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ENERGY EFFICIENT LIGHTING: LARGE COMMERCIAL EXISTING BUILDING RETROFIT OPTIONS Frank J Agraz Jr, LC, IES

ENERGY EFFICIENT LIGHTING: LARGE COMMERCIAL

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ENERGY EFFICIENT LIGHTING: LARGE COMMERCIAL

EXISTING BUILDING RETROFIT OPTIONS Frank J Agraz Jr, LC, IES

LIGHTING RETROFIT: COMMERCIAL| 2

LIGHTING RETROFIT : THE BIG PICTURE

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CHAPTER I

START WITH WHY

•  How do we think, act, and communicate our ideas? •  Video (1:36 to 4:47)

LIGHTING RETROFIT: COMMERCIAL| 4

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!"()$Simon Sinek - Start With Why

ILLUMINATING ENGINEERING SOCIETY

•  What the IES believes...

LIGHTING RETROFIT: COMMERCIAL| 5

HIDDEN COSTS OF THE STATUS QUO

•  Why Change?

•  Make a difference.

•  I believe...

LIGHTING RETROFIT: COMMERCIAL| 6

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WHY DO PEOPLE BUY?

•  The Enron story, circa 2000

LIGHTING RETROFIT: COMMERCIAL| 7

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CHAPTER II

PROJECT DRIVERS

LIGHTING RETROFIT: COMMERCIAL| 9

SIMPLE PAYBACK: WHAT’S MORE IMPORTANT?

•  A $20,000 investment yields an additional $100,000 over the next 10 Years, assuming NO inflation of electric rates

•  $20,000 provides 50% interest for 10 years... LIGHTING RETROFIT: COMMERCIAL| 10

Solution #1 Solution #2

Project Cost $100,000 $120,000

Annual Savings $50,000 $60,000

Simple Payback 2.0 Years 2.0 Years

10-Year Savings $500,000 $600,000

LIGHTING RETROFIT: COMMERCIAL| 11

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CHAPTER III

LIGHTING INCENTIVES: NATIONAL

•  Utility, State, and Municipal

–  Standard/Prescriptive ($ per Unit)

–  Custom ($ per kW/kWh reduced)

•  Annual Budget

–  1st Come - 1st Serve

•  Technology/Application Specific

–  LED Exterior

–  Office/Warehouse (Title 24 )

LIGHTING RETROFIT: COMMERCIAL| 12

LIGHTING INCENTIVES: LOCAL

LIGHTING RETROFIT: COMMERCIAL| 13

•  Standard measures:

–  $3-7 per lamp T12 to T8 replacement

–  $30 occupancy sensors

–  $10 per lamp for LEDs

•  Custom measures:

