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What facilities will benefit the
most from an Energy-Efficient
Lighting Upgrade? |
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Most buildings that are 10 years or
older will have a significant
potential for cost and energy
savings, and the more hours of
lighting demand, the greater the
savings. This is due to the type of
Fluorescent and Incandescent
lighting that was installed in past
years. The new Fluorescent T-8 lamps
and electronic ballasts not only
save 30% - 40% on energy cost, but
they eliminate flicker, are quiet
and because the electronic ballasts
generate much less heat, they have a
much longer life expectancy and
reduce air-conditioning loads.
Incandescent fixtures can also now
be upgraded to compact fluorescent
fixtures that will offer the same
benefits of the T-8 lamps. |
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What type of savings can I
expect? |
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Most
customers will see a 30% to 40% reduction in their lighting
utility bill after a lighting
upgrade. The customer can achieve a
more accurate determination of the
results if a lighting survey is
performed in advance. The survey
process will involve analysis of
past utility bills combined with an
accurate light fixture count and
determination of the hours of
operation of the facility. Through
the use of specialized software, the
data collected will reveal the
amount of energy saved per year in
dollars, the payback period and
return on investment. |
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Can a Lighting Upgrade be
financed? |
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Most any
Energy-Efficient Lighting Upgrade
can be financed through a lease
purchase option. Lease companies
specialize in energy-efficient
financing projects from a few
thousand dollars to
multimillion-dollar projects. The
leases are structured to be paid for
out of the utility savings that are
generated by the new lighting
system. Once the lease term is
completed, the buy out is typically
one dollar for the ownership to be
transferred. These leases are
popular because they do not require
the company to use or tie up capital
funding. The greatest advantage is
the utility savings are the
company's to keep upon the
completion of the lease. |
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What if I
don't achieve the energy savings
that I was told I would? |
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Most Energy
Service Companies such as Atlantic
Energy Concepts will perform before
and after measurements at various
predetermined locations to ensure
that the energy savings will be
realized. Another option is to
request a Measurement and
Verification program to monitor the
performance of the lighting system
over a period of time. This could
range from a few months to several
years. The Energy Service Company
will usually charge an additional
fee for this service, as it requires
more time and resources. |
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Can I use
my own maintenance people to perform
the Lighting Upgrade? |
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Yes, but it shouldn't be your first
option. By trying to perform the
upgrade in-house, you miss out on
several key components to the
success of your project. Because
most companies like Atlantic Energy
Concepts buy material in large
volumes, your material cost would
most likely be higher. Another
consideration is who is going to
guarantee the energy savings or
warranty the installation? You also
lose out on the immediate energy
savings you would have received when
the project takes longer to
complete. It is also labor-intensive
work and in order to achieve the
desired results, it takes an
experienced installer. Lastly, the
Energy Service Company has the
design expertise to make sure the
optimum savings are being realized
and that light levels aren't
negatively affected. |
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What is
Performance Contracting? |
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This is an innovative method of
contracting that allows an owner to
purchase energy-efficient equipment
to upgrade their present facilities.
Performance Contracting allows for a
single procurement of services by an
Energy Services Company (ESCO) who
is accountable for the design,
procurement and installation of the
energy efficient products. With this
method, financing options are
available so you do not have to
worry about up-front money or
capital outlay. Within the industry
you will hear “Project paid for
through savings” which refers to a
Performance Contract. The ESCO
providing the services will
guarantee the energy savings of the
project. The most advantageous
aspect is once the project is
finished and paid for you will still
reap the benefits of the energy
savings in years to come. |
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What is Act-77? |
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This is the third generation of what
was originally Act-29. This
legislation was passed by the State
of Pennsylvania in September of
2004. Act-77 enables government
entities (counties, municipalities,
townships, boroughs, school
districts, etc.) to enter into a
Performance Contract agreement for a
term not exceeding fifteen years.
Act 77 regards the Performance
Contracting as a professional
service. This means the facilities
entering into this agreement do not
have to accept the lowest bidder for
the job, they can negotiate with the
company they feel the most
comfortable working with to provide
the energy-efficient upgrades. As
with Performance Contracting; once
the project is finished and paid for
you will still reap the benefits of
the energy savings in years to come. |
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How do I select the right Energy
Service Company (ESCO)? |
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Start first by contacting companies
that are geographically close to the
project. This ensures that they can
respond in timely fashion to your
various requests and service the
account in the future. You should
also check to see if they have
references similar in size and scope
to the project you are considering.
Check to see if they have any
endorsements or are an approved
energy service company by the U.S.
Department of Energy. |
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