I A REGION VII IRC
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United Slates
Environmental Protection
Agency
Air and Radiation
(6202J)
430-B-97-040
December, 1997
Putting Energy
Into Profits
ENERGY STAR® Small Business Guide
SMALL BUSINESS
•2798
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O
For sale by the U.S. Government Printing Office
Superintendent of Documents, Mail Stop: SSOP, Washington, DC 20402-9328
ISBN 0-16-049393-5
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We/come
Welcome
Thanks for Joining
When you pay your electric bill
or gas bill each month, you
probably don't care too much
about kilowatt-hours or
therms. Whether you own your own
building or are a tenant, you want
heat, air conditioning, lighting, and
other services at the lowest possible
cost. The ENERGY STAR* Small Business
Guide can help you get the most
from your equipment and facility and
increase your profits. We call this
energy optimization; you'll just call
it smart business.
In the "energy crisis" of the 1970s,
conservation meant being colder in the
winter and hotter in the summer; you
sacrificed to lower your energy use.
Since then there have been tremen-
dous technological advances in
building systems and controls. As a
result you can often get off-the-shelf
building technologies that provide
higher comfort for significantly less
than you are currently spending.
Let's Look at Some
Examples
Imagine a warehouse area that you just
can't keep warm in the •winter. Replac-
ing the natural gas unit heaters with
gas-fired radiant heaters can reduce
your fuel use by 30 percent while
keeping your employees comfortable
so they can do their best work.
Say you have some incandescent flood
lights mounted outside your building
for security. Replacing these with a
small number of high-pressure sodium
fixtures could save 80 percent of the
electricity while increasing the light
SMALL BUSINESS
level (see page 44). That can save you
big money. In addition, installing
photocell controls will ensure that the
lights will always be off during the day
and on at night to deter vandals or
burglars who may be lurking in the
shadows.
Have you experienced eye fatigue or
headaches from working under the
glare of older fluorescent lights? Do
you have trouble viewing your com-
puter monitor because the lighting in
the room is too bright? Upgrading your
existing lighting with newer technolo-
gies can increase visual comfort and
allow you and your employees to
get more work done while you spend
Get more work done and
spend less by upgrading
your existing lighting with
newer technologies.
Our ENERGY STAR® Small Business Agreement
What We Provide
» Accurate, unbiased information on energy-efficiency technologies.
« A toll-free customer service hotline and an interactive Web site.
* A finance directory of banks and other institutions that offer financing to
small businesses for energy-efficiency upgrades.
* Educational and public relations materials to promote your success.
Your Commitment
* Voluntarily upgrade the efficiency of your energy-using equipment when it
is profitable and has a simple payback of three years or less.This means you
recuperate your investment cost within three years; after that, the savings
go to your bottom line.
* Implement the upgrades within three years, but only when they maintain or
improve facility quality and comfort.
• Consider purchasing ENERGY SiAR-labeled equipment when you are
planning to replace office equipment.
• Consider telling us about your upgrade. Although you do not have to
report back to us, if you do we'll provide you with further public recogni-
tion and you will be eligible for a national award.
ENERGY STAR® Small Business Guide iii
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3
Kenneth Gair, facilities manager for the Sligo School, invested $44,728 (and received
$27,527 in utility incentives) to perform upgrades on the school building. With a
1.5-year overall payback on the energy investments, he saved enough money to build
the kids a new playground and return $ I 1, 136 a year to the school. See page 47
for details.
20 to 50 percent less than with old
equipment.
The ENERGY STAR® Small Business
i program will help you apply solutions
such as these to your business so you
can save money, optimize energy use,
and help protect the environment. As
; an ENERGY STAR Small Business Partner,
•"^^"•^^"••^•^••••••^ ; you have access to unbiased informa-
tion on building technologies and the
upgrade process.
Let us publicize your
success!
For more information, call us toll free
at 1-888-STAR YES or visit our Web site
at www.epa.gov/smallbiz.
Where To Find What You
Need inThis Guide
We realize your time is very valuable
to your business, so we've designed
this guide to quickly get you the
information you need. This section
is your key to finding information
in this guide.
Section 1, Getting the Job Done, gives
you practical advice on how to over-
come the technical, financial, and
managerial hurdles that you may
encounter on the path to improving
your bottom line through energy
optimization. In this section, we
give you proven strategies to identify
the best energy upgrades for your
business. We also discuss how you can
finance these upgrades, and we give
you time-tested guidelines for selecting
contractors to help you get the job
done.
Section 2, Technical Support, de-
scribes the many technologies that can
improve your energy efficiency. You
probably expect that lighting, heating,
cooling, and water heating are covered
in depth; however, you may be a little
surprised to find out how much money
selecting the right office equipment
can save. And we include a discussion
of techniques to optimize your paper
use that will save you money while
preserving our nation's forests.
Throughout Section 2 we identify
simple measures that you can do
yourself in just a few minutes. And
for the more involved upgrades, we
explain the solutions and the terms
so that you can be a smarter shopper
when interacting with contractors
and suppliers.
Section 3, Supporting Material,
contains a glossary that will help you
understand unfamiliar terms and new
technologies. There are tables you can
use to compare your energy use and
costs with similar businesses in your
region. This section also has a check-
list of ways to improve your facility's
energy efficiency and a shopping list
of things to look for when buying or
leasing a building.
We make celebrating your success
easy with a card at the end of this
guide that you can use to describe
your upgrade projects. Your facility
may be featured in ENERGY STAR case
studies, and your company can be
publicly recognized for exemplary
environmental responsibility in
addition to good business practices.
iv ENERGY STAR® Small Business Guide
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Additional ENERGY STAR"
Services
As an EXKKGY STAR Small Business,
you have access to the full range
of technical materials and sendees
available to our largest Partners.
These include seminars, workshops,
and written materials on energy-
efficiency upgrades as well as bro-
chures and promotional information
that you can use to highlight your
participation to your customers. See
page 9 for some of the references
available to ENERGY STAR Partners.
Feel free to call the toll-free hotline
(1-888-STAR YES) at any time to find
out about additional materials and
publications. You may discover that
you can do certain projects in-house
after reviewing the relevant publica-
tions, or you may be cautioned about
doing a project yourself and may
decide to enlist the help of profession-
als. Regardless, we will help you
become a smarter buyer and ask the
right questions.
If you have access to the World Wide
Web, we invite you to visit the
ENERGY STAR Small Business Web site
at www.epa.gov/smallbiz. From there
you can explore the materials and
services available to large and small
businesses, and you can also link to
energy-efficiency sites throughout
the Internet.
Selected Reading
I've got no time.
Read "Finding the Time" and "Learning About Energy
Efficiency" in Section 1. A consultant or an ENERGY
STAR Buildings Ally will be able to identify upgrade
options for you with only a limited investment of
your time.
I have access to in-house technical help.
Read Section 1 and then pass this guide to your in-
house staff. One week later, schedule a meeting to
review the technologies and upgrades that might
be appropriate for your business and to establish a
preliminary timeline.
I don't have technical staff and would
likely contract out all work.
Read or scan through this entire guide so you can
determine which equipment to focus on and who
to call for help.
ENERGY STAR® Small Business Guide v
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Contents
Putting Energy Into Profits: ENERGY STAR® Small Business Guide
SECTION i: Getting the Job Done.. , \
Finding the Time 3
Getting the Money 5
Learning About Energy Efficiency 7
Making a Good Building Even Better 11
Selecting a Contractor 15
Profiting From Energy Savings as a Tenant 19
Verifying Savings 21
The ENERGY STAR® Small Business Program 23
SECTION 2:Technical Support., 25
Financial Analysis 27
Prioritizing Your Projects 31
Lighting Part I: Concepts 33
Lighting Part II: Upgrades 39
Building Tune-Up 49
Office Equipment 51
Paper 55
Water Heaters and Water Use 57
Refrigeration 63
Building Construction 65
Heating and Cooling 71
Other Ideas for Energy Optimization 77
SECTION 3: Supporting Material 8!
