Power your business for less with new

information on FPL's programs and incentives

September 26, 2013

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Meet your panelists:

Kathy Schmitt,

Sr. Business Lighting

Program Manager, FPL

Mike Carter,

Sr. Engineer, CEM

Business Energy Service

Marilyn L. Arnall

National & Franchise

Account Manager, FPL

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• Qualifying for FPL programs and services

• FPL energy-efficiency programs and incentives

• Federal incentives

• Financing opportunities

• Getting started

Agenda

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An FPL Business Energy Evaluation (BEE) identifies energy conservation opportunities and recommends associated programs and services

Sample BEE Report

Savings Opportunities

A BEE is a no-cost performance assessment.

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BEEs are provided in person by an FPL energy expert or can be completed online

BEE Evaluation Types

Benefits

Online

Evaluation

In-Person

Evaluation

Energy expert visits your facility X

Establish business relation with energy expert X

Personalized energy report X

Energy comparison reports X X

Multiple location comparison reports X X

Energy saving suggestions X X

Mailed results X

Saves time X

Instant results X

Online access X

Instant printable reports X

Eligibility required * X

Call 1-800-375-2434 for a free in-person evaluation, or contact your Account Manager, if you have one.

* Small business customers on FPL’s general service non-demand rate can visit www.FPL.com/OBEE for an online evaluation.

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• Air Conditioning (HVAC)

• Building Envelope

• Water Heating

• Chillers

• Refrigeration

• Demand Controlled Ventilation (DCV)

• Energy Recovery Ventilation (ERV)

• Thermal Energy Storage (TES)

• Custom Incentive

• Lighting

Your BEE report may recommend FPL programs that are available to help pay for energy-efficient upgrades

FPL Energy-efficiency Programs and Incentives

Complete business program and incentive

guidelines are available at www.fpl.com/business

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• Air Conditioning (HVAC)

• Building Envelope

• Water Heating

• Chillers

• Refrigeration

• Demand Controlled Ventilation (DCV)

• Energy Recovery Ventilation (ERV)

• Thermal Energy Storage (TES)

• Custom Incentive

• Lighting

FPL Energy-efficiency Programs and Incentives

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A high-efficiency A/C unit reduces cooling costs, which can account for up to half of a Florida business’ energy costs

FPL HVAC Program

Qualification FPL Incentive

• Replacements

• Units installed during new construction

• Incentive is based on

$165/kW reduction above

Florida Energy-efficiency

code

• $.60 cents to $5 per MBTUH

* Note: Incentive starts at 7 percent (or more)

above current energy code requirements

for all systems

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Typical Annual Savings Versus EER and

Hours of Operation for DX Air Conditioners

Even if your air conditioner is only 10 years old, you may save as much as 25 percent on your cooling costs with a newer, more efficient unit

Annual hours of

operation

10 EER 11 EER 12 EER

1000 $ 240 $ 327 $ 400

1500 $ 360 $ 491 $ 600

2500 $ 600 $ 818 $ 1,000

3500 $ 840 $ 1,145 $ 1,400

4500 $ 1,080 $ 1,473 $ 1,800

5500 $ 1,320 $ 1,800 $ 2,200

6500 $ 1,560 $ 2,127 $ 2,600

7500 $ 1,800 $ 2,455 $ 3,000

8500 $ 2,040 $ 2,782 $ 3,400

*Based on an existing 10-ton unit with an EER of 8 and an electric rate of $0.08$/kwh.

Upgrading a 10-ton unit from an 8 EER to 12 EER system

would produce an annual savings of $1,400 in Miami.

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• Air Conditioning (HVAC)

• Building Envelope

• Water Heating

• Chillers

• Refrigeration

• Demand Controlled Ventilation (DCV)

• Energy Recovery Ventilation (ERV)

• Thermal Energy Storage (TES)

• Custom Incentive

• Lighting

FPL Energy-efficiency Programs and Incentives

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FPL’s Building Envelope program offers incentives on qualifying window treatments, roof insulation and reflective measures, and ceiling insulation

FPL Building Envelope Incentive

FPL Incentives

• Must be installed by a participating independent contractor

- Example: 5,000 square foot roof earns $2,250 FPL rebate for reflective roof measure

• Insulation rebates of $.05 per square foot on roof and $.10 to $.15 per square foot on ceiling

• Reflective roof rebate of $.45 per square foot

• Window treatment rebate of $.50 to $2.00 per square foot based on shading coefficient