–  Increased custom electric incentives – $0.06/kWh for lighting

INCENTIVES: INCOME TAX RELIEF

•  EPACT 2005: Federal Tax Deduction

–  Up to $0.60 / Sq. Ft. incentive to tax-paying building owner

to reduce energy consumption

–  Criteria based on LPD, bi-level switching, IES light levels,

controls

–  expires December 31, 2013

LIGHTING RETROFIT: COMMERCIAL| 14

INCENTIVES: INCOME TAX RELIEF

LIGHTING RETROFIT: COMMERCIAL| 15

LIGHTING RETROFIT: COMMERCIAL| 16

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CHAPTER IV

LIGHTING RETROFIT: COMMERCIAL| 17

ANATOMY OF A LIGHTING RETROFIT

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PLAYERS: RETROFIT SOLUTIONS

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CHAPTER V

LIGHTING RETROFIT: COMMERCIAL| 20

PAYMENT OPTIONS

Method Pro’s Con’s Comments

Cash no interestrequires immediate

capital fundsusually a budget item

3rd Party Lease no money downAcct. Dept. may label as capital

lease

provides positive cash flow; lease term longer

than payback period

Performance Contract no money down10-20 year

commitment; too expensive

financial vehicle of choice by ESCO’s

Shared Savings no money downextensive M&V required, too

expensive

takes advantage of uneducated client

Blend into Electric Bill no money downmust renew electric

contract

no capital request or approvals needed; can include other ECM’s

LIGHTING RETROFIT: COMMERCIAL| 21

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CHAPTER VI

RETROFIT TRENDS: TECHNOLOGY

•  Wireless Controls –  EnOcean vs Zigbee vs. Wi-Fi

–  Annual fees, still maturing

•  Linear Fluorescent –  Lamps: Energy-Saving, long-life, amalgam

–  Ballasts: HE, 480 volt, ILO

–  rare-earth phosphor shortage

•  LED –  Improved: manufacturer claims, LPW, luminaires

•  Induction –  Niche audience, LLD problem

LIGHTING RETROFIT: COMMERCIAL| 22

RETROFIT TRENDS: TECHNOLOGY

•  Pulse-Start Metal Halide & Electronic Ballast kits

–  improved LLD, longer life

•  Ceramic Metal Halide kits –  great CRI, improved LLD, small footprint

•  Plasma –  still chasing LED

•  Compact Fluorescent –  sell your stock now...

LIGHTING RETROFIT: COMMERCIAL| 23

RETROFIT TRENDS: APPLICATIONS

•  Parking Garages –  EPACT, daylight & occupancy control

opportunities

•  Exterior –  poles, building-mount, canopy

•  Hospitals –  24/7 hours, 1st generation T8, well-being of

patient

•  Refrigerated Warehouse –  perfect for LED!

•  Auto Dealerships –  see exterior above

LIGHTING RETROFIT: COMMERCIAL| 24

LAMP WARRANTY: T8 & T5/HO

LIGHTING RETROFIT: COMMERCIAL| 25

LAMPS: AVERAGE RATED LIFE

LIGHTING RETROFIT: INDUSTRIAL| 26

T8 Long-Life LLD= 0.96 @ 24,800 hours

T5/HO Long-Life LLD= 0.93 @ 24,000 hours

LAMPS: RATED LIFE & LAMP LUMEN DEPRECIATION

LIGHTING RETROFIT: COMMERCIAL| 27

Induction LLD= 0.74 @ 40,000 hours

Ceramic MH LLD= 0.89 @ 12,000 hours

Probe-Start MH LLD= 0.65 @ 8,000 hours (400w) @ 4,000 hours (<= 250w)

LIGHTING RETROFIT: COMMERCIAL| 28

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CHAPTER VII

LAMP LIFE VS START CYCLES: T8

LIGHTING RETROFIT: COMMERCIAL| 29

T8 LUMEN OUTPUT: TEMPERATURE

LIGHTING RETROFIT: COMMERCIAL| 30

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LIGHTING RETROFIT COMPARISON RECESSED TROFFER

LIGHTING RETROFIT: COMMERCIAL| 31

SIMPLE PAYBACK ANALYSIS: RECESSED TROFFER

LIGHTING RETROFIT: COMMERCIAL| 32

4-lamp RLRB 2-lamp REFL2-lamp REFL

Wireless

Installed Cost $6,142 $6,750 $22,140

Utility Rebate $2,000 $1,000 $4,000

EPACT Tax Deduction

(Effective Credit)

$0 $0 $2,520

Annual Energy Savings

$1,800 $2,880 $3,673

Maintenance Savings

$210 $210 $210

Simple Payback, in Years

2.06 1.86 4.02

Design Strategy

Relamp-Reballast 1-for-1

Delamp-Reflector 1-for-1

Delamp-Reflector; Wireless Control

Existing LuminaireExisting Luminaire

4-lamp 34w F40T124-lamp 34w F40T12

Watts 144

AssumptionsAssumptions

Project Size

100 Luminaires

$ per KwH $0.10

Existing Hours

3,000

Labor Ladder

LocationAmeren territory

10-YEAR COST OF OWNERSHIP: RECESSED TROFFER

LIGHTING RETROFIT: COMMERCIAL| 33

4-lamp RLRB 2-lamp REFL2-lamp REFL

Wireless

10-Year Ownership: Initial Cost + Energy + Group Relamp $29,342 $20,150 $22,090

Average Rated Life: Lamp (in Hours)

40,000 40,000 40,000

Group Relamp Cycle: (in Years)