Glossary 83
Free Publications and Programs 90
Average Energy Use and Costs Throughout the United States 91
Index 93
Energy-Efficiency Quicklist
ENERGY STAR® Small Business Building Shopping List
We Took Action—Reply Card
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SMALL BUB
Getting
Job Done
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Getting the Job Done
inding the Time
We understand how important
your time is to your business.
We're also convinced that
energy-efficiency upgrades are
well worth your consideration due to
the savings and improved comfort that
they bring.
Getting Started With
Few Hassles
Here are strategies to jump-start your
energy savings with a limited invest-
ment of your time.
• Ask your utility if they offer free or
inexpensive energy audits.
• Invite lighting contractors and
heating, ventilating, and air-
conditioning (HVAC) contractors
to your facility to suggest upgrades.
• Leverage your time by drawing on
the expertise of ENERGY STAR Build-
ings Allies. Call 1-888-STAR YES
for your nearest Ally. Or see the
Ally Services and Products, (ASAP)
Directory on-line through the
ENF.RGY STAR Web site (www.epa.gov/
energystar.html) for a directory of
contractors.
• Contract with an energy professional
to coordinate and manage your
project.
• Select turnkey sendees from an
Energy Services Company (ESCO);
see page 8.
SMALL BUSINESS
* Unload responsibilities onto energy
professionals when you discover a
particular project is taking more of
your time than you can afford.
The Cost of Delay
While we often think of upgrade
projects in terms of how quickly the
investment is paid off through the
savings, we don't usually recognize the
other side of this equation. For each
month or year that you delay your
upgrade projects, you completely lose
that potential savings forever.
Consider a business with annual energy
costs of $25,000. If a comprehensive
upgrade program could reduce energy
use by 30 percent, this business
could save $7,500 per year.
Assume that the cost of
implementing these
measures results in a
3-year simple payback,
which is typical. In
delaying the upgrade, this
business is forfeiting a low-
risk investment opportunity at
27 percent interest.
Many consulting engineers,
utilities, and ENERGY STAR®
Buildings A/lies offer their
services to review propos-
als, oversee contractors,
and attend project
meetings.
ENERGY STAR® Small Business Guide 3
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Getting the Job Done
the Money
The key issue is, how do you pay
for the upgrades? Not a problem.
Energy-efficiency upgrades
make such good business sense
that there are many traditional and
nontraditional financial resources to
use in funding that can provide you
with a positive cash flow for your
business.
For inexpensive projects, you'll want
to fund your upgrades from your own
internal funds. This is the best way to
keep payback time low and return
on investment high. The overhead
costs of financing are too high for
small projects.
For larger jobs, small businesses
often don't have the convenient cash
reserves or revolving credit facilities
that large corporations do. Cash flow
limitations can make capital funding
from reserves simply impossible. In
such situations, financing is the only
way the project can be implemented.
Fortunately, a wide variety of sources
and mechanisms has evolved over the
past few years to help small businesses
maintain a positive cash flow while
implementing energy-efficiency
projects.
ENERGY STAR" Small
Business Finance Directory
Resources are available through the
ENERGY STAR Small Business program
to help you find financing. FPA does
not endorse individual lenders, but we
provide a comprehensive list of small
business lenders. If you have Internet
access, the Web site at www.epa.gov/
smallbiz features the finance directory,
which provides direct access to lenders
who offer such loans and contains
SMALL BUSINESS
some Web links; you can also down-
load the current version of the finance
directory from the Web site. The
current version of the finance direc-
tory may also be requested by calling
the toll-free ENF.RGY STAR hotline at
1-888-STAR YFS.
Conventional Loan
Sources
Conventional loans are a common
financing option for many energy
projects. Several different sources
for these loans are listed below.
Small Business Administration
Microloans. Your business banker
can use the Small Business Adminis-
tration's (SBA's) 7A loan guaranty
The ENERGY STAR® finance
directory mokes it easy
to find lenders for small
business energy upgrade
projects.
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The ENERGY STAR Small Business finance directory is available on-line in searchable
format, with direct links to participating lenders. Alternatively, you can call the
toll-free hotline at I -888-STAR.YES to request the list for your area.
ENERGY STAR® Small Business Guide
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Getting the )ob Done
Legislation in the summer
of 1996 extended the
ability of businesses to
deduct equipment up-
grades as an expense.
Savings Implications
If you borrow money to pay for
energy-saving measures, keep two
considerations in mind. First, you may
want to arrange the loan period to
be long enough so that you realize a
positive cash flow each month. That is,
if you implement a $4,000 measure
that saves $ 1,200 per year ($ 100 per
month), then you could arrange a loan
that pays back the $4,000 at a rate of
less than $ 100 per month. This way
your business will always see a positive
cash flow for the measure. This cash
flow will be smaller while you're paying
off the loan but will increase dramati-
cally once the loan is paid off.
Second, financing your upgrades with a
loan will slightly extend your payback
period and reduce your internal rate of
return. Be sure to incorporate this
factor into your business analysis.
programs, such as the microloan and
low-documentation programs, to back
loans for energy-efficiency projects.
Call SBA at 1-800-8-ASK SBA or see
their Web site (www.sba.gov) for
more information.
Supplier Loans. Many suppliers offer
financing in combination with installa-
tion of their equipment. You'll want to
make sure the interest rate is compa-
rable to what you can get elsewhere.
Utility Loans. Your utility may have
a low-interest loan program to under-
write energy-efficiency projects.
Finally, your state energy office may
be aware of alternative sources of
grant monies and loans for businesses
like yours.
fv -•' i o • • o ;ance Con tra •: 11n%
Financing your project yourself through
a cash purchase or a loan requires you
to shoulder all the responsibility for the
project's success. Performance contract-
ing, available primarily through Energy
Services Companies (see page 8), is
an alternative way to finance energy-
efficiency projects. You receive a lower
level of cost savings at first but have
insurance that your actual savings will
meet your expectations. Performance
contracts are typically negotiated with
no up-front cost to the building owner,
and all project expenses are paid for by
the energy savings. A detailed explana-
tion of performance contracts is found
in Financing Your Energy-Efficiency
Upgrade, EPA 430-13-97-003. Call the
ENERGY STAR hotline at 1-888-STAR YES
for this or other publications.
Reinvestment of Savings
The ENERGY STAR program emphasizes a
staged approach to energy investment
projects (see page 3D. Part of the
reason for this is technical, but another
part is that you can use the cost savings
from your first project to fund your
second project, your third project, and
so on.
Tax Implications
Legislation in the summer of 1996
extended the ability of businesses to
deduct equipment upgrades as an
expense. This can save you money by
taking capital costs that normally would
be amortized and deducted from de-
clared profit over several years and
advancing the costs into a current year
tax deduction. We suggest that you
contact your accountant for more
information on how upgrade projects
can reduce your taxes and improve
your cash flow.
6 ENERGY STAR® Small Business Guide
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. Getting the Job Done
eanting About Energy
iciency
SMALL BUSINESS
f you're like most small business
operators, you know a lot more
about running your business than
about the intricacies of motors,
lighting, or air conditioning. We under-
stand you may be reluctant to take on
the challenges of building upgrade
projects, especially when your existing
equipment works just fine. We will
help you successfully implement up-
grades by relying heavily on energy
professionals and ENERC.Y STAR re-
sources. We will help you through the
process, and we can answer your most
difficult questions.
Energy-Efficiency Basses
Building technologies have been
advancing at a striking pace over the
past decade. It is now possible to
perform upgrades that reduce energy
use by up to 50 percent in some cases.
If your building's lighting and heating/
cooling systems are more than 10 years
old, you could potentially see big
savings by upgrading them. Some of
the key opportunities are described
below.
Lighting. Even though the light bulb
is still the symbol of innovation, old
incandescent bulbs consume 75 per-
cent more electricity than compact
fluorescent bulbs. There are also new
technologies to reduce the energy
use of fluorescent fixtures. And
occupancy sensors, which turn lights
off in unoccupied areas, have become
surprisingly inexpensive (see page 45).
