power your business for less with new information on fpl's
TRANSCRIPT
Power your business for less with new
information on FPL's programs and incentives
September 26, 2013
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Meet your panelists:
Kathy Schmitt,
Sr. Business Lighting
Program Manager, FPL
Mike Carter,
Sr. Engineer, CEM
Business Energy Service
Marilyn L. Arnall
National & Franchise
Account Manager, FPL
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• Qualifying for FPL programs and services
• FPL energy-efficiency programs and incentives
• Federal incentives
• Financing opportunities
• Getting started
Agenda
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An FPL Business Energy Evaluation (BEE) identifies energy conservation opportunities and recommends associated programs and services
Sample BEE Report
Savings Opportunities
A BEE is a no-cost performance assessment.
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BEEs are provided in person by an FPL energy expert or can be completed online
BEE Evaluation Types
Benefits
Online
Evaluation
In-Person
Evaluation
Energy expert visits your facility X
Establish business relation with energy expert X
Personalized energy report X
Energy comparison reports X X
Multiple location comparison reports X X
Energy saving suggestions X X
Mailed results X
Saves time X
Instant results X
Online access X
Instant printable reports X
Eligibility required * X
Call 1-800-375-2434 for a free in-person evaluation, or contact your Account Manager, if you have one.
* Small business customers on FPL’s general service non-demand rate can visit www.FPL.com/OBEE for an online evaluation.
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• Air Conditioning (HVAC)
• Building Envelope
• Water Heating
• Chillers
• Refrigeration
• Demand Controlled Ventilation (DCV)
• Energy Recovery Ventilation (ERV)
• Thermal Energy Storage (TES)
• Custom Incentive
• Lighting
Your BEE report may recommend FPL programs that are available to help pay for energy-efficient upgrades
FPL Energy-efficiency Programs and Incentives
Complete business program and incentive
guidelines are available at www.fpl.com/business
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• Air Conditioning (HVAC)
• Building Envelope
• Water Heating
• Chillers
• Refrigeration
• Demand Controlled Ventilation (DCV)
• Energy Recovery Ventilation (ERV)
• Thermal Energy Storage (TES)
• Custom Incentive
• Lighting
FPL Energy-efficiency Programs and Incentives
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A high-efficiency A/C unit reduces cooling costs, which can account for up to half of a Florida business’ energy costs
FPL HVAC Program
Qualification FPL Incentive
• Replacements
• Units installed during new construction
• Incentive is based on
$165/kW reduction above
Florida Energy-efficiency
code
• $.60 cents to $5 per MBTUH
* Note: Incentive starts at 7 percent (or more)
above current energy code requirements
for all systems
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Typical Annual Savings Versus EER and
Hours of Operation for DX Air Conditioners
Even if your air conditioner is only 10 years old, you may save as much as 25 percent on your cooling costs with a newer, more efficient unit
Annual hours of
operation
10 EER 11 EER 12 EER
1000 $ 240 $ 327 $ 400
1500 $ 360 $ 491 $ 600
2500 $ 600 $ 818 $ 1,000
3500 $ 840 $ 1,145 $ 1,400
4500 $ 1,080 $ 1,473 $ 1,800
5500 $ 1,320 $ 1,800 $ 2,200
6500 $ 1,560 $ 2,127 $ 2,600
7500 $ 1,800 $ 2,455 $ 3,000
8500 $ 2,040 $ 2,782 $ 3,400
*Based on an existing 10-ton unit with an EER of 8 and an electric rate of $0.08$/kwh.
Upgrading a 10-ton unit from an 8 EER to 12 EER system
would produce an annual savings of $1,400 in Miami.
