintenance plants for landscaping. Xeriscaping reduceswater, pesticide, and fertilizer requirements.

Zone: A distinct area to which heating or air conditioning is supplied.

Glossary



FREEPublications

R equest any of the following free materials by calling1-888-STAR YES. And remember, ENERGY STAR for small businesspartners may request information related to any program. ENERGY

STAR updates the material in this fast-changing marketplace regularly. Callfor the latest information.

Information on the ENERGY STAR Family of Programs

● ENERGY STAR for small business: for businesses of 100,000 square feetor less.

● ENERGY STAR for business: for businesses greater than 100,000square feet.

● ENERGY STAR Office Equipment: for companies that sell computers,copiers, and other office equipment.

● ENERGY STAR Homes: for home builders and home buyers.

● ENERGY STAR Heating and Cooling: for residential heating and coolingsystem manufacturers.

The following types of information are available for all of theabove programs

● Information packs: general program information

● Technologies: reports on high-efficiency equipment (available for theBuildings, Heating and Cooling, and Office Equipment programs)

● Case studies

● Analytical software tools

● Communications and promotional materials

and Programs



Average Energy Use and Costs Throughout the United StatesCalculate Your Total Energy Intensity Here

(or visit the online calculator at www.epa.gov/smallbiz/calculate.html)

1. Collect one year of bills for each energy type and multiply by these conversion factors:

Annual kWh of electricity x 3.4 _______________________

Annual therms or ccf of natural gas x 100 _______________________

Annual gallons of #2 fuel oil (diesel fuel) x 140 _______________________

Annual gallons of #6 fuel oil x 150 _______________________

Annual MIb. of purchased steam x 1040 _______________________

Annual gallons of propane x 91 or _______________________Annual pounds of propane x 22

Total (A) _______________________ kBtu/year

2. Write down the size of your facility, in square feet (B) _______________________ square feet

3. Calculate your total energy intensity by dividing (A) by (B),and write this number on line (C). (C) _______________________ kBtu/sq.ft./year

4. Find the climate map with your location shaded. Then find the average energy use and costs for similar buildings on theadjacent table and compare them with your energy use from line (C).How do you rate?

U.S. Climate Zone 1Annual Annual

Energy Use Energy CostBuilding Type (kBtu/sq.ft.) ($/sq.ft.)

Education 77 $0.93Food service 155 $2.32Health care (inpatient) 270 $2.65Health care (outpatient) 118 $1.33Lodging 133 $1.42Office 93 $1.46Public assembly 66 $0.95Religious worship 53 $0.48Restaurant 250 $3.99Retail 77 $0.99Warehouse (non-refrig.) 59 $1.09Warehouse (refrigerated) 65 $1.45

Annual AnnualEnergy Use Energy Cost

Building Type (kBtu/sq.ft.) ($/sq.ft.)


U.S. Climate Zone 2

http://www.epa.gov/smallbiz/calculate.html



Index

AAerators, faucet, 59Air-conditioning, 10, 51, 66. See also

Heating, ventilating, andair-conditioning (HVAC) systems

Air flow blockage, HVAC systems, 74Air leakage, reduction of, 32, 65,

68–69, 74American Society of Heating,

Refrigerating, and Air-ConditioningEngineers (ASHRAE), 67, 91

American Solar Energy Society, 9, 59Attics, forced ventilation in, 68Attic vents, 68Awnings, 20, 31–32, 67

BBackground ambient lighting, 34Ballasts, electronic, 37, 40, 42–43, 47, 89Bids, 15–17Bill analysis, 21, 49Binding arbitration, 17Blending valve, 57–58Blinds, Venetian, 67Blowers, 79Boilers, 75, 76Building construction, 8, 65–69Building envelope upgrades, 65–69Building tune-up, 7, 31–32, 49

CCarbon dioxide (CO

2), 23–24

Ceiling fans, 10Centerplex, Seattle-based, 72Chilled-water systems, single-zone, 76Chillers, 74, 89Chlorofluorocarbons (CFCs), 64Color-rendering index (CRI), 35, 87Color rendition, 34–35, 37, 41Compact fluorescents, 7, 9, 28, 31,

35–36, 39–41, 89Computers, 7, 20, 33–35, 45, 51–53Consultants, 3, 8–9Contractors, 3, 8–9, 15–17Controls contractors, 8

