send in a question of your own
1. Paying for upgrades in a seasonal business.
2. Making energy efficiency happen on a limited budget.
3. Figuring out an effective solution to high electric bills.
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1: I'd like to lower energy costs at my business, but I have a restaurant/bar close to a ski resort, so cash flow is seasonal. Because of this, large investments are major challenges. Do you know of businesses faced with this problem that have found a way to pay for energy-efficiency upgrades?
-AC, Killington
A:
Paul:
Definitely. Many Vermont businesses, seasonal or not, are using financing for energy-saving upgrades. Financing can make it not only possible but also profitable to invest in energy efficiency. In some cases, this approach can result in positive net cash flow from day one - leaving you with more cash in-hand than before, and a quick return on your investment.
Dan:
Paul's got a good point. And financing allows you to pay for the project with energy savings, without having to make a large up-front capital investment.
Paul:
A great option for a business with a seasonal cash flow is financing with a seasonal leasing plan. These days, you can lease all kinds of equipment and systems, such as lights, boilers, insulation, and much more. Here's how it works: You let the leasing company know which months you prefer to make payments and which months you prefer to make a reduced payment or no payment at all. The leasing company then will tailor the lease to fit your needs. For example, you may not want to make lease payments during the summer months when customers aren't lining up to get into your restaurant/bar.
Dan:
As far as efficiency opportunities go, one of the most cost-effective investments you can make is to install energy-efficient lighting, such as High-Performance T8s, compact fluorescent lights, or track lighting that uses halogen infrared or metal halide technology.
Paul:
Efficiency Vermont offers rebates on qualifying, cost-effective, energy-saving lighting and equipment purchases. To find out about eligibility requirements for rebates, customized financing, or leasing options, visit the business rebate center or give us a call, toll-free, at 888-921-5990.
JNH - Middlebury, VT
A:
Paul: This is a pretty common question among small business owners. Fortunately, there are a number of financial incentives that can ease the initial costs of investing in energy-efficient equipment. Regardless of the type of business you own - from a farm to an auto repair center to a woodworking shop to a retail store - there are likely common, simple and low-cost upgrades you can implement yourself. Lighting, heating and cooling improvements are usually the easiest places to start because the upfront costs are typically minimal, and you'll see immediate and long-term energy savings.
Dan: Whether you're looking to upgrade what you currently have, install new equipment, retrofit your existing space or build a new facility, there are financial incentives available. Depending on the project, you can receive anywhere from $15 for each lighting fixture you install to well over $1,000 for selected heating, cooling and electrical equipment, including air economizers and transformers.
Paul: For larger projects, depending on the projected electrical savings and cost of the project, Efficiency Vermont can work with you to establish a plan for implementing the energy efficiency measures and develop a customized financial incentive package specific to your needs.
Dan: A great example is a convenience store we recently worked with in Grand Isle County. The business owner had a limited cash flow and was hesitant to invest in energy efficiency. We met with him, assessed his needs and mapped out a plan to conduct the upgrades in phases. First, we outfitted the store with highly efficient lighting, and a few months later we helped him revamp his refrigeration system. In each phase of the process the business owner received financial incentives, which made the project very affordable. On top of that, the long-term savings he's going to see on his electric bill are projected at $7,000 a year!
Paul: Business owners may also be eligible for tax incentives on certain energy-efficient upgrades completed between January 2006 and December 2008 through the federal Energy Policy Act (EPAct). These tax deductions are available to owners of private commercial buildings and designers of public commercial buildings that meet certain criteria. More details are available at www.energytaxincentives.org.
Dan: I'd also recommend visiting the Efficiency Vermont Rebate Center to see what financial incentives are available for your business.
3. I recently returned to Vermont to take over the bed-and-breakfast that my mother ran for years before retiring. When I opened the first electric bill, I could hardly believe how high it was. I don't want to arbitrarily replace old appliances if they're not the problem. How do I figure out an effective solution?
- HH, Washington County, VT
A:
Dan: High-bill causes and solutions can vary greatly from building to building. In a B&B, it makes sense to manage the energy impact of the many plugged-in items (lights, TVs, window air conditioners, appliances, etc.) in guest rooms, common areas, and kitchens. A good approach is to first identify the biggest electricity users. With that information, you can then determine ways to lower your energy use while continuing to deliver the level of service that your guests expect.
Paul: There's a simple way to start, with a meter that you can borrow, at no cost, from Efficiency Vermont. Just plug equipment into the meter and plug the meter into a standard wall outlet. Then, call Efficiency Vermont with your results and one of our customer-service reps will help you determine the best energy-saving actions to take. While you're on the phone, ask about rebates available for the purchase of energy-efficient equipment.
Dan: B&Bs also might have electrical equipment, like hot tubs or water pumps, that dont use a standard wall outlet and, so, aren't designed to be used with the meter we've discussed. Yet, they can be typical culprits in high bills. I suggest that you speak with your suppliers or contractors about how best to maintain and operate such equipment for optimal efficiency. These steps may both reduce energy costs and extend the life of the equipment. Also, if you have an electric water heater, stove, heating system, or clothes dryer, it's worth asking your equipment supplier if a switch to non-electrically-powered models would be a cost-effective investment.
Paul: Even before your borrowed meter arrives, there are actions you can take to start lowering your electric costs. For example, use compact fluorescent light bulbs (CFLs) in place of incandescents and you'll save as much as 75% on the lighting part of your electric bills. You'll save even more by installing occupancy sensors that automatically turn off lights in empty rooms. If you strive to maintain a certain historic ambience in your B&B, you may be glad to know that CFLs come in a variety of styles and sizes that can inconspicuously fit in a range of fixtures.
Dan: You also can reduce energy costs by simply turning off coffee makers, computers, copiers, and other office equipment overnight. If you have a lounge with a TV and home-entertainment electronics, like game consoles, you've got equipment that uses power even when off. The amount of electricity that these products use, around the clock, can really add up. To stop this constant drain on your budget, you can plug all those devices into a power strip that your guests can switch off when they're through enjoying the equipment. Better yet, get an advanced power strip that automatically cuts power to any idle equipment you like.
Paul: To borrow a meter, either fill out a simple online form or call Efficiency Vermont, toll-free, at 888-921-5990. Good luck getting to the bottom of the causes of your high bills and all the best taking over the family business.
