Subsidize Your Investment in Building Efficiencies
Spending money on improving the energy efficiency in your building should be considered an investment - not a cost. A positive ROI can be realized in as little as 2 years by reducing energy use in HVAC, lighting and other energy-consuming operations. And, in many cases, this investment can be subsidized with grants, rebates, and financing programs from utilities and government agencies, making the payback even shorter.
Reduce Costs: About 17 percent of electricity usage in commercial buildings goes toward lighting. When traditional lighting (incandescent, fluorescent) is replaced with LED lighting these costs are typically reduced by 70%. In addition, LED lights have a much longer lifespan and can eliminate the need for ballast replacement, so over time, you save money on replacement and maintenance costs.
Anywhere from 40% - 50% of energy use in a commercial building is used for HVAC. By installing newer and/or smart technology, end-users are realizing up to a 30% savings on energy costs.
Incentives: A rich variety of grants, rebates, and financing programs are available in Minnesota. The great news is that these programs can offset the initial investment, making the payoff shorter and ROI higher!
A state program pays up to $3000 to companies that install LED lighting or conduct other documented energy efficiency projects, with prior approval.
Utility companies are currently offering bonus rebates for lighting In addition to their normal rebate programs for LED lighting, pumps, HVAC equipment and controls, motors and drives, refrigeration, compressed air, and other qualifying energy efficiency projects.
The team at Minify Energy are experts in assessing the energy-saving opportunities for your building and help coordinate and manage the multiple sources to help fund your project.
Check out this recently scoped LED Lighting Project example:
This project for LED Lighting Upgrades in the Green Zone of North Minneapolis included new 10-year lifespan fixtures in production/warehouses and ballast-free bulb replacement in offices, boosting lighting brightness 30%+ and color rendering index (CRI) by 20+ for better production floor productivity and quality assurance. Minify Energy leverages utility bonus rebates (available up to 11/15/22) as well as regional grants, reducing the project cost by 62%, and the 61% drop in lighting energy use proves 1.4-year simple payback and delivers 7.35x ROI in 10-years of cumulative energy savings.
Citations: 1. Constellation Energy, https://www.constellation.com/solutions/for-your-small-business/small-business-resources/commercial-real-estate.html