Cooking equipment, 79Cooling, 8, 10–11, 13–14, 22, 31–32, 63,

65–66, 68, 71–77. See also Heating,ventilating, and air-conditioning(HVAC) systems

Cooling coils, refrigerator, 63Copiers, 51–53, 55Copying, double-sided, 55Curtains, 67Customer comfort, 10, 27, 37

DDaylighting, 34Defrost cycles, 63–64Degree-days, 73, 90Demand charges, 11, 90Desiccants, 76, 90Display cases, refrigerated, 64Distribution system, HVAC, 32Doors, air leakages from, 68–69Door seals, refrigerator, 63Draperies, 67

EEconomizers, 72, 90Electrical contractors, 8Electric bill, 11–12, 21, 23–24, 49Electric energy intensity, 11–14Electric resistance cooking, 80Electric resistance heating, 79, 91Electronic ballasts, 37, 40, 42–43, 47, 91E-mail, 20, 56Employee productivity, 27, 37Energy audits, 3, 8–9, 16, 49Energy efficiency, learning about, iii,

7–9Energy Efficiency Ratio (EER), 64EnergyGuide-labeled appliances,

58, 64Energy inflation, protection from, 27–28Energy Management Systems (EMSs),

8, 22, 73–74, 91Energy saver lamps, 39, 43Energy Services Company (ESCO),

3, 6, 8, 16



ENERGY STAR “Finance Directory”, 5ENERGY STAR five-stage approach,

31–32, 47, 76ENERGY STAR program results, 23ENERGY STAR-labeled equipment, iii,

31–32, 51–53ENERGY STAR for small business

program, iv, 23–24, 28ENERGY STAR for small business Web site,

iv, v, 5, 9, 20, 51ENERGY STAR Web site, 15, 84Energy use, measurement of, 11–14Entrances, 69Envelope (building) upgrades,

65–69EPA Stratospheric Ozone Hotline, 64Evaporator fans, high-efficiency, 64Exit signs, light-emitting diode (LED),

7, 31, 39–40, 42Exterior lighting, 44–45

FFan cycling, 71Fans, 10, 32, 64Faucet aerators, 59Faucets, automatic controls, 60Fax machines, 51, 53Fiber products, recycling of, 56Filters, 8, 31, 49, 74Finance Directory (ENERGY STAR), 5Financial analysis, 21–22, 27–29Floating head pressure system, 64Flood lights, 44Fluorescent lamps, 34–37, 41–43.

See also specific typeFreezers, 10, 63–64Fuel conversions, 80Furnaces, 31, 75

GGair, Kenneth, iv, 47Gas Manufacturers Association

(GMA), 61Gas stoves, 79Global warming, 23–24, 64

Gray water, 60–61Green Lights program results, 23Green pricing, 23–24

HHalogen lamps, 35–36, 39, 41, 91Heating, 8–9, 11, 13–14, 22, 31–32, 49,

57, 59, 65–68, 71–77. See also Heating,ventilating, and air-conditioning(HVAC) systems

Heating, ventilating, and air-conditioning (HVAC) contractors, 3, 9

Heating, ventilating, and air-conditioning (HVAC) systems, 3,9, 32, 71–77, 92

Heat pipes, 77, 92Heat pumps, 74, 92Heat-pump thermostats, 72Heat pump water heaters, 58, 61Heat recovery, 58, 64, 75Heat-transfer coils, 77, 92High-intensity discharge (HID) lamps,

35–36, 44–45, 92High-pressure sodium (HPS) lamps,

36, 39, 44–45, 47, 90Home offices, 24Hot water temperatures, 57–58Humidistats, 64Humidity control, 71, 74, 76

IIce makers, 10, 81–82Illuminating Engineering Society (IES),

33Incandescents, 7, 28, 35–36, 39–42, 47Infiltration, reduction of, 68–69Installation support, 8Insulation, 32, 57–58, 67–69Internal Rate of Return (IRR), 28–29, 92

KKaplan, Steve, 10Kilowatt-hour (kWh), 23–24, 92Kitchen ventilation, 79

Index



LLandlords, 19–20Landscaping, 31, 60, 67Large central systems, 76Leasing arrangements, 19–20Lens, prismatic plastic, 34, 92Light-emitting diode (LED) exit signs,