Look around your building. If you use
just about any fixtures that are more
than 10 years old, your building is a
good candidate for a lighting upgrade.
Building Tune-Up. Get your building
back to its original performance. See
page 49 for more information.
Office Equipment and Paper Use.
Selecting ENHRGY STAR equipment when
you purchase new computers or office
equipment and encouraging a few
simple practices among your employ-
ees will yield energy savings with
absolutely no investment cost.
See pages 51 and 55 for more
information.
Consider Some of the Traditional
Myths About Equipment and Energy Use
Myth: Leaving computers on helps them last longer.
Re aiity: Today's computers do not suffer from being turned on and off
thousands of times. In fact, turning computers off when they're not
being used lowers the amount of dust buildup inside, which helps them
last longer while saving you money.
Myth; Energy costs are an insignificant part of total expenses.
Reality: Typical restaurateurs and grocers spend as much on energy as
they earn in total profits. Furthermore, improved employee comfort
and productivity (which are common after building upgrades) can lead
to much greater profit than is indicated by your reduced utility bills.1
Myth Fluorescent lights last longer if not turned on and off.
Reality: Switching fluorescent lights on and off does slightly shorten
their life. However, any time the lights will not be needed for more
than about 10 minutes, you save more money by turning them off than
by leaving them on.
Myth: / should replace old equipment with more efficient versions only as
the old stuff breaks.
Reality: With some new technologies, such asT-8 fluorescent lights
(20 to 60 percent savings) or light-emitting diode (LED) exit signs
(up to 90 percent savings), there's just no reason to wait. You can
start saving money on energy and maintenance costs right away.
1 ASHRAEJournal, January, 1997.
ENERGY STAR® Small Business Guide 7
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Getting the job Done ,
Unique opportunities for
energy savings are avail-
able for each business.
Water Heating and Water Conserva-
tion. You may be paying more than
you have to for water use or water
heating. Learn more starting on page 57.
Refrigeration. Check your seals
regularly and specify high-efficiency
evaporator fans when you buy new
systems. These and other operations
and maintenance guidelines will keep
your refrigeration equipment working
at peak efficiency. See page 63 for
additional ideas.
Building Construction. Starting on
page 65 is a review of the steps to
upgrade your building's walls, roof,
and windows to get the most comfort
from your heating and cooling units.
Installation Support
Leon on outside contractors for expertise and installation.
Available resources include ESCOs and conventional contractors:
• Energy Services Companies (ESCOs) offer turnkey services that are
excellent alternatives for larger projects.The company will perform an audit
(usually free) to identify savings opportunities and will arrange financing,
coordinate contractors, and perform all project management. Often these
projects are financed as performance contracts, where the ESCO receives a
portion of the savings generated by the project.The National Association of
Energy Services Companies (NAESCO) can refer you to the ESCOs in your
area; call (202) 822-0950 or visit the Web site at www.naesco.org.
• Lighting contractors will be familiar with all aspects of lighting design and
can conduct lighting audits, recommend replacements, and calculate energy
and cost savings. Lighting contractors are the best choice when the project
is high profile or requires significant lighting redesign.
• Electrical contractors have skills installing motors, modifying equipment,
and performing straightforward lighting upgrades.
• Mechanical contractors specialize in the heating, cooling, and ventilating
systems at a facility.They can coordinate the work of subcontractors and
interface with installers of Energy Management Systems (EMSs) if required.
• Controls contractors specialize in the automatic controls for heating,
cooling, ventilating, lighting, and emergency systems. Installation of a central
computerized control system with advanced energy savings functions (also
known as EMS) is cost effective for many facilities.
• Operations and maintenance contractors will perform routine
preventive maintenance that can extend equipment life and reduce
energy use.
Heating and Cooling. Inexpensive
modifications such as installing pro-
grammable thermostats and cleaning
your filters can often significantly
reduce your heating or cooling costs.
Thinking of replacing your old system?
See page 71 to explore the options
before you buy, because it may be
worth a little extra to buy a high-
efficiency unit. If your existing system is
old enough, it may be cost effective to
replace it with a new one immediately.
Other Opportunities. Each business
has unique opportunities for energy
savings based on the particular equip-
ment it uses or the processes that
occur. Many of these measures are
discussed starting on page 77; you
can also call the ENERGY STAR hotline at
1-888-STAR YES for information on
measures not covered in this guide.
Lean on Experts for Advice
The type of help you will need to start
your upgrade projects depends on
(1) the amount and skill level of in-
house support, (2) the type of project,
and (3) project size. To begin, you may
need the help of a consultant or an
energy auditor to identify upgrade
opportunities. If your in-house support
is extremely limited, you may need
some level of management or oversight
by a consultant other than the contrac-
tor performing the work. Typically this
is money well spent, because just like
hiring a professional accountant to
prepare your tax returns, professional
consultants or auditors often save you
more money and provide fast and
efficient results that allow you to make
knowledgeable choices concerning
energy-efficiency upgrades.
Start with a free energy audit where
available. First call your electric or
gas utility. Almost half of the country's
biggest utility companies offer free
or subsidized energy audits for com-
mercial customers to identify energy-
efficiency opportunities. These
8 ENERGY STAR* Small Bus/ness Guide
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Getting the Job Done
audits may not identify too many
fuel-switching opportunities that
convert you from the sponsoring
utility's product, but otherwise they
are an excellent and objective way
to get started. Some utilities give out
compact fluorescent lamps for free
to their customers. If you don't have
any luck there, you can sometimes
call your electrical or heating, ventilat-
ing, and air-conditioning (HVAC)
contractors for free walk-through
audits. Just recognize that the
contractor's agenda for such an audit
will include a sales pitch; if you don't
have a long-term relationship with
your contractor, you will want to
carefully consider capital-intensive
recommendations. If you don't have
a contractor, call 1-888-STAR YES
and ask for your nearest ENKRGY STAR
Buildings Ally. ENKRGY STAR Buildings
Allies have received training in strate-
gies to upgrade building systems to
optimize performance.
For large projects outside your realm
of expertise, consider hiring consult-
ants to prepare bid documents or to
verify the work of contractors. (For
more information, see page 15.) As a
rule of thumb, it is worthwhile to have
a management investment of 3 percent
to 10 percent of the project cost so an
independent expert can oversee major
projects. This premium doesn't detract
much from your payback and is a
good insurance policy. Look in the
yellow pages of your phone book un-
der Engineering Consultants, or similar
titles, or call 1-888-STAR YES for the
name of your nearest ENKRGY STAR
Buildings Ally.
For information about financial or
technical assistance that is available
for energy-efficiency upgrades, call
the Small Business Administration at
1-800-8-ASK SBA and ask for the
number of your local office. You can
also call the chamber of commerce or
your state energy office.
Where Can I Learn More?
For more information on energy
technologies and audit capabilities,
contact:
* Air Conditioning Contractors of
America (ACCA): (301) 384-2222
* American Consulting Engineers
Council (ACEC): (202) 347-7474
* American Society of Heating,
Refrigeration, and Air-Conditioning
Engineers (ASHRAE):
(404) 636-4800; www.ashrae.org
* American Society of Mechanical
Engineers (ASME): (301) 937-2799;
w• ww. asme. org
* American Solar Energy Society
(ASES): (303) 443-3130;
ww w. sni. net/solar/'
* Association of Energy Engineers
(AEE): (770) 447-5083;
www.aeecenter.org
* The Association of Energy Service
Professionals (AESF): (407) 361-0023
* Center for Renewable Energy
and Sustainable Technologies
(CREST): www.solstice.crest.org/
» Electric Power Research Institute
(EPRI): www.epri.com
* The Energy-Efficiency and
Renewable Energy Clearinghouse
(EREC): 1-800-DOE EREC;
www.eren.doe.gov
# KNKRGY STAR Buildings Allies:
1-888-STAR YES
* ENKRGY STAR Small Business
Hotline: 1-888-STAR YES;
www.epa.gov/smallbiz
«• Energy User News:
www.energyusernews.com
* Lighting Research Center:
www.lrc.rpi.edu
# National Association of Energy
Services Companies (NAESCO):
wwvv-.naesco.org
* National Society of Professional
Engineers (NSPE): (703) 684-2800;
www. nspe. org
Look in the ye/low pages
of your phone book under
Engineering Consultants,
or similar titles, or call
l-888-STARYESforthe
name of your nearest
ENERGY STAR® Buildings Ally.