10.6 10.6 10.6

Average Rated Life: Ballast17,000

switching cycles17,000

switching cycles100,000+

switching cycles

Warranty: Lamp/Ballast(in Years)

3/5 3/5 3/5

Net Investment $4,142 $5,750 $15,620

Energy $25,200 $14,400 $6,470

Relamp $0 $0 $0

$29,342 $20,150 $22,090

LIGHTING RETROFIT COMPARISON PARKING GARAGE

LIGHTING RETROFIT: COMMERCIAL| 34

SIMPLE PAYBACK ANALYSIS: PARKING GARAGE

LIGHTING RETROFIT: COMMERCIAL| 35

AssumptionsAssumptions

Project Size

1 Proposed Luminaire

$ per KwH $0.08

Existing Hours

8,760

Labor Ladder

LocationHouston,

TX

2-lamp T5HO

LEDCeramic Metal

HalideInduction

Installed Cost: One Luminaire

$297 $1,001 $388 $613

Utility Rebate $48 $334 $26 $52

EPACT Tax Deduction

(Effective Credit)

$189 $375 $189 $189

Annual Energy Savings

$72 $268 $59 $77

Maintenance Savings

$20 $20 $20 $20

Simple Payback, in Years

0.65 1.00 (see rebate rules)

2.92 3.83

Design Strategy

New Fixture; 1-for-1;

no dimming

2:1 ratio; dim to 20% FC, 80% of

time

Retrofit Kit; 1-for-1;

no dimming

New Fixture; 1-for-1;

no dimming

Existing LuminaireExisting Luminaire

175 watt MH175 watt MH

Watts 210

10-YEAR COST OF OWNERSHIP: PARKING GARAGE

LIGHTING RETROFIT: COMMERCIAL| 36

2-lamp T5HO LED InductionCeramic Metal

Halide

10-Year Ownership: Initial Cost + Energy + HVAC + Group Relamp

$1,107 $1,266 $1,464 $1,722

Average Rated Life: Lamp (in Hours)

40,000 (60,000)

100,000+ 100,000 30,000

Group Relamp Cycle: (in Years)

3.6 11 + 9.1 2.7

Average Rated Life: Ballast

100,000 switching cycles

60,000 hours?

100,000 hours

60,000 hours

Warranty: Lamp/Ballast(in Years)

3/5 7/7 1/3 2/5

Welcome to the World of a Lighting Retrofit Auditor...

LIGHTING RETROFIT: COMMERCIAL| 37

TOO MUCH LIGHT?

LIGHTING RETROFIT: COMMERCIAL| 38

NON-CONVENTIONAL SOLUTIONS

LIGHTING RETROFIT: COMMERCIAL| 39

I BELIEVE IN CHANGING THE STATUS QUO

LIGHTING RETROFIT: COMMERCIAL| 40

THANK YOU FOR YOUR TIME! QUESTIONS?

ENERGY EFFICIENT LIGHTING: LARGE COMMERCIAL

Frank J Agraz Jr, LC, IES

REFERENCES

•  Simon Sinek- Start With Why www.startwithwhy.com

•  Illuminating Engineering Society www.ies.org

•  Ameren Illinois: ActOnEnergy® www.actonenergy.com

•  DSIRE website www.dsireusa.org

•  EPACT website www.lightingtaxdeduction.org

•  Osram Sylvania www.sylvania.com

•  Philips Lighting www.usa.lighting.philips.com

•  GE Lighting www.gelighting.com/na/

LIGHTING RETROFIT: COMMERCIAL| 42

ABOUT THE PRESENTER

Maneri~Agraz, LLC

Houston, TX 832-358-3900

[email protected] www.maneriagraz.com

LIGHTING RETROFIT: COMMERCIAL| 43

Frank Agraz is a principal owner at Maneri~Agraz, LLC, a national turn-key lighting retrofit solutions provider. He has 19 years experience in the energy-efficient lighting industry and has worked in several segments of the business including manufacturing, ESCO, maintenance, and turn-key retrofit installations.

He is the District 4 Vice Chair of the Illuminating Engineering Society and is Lighting Certified by the NCQLP.

Mr. Agraz graduated from Texas A&M University and received his Bachelors of Science in Industrial Distribution.