7, 31, 39–40, 42, 92Light fixtures, 35–36, 39–43, 45. See

also specific typeLighting, 7, 31–37, 39–47Lighting assessment, high-speed

do-it-yourself, 39–40, 46Lighting contractors, 8Lighting controls, 45–47Lighting efficiency, 35–37Lighting upgrades, 10, 31, 34–35, 37,

39–47Light levels, 33–35, 37, 45Light meters, 21–22, 34Light quality, 34–35Loading docks, 68–69Load reduction, 31–32Loans, 5–6Local area networks (LANs), 56Louvers, parabolic, 34–35, 93Low-emissivity (low-E) windows,

66, 93Low-pressure sodium lamps, 35–36, 45

MMaintenance, 10, 31–32, 58, 60, 74–75Marketing, as ENERGY STAR Partner, 20,

28, 37Mechanical contractors, 8Mercury vapor lamps, 36, 40, 44Metal halide (MH) lamps, 36, 39–40,

43–44, 47, 93Metering, 21–22, 34Microwaves, 79Monitors, computer, 34, 52–53Motion sensors, 46Motors, 79

IndexNNational Association of Energy Services

Companies (NAESCO), 8Nitrogen oxides (NO

x), 23–24

OOccupancy sensors, 7, 20, 45, 93Office equipment, 7, 20, 31–32, 51–53,

55. See also Computers, Copiers, Faxmachines, Monitors, and Printers

Operations and maintenancecontractors, 8

Operations and maintenance savings, 27Outside security lamps, 44–45

PPaper, 7, 55–56Paper conservation, 55–56Paper recycling, 55–56Parabolic louvers, 34Payback, simple, 28–29, 46, 93Performance contracting, 6Photocells, 45, 60Plant, HVAC, 32Pollution prevention, 23–24Pool, Jonathan, 72Post-consumer content, of paper, 55Printers, 51–53Prioritizing, 31–32Prismatic plastic lens, 34, 94Profits, 27–29Programmable thermostats, 20, 22,

72, 94Proposals, request for, 15–17Pumps, 32, 57–58, 61, 72, 74

RRadiant barriers, roof, 68Radiant heating, 69, 77, 94Recycled paper, 55–56Recycling, paper, 55–56Reference check, of contractors, 17Reflective roof coverings, 68



IndexReflectors, 10, 41–43, 45Refrigerated display cases, 64Refrigeration, 8, 10, 13–14, 63–64Reheat systems, 76, 94Remodeling, 69Rent costs, reducing energy and, 19–20Request for proposal (RFP), 15–17Roof coverings, reflective, 68Roof insulation, 67–68Roof spray system, 68Roof upgrades, 65–68R-Values, 66–69, 94

SSavings reinvestment, 6Savings verification, 21–22Screen savers, 52–53Seals, 59–60, 63Seasonal energy efficiency ratio (SEER),

76Sensors, 7, 20, 34, 45, 47Setback, of thermostats, 71–74, 94Shades, 20, 67Showerheads, 20, 59Simple payback, 28–29, 46, 93Single-zone chilled-water systems, 76Sligo Adventist School, iv, 47Small Business Administration loans,

5–6Sodium lamps, 35–36, 39–40, 44–45, 47Solar water heaters, 20, 59Spot metering, 21–22Steam traps, 75, 94Stoves, 79Subway franchise, 10

Sud Associates, 76Sulfur dioxide (SO

2), 23–24

Sunlight simulation, 35

Supplier loans, 6

TT-8 lamps, 35, 40, 42–43, 47Task lighting, 34Tax implications, 6Temperature settings, 63, 71–75

Tenants, 19–20Thermostats, 8, 20, 22, 49, 57–58,

71–75, 93Thermostat setback, 71–74Time investment, 3Timers, 22, 49, 57Toilets, 20, 60Total recycled content, of paper, 55Tubular fluorescent lamps, 35–36,

39, 41

UUtility bill analysis, 21, 49

Utility loans, 6

VVariable-air-volume (VAV) system, 76, 95Variable-speed drives (VSDs), 77, 95Venetian blinds, 67Ventilating. See Heating, ventilating, and

air-conditioning (HVAC) systemsVentilation, 13–14, 68Vestibules, 69

WWallboard coverings, 69Walls, 67–69Washing machines, 60Waste heat recovery, 58, 95. See also