ENERGY STAR® Small Business Guide 9
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Getting the job Done
Case Study
Subway Franchises Make Bread of Another Kind
Twenty thousand dollars can buy a lot of bread.
That's what Subway franchise owner Steve Kaplan
is saving by installing energy-efficient equipment,
including lighting, in seven Subway locations in
Oklahoma. With these improvements he reduced
his energy costs by 40 percent and made his
restaurants more attrac-
tive and comfortable
for customers. In
addition to properly
lighting his restaurants,
Kaplan makes his energy-efficient
equipment upgrades where he will get a 3-
year payback or better. Because Kaplan leases the
space for all seven of his Subway franchises, he
upgrades only when he plans to renew a lease
that is at least three to five years in length.
Just the Right Light To Whet
Your Appetite
Kaplan changed his stores' lighting from 40-watt
T-12 lamps with magnetic ballasts to 32-watt T-8
lamps with electronic ballasts and reflectors. "After
I installed the energy-efficient lighting," he said,
"my customers said the produce looked fresher
and more appealing" thanks to the better color-
rendering of the T-8 lamps he
installed. Subway franchises are
required to have a high light level,
and Kaplan's lighting upgrades
maintain this very bright level even
though each fixture was reduced
from four bulbs to two.
Cool as a Cucumber
Sandwich
The store's kitchen equipment generates so much
heat that the air conditioning runs year-round. Ice
makers are one of the main heat sources. To
reduce his air-conditioning costs, Kaplan has
invested in water-cooled condensers for ice
makers in some of his stores so the heat from
the ice makers goes into the water instead of the
room. His choice of stores depends on whether
his water or electricity utility costs are higher in the
area. For the future he's looking into buying ice
makers that have separate condensers so the heat
from the ice makers can be sent straight outside.
Customer Comfort Comes First
Kaplan wants his stores to be inviting year-round
with plenty of air-conditioning capacity, so when-
ever he opens a new store he replaces the old air
conditioner with a large, high-efficiency unit. The
units run all the time so paying a premium for
high-efficiency units is well worth it for him. To
keep his costs from going through the roof, he also
installs ceiling fans. They add to the ambiance, and
the slight breeze they
provide allows him to
set his air conditioner
three to five degrees
higher without any
sacrifice in comfort.
This saves him a good
amount of dough.
Upgrades Are Piled High With
All The Trimmings
Kaplan has switched from electric to gas water
heaters with just a 1-year payback on the installa-
tion thanks to the low cost of gas, even including
the cost to build a special fire-retardant closet and
install a roof vent. His windows are all tinted to
keep out heat from the sun. Maintenance is an
inexpensive way to save money, and Kaplan takes
advantage by regularly inspecting his refrigerator
and freezer door gaskets.
Rolling in the Dough
Overall, Kaplan saves $20,000 per year from his
upgrades. The upgrades also make his food look
more appealing and keep his customers more
comfortable. Participation in the ENERGY STAR
program helped Kaplan make the right decisions
and gave him free publicity. That's smart business.
10 ENERGV SMR® Small Business Guide
-------
, Getting the job Done
Making a Good Building
Even Better
ENERGY STAR Partners have reduced
their buildings' energy costs by
an average of about 30 percent,
and upgrades at these sites
continue. But even if your building
is already relatively energy efficient,
almost every" commercial building can
have its energy costs reduced by at
least 10 percent with measures that
pay for themselves in less than three
years. Energy cost reduction of 50
percent or more will be economically
profitable at some sites.
The best way to measure your energy
use is by calculating it per square foot
and comparing it with other buildings
that conduct the same type of business
that you do. Fill out the worksheet on
page 12.
Once you have calculated your electric
energy intensity, look at the pie charts
on pages 13 and 14. The charts show
the national average of typical annual
energy use by building type for all-
electric buildings. The pie pieces are
sized according to total energy use and
are labeled according to equipment
type. Certainly an office in Miami, FL,
will use more energy than the same
type of office in downtown San
Francisco. CA, so be sure to consider
heating and cooling variations in your
comparison.
Keep in mind that the values on pages
13 and 14 are averages. An "average''
business will typically have profitable
opportunities to lower its bills by 30
percent. A business using more than
the average amount of electricity
may have even better opportunities.
Even a business significantly below
the average can usually find potential
savings through measures that empha-
size the newest technologies (such as
ENERGY STAR office equipment).
To find the best upgrades for your
building and equipment, you will want
to identify the area of your highest
energy use. The best place to start is
to review your electric, natural gas,
fuel oil, and other energy bills for the
past year. Select your highest bill. Is
it highest in the summer? This could
indicate high air-conditioning costs.
Is it highest in the winter? If you
currently have electric resistance heat,
you may save money by converting to
natural gas or fuel oil. Are your electric
bills higher in spring and fall than in
summer and winter? Simple modifica-
tions to your heating and cooling
systems may provide excellent savings.
Many times you will discover that your
peak electricity use occurs during a
time of year when rates are highest.
In addition, your electric bills may
have a demand charge component,
which is a charge based on your peak
rate of electricity use. These factors
make it especially important to select
energy-efficiency upgrades that will
lower your energy use when the
utility's rates are at their highest or
when your facility's demand is at
its peak.
SMALL BUSINESS
ENERGY STAR® Partners
hove reduced their build-
ings' energy costs by an
average of about 30
percent
Midnight
Noon
Midnight
If you are charged a "demand charge" on your electric bill, you pay a fee based on your
peak rate of electricity consumption. Lowering your peak rate of usage can save big.
ENERGY STAR® Small Business Guide I I
-------
Getting the job Done .
kWh/month
How Efficient Are You?
Use this worksheet to compute your electric energy intensity.
I. Look through a few of your electric bills, (A)
including winter, spring, fall, and summer
months if possible. Write the average
kilowatt-hour (kWh) per month on line (A).
2. Multiply (A) by 12 to compute your (B)
approximate annual electricity use.
Write this number on line (B).
3. On line (C), write down the size of your (C)
facility in square feet.
4. Calculate your electric energy (D)
intensity by dividing (B) by (C) to get
the overall kWh per square foot per year.
Write this number on line (D).
5. Compare the number on line (D) with the results
of similar businesses around the country (your
competitors) so you can find out where you
stand in relation to your peers. See the pie charts
on the next two pages.
The electric energy intensity you just calculated does not include the fuel oil, natural gas, purchased
steam, or propane your business may use. If you would like to compare your total energy use and costs with
similar businesses in your climate region, see Average Energy Use and Costs Throughout the United
States on page 91.
kWh/year
square feet
kWh/sq.ft./year
Using Utility Bills To Forecast Upgrade Costs
You can use your current utility bills to estimate the total cost of upgrades that may be cost effective. EPA's
experience with energy-efficiency upgrades has shown upgrade savings to be between 10 and 50 percent of
existing utility bills. Because the typical upgrade costs three times what it saves in one year, you
can anticipate an upgrade budget of roughly 100 to 150 percent of your total annual utility bills.
For example, if your annual utility bill is $24,000 (for all fuels), it may be cost effective to
anticipate spending $24,000 to $36,000 on upgrading your equipment. (You can find
information on financing these upgrades starting on page 27.) This budget can be a good
reality check once you start getting prices from suppliers and contractors. Of course, you
may encounter savings higher or lower than this depending on your facility.