Building Envelope improvements help reduce the load on you’re

A/C system and lower your cooling bills

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• Install spray polyurethane (SPUF) to protect your roof from:

– Energy loss

– Water leaks

– Physical damage

• Install a light-colored metal roof, a rubber-like (thermoplastic) reflective membrane or coating on your existing roof to:

– Reduce cooling costs by as much as 15 percent

– Prevent leaks

– Extend roof life

– Downsize your air-conditioning system, if you choose

Your roof is one part of the Building Envelope that can help your business save on air conditioning costs

Energy-Saving Roofing Options

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Get the same reliable supply of hot water for up to half the cost with a Heat Pump Water Heater (HPWH) or a Heat Recovery Unit (HRU)

FPL Water Heating Incentive

FPL Incentive

• Up to $500 per kW reduced for Heat Recovery Units and Heat Pump Water Heaters

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High-efficiency chillers keep energy costs as low as possible while maintaining a comfortable temperature

FPL Chiller Incentive

FPL Incentive

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With anti-sweat heater controls and equipment, building owners save energy and money

FPL Refrigeration Incentive

Qualification FPL Incentive

Install one or more of these technologies:

• Electric strip heaters around display case doors using automatic controls

• With humidistats to turn off heaters when not needed, or

• With controls that stagger defrost cycles

• Special glass doors for reach-in display cases

• Requires minimum or no anti-sweat heat

• Freezer doors that incorporate hot gas reclaim

• Reduces or eliminates the need for electric strip heaters normally used for defrost control

•Up to $75 per kilowatt (kW) reduction for the installation of qualifying controls and equipment that reduce electric strip heater usage in refrigeration equipment

•The incentive amount is based on the manufacturer documentation indicating potential kW reduction

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Demand control ventilation (DCV) is a more efficient and affordable way to meet fresh air requirements and lower energy costs

FPL (DCV) Incentive

Qualification FPL Incentive

•Must reduce outside air flow

at low occupancy

•Must be based on real-time

sensor readings

Rebate on DCV systems based on:

•Building type

•Number of sensors required

•Square footage of air conditioned space

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FPL offers incentives for installing a qualifying Energy Recovery Ventilation (ERV) unit installed on new or existing HVAC systems

FPL ERV Incentive

Qualification FPL Incentive

•Must be an enthalpy wheel or

plate type ERV system.

•Must control humidity using

either desiccant or moisture

transfer membranes

Rebate on qualifying ERV units:•Replacements

•Units installed during new construction

•Based on size and efficiency of the ERV unit as well as the heating type for the HVAC system

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Thermal Energy Storage (TES) reduces peak energy use by producing and storing cold water or ice at night, when power is less expensive, and using it to cool your building efficiently during the day

FPL TES Incentive

FPL Incentive

• $2,500 toward a feasibility study by a professional engineer you select

- $464 per ton (chiller)

- $522 per ton (DX)

- $580 per ton (refrigeration)

• $16 to $20 per ton toward system initial commissioning

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FPL’s custom incentive program is designed for large projects

FPL Custom Incentives

Qualification FPL Incentive

• Customer submits a proposal to FPL with estimated savings potential and FPL evaluates the proposal

• Proposed application must remove a minimum of 25 kW from FPL’s summer peak demand

• Specific incentives for unique energy-saving applications

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• Air Conditioning (HVAC)

• Building Envelope

• Water Heating

• Chillers

• Refrigeration

• Demand Controlled Ventilation (DCV)

• Energy Recovery Ventilation (ERV)

• Thermal Energy Storage (TES)

• Custom Incentive

• Lighting

FPL Energy-efficiency Programs and Incentives

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Upgrading to a more efficient system decreases operating costs, results in better quality lighting and offers aesthetic improvements

FPL Lighting Incentive

FPL Incentive

• Rebates of up to $4 per lamp on technologies such as T8, High Performance T8, T5HO or pulse-start metal halide lamps

• Incentive will be an up-front discount on the cost of the job

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Lighting accounts for about 28 percent of a typical business’ energy consumption. Here’s an example of how simple upgrades can produce signification savings.

Sample Lighting Payback

• Installation rebate

– Four lamp, 34-watt T12 with energy-efficient magnetic ballast retrofitted to a 4 lamp T8 with electronic ballast

– 4 lamps x $0.65 per lamp = $2.60 incentive

– $8.00 incentive if using HPT8 lamps

• Long-term savings

– A 23,000 square foot athletic club in Sarasota replaced 131 fluorescent fixtures with T8 lamps and electronic ballasts

– Received a $294 FPL incentive

– Decreased energy consumption by 26 percent

– Resulted in $5,387 yearly savings!

