Grow Your Bottom Line with Energy Efficiency Incentives

Commercial building owners and managers will spend an estimated $960 billion globally on upgrading infrastructure for greater energy efficiency between 2015 and 2023, according to the U.S. Green Building Council. And some of the best of these projects in the US – including Ecosystem clients — are benefitting from a great source of financial assistance.

The energy incentives for commercial building remodels, retrofits, and construction are numerous, so we’ve highlighted some of the big players in the tristate area. If you want to get some serious bang for your energy buck, investigate the following incentive programs:

• The Combined Heat and Power Program (CHP)*: New York State Energy Research and Development Authority (NYSERDA) offers incentives for the installation of grid-connected CHP systems for customers who pay the System Benefits Charge (SBC) on their electric bills. Commercial entities can submit applications to participate through December 2018.
• New York Sun Incentive Program*: Provides incentives for solar based on a megawatt block structure targeted to specific regions of the state.
• New Jersey’s Clean Energy Program: This program manages all the incentive programs in the state of New Jersey, including dollar per kWh type incentives for energy saved.
• Solar Renewable Energy Credit: In New Jersey, if you install a solar array, you can obtain a credit for every megawatt hour of power you produce, over a long period.

Just how much of a financial impact can energy incentives make?

A pretty big one, as it turns out.

Consider the following examples, all clients of Ecosystem:

• Adelphi University is benefiting from $2.5 million in incentives through NYSERDA’s CHP program for installation of its 1.99 MW combined heat and power plant (meaning it generates both electricity and heat), replacement of four inefficient hot water boilers, and upgrade of the ventilation system in its Science Building.
• Rockland Community College will receive about $1.1 million in rebates from Orange & Rockland Utilities for its upgrade to a CHP system, lighting upgrades, computer load management initiatives, and its integrated building energy management system. The college is also receiving another $80,000 from NYSERDA’s FlexTech program, which shares the cost of CHP analysis and energy savings studies – a great, cost-effective way to learn about your potential for energy savings.
• Brooklyn Hospital Center will receive more than $60,000 in incentives from Con-Edison for a new and more energy-efficient chiller system.
• Beth Israel Brooklyn received more than $620,000 in guaranteed incentives for its award-winning energy-efficiency projects, which included a CHP system as well as steam to hot water heating conversion.

Keep in mind, however, that New York’s incentive policies are constantly changing. For example, NYSERDA is backing out of energy-efficiency incentives to focus on technology-based incentives, which means the utility companies are assuming the energy-efficiency incentives role.

And don’t forget about federal tax credits. If you install CHP, you can get 10 percent of the cost credited back on your company’s tax return, and if you install a solar array, you can get 30 percent of the cost credited back.

Looking for a one-stop shop for information on energy incentives? Visit DSIRE – the Database of State Incentives for Renewables & Efficiency.

It’s best, however, to consult a design firm with experience in energy-efficiency projects to learn the level of incentives that is available. In fact, for many incentives programs, a qualified engineering firm must apply on your behalf. Ecosystem experts know how to design the scope of a project and compare different solutions with similar outcomes, even when incentive math complicates the decision. They can maximize eligible incentives and achieve long-term energy savings at the same time. And Ecosystem incentives experts can even obtain incentives for asset renewal projects.

In the loop about changes in incentives offerings, Ecosystems incentives specialists are able to identify the best values in a constantly changing market. As they follow the real-time changes in the incentive landscape, they may modify a project in the design phase to capitalize on the most up-to-date incentive programs. These busy experts work to the end to maximize your bottom line. In fact, in many cases Ecosystem exceeds incentive targets. For RCC, Ecosystem exceeded targeted incentives by 18 percent, and at Brooklyn Hospital by as much as 240 percent.

*Incentive amounts available are reducing every six months, so it’s best to get started on your project sooner rather than later.