I 2 ENERGY STAR® Small Business Guide
-------
Getting the Job Done
Compare Your Business With the National Average
s
Your Business Type
Warehouse
Your Electric
Energy Intensity
(kWh/sq.ft./year)
Line (D)
from worksheet
on page 12
National Average
Electric Energy Intensity
(kWh/sq.ft./year)
How Your Electric
Energy Is Used
Lights 12%
Refrigeration 32%
Cooking 4%
Water Heating 2%
Miscellaneous 5%
Heating 22%
Cooling 16%
Ventilation 7%
School
Lodging
Retail
Office
Line (D)
from worksheet
on page 12
Line (D)
from worksheet
on page 12
Line (D)
from worksheet
on page 12
Line (D)
from worksheet
on page 12
9 Q
1 5,3
15.3
16.5
Lights 17%
Refrigeration 2%
Cooking 4%
Water Heating 8%
Lights 16%
Refrigeration 4%
Cooking 8%
Water Heating 14%
Lights 26%
Refrigeration 10'
Cooking 3%
Water Heating 4%
Lights 24%
Refrigeration
Cooking 2%
Water Heatin;
Miscellaneous 4%
Heating 40%
Cooling 19%
Ventilation 6%
Miscellaneous 5%
Heating 26%
Cooling 22%
Ventilation 5%
Miscellaneous 5%
Heating 19%
Cooling 27%
Ventilation 6%
•Miscellaneous 10%
Heating 24%
Cooling 24%
Ventilation I I %
ENERGY STAR® Small Business Guide I 3
-------
Getting the Job Done.
Compare Your Business With the National Averages (continued)
Your Business Type Your Electric
Energy Intensity
(kWh/sq.ft./year)
College Line (D)
National Average How Your Electric
Electric Energy Intensity Energy Is Used
(kWh/sq.ft./year)
18.6 L
1 Miscellaneous 3%
^ Heating 26%
from worksheet
on page 12
Cooking 7%
Health
Line (D)
from worksheet
on page 12
22.3
Restaurant
Line (D)
from worksheet
on page 12
43.4
Grocery
Line (D)
from worksheet
on page 12
52.5
Cooking 21 %
Water Heating I I %
Water Heating
Miscellaneous
Line (D)
from worksheet
on page 12
12.3
Lights 13%
Refrigeration 20%
Cooking 3%
; Water Heating 4%
Cooling 18%
Ventilation 6%
Miscellaneous 6%
Heating 26%
Cooling 25%
Ventilation 10%
Miscellaneous 5%
Heating I 1%
Cooling
18%
Ventilation 5%
Miscellaneous 5%
Heating 26%
Ventilation 5%
Miscellaneous 5%
Heating 29%
Note: Pie charts reflect proportions for typical all-electric buildings.
Data aggregated from the Electric Power Research Institute's COMMEND User's Manual, U.S. DOE's Commercial Building Energy
Consumption Survey, and Aspen Systems Corporation research data.
14 ENERGY STAR® Small Business Guide
-------
Getting the Job Done
Selecting a Contractor
SMALL BUSINESS
0
nee you have identified projects
that will optimize your facility's
energy-related costs, you face
the challenge of selecting
contractors to perform the work.
Your selection of contractors and other
energy professionals will have a strong
bearing on the success of your up-
grade program. Some contractors may
recommend upgrades that are less than
optimum due to either a hidden sales
agenda or limited experience with
other technologies. If you have a
question about a contractor's recom-
mendations, the ENERGY STAR hotline
(1-888-STAR YES) is an excellent
source for unbiased information.
Resources Through ENERGY
STAR® Small Business
Selecting contractors and other profes-
sionals who are ENERGY STAR Buildings
Allies will help ensure that your job will
be performed in accordance with the
latest energy-efficiency technologies. A
list of participants can be obtained by
calling the EPA ENERGY STAR hotline at
1-888-STAR YES. Or see the Ally Services
and Products (ASAP) Directory available
on-line through the ENERGY STAR Web site
(www.epa.gov/energystar.html), where
you can search for ENERGY STAR Buildings
Allies by type of service, specific pro-
duct, or location. The directory even
contains direct links to many Allies.
EPA sponsors regional workshops for
ENERGY STAR Partners that provide an
opportunity for Partners to learn how
to get upgrades clone or to network
and exchange information on what
has worked at their facilities.
Solicit Competitive Bids
For larger projects, an ENERGY STAR
Small Business should issue a request
for proposal (REP) to get competitive
bids that are all based on the same
scope of work. Although this may
seem like a costly process up front,
it could save you a lot of money on
design and construction costs in the
long run. For smaller projects, it may
not be cost effective to go through the
RFP procedure; therefore, you'll need
to rely more heavily on the interview
and reference portions of this exercise
(see page 17). The break-even point
for issuing an RFP depends on project
size, complexity, and whether in-house
personnel are sufficiently skilled to
prepare the RFP document. At the very
least, you should get multiple bids on
any large job.
The RFP structure depends on howr
much background work has already
been completed on the project. If no
preliminary work has been done on
project development or design, a small
business will need a more complete
menu of services than might otherwise
be the case. The RFP invites interested
parties to visit the site and conduct
initial audits of the facilities to identify
potential projects. Based on these
initial audits, the contractors may
submit details of projects that they
have identified, including estimates
of energy savings and cost savings
and a description of other benefits.
EPA sponsors national
workshops for ENERGY
STAR® Partners to learn
how to get upgrades done
or to network and ex-
change information on
what works.
ENERGY STAR® Small Business Guide I 5
-------
Getting the job Done
A critical step in the
success of a building
upgrade project is the
evaluation of proposals.
If a facility's energy audit identifies
energy savings opportunities, the
potential bidders can be provided with
a copy of the completed audit. These
contractors can then base their propos-
als on the information provided or
propose modified or alternative
solutions that are more cost effective.
If a design has been completed on
a specific energy measure, a small
business can provide potential bidders
with a set of the design drawings from
which they can develop their installa-
tion cost proposal.
Evaluation of proposals is a critical
step in the success of a building up-
grade project. To compare proposals,
especially those that contain different
energy-saving strategies or specified
equipment, a basic knowledge of the
technologies is required. If this exper-
tise is not available within a small
business, an outside source such as
an ENERGY STAR Buildings Ally or an
engineering consultant should be part
of the selection process.
The following guidelines will assist
you in selecting the best contractors for
your job regardless of whether or not
you issue an REP.
Moving Your Projects Along
Projects will require a different mix of professionals depending on job size, your in-house capabilities, and
whether you choose to contract with an Energy Services Company (ESCO).
Small Projects
Identify Opportunities
- ENERGY STAR Buildings Ally
- Energy Auditor
- Utility Survey
- Engineering Consultants
Interview Contractors
- Lighting Contractors
- Mechanical Contractors
- Electrical Contractors
- Other
Select Contractors and
Perform Work
Issuing a Request
for Proposal
(RFP)
Identify Opportunities
- ENERGY STAR Buildings Ally
- Energy Auditor
- Utility Survey
- Engineering Consultants
Create RFP for Work
- Consultants
- In-house
Invite Bids From Contractors
1
Award Contract
Oversee Work
- In-house
- Consultants
Using an
Energy Services
Company
(ESCO)
Interview Energy
Services Companies
i
'
Multiple ESCOs Identify 1
Opportunities and 1
Submit Proposals |
'
'
Review Proposals 1
and Select Measures 1
i
Select ESCO To Install
Desired Measures
i
r
ESCO Oversees Design I
and Implementation I
16 ENERGY SmrP Small Business Guide
-------
Getting the Job Done
•, unr-: .-K; f O*'*,
Contractors will he eager to discuss
their capabilities and experience with
you. Ask if they have worked on
projects similar to yours. Discuss the
type of work relationship that they
like to establish. Get information on
the complete scope of services avail-
able, including project management.
consulting, verifying the work of
others, operations and maintenance,
arranging financing, filing utility rebate
documentation, and so forth. Request
information on the number and
experience of the engineers that would
be assigned to your project and check
to see if they are affiliated with the
relevant professional societies. Ask
contractors if they received any awards
or had their work featured in maga-
zines or journals.