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Federal lighting standards have increased minimum standards for manufacturers and importers. Less efficient bulbs and lighting systems are being phased out through 2014.

Obsolete Bulbs & Ballasts

2010 2011 2012 2013 2014

100w Inc. 75w Inc. 60/40w Inc.

Reflector Lamps;

T12 Lamps

T12 MagneticBallasts

T8 Ballast BLE

700 Series T8 LampsPS MH

Fixtures

2009

Mercury Vapor

Ballasts

2008

The Energy Conservation Program (ECP) 2009 Lamp Rule began July 14, 2012. Most 4-foot T12 and 8-foot (F96) T12 lamps were

effectively eliminated. There is a two-year reprieve for 700 series (first generation) T8 lamps.

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Simple, inexpensive lamp and ballast upgrades comply with new standards while generating significant savings immediately and over time

Fluorescent Lighting Savings Opportunities

Replace… With…

Realize Estimated

Annual Savings of…

Full-wattage F32T8 lamps 23W lamps 28 percent

Standard 54W T5HO

lamps

Reduced wattage lamps

49W lamps

51W lamps

Six to ten percent

Magnetic ballasts NEMA Premium Electronic

Ballasts

Five to seven percent

efficiency improvement

Standard fluorescent lamps can be hidden in your facility. Be sure to check: Suspended and recessed “troffer” fixtures, recessed “can” fixtures, wall sconces, suspended fixtures, lamps and task lighting,

illuminated exit signs and exterior and facade

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• Volumetric– Leviton ZiplineTM LED Platinum Series

2x4 models offer 5700 lumens at 60 watts

2x2 models offer 3400 lumens at 37 watts

• Strips– LED Living Technology

CLARIS LED Retrofit Kits

– 2090 lumens@22 w

– 4180 lumens@44 w

– 90 lpw with isotropicdiffuser

Light Emitting Diodes (LEDs) are getting a lot of attention. Good LED options exist to replace linear fluorescent bulbs

LED Retrofit Kits

Source: Leviton Lighting & Energy Solutions

Source: LED Living Technology

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Tubeless LED troffers now offer equivalent performance to linear fluorescent troffers

Purpose-built Linear LED Troffers

Source: Cree

Type Watts Lumens LPW CCT (K) CRI

T8 32 3,300 90 3,300 82

Cree CR Series 44 4,000 90 3,500 90

Cooper Corelite 51 4,300 85 3,500 85

LED 2X2 (Rd 13) 43 3,469 80 3,152 94

Source: CooperliliSource: Philips Ledalite

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Thin LED Light Guide products offer better vertical illumination than traditional troffers

LED Light Guide Products

• Light Guide Products

– GE Lumination™ LED Luminaires EL Series

Source: GE Lighting Solutions

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Although expensive, LED replacement bulbs offer equal light output with lower energy consumption and longer life

Omnidirectional LED Options

Brand Name Wattage Lumens LPW Life (Hrs)

LEDzworld Professional

LED Bulb CTA

6.5W 250 38 35,000

GE Energy Smart LED 9W 450 50 25,000

Philips AmbientLED 12.5W 800 64 25,000

Sylvania LED A-Line 12W 810 67 25,000

Switch 100 16W 1,700 100+ 20,000

Source: GE Lighting

Source: Switch Bulb Co.

Source: LEDzworld

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CALiPER tested 38 different directional LEDs and found them to be much better than halogen bulbs and competitive with CMH

LED PAR and AR Product Options

Type Watts Lumens LPW CRI

LED PAR30 12 732 59 86

LED PAR38 18 1,286 73 82

CMH PAR38 25 1,504 60 86

HIR PAR38 75 1,060 14 100

Source: Round 16 & 20, CALiPER

http://www1.eere.energy.gov/buildings/ssl/caliper.html

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Agency Policies and Programs

• Small Business Administration (SBA)

• American Recovery and Reinvestment Act of 2009

• Energy Improvement and Extension Act

• Energy Policy Act of 2005 Commercial Building

Tax Deduction

• ENERGY STAR®

• U.S. Department of Energy Building Technologies

Program

• FEMP Programs

• LEED Programs

• Renewable Energy Production Tax Credit

• Renewable Energy Technologies Investment Tax Credit

• Florida State Sales Tax Incentives

In addition to FPL programs and services, many federal, state and local organizations and policies exist to support your energy management efforts

