Green Guru Network

Bonnie Hagen

More and more industrial, commercial, and institutional facility owners and managers are embarking upon energy efficiency projects for their buildings as they start to realize that going “green” saves “green” (money) if done right. Such programs often pay back the initial upfront costs of upgrades at rates better than spare capital can make in investments. However, in these tough economic times the upfront costs for these types of projects may be a major barrier to implementing them. The incorporation of financial incentives can make energy efficiency investments more alluring to facility managers and owners, particularly by lowering inhibitive upfront costs.

Throughout the US, there are many financial incentive programs available to help offset the capital expenses for various types of energy efficiency projects. They often cover measures such as installing energy-efficient lights, heating and cooling systems, motors, controls, building management systems, renewable energy systems, and, sometimes, custom improvements. Since approximately three quarters of commercial buildings in the US are more than twenty years old, their owners and managers are in need of these critical upgrades yet dependent on such programs to bring such retrofits into fruition.

Some financial incentive programs are offered by the federal government, state governments and local municipalities, while others are available through non-profit organizations, economic development groups or utilities. Incentives offered are generally in the form of grants, rebates, loans, tax deductions and tax credits. Details of the programs vary widely, but the incentives can be worth 50% or more of a project’s upfront cost.

Besides the heightened awareness of energy efficiency’s financial payback amongst facility owners and managers, there are also additional, indirect, but real benefits, such as increased property values and positive publicity, leading to a rise in facility owners and managers depending on energy management to drive operational efficiency – especially as they are addressing aging and inefficient buildings.

New incentive programs come out all the time. Existing programs close, get extended, or modified in some way. Some programs are short-term and have a specific deadline, while others are ongoing. Keeping track of the programs and their details requires a lot of time and persistence. Applying and securing the incentives can be a lengthy, time-consuming, and frustrating process, often laden with bureaucracy and red-tape. It is prudent for facilities to learn the requirements of the incentive programs before embarking on the projects to help drive the details of project implementation. Too often, facility managers and owners apply for the incentive after the project is done, only to be rejected because a minor detail was not incorporated into the retrofit. To ensure their facility receives the maximum financial benefit for their energy efficiency improvements, smart facility managers and owners outsource this important function in the project design phase to an experienced company specializing in securing funds for energy efficiency projects. While the company will pay a fee or percent of the financial gain to the specialty company, it is still beneficial as the company is ensured of the best efforts to achieve maximum financial gain.

Bright Energy Services, a division of All HVAC Service Company, Inc. is an award-winning environmental consulting firm, spanning a wide range of disciplines providing commercial, industrial, and institutional buildings with energy and environmental improvements as well as securing maxi