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Saving Energy in Vending Machines: Opportunities for the Regional Technical Forum Shawn Shaw The Cadmus Group, Inc. September 2006. Vending Machine Background. The average vending machine uses around 3,500 kWh per year, enough to power 7 residential refrigerators - PowerPoint PPT Presentation
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Saving Energy in Vending Machines: Opportunities for the Regional
Technical Forum
Shawn ShawThe Cadmus Group, Inc.
September 2006
Vending Machine Background
• The average vending machine uses around 3,500 kWh per year, enough to power 7 residential refrigerators
• In a single year, the average vending machine’s energy use will generate more than 10 times the weight of the machine in CO2 emissions
• Nationwide stock of over 3 Million vending machines uses more energy than the state of Delaware
Energy Saving Options
Tier 2
Tier 2
3,446
1,717
2,481 2,394
1,237
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
StandardMachine
ENERGY START2
OccupancySensor/Onboard
Software
Delamped ENERGY START2 with
OccupancySensor/Onboard
Software
Annu
al E
nerg
y Us
e (k
Wh)
ENERGY STAR Tier 2 Features
• Efficient T-8 lighting• ECM evaporator fan motor• Improved insulation• Variable speed compressor• Time of day low power mode software
ENERGY STAR Tier 2-The Best Option for Energy Savings
• 1,728 kWh/year savings that are – Stable– Persistent– Track-able– Achievable in either new machines or as a refurbishment to
existing units• Additional 20+% energy savings from setting onboard
software in applicable locations• Has no impact on customer experience
– Maintains visibility/sales presence– No impact on cashless vending
• 0.1kW/machine peak demand reduction• ENERGY STAR machines are compatible with
VendingMi$er
Time-Based Control Software
• Energy control software is available on all ENERGY STAR and many other later-model vendors
• Software performs 2 functions, based on day/time– Turns lights off and on– Sets storage temperature
• Programming takes <10 minutes by hand, faster with modern wireless controllers
Potential Software Savings
Lighting Control Software Savings
674
225
399
0100200300400500600700800
Aggressive Moderate LightSetback Scenario
Ann
ual E
nerg
y Sa
ving
s (k
Wh)
Savings of 20-30% are readily achievableAt ZERO added cost
With NO IMPACT on customer satisfaction
Market Actors: The Chain of Demand
Host Site
Manufacturer
Bottler
Vendor Operator
Supply
Demand
The Host Site is the “Demander in Chief” of the Vending industry-all downstream demand is driven based upon the desires of the Host Site.
$$$
The Vending Market Today
Sales• 100,000 New Machines/Year• 50-60k Refurbishments• 75% of new machines
meet ES Tier 1• Glass Front Machines: 60%
– 360-405 Cans• Stack Vendors: 40%
– Mostly 500-600 Cans
Stack Vendor40%
Glass Front60%
>60020%
<50010%
500-60070%
But We Still Have Work To Do…
• Tier 2 machines are available to bottlers but are not being purchased– $50-$200 Incremental cost (new machine)
• Slow replacement of existing machines inhibits market penetration– 3+ Million vending machines installed
• Few new locations being added– 100,000 New machines purchased annually– Typical machine life: 12-15 years– Average age of machines in use today: 5-6 years
Vending Machine Replacement
• ~10 Years to replace current stock of inefficient machines
• Over 500 TWh savings possible if 10% of sales are Tier 2
“Breaking Open” the Vending Machine Market to Tier 2 Machines is Key to Huge Energy Savings
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2018201620142012201020082006
Repl
aced
Ven
ding
Mac
hine
s (0
00's
)
0
100,000
200,000
300,000
400,000
500,000
600,000
10%
Tie
r 2 S
ales
Pen
etra
tion
Savi
ngs
(MW
h)
Machines
Energy Savings
Designing a Program for Tier 2
• Lower/reduce incremental cost barrier• Educate bottlers/operators and host sites• Encourage early retirement of older models
Maximum Daily Energy Consumption (kWh)
Can Capacity
Tier 1: Effective Apr 1, 2004
Tier 2: Effective July 1, 2007
400 6.74 5.52
600 7.73 6.33
800 8.72 7.14
Reducing Incremental Costs of ENERGY STAR Machines
• New machine purchase– Baseline: ES Tier 1– Tier 2 Savings: 710 kWh/year– Incremental Cost
• Glass front machines: $200• Stack Vendors: $50
• Retrofit Machines– Compare to standard machine– Savings: 1,728kWh/year– Incremental Cost: $150-$200
Education and Outreach
• Drive demand at host sites– Use ENERGY STAR outreach materials
• Webcasts• Fact sheets• Calculators
– Focus on high impact sites• Colleges• Retail chains• School districts
– Showcase bottlers offering ENERGY STAR• Online directory for vending RFPs• Mass mailing to large utility customers
Early Retirement of Old Machines
Combine retirement with new machine purchase• An additional 1200 kWh/year savings over new
machine purchase alone• Guarantees replacement of inefficient models by
new, efficient units• Pre-2000 models could use 13+ kWh/day
Retiring old machines will generate far more savings than displacing new machine sales alone
A Program to Promote Tier 2
Purchase New ENERGY STAR Machine
710 kWh/year$50
Up to $200
Install ENERGY STAR Refurbishment Kit on old machine
1,728 kWh/year$121
Up to $200
Replace Existing Machine with ENERGY STAR Machine
1,728 kWh/year$121
Up to $200, less scrap value of old machine ($30)
Incentives based on 1 year energy savings at $0.07/kWhMeasure Annual Savings/Rebate Incremental Cost
The Program Continued
Who Gets the Rebate?• Machine owners
– Host sites and manufacturers already benefit– Control purchase and placement of machines
How are benefits verified?• New/Refurbished machines ($50)
– Bill of sale or contract with host site• Retire/replace old machines
– Split incentive ($121)• New machine incentive($50)+ Retirement incentive($71)• Verified through bill of lading to scrap yard and bill of sale
from manufacturer
Cost Effectiveness
• 1,000 Machines– 50% Refurbished– 40% retired/replaced– 10% new purchase
• 3 Year Savings: 4,878,600 kWh• Incentive Costs: $113,834• Administrative Costs: $25,000• Total Cost: $138,834 ($0.028/kWh)
The Role of ENERGY STAR: Supply and Demand
• Drive demand for qualified vending machines– Targeted outreach to host sites
• Large retail• Higher education• K-12• State and local government
• Increase supply of qualified vending machines– Promote business case to operators and bottlers
ENERGY STAR Offerings
• Marketing materials• Sample procurement language• Product lists• Energy savings estimates/calculators• Field studies/verification
Success Stories
• Wal-Mart• SUNY Buffalo• University of Michigan• 5 Colleges• City of Cambridge DPW• Davis School District• State of Massachusetts• Dartmouth College• UPS• GM
Thank You
Shawn ShawThe Cadmus Group, Inc.
Supporting Kate LewisUS EPA ENERGY STAR