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Types of SBA 7(a) Loans

• SBAExpress

– 50 percent SBA backed guaranty

– Average loan = $35,000

– Maximum loan = $350,000

– Streamlined application process for easy access

– Response to application given within 36 hours

• Other 7(a) loans

– Export loan programs

– 90% guaranty + no fee

– Maximum loan = $2.0 million

– Rural lender advantage program

– Special purpose loans program

• Eligible items

– Retrofit facilities

– New installations

– Energy efficient equipment

ENERGY STAR

Other

All of the SBA’s 7(a) bank loans can be used to fund energy efficient equipment and upgrades

Savings small businesses make from adopting energy

improvements also include federal energy tax savings

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SBA Certified Development Company (CDC)

504 Loan Program

• SBA CDC / 504 loans finance energy-efficient improvements

• Long-term financing tool for economic development within a community

– Job creation/retention requirement (1 job/$35,000 loaned)

– Can only be used for purchase of fixed assets

– Major portion of funds must be for real estate purchase

• Provides financing with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization

• Financing is provided by a Certified Development Company

– Non-profit corporation set up to contribute to the economic development of its community

The SBA’s CDC / 504 loan program is good for making significant capital improvements

•Eligible products

• Energy-efficient appliances

• Alternative fuel for vehicles

• Replacing transportation fleet with hybrid vehicles

• Purchase of improved-mileage vehicles

• Increased efficiency, HVAC, heat pumps, geothermal energy

• Energy-efficient doors, windows, skylights

• Increased insulation

• Wind and solar power

• Energy-efficient light bulbs

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SBA Energy Conservation Loan

Energy Conservation Loan

• For the following small businesses that work with energy devices or techniques to conserve energy:

– Design

– Engineer

– Manufacture

– Distribute

– Market

– Install

– Service

• Not designed for end users

Eligible devices or techniques

• Solar thermal equipment

• Photovoltaic cells and related equipment

• Products or services that increase the energy efficiency of existing equipment

The Energy Conservation Loan is designed for the entity who builds, installs or services qualified energy measures

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SBA Loan Programs

• Micro-Loan Program

– Small, short-term loans

– Average loan = $13,000

– Maximum loan = $35,000

– May be used for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment

– Obtained through intermediary lenders

Non-profit, community based lenders

Required to provide business training and technical assistance to borrowers

The SBA’s Micro-Loan Program is appropriate for small, quick projects

For more information on SBA programs available, please visit:

http://www.sba.gov/financialassistance

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Loan Eligibility

• Eligibility requirements

– For profit

– Meet SBA size standards (NAICS/SIC)

– Not engaged in lending, real estate development, investments or speculation

• Credit requirements

– Good character

– Management expertise

– Feasible business plan

– Adequate equity or investment

No 100% financing

– Sufficient collateral

– Ability to repay debt from earnings

• Collateral

– Personal guaranty of principals owning 20 percent or more

– Personal assets may be required

– Loans will not be declined solely for insufficient collateral, but loan will be secured to the maximum extent possible

• Ineligible use of proceeds

– Speculation

– Partial change of ownership

– Payment to principals of the business

– Delinquent payroll / sales taxes

Once a company has met SBA requirements, the loan qualification process is similar to the one used for bank loans

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• Through 2013

• Must save at least 50 percent of the energy cost of a building that meets ASHRAE Standard 90.1-2001

– Up to $1.80 per square foot

• Sum of any two qualifying partial systems

– Building envelope ($0.60/ft2)

– Heating, cooling, ventilation ($0.60/ft2)

– Interior lighting ($0.60/ft2)

Time is running out to take advantage of Federal incentives for building energy efficiency upgrades

Energy Policy Act of 2005 Commercial Building Tax

Deduction (§179D IRS Code)

Lighting HVAC Bldg. Envelope

16 2/3% 16 2/3% 16 2/3%

20% 20% 10%

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• Interim lighting rules

• Verification

– DOE software tools

– Prescriptive

– Trade-off

– Performance

• Certification requirements

– Qualified individual (impartial and licensed)

• Benefit available to tenants or designers

Verification and certification is required to receive the CBTD incentives

EPAct 2005 CBTD (§179D IRS Code)