Check References
Obtain the phone numbers of three
businesses where the contractors
have performed work similar to your
project. Call these businesses and
ask if they are pleased with the
contractor's work and how the con-
tractor responded to any problems
that occurred over the course of the
project. Local contractors that have
been in business in your community
for a long time have a stake in their
good reputation.
Manage Contractors
Detailed coordination while the project
is under way will minimize the incon-
venience to your staff while allowing
the contractor to perform a profitable,
high-quality installation. Regular
meetings with you, your contractor,
and other relevant personnel are
essential. Well-defined project stages
combined with interim payments will
serve as a mechanism of dialogue
during the project. For example,
10 percent of the project cost can be
due upon presentation and acceptance
of the design drawings, 70 percent can
be due as the work progresses, and
the final 20 percent can be due after
performance verification and staff
training.
Settle Difficulties
Don't pay your final bill until you're
satisfied with the work, and remember
that as a consumer you have every
right to satisfactory service. For big air-
conditioning jobs, a revisit to tune up
the system is not unusual. Reputable
contractors often will make the extra
effort to ensure that you're a satisfied
customer.
In the unlikely event that serious
problems do arise, consider binding
arbitration. Binding arbitration has
become common among the building
trades because it offers fast resolution
with little of the expense or unrespon-
siveness of the legal system. We
recommend that you consider specifi-
cally citing the use of binding arbitra-
tion in your contracts.
Detailed coordination
during the project mini-
mizes the inconvenience to
your staff and allows the
contractor to perform a
profitable, high-quality
installation.
ENERGY STAR® Small Bus/ness Guide I 7
-------
-------
Profiting From Energy
Savings as a Tenant
Getting the Job Done
SMALL BUSINESS
Whether the cost of utilities is
hilled directly to you by the
utility companies or is in-
cluded in the rent, all tenants
ultimately pay to keep the building
comfortable and well lit. Tenants
are often disinclined to invest in the
building itself, however, because
they don't own the premises. This
section describes strategies for reduc-
ing energy and rent costs for the
70 percent of small businesses that
don't own their own space.
You Pay Your Utilities
Directly
If you pay your own utility bills
directly, any upgrade will be worth-
while if it meets your investment
criteria and pays for itself before you
expect to move. Because upgrades
typically increase the value of the
leased space, you may be able to get
your landlord to subsidize the upgrade
cost or decrease your monthly rent.
The latter possibility makes a good
energy-efficiency investment even
better, and you may wind up with
a better deal than if you owned
your space.
In some leasing arrangements where
the tenant pays the utility bills, the
landlord marks up the cost of utilities
with a handling fee of about 10 per-
cent. If so, your incentive to reduce
energy costs are higher than if you
own the building because you can
save even more.
Utility Costs Are Included
in Your Lease
If you don't pay your own utility bills
directly, ask your landlord if you can
get a $100 monthly rent reduction if
you install new lights that use $90 per
Case Study
A Home Office in Bethesda, MD
A consulting engineer in Bethesda, MD, used a rented house as
her office. When she first moved in, the house was cold and
drafty and had exorbitant utility bills. To improve working condi-
tions and save energy, she negotiated an arrangement with her
landlord. The consultant and her husband purchased and installed
attic insulation, new double-pane windows, top-quality indoor
shades, new doors, and a programmable thermostat. The landlord
reimbursed them for materials and also paid for their labor
at 50 percent of the market rate. The improvements saved the
consultant about $50 per month during the summer and winter
months and greatly increased comfort. Furthermore, the landlord
reduced the consultant's rent by 20 percent, or $200 per month,
for one year after the renovations to compensate her for her
efforts. The landlord benefited as well. He had a stable lease, and
once the consultant did move out, he sold the house in only three
weeks and made a profit of $75,000. An estimated $10,000 of that
profit was due to the recent renovations.
The Tenant
The Landlord
Costs
Time to install upgrades
$3, 1 1 5 materials
$840 labor
$2,400 rent reduction
Benefits
More comfort
$400/year lower gas
and electric bills
$2,400/year lower rent
$3, 1 35 tax deduction
$840 free labor
$10,000 capital appreciation
STAR® Small Business Guide 19
-------
Getting the fob Done .
Promoting your business
as an ENERGY STAR® Part-
ner can increase sales.
month less energy and increase the
property's market value. Your landlord
just might say yes. Alternatively, your
landlord might pay for the total cost of
upgrade projects if she or he believes
that the upgrades will extend the time
that you remain in the space. Remind
the landlord that capital improvements
are often tax deductible.
Focus on No-Cost or
Low-Cost Opportunities
Even given the rationale above, typical
tenants will not be interested in invest-
ing 520,000 in new windows for a
building owned by someone else
unless the investment is part of a larger
marketing "image makeover/' Tenants
are often best served by focusing on
measures that require little capital and
will help increase comfort. These
measures can save tenants a surprising
amount of money and are ideal for
businesses that rent their facilities.
No-Cost Options
• Turn up or turn back thermostats during unoccupied times (consider
installing a programmable thermostat; see page 72)
• Turn off lights and office equipment at night and over the weekend
• Take advantage of daylight
• Use e-mail instead of paper memos
• Disconnect unnecessary equipment such as unused freezers, water
heaters, and transformers
Low-Cost Options
• Caulk and weather-strip windows and doors
• Replace light bulbs with more efficient ones
• Install occupancy sensors in areas such as conference rooms and
storage rooms
• Install timers on electric water heaters or other equipment
• Install awnings or shades to keep out the summer sun and lower
air-conditioning costs
• Fix leaking faucets, showerheads, pipes, or toilets
Focus on Savings You Can
Take With You
ENERGY STAR office
equipment represents
a lasting investment in '
your business. If you buy an ENERGY
STAR computer, fax machine, copier, or
printer, the equipment stays with you
even if you move so that your savings
don't depend on the length of your
lease.
Marketing Adds Profits
Measures that may enhance your
business, such as improving the light-
ing in key merchandise areas, are
excellent opportunities. Promoting
your business as an ENERGY STAR
Partner may increase sales.
EPA proudly supports small business
Partners and provides no-cost market-
ing to you. We offer posters for your
display windows, present annual
awards to Partners, and publicly
celebrate Partner accomplishments as
good community citizens. Our small
business Web site even has hypertext
links so that ENERGY STAR site visitors
from all over the wrorld can jump
straight to your home page! Together.
these efforts can give your business a
large and positive presence in your
community. This can increase sales,
and increased sales help tenants and
owners equally.
ReferYour Landlord to Us
Landlords can also benefit from
participation in the ENERGY STAR Small
Business program or the ENERGY STAR
Buildings program. Have your landlord
call the ENERGY STAR toll-free hotline at
1-888-STAR YES to discuss materials
and programs specifically designed
for property managers.
20 ENERGY STAR® Small Business Guide
-------
Getting the job Done
Verifying Savings
SM/kLL BUSINESS
You can't see energy, so it can
he hard to tell if an upgrade is
a success. As a small business
owner, you want to make sure
that the money you invest in imple-
menting energy-efficiency measures
provides the anticipated savings on
your utility hills. This section describes
the features of successful programs and
highlights principles you can apply to
quantify savings.
Compare Before and
After Utility Bills
Bill comparison provides you with a
technique to quantify your savings
after implementation of energy-efficient
measures. Because so many different
factors affect bills, this approach is
most revealing when you have imple-
mented major projects that should save
you more than 10 percent. Simply add
up your energy bills for the year prior
to implementation of the measures and
for the year after project completion.
Subtract the 12 months of "after" from
the 12 months of "before" and you will
have your gross cost savings.
You will need to adjust the gross
savings depending on differences in
behavior and changes in energy prices
and weather during the two years. For
example, if your business expanded
20 percent over the course of the two
years, then it is likely that your energy
use increased as well. Take this into
consideration. Many utility bills will
include a statement about the number
of "heating degree clays" that occurred
during the billing period. Bill analysis
should take into account yearly varia-
tions in weather. For example, during a
very mild winter, your heating system
might not be running at full capacity;
therefore, energy savings associated
with the heating system might not be
obvious.