Heat recoveryWaste water, reusing, 60–61Water-cooled centrifugal chillers, 76Water heaters, 8, 10, 57–61, 64Water-side systems, 76Water temperature, 57–58Water use, 8, 59–61Web sites, iv, v, 3, 5, 6, 8, 9, 15, 20, 24,

51, 59, 61Whole-building energy optimization and

management systems, 73–74Window films, 31–32, 66–67

Windows, 31–32, 65–68

XXeriscaping, 60, 95



Energy-Efficiency QuicklistThis guide recommends a lot of different energy upgrades. Where should you start? First walkthrough your business with this Quicklist in hand and use it to identify money-saving opportu-nities. Then post the Quicklist on your wall and check off items as you perform upgrades tokeep track of your progress.

LightingReplace incandescent light bulbs with compact fluorescent lamps.

Convert exterior lighting to high-pressure sodium or metal halide lighting.

Upgrade fluorescent fixtures with T-8 fluorescent lamps and electronic ballasts.

Remove or disconnect unnecessary lights.

Convert exit signs to LED.

Lower light levels where appropriate, such as around computer monitors.

Install occupancy sensors in areas such as bathrooms that are frequently unoccupied.

Install timers or photocells on outside lights.

Water Use and Water HeatingInstall a water heater insulating blanket and wrap the first three to six feet of hot water supplypipe with pipe insulation.

Install faucet aerators and efficient showerheads.

Select native or other low-water plants for landscaping.

Find and fix leaks.

RefrigerationRepair doors and seals so they close tightly.

Make sure fans and equipment are not obstructed.

Combine refrigerated goods and disconnect unneeded refrigerators.

BuildingInstall weather stripping, caulking, or seals on openings that create drafts.

Add or repair insulation to create a continuous blanket around building.

Heating and Cooling SystemsClean and replace filters regularly.

Set back your heating, ventilating, and air-conditioning (HVAC) systems when thebuilding is unoccupied. This includes setting the fans to “auto” rather than “on.”

Repair leaks in system components such as pipes, steam traps, and couplings.

Make sure radiators, convectors, air intakes, and air diffusers are not obstructed sothat air can flow freely.

Reduce your water heater settings to the minimum required temperature.

Yes NoHeating

High-Efficiency Gas Furnace ___ ___Pulse Combustion Boiler ___ ___High-Efficiency Heat Pump ___ ___Insulated Pipes/Ducts ___ ___Ducts All Inside Building ___ ___ EnvelopeElectronic Ignition ___ ___ (No Pilot Light)

Cooling

Newer High-Efficiency ___ ___ Cooling UnitsEconomizers/“Free Cooling” ___ ___Coils Clean and Free of ___ ___ Moisture

Other

Locker Room ___ ___Access to Bike Path ___ ___Subway or Bus Nearby ___ ___Xeriscaping ___ ___Lease That Rewards Efficiency___ ___

Notes

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ENERGY STAR for Small Business Building Shopping List

Yes NoLighting

General T-8 Fluorescent Lamps ___ ___Compact Fluorescent Lamps ___ ___Occupancy Sensors ___ ___LED Exit Signs ___ ___Low-Glare Daylight ___ ___

Warehouse High-Pressure Sodium (HPS) ___ ___ or Metal Halide (MH) Lighting

Retail Halogen ___ ___Office Light Level Below 75 Foot- ___ ___

candlesDeep-Cell Parabolic Fixtures ___ ___

Exterior HPS or MH ___ ___Photocells or Timers ___ ___

Hot Water

Insulated Pipes ___ ___Water Heater Insulating ___ ___ BlanketFaucet Aerators ___ ___Efficient Showerheads ___ ___Solar Hot Water ___ ___

Building

Low-E Windows ___ ___Awnings To Block ___ ___ Summer SunWindow Film ___ ___Roof Insulation ___ inchesWall Insulation ___ inchesTight-Closing Doors/ ___ ___ WindowsReflective Roof ___ ___Operable Windows ___ ___

Heating and Cooling Distribution

Energy Management System ___ ___Programmable ___ ___ ThermostatsVariable-Speed Drives ___ ___Energy-Efficient Motors ___ ___

Buying or leasing a building with these preferred technologies can lower your operating costs and maygive you a competitive advantage. Use this list when walking through a prospective building to see ifthe building will help or hurt your profit. Call 1-888-STAR YES if you have any questions.

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