Reduct Beyond 90.1 25% 30% 40% 50%

Eligible Deduction/ft2 $0.30 $0.40 $0.60 $0.60

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• Executive Order 13514

– Federal leadership in environmental, energy and economic performance

Reduce direct greenhouse gas emissions by 28 percent by 2020

– OMB scorecards

– Strategic sustainability performance plan

– New federal buildings designed in 2020 achieve zero net energy by 2030

• ASHRAE 90.1-2010 8.4.2 Receptacle Control

– At least 50 percent of receptacles for offices and classrooms

– Control by an automatic device (scheduled, sensor signal)

Legislation and updated green building codes are driving energy efficiency investment

Federal Incentives

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• 8 year extension (through 2016) of 30 percent investment tax credit (ITC)

– Commercial solar installations

Solar pool-heating systems are not eligible

– Small wind power (≤100 kW)

– Biogas digesters (≥150 kW)

– Geothermal heat pumps

• Can take ITC or production tax credit (PTC) but not both

– PTC applies to wind ($0.022/kWh produced) and digesters ($0.011/kWh) , but not solar

• Fuel cell tax credit limit is tripled to $1,500 for each 0.5 kW

• Creates a new 10 percent tax credit for certain combined heat and power systems

Federal incentives are also available for customer-owned generation such as renewable energy investments and CHP

Energy Improvement and Extension Act of 2008

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• Federal Modified Accelerated Cost Recovery System (MACRS) – Title 26, Section 168

– 5 year depreciation

– 50 percent first year bonus depreciation up to December 31, 2013

• Eligible for Renewable Energy Credits (RECs)

• Food Conservation and Energy Act of 2008 (Farm Bill)

– Mandatory funding for the Rural Energy for America Program (REAP) more than doubled from $115 million to $255 million

– Since 2003, USDA Rural Development has awarded more than $40 million for anaerobic digestion systems

REAP Section 9007 grants up to $500,000

Advanced Biofuel Payment Program (production only)

The Federal government also offers favorable depreciation terms and RECS for renewable energy investments

Federal Incentives

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State Incentives

• Local government grantees will be putting together energy efficiency and conservation strategies to determine:

– How to spend the money to increase energy savings

– How to reduce greenhouse gas emissions in their communities

• The state of Florida is also creating several new energy programs funded by ARRA that will help expand energy efficiency projects and renewable energy investments in the state

The state of Florida has and is creating many energy programs that may benefit your business

For more information, visit: http://myfloridaclimate.com

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Bank loans are the most common method of financing equipment purchases

Private Loans

Description

• Organization avoids expending cash on hand

• Goal is to negotiate terms where the payments are lower than the cash savings from the project

Considerations

• Equipment loans normally require a down payment of 20 – 25 percent

• Secured by a lien on the items purchased

• Lenders look at organization’s financial strength to determine if additional security is required

• Borrower’s ability to negotiate favorable terms depends on lender’s perception of risk

•...Makes sense when monthly energy savings are

enough to cover finance charges.

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Financing with bonds is common in the public sector

Bonds

Description

• Debt instruments sold by public and private-sector organizations to borrow money from capital markets

Considerations

• Complex agreements with a high transaction cost

• Issuing municipal bonds requires approval by legislative bodies and voter referenda

• Some state energy programs raise money with bonds to create pools of money for funding smaller projects sponsored by local governments and school districts

Public-sector organizations should check with the state government to determine if their projects are eligible.

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Leasing is a good alternative to purchasing by providing access to low-cost, and in some cases, tax-exempt funds

Leasing

Description

• A loan in which the lender retains legal title to the property being leased

• Different types of leases:

‒ Operating Lease

‒ Capital Lease

‒ Municipal Lease (tax exempt)

Considerations

• Available from commercial lenders

• Equipment manufacturers or their affiliates will often set up the lease and arrange for equipment purchase and delivery

• The financial accounting and tax rules for operating and capital leases differ significantly

• Ideally structured so that energy savings are enough to cover finance charges

• Lease periods range from 5 to 10 years

Leases are fairly quick to set up and administer compared to other forms of financing.

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• Schedule a Business Energy Evaluation

– Call 1-877-748-4BEE or contact your FPL account manager if you have one

• Visit www.fpl.com/business for complete business program and incentive guidelines

For more information on whether your company qualifies for FPL programs, services and incentives, schedule a BEE

How to Start Your Energy-Saving Plan