Spot Metering
Spot metering is particularly applicable
for lighting upgrades. Ask your lighting
contractor to turn on all the old lights
that are to be replaced and then
measure the current leaving the circuit
breaker and leading to the fixtures for
at least one circuit. After the upgrade is
complete, measure the current for that
same circuit. Then perform the follow-
ing calculations:
1. Subtract the lower post-upgrade
current from the higher pre-
upgrade current.
Bill comparison lets you
quantify your savings after
you implement energy-
efficient measures.
The Keys to a Successful Program
Your chances of truly lowering your costs will increase if you:
• Focus your upgrade projects on the areas of highest energy use for
the facility.
• Focus on proven energy-efficiency technologies.
* Meter before and after the job is complete.
• "Commission" the project; that is, inspect and verify proper installation and
operation.
• Use ENERGY STAR Buildings Allies.
• Use internal or hired staff that have a track record of success.
• Hire a top-quality contractor.
ENERGY STAR® Small Business Guide 2 I
-------
Getting the job Done
To ensure the soundness
of the project, measure
the financial performance
of your investment in
energy-efficiency
technologies.
2. Multiply the change in current
by the voltage to get watts saved
on the circuit.
3. Divide watts saved by the number
of upgraded fixtures to get watts
saved per fixture.
4. Compare the watts saved per
fixture to your expectations and
the supplier's quote.
Insist that the current measurement be
done in your presence. This exercise
will take less than 10 minutes and will
give you a lot more confidence in the
success of the project.
Extended Metering
Although installing additional meters to
directly measure energy consumption
is usually beyond the scope of energy-
efficiency projects, innovative strategies
may provide some of this information.
For example, timers are installed on
some equipment to facilitate scheduled
maintenance. These timers can be re-
corded to verify the performance of
energy savings measures that result in
reduced equipment operation hours.
Some programmable thermostats are
equipped with simple functions that
estimate the hours of heating or
cooling use; these could be used
to test the effectiveness of insulation
measures. Likewise, many Energy
Management Systems (EMSs) contain
sophisticated features for analysis of
building energy use that can be used
to verify predicted savings.
Benefits Beyond the Meter
Measuring the financial performance
of your investment in energy-efficiency
technologies is important to ensure the
soundness of the project. The benefits
of increased comfort and improved
productivity may multiply your savings
even though these benefits are typi-
cally difficult to measure. The favor-
able comments by employees and
customers can offer an indication of
the magnitude of this effect.
22 ENERGY STAR® Small Business Guide
-------
Getting the Job Done
The ENERGY STAR
Small Business Program
SMALL BUSINESS
ENERGY S'IAR is voluntary and
easy, and it will help you save
money. We're here to help
commercial and industrial energy
users apply cost-effective and proven
energy-efficiency technologies. Small
businesses like yours will not only save
money, they will also help lay the
foundation for a cleaner planet for
future generations.
The family of EXERGY STAR programs,
encompassing buildings, homes, office
equipment, appliances, and many
other areas, aims to reduce pollution
and protect our environment through
application of energy-efficiency
technologies. Making homes, busi-
nesses, and industry more energy
efficient reduces the amount of pollu-
tion released into the atmosphere
because utilities don't need to generate
as much electricity. That means they
aren't burning as much fossil fuel, and
that in turn means they aren't releasing
pollutants into the atmosphere.
What Happens If You Quit
the Program or Fail To
Honor Your Agreement
With EPA?
The only negative impacts are that
your business will continue to pay
more than necessary for energy and
your pollution prevention contribution
will be missed. Otherwise, there are
no penalties. EPA wants to help you
succeed in saving money and prevent-
ing pollution, and as long as you are
willing, we will work with you to
make it happen. Your business may
reap the rewards of lower costs, higher
productivity and sales, anct improved
profitability.
Pollution Prevented
Through Energy Savings
For each kilowatt-hour (kWh) that
you save through the application of
energy-efficiency technologies, you
are reducing the emissions of carbon
dioxide (CO2), sulfur dioxide (SO,),
and nitrogen oxides (NO ) by the
amounts shown in your region (see
page 24). Excessive carbon dioxide
emission is a primary cause of global
climate change; sulfur dioxide is a key
constituent of acid rain; and nitrogen
oxide is responsible for smog. You will
save money and help the environment
at the same time, and your customers
will appreciate your efforts.
Pollution prevention varies around the
country because electric utilities use
a variety of fuels and types of power
plants to generate your electricity. In
the Pacific Northwest, •where hydro-
electric dams are prevalent, emissions
rates are comparatively low. The
environmental impact can be just as
high, however, because of salmon
migration disruption and other issues.
In other regions the mix of "clean"
coal, "dirty" coal, natural gas, nuclear
power, and renewable sources such as
wind turbine farms affects emission
rates.
An exciting prospect for the deregu-
lated future is the marketing of "green
pricing" by electric utilities. Already
pilot-tested in parts of California, green
pricing allows customers to specify
that they want their electricity to be
EPA wonts to help you
succeed in saving money
and preventing pollution,
and as long as you are
willing, we'll help you
make it happen.
ENERGY STAR and
Green Lights
Program Results
Through Spring
1997
• 4.6 billion pounds of
pollution prevented
• $356 million in energy
savings
Equivalent to
• Taking 326,389 cars off
the road
• Planting 643,836 acres
of trees
ENERGY STAR® Small Business Guide 23
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Getting the Job Done
Map of pollution prevented per 1,000 kWh saved.
EPA Pollution
Emission
Region
1
2
3
4
5
6
7
8
9
10
Carbon Dioxide
(C02)
pounds/year
1,100
1,200
1,600
1,500
1,800
1,700
2,000
2,200
1,000
100
Sulfur Dioxide
(S02)
pounds/year
8.8
7.5
7.1
15.2
22.9
4.9
7.7
7.3
2.4
I.I
Nitrogen Oxides
(N0x)
pounds/year
3.1
2.9
5.5
5.5
7.7
5.5
8.6
7.1
3.3
0.7
generated from renewable sources (so-
lar or wind) or from particularly clean-
burning power plants. In exchange the
customer pays a slight premium for this
higher grade of power. Look for green
power in the future.
Home Offices
The growth of the Internet, telecom-
muting, and decentralized sales forces
has triggered a huge increase in the
number of home offices. If you're
looking for a new home office, consider
the benefits of ENERGY STAR homes.
ENERGY STAR homes use 30 percent less
energy than required by the national
Model Energy Code and have other
health and comfort advantages. (See
page 19 for an example of upgrades
made to an existing home office.) Call
1-888-STAR YES or visit the Web site at
www.epa.gov/appdstar/homes/ for
more information.
Summary
Your commitment as an ENERGY STAR
Small Business demonstrates consider-
ation for our shared environment and
determination to address the vexing
problems of global climate change,
pollution, and resource depletion.
We would like to thank you for doing
your part to pass a healthy and grow-
ing planet on to future generations
while improving your business'
bottom line.
24 ENERGY STAR® Small Business Guide
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SMALL BUS!
Technica
Support
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Technical Support
Financial Analysis
Straight to Your
Bottom Line
The savings from your energy
bills go straight to improving
your profits. The National
Restaurant Association reports
that the average restaurant typically
spends approximately two percent
of its revenue on energy. Approxi-
mately four percent of revenue he-
comes profit. So if a business owner
reduces energy costs by 25 percent
(from 2 percent to 1.5 percent), total
bottom-line profit increases from
4 percent to 4.5 percent of revenue.
This increase in profit is the same as
a 12.5 percent increase in sales!
Use the worksheet on this page to
calculate the sales increases required
to match the value of your savings
opportunities.
Indirect Financial Benefits
In addition, the total return on your
project includes these financial compo-
nents that are quite real if indirect:
Enhanced employee productivity. Due
to enhanced comfort and improved
lighting conditions, the productivity of
your staff may increase.