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• Air Conditioning (HVAC)
• Building Envelope
• Water Heating
• Chillers
• Refrigeration
• Demand Controlled Ventilation (DCV)
• Energy Recovery Ventilation (ERV)
• Thermal Energy Storage (TES)
• Custom Incentive
• Lighting
FPL Energy-efficiency Programs and Incentives
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FPL’s Building Envelope program offers incentives on qualifying window treatments, roof insulation and reflective measures, and ceiling insulation
FPL Building Envelope Incentive
FPL Incentives
• Must be installed by a participating independent contractor
- Example: 5,000 square foot roof earns $2,250 FPL rebate for reflective roof measure
• Insulation rebates of $.05 per square foot on roof and $.10 to $.15 per square foot on ceiling
• Reflective roof rebate of $.45 per square foot
• Window treatment rebate of $.50 to $2.00 per square foot based on shading coefficient
Building Envelope improvements help reduce the load on you’re
A/C system and lower your cooling bills
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• Install spray polyurethane (SPUF) to protect your roof from:
– Energy loss
– Water leaks
– Physical damage
• Install a light-colored metal roof, a rubber-like (thermoplastic) reflective membrane or coating on your existing roof to:
– Reduce cooling costs by as much as 15 percent
– Prevent leaks
– Extend roof life
– Downsize your air-conditioning system, if you choose
Your roof is one part of the Building Envelope that can help your business save on air conditioning costs
Energy-Saving Roofing Options
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Get the same reliable supply of hot water for up to half the cost with a Heat Pump Water Heater (HPWH) or a Heat Recovery Unit (HRU)
FPL Water Heating Incentive
FPL Incentive
• Up to $500 per kW reduced for Heat Recovery Units and Heat Pump Water Heaters
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High-efficiency chillers keep energy costs as low as possible while maintaining a comfortable temperature
FPL Chiller Incentive
FPL Incentive
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With anti-sweat heater controls and equipment, building owners save energy and money
FPL Refrigeration Incentive
Qualification FPL Incentive
Install one or more of these technologies:
• Electric strip heaters around display case doors using automatic controls
• With humidistats to turn off heaters when not needed, or
• With controls that stagger defrost cycles
• Special glass doors for reach-in display cases
• Requires minimum or no anti-sweat heat
• Freezer doors that incorporate hot gas reclaim
• Reduces or eliminates the need for electric strip heaters normally used for defrost control
•Up to $75 per kilowatt (kW) reduction for the installation of qualifying controls and equipment that reduce electric strip heater usage in refrigeration equipment
•The incentive amount is based on the manufacturer documentation indicating potential kW reduction
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Demand control ventilation (DCV) is a more efficient and affordable way to meet fresh air requirements and lower energy costs
FPL (DCV) Incentive
Qualification FPL Incentive
•Must reduce outside air flow
at low occupancy
•Must be based on real-time
sensor readings
Rebate on DCV systems based on:
•Building type
•Number of sensors required
•Square footage of air conditioned space
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FPL offers incentives for installing a qualifying Energy Recovery Ventilation (ERV) unit installed on new or existing HVAC systems
FPL ERV Incentive
Qualification FPL Incentive
•Must be an enthalpy wheel or
plate type ERV system.
•Must control humidity using
either desiccant or moisture
transfer membranes
Rebate on qualifying ERV units:•Replacements
•Units installed during new construction
•Based on size and efficiency of the ERV unit as well as the heating type for the HVAC system
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Thermal Energy Storage (TES) reduces peak energy use by producing and storing cold water or ice at night, when power is less expensive, and using it to cool your building efficiently during the day
FPL TES Incentive
FPL Incentive
• $2,500 toward a feasibility study by a professional engineer you select
- $464 per ton (chiller)
- $522 per ton (DX)
- $580 per ton (refrigeration)
• $16 to $20 per ton toward system initial commissioning
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FPL’s custom incentive program is designed for large projects
FPL Custom Incentives
Qualification FPL Incentive
• Customer submits a proposal to FPL with estimated savings potential and FPL evaluates the proposal
• Proposed application must remove a minimum of 25 kW from FPL’s summer peak demand
• Specific incentives for unique energy-saving applications
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• Air Conditioning (HVAC)
• Building Envelope
• Water Heating
• Chillers
• Refrigeration
• Demand Controlled Ventilation (DCV)
• Energy Recovery Ventilation (ERV)
• Thermal Energy Storage (TES)
• Custom Incentive
• Lighting
FPL Energy-efficiency Programs and Incentives
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Upgrading to a more efficient system decreases operating costs, results in better quality lighting and offers aesthetic improvements
FPL Lighting Incentive
FPL Incentive
• Rebates of up to $4 per lamp on technologies such as T8, High Performance T8, T5HO or pulse-start metal halide lamps
• Incentive will be an up-front discount on the cost of the job
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Lighting accounts for about 28 percent of a typical business’ energy consumption. Here’s an example of how simple upgrades can produce signification savings.