Operations and maintenance savings.
Many energy-efficiency technologies
significantly reduce your operations
and maintenance requirements, saving
money and staff time.
Increased customer comfort. Building
upgrades will improve your facility's
appearance, make your products look
their best, and help your customers
enjoy their visit. This can increase
sales.
SMALL BUSINESS
Increased asset value. Efficient busi-
nesses have higher market values than
wasteful ones. Studies on home sales
show an Sll increase in sales price for
every SI decrease in annual energy
costs. Studies on businesses show a 3-
percent increase in stock value after
energy upgrades are announced.
The market recognizes the business
benefits of energy-efficient operation.
Protection from energy inflation. By
performing energy-saving upgrades,
you are replacing the monthly expense
of your energy bills with the fixed cost
Savings from your energy
b/7/s may directly improve
your profits.
What Is Energy Worth to You?
I. You've got a great energy savings idea. How much
will it save per year?
2. Enter your pretax profit as a percentage of sales:
3. Divide A by B:
(A)$
(B) percent
(Q
Line (C) shows your equivalent annual increase in sales once your savings have
paid for the cost of the measure. The table below will help you quickly look up
the equivalent sales amount.
Equivalent Annual Increase in Sales
Annual Cost
Savings for
the Measure
$10
$100
$1,000
$10,000
$100,000
Profit as a Percentage of Sales
2%
$500
$5,000
$50,000
$500,000
$5,000,000
5%
$200
$2,000
$20,000
$200,000
$2,000,000
10%
$100
$1,000
$10,000
$100,000
$1,000,000
20%
$50
$500
$5,000
$50,000
$500,000
ENERGY STAR® Small Business Guide 27
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Technical Support
Case Study
The manager of a small restaurant in St. Louis installed new lights
and roof insulation. The total project cost $600 and saved approx-
imately the same amount in a year. The business' overall profit
margin was five percent profit against revenue.
• Because energy cost savings went straight to the bottom line,
the measures contributed $600 to the business' pretax profit
after the first year ended.
• The savings were worth the equivalent of $12,000 in additional
sales. For the manager, cost reductions of $600 were easier to
achieve than increasing sales by $12,000.
Simple Payback: A Typical / Marginal
Busing Ranking Combine with other work
7+ years
*s Satisfactory Investment M
^X_. Af
4-7 years [^
/Good Investment /I v
n/ Q
Ja v
fs
1
to
u
M/ M
1.5 -4 years IT £
/i >*.
Excellent Investment A °
Implement immediately / U £
0-1. 5 years if ^
Simple payback is the
number of years it takes
to recover the cost of the
energy upgrade from the
energy savings.
of the capital improvements. Lower
energy use will always result in lower
cost—more so if energy prices rise.
Marketing benefits. Your participation
in the ENERGY STAR Small Business
program communicates your commit-
ment to environmental stewardship.
This message differentiates your
business from those of your
competitors.
i Your exact mix of indirect benefits will
j vary by business type and upgrades
i performed. For many projects, these
indirect benefits will be worth several
times the money you save in energy
alone.
But Is It Really Worth the
Time and Money?
Once you are convinced that energy-
efficiency investments make financial
sense in general, you still have to
evaluate individual upgrades to decide
which to pursue. The two most
common evaluation tools are simple
payback and internal rate of return
(IRR).
Simple payback. Simple payback is
the number of years it takes to recover
the cost of the energy upgrade from
the energy savings. A simple payback
under four years indicates a worth-
while project. Measures with simple
payback times of less than 1.5 years
are excellent opportunities and should
be implemented immediately.
Example of a Simple Payback Calcula-
tion.- Your utility gives you a free
energy assessment and tells you that
if you replace 20, 100-watt incandes-
cent bulbs used 24 hours a day in
your stairways with 30-watt compact
fluorescent bulbs (30 watts each) you'll
save $980 per year. The upgrade will
cost you $400.
Your simple payback is $400 -5- $980 =
0.4 years, or just under 5 months.
Many businesses use simple payback
to make financial decisions. The only
significant shortcoming of the simple
payback concept is that it doesn't take
into account the expected life of the
upgrade. For example, if the compact
fluorescent lamps described above
lasted only as long as incandescent
lamps, they would burn out in less
than three months. Fortunately,
compact fluorescent lamps last 8
to 10 times longer, so you might
want your analysis to take that into
account.
28 ENERGY STAR® Small Bus/ness Guide
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Technics/ Support
Compare Your Energy-Efficiency Investments to the Interest Rates You Can Get at a Bank
This table will tell you the Internal Rate of Return (IRR) if you have already calculated the simple payback.
Simple Payback
8 years
6 years
5 years
4 years
3 years
2.5 years
2 years
1 .5 years
1 year
0.5 years
0 years
0%
100%
1 year
0%
22%
62%
1 73%
2 years
0%
10%
23%
45%
84%
192%
3 years
0%
13%
22%
35%
55%
93%
197%
4 years
0%
8%
20%
29%
41%
60%
97%
199%
5 years
0%
5%
13%
24%
33%
45%
63%
98%
200%
6 years
0%
7%
12%
19%
29%
37%
48%
65%
100%
200%
8 years
4%
11%
15%
21%
31%
38%
49%
66%
100%
200%
1 0 years
Lifetime of new equipment or length of your planning horizon, whichever is shorter
Internal Rate of Return. Expressing
an upgrade in terms of IRR will help
you compare the financial results of
an upgrade against other investments.
(See the glossary for the definition of
IRR.) To calculate IRR you'll want to
use a computer spreadsheet program
or a financial calculator; you can use
the table on this page as a general
reference.
You can compare the IRR you calcu-
late with the interest rates available at
banks or through other investments.
A good rule of thumb is that projects
with IRRs above 20 percent are
excellent investments and should be
implemented.
Example of IRK: Converting your
warehouse heating system from
natural gas unit heaters to gas-fired
radiant heaters will cost $6,000 and
save $1,500 a year, which is a simple
payback of four years. You can
calculate the IRR for this investment as
21 percent (using a 10-year planning
horizon), which makes it a very good
financial option. Compare this with
bank interest rates or other invest-
ments you might make (even including
other ways to improve your business
such as marketing or staff training) to
decide whether to do this upgrade.
Where Can I Learn More?
Call the toll-free ENERGY STAR hotline
at 1-888-STAR YES and ask for the
brochures listed below:
Introducing Your Company's Newest
Profit Center, EPA 430-R-97-004. This
is an introduction to the concept that
energy upgrades are financial invest-
ments just like other business uses of
capital.
Business A nalysisfor Energy-Efficiencv
Investments, EPA 430-B-97-002. This
brochure describes in more detail the
business-analysis approach you can
use to decide if a particular upgrade or
set of upgrades makes sense to invest.
Financing Your Energy-Efficiency
Upgrade, EPA 430-B-97-003. This
brochure describes the many financial
and accounting aspects of upgrade
projects in great detail. Use this
information to finance your projects
with the best impact on your balance
sheet, cash flow, taxes, and ultimate
return.
Upgrades should generally
be implemented if the IRR
is above 20 percent.
STAR® Small Business Guide 29
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Technical Support
Prioritizing Your Projects
•w y se the ENERGY STAR five-stage
I concept to help organize a
I strategy for putting potential
^X upgrades on a timeline. Each
stage of the program builds upon
the accomplishments of the previous
stages to maximize potential energy
savings, minimize investment require-
ments, and improve comfort and
profitability for your business.
Stage One: Lighting
Many retailers and offices spend half
of their electric bills on lighting, so it
makes sense to address lighting first
to reduce your energy costs. Efficient
lighting pays for itself quickly. Lighting
upgrades such as installation of
compact fluorescent lamps and light-
emitting diode (LED) exit signs are
relatively simple to implement and
can reliably deliver the expected cost
savings. Upgrade your lighting before
changing your heating or cooling
systems because increasing your