Sample Lighting Payback
• Installation rebate
– Four lamp, 34-watt T12 with energy-efficient magnetic ballast retrofitted to a 4 lamp T8 with electronic ballast
– 4 lamps x $0.65 per lamp = $2.60 incentive
– $8.00 incentive if using HPT8 lamps
• Long-term savings
– A 23,000 square foot athletic club in Sarasota replaced 131 fluorescent fixtures with T8 lamps and electronic ballasts
– Received a $294 FPL incentive
– Decreased energy consumption by 26 percent
– Resulted in $5,387 yearly savings!
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Federal lighting standards have increased minimum standards for manufacturers and importers. Less efficient bulbs and lighting systems are being phased out through 2014.
Obsolete Bulbs & Ballasts
2010 2011 2012 2013 2014
100w Inc. 75w Inc. 60/40w Inc.
Reflector Lamps;
T12 Lamps
T12 MagneticBallasts
T8 Ballast BLE
700 Series T8 LampsPS MH
Fixtures
2009
Mercury Vapor
Ballasts
2008
The Energy Conservation Program (ECP) 2009 Lamp Rule began July 14, 2012. Most 4-foot T12 and 8-foot (F96) T12 lamps were
effectively eliminated. There is a two-year reprieve for 700 series (first generation) T8 lamps.
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Simple, inexpensive lamp and ballast upgrades comply with new standards while generating significant savings immediately and over time
Fluorescent Lighting Savings Opportunities
Replace… With…
Realize Estimated
Annual Savings of…
Full-wattage F32T8 lamps 23W lamps 28 percent
Standard 54W T5HO
lamps
Reduced wattage lamps
49W lamps
51W lamps
Six to ten percent
Magnetic ballasts NEMA Premium Electronic
Ballasts
Five to seven percent
efficiency improvement
Standard fluorescent lamps can be hidden in your facility. Be sure to check: Suspended and recessed “troffer” fixtures, recessed “can” fixtures, wall sconces, suspended fixtures, lamps and task lighting,
illuminated exit signs and exterior and facade
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• Volumetric– Leviton ZiplineTM LED Platinum Series
2x4 models offer 5700 lumens at 60 watts
2x2 models offer 3400 lumens at 37 watts
• Strips– LED Living Technology
CLARIS LED Retrofit Kits
– 2090 lumens@22 w
– 4180 lumens@44 w
– 90 lpw with isotropicdiffuser
Light Emitting Diodes (LEDs) are getting a lot of attention. Good LED options exist to replace linear fluorescent bulbs
LED Retrofit Kits
Source: Leviton Lighting & Energy Solutions
Source: LED Living Technology
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Tubeless LED troffers now offer equivalent performance to linear fluorescent troffers
Purpose-built Linear LED Troffers
Source: Cree
Type Watts Lumens LPW CCT (K) CRI
T8 32 3,300 90 3,300 82
Cree CR Series 44 4,000 90 3,500 90
Cooper Corelite 51 4,300 85 3,500 85
LED 2X2 (Rd 13) 43 3,469 80 3,152 94
Source: CooperliliSource: Philips Ledalite
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Thin LED Light Guide products offer better vertical illumination than traditional troffers
LED Light Guide Products
• Light Guide Products
– GE Lumination™ LED Luminaires EL Series
Source: GE Lighting Solutions
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Although expensive, LED replacement bulbs offer equal light output with lower energy consumption and longer life
Omnidirectional LED Options
Brand Name Wattage Lumens LPW Life (Hrs)
LEDzworld Professional
LED Bulb CTA
6.5W 250 38 35,000
GE Energy Smart LED 9W 450 50 25,000
Philips AmbientLED 12.5W 800 64 25,000
Sylvania LED A-Line 12W 810 67 25,000
Switch 100 16W 1,700 100+ 20,000
Source: GE Lighting
Source: Switch Bulb Co.
Source: LEDzworld
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CALiPER tested 38 different directional LEDs and found them to be much better than halogen bulbs and competitive with CMH
LED PAR and AR Product Options
Type Watts Lumens LPW CRI
LED PAR30 12 732 59 86
LED PAR38 18 1,286 73 82
CMH PAR38 25 1,504 60 86
HIR PAR38 75 1,060 14 100
Source: Round 16 & 20, CALiPER
http://www1.eere.energy.gov/buildings/ssl/caliper.html
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Agency Policies and Programs
• Small Business Administration (SBA)
• American Recovery and Reinvestment Act of 2009
• Energy Improvement and Extension Act
• Energy Policy Act of 2005 Commercial Building
Tax Deduction
• ENERGY STAR®
• U.S. Department of Energy Building Technologies
Program
• FEMP Programs
• LEED Programs
• Renewable Energy Production Tax Credit
• Renewable Energy Technologies Investment Tax Credit
• Florida State Sales Tax Incentives
In addition to FPL programs and services, many federal, state and local organizations and policies exist to support your energy management efforts
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Types of SBA 7(a) Loans
• SBAExpress
– 50 percent SBA backed guaranty
– Average loan = $35,000
– Maximum loan = $350,000
– Streamlined application process for easy access
– Response to application given within 36 hours
• Other 7(a) loans
– Export loan programs
– 90% guaranty + no fee
– Maximum loan = $2.0 million
– Rural lender advantage program
– Special purpose loans program
• Eligible items
– Retrofit facilities
– New installations
– Energy efficient equipment
ENERGY STAR
Other
All of the SBA’s 7(a) bank loans can be used to fund energy efficient equipment and upgrades
Savings small businesses make from adopting energy
improvements also include federal energy tax savings
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SBA Certified Development Company (CDC)
504 Loan Program
• SBA CDC / 504 loans finance energy-efficient improvements
• Long-term financing tool for economic development within a community
– Job creation/retention requirement (1 job/$35,000 loaned)
– Can only be used for purchase of fixed assets
– Major portion of funds must be for real estate purchase
• Provides financing with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization
• Financing is provided by a Certified Development Company
– Non-profit corporation set up to contribute to the economic development of its community
The SBA’s CDC / 504 loan program is good for making significant capital improvements
•Eligible products
• Energy-efficient appliances
• Alternative fuel for vehicles
• Replacing transportation fleet with hybrid vehicles
• Purchase of improved-mileage vehicles
• Increased efficiency, HVAC, heat pumps, geothermal energy
• Energy-efficient doors, windows, skylights
• Increased insulation
• Wind and solar power
• Energy-efficient light bulbs
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SBA Energy Conservation Loan
Energy Conservation Loan
• For the following small businesses that work with energy devices or techniques to conserve energy:
– Design
– Engineer
– Manufacture
– Distribute
– Market
– Install
– Service
• Not designed for end users
Eligible devices or techniques
• Solar thermal equipment
• Photovoltaic cells and related equipment
• Products or services that increase the energy efficiency of existing equipment
The Energy Conservation Loan is designed for the entity who builds, installs or services qualified energy measures
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SBA Loan Programs
• Micro-Loan Program
– Small, short-term loans
– Average loan = $13,000
– Maximum loan = $35,000
– May be used for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment
– Obtained through intermediary lenders
Non-profit, community based lenders
Required to provide business training and technical assistance to borrowers
The SBA’s Micro-Loan Program is appropriate for small, quick projects
For more information on SBA programs available, please visit:
http://www.sba.gov/financialassistance
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Loan Eligibility
• Eligibility requirements
– For profit
– Meet SBA size standards (NAICS/SIC)
– Not engaged in lending, real estate development, investments or speculation
• Credit requirements
– Good character
– Management expertise
– Feasible business plan
– Adequate equity or investment
No 100% financing
– Sufficient collateral
– Ability to repay debt from earnings
• Collateral
– Personal guaranty of principals owning 20 percent or more
– Personal assets may be required
– Loans will not be declined solely for insufficient collateral, but loan will be secured to the maximum extent possible
• Ineligible use of proceeds
– Speculation
– Partial change of ownership
– Payment to principals of the business
– Delinquent payroll / sales taxes
Once a company has met SBA requirements, the loan qualification process is similar to the one used for bank loans
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• Through 2013
• Must save at least 50 percent of the energy cost of a building that meets ASHRAE Standard 90.1-2001
– Up to $1.80 per square foot
• Sum of any two qualifying partial systems
– Building envelope ($0.60/ft2)
– Heating, cooling, ventilation ($0.60/ft2)
– Interior lighting ($0.60/ft2)
Time is running out to take advantage of Federal incentives for building energy efficiency upgrades
Energy Policy Act of 2005 Commercial Building Tax
Deduction (§179D IRS Code)
Lighting HVAC Bldg. Envelope
16 2/3% 16 2/3% 16 2/3%
20% 20% 10%
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• Interim lighting rules
• Verification
– DOE software tools
– Prescriptive
– Trade-off
– Performance
• Certification requirements
– Qualified individual (impartial and licensed)
• Benefit available to tenants or designers
Verification and certification is required to receive the CBTD incentives
EPAct 2005 CBTD (§179D IRS Code)
Reduct Beyond 90.1 25% 30% 40% 50%
Eligible Deduction/ft2 $0.30 $0.40 $0.60 $0.60
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• Executive Order 13514
– Federal leadership in environmental, energy and economic performance
Reduce direct greenhouse gas emissions by 28 percent by 2020
– OMB scorecards
– Strategic sustainability performance plan
– New federal buildings designed in 2020 achieve zero net energy by 2030
• ASHRAE 90.1-2010 8.4.2 Receptacle Control
– At least 50 percent of receptacles for offices and classrooms
– Control by an automatic device (scheduled, sensor signal)
Legislation and updated green building codes are driving energy efficiency investment
Federal Incentives
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• 8 year extension (through 2016) of 30 percent investment tax credit (ITC)
– Commercial solar installations
Solar pool-heating systems are not eligible
– Small wind power (≤100 kW)
– Biogas digesters (≥150 kW)
– Geothermal heat pumps
• Can take ITC or production tax credit (PTC) but not both
– PTC applies to wind ($0.022/kWh produced) and digesters ($0.011/kWh) , but not solar
• Fuel cell tax credit limit is tripled to $1,500 for each 0.5 kW
• Creates a new 10 percent tax credit for certain combined heat and power systems
Federal incentives are also available for customer-owned generation such as renewable energy investments and CHP
Energy Improvement and Extension Act of 2008
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• Federal Modified Accelerated Cost Recovery System (MACRS) – Title 26, Section 168
– 5 year depreciation
– 50 percent first year bonus depreciation up to December 31, 2013
• Eligible for Renewable Energy Credits (RECs)
• Food Conservation and Energy Act of 2008 (Farm Bill)
– Mandatory funding for the Rural Energy for America Program (REAP) more than doubled from $115 million to $255 million
– Since 2003, USDA Rural Development has awarded more than $40 million for anaerobic digestion systems
REAP Section 9007 grants up to $500,000
Advanced Biofuel Payment Program (production only)
The Federal government also offers favorable depreciation terms and RECS for renewable energy investments
Federal Incentives
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State Incentives
• Local government grantees will be putting together energy efficiency and conservation strategies to determine:
– How to spend the money to increase energy savings
– How to reduce greenhouse gas emissions in their communities
• The state of Florida is also creating several new energy programs funded by ARRA that will help expand energy efficiency projects and renewable energy investments in the state
The state of Florida has and is creating many energy programs that may benefit your business
For more information, visit: http://myfloridaclimate.com
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Bank loans are the most common method of financing equipment purchases
Private Loans
Description
• Organization avoids expending cash on hand
• Goal is to negotiate terms where the payments are lower than the cash savings from the project
Considerations
• Equipment loans normally require a down payment of 20 – 25 percent
• Secured by a lien on the items purchased
• Lenders look at organization’s financial strength to determine if additional security is required
• Borrower’s ability to negotiate favorable terms depends on lender’s perception of risk
•...Makes sense when monthly energy savings are
enough to cover finance charges.
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Financing with bonds is common in the public sector
Bonds
Description
• Debt instruments sold by public and private-sector organizations to borrow money from capital markets
Considerations
• Complex agreements with a high transaction cost
• Issuing municipal bonds requires approval by legislative bodies and voter referenda
• Some state energy programs raise money with bonds to create pools of money for funding smaller projects sponsored by local governments and school districts
Public-sector organizations should check with the state government to determine if their projects are eligible.
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Leasing is a good alternative to purchasing by providing access to low-cost, and in some cases, tax-exempt funds
Leasing
Description
• A loan in which the lender retains legal title to the property being leased
• Different types of leases:
‒ Operating Lease
‒ Capital Lease
‒ Municipal Lease (tax exempt)
Considerations
• Available from commercial lenders
• Equipment manufacturers or their affiliates will often set up the lease and arrange for equipment purchase and delivery
• The financial accounting and tax rules for operating and capital leases differ significantly
• Ideally structured so that energy savings are enough to cover finance charges
• Lease periods range from 5 to 10 years
Leases are fairly quick to set up and administer compared to other forms of financing.
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• Schedule a Business Energy Evaluation
– Call 1-877-748-4BEE or contact your FPL account manager if you have one
• Visit www.fpl.com/business for complete business program and incentive guidelines
For more information on whether your company qualifies for FPL programs, services and incentives, schedule a BEE
How to Start Your Energy-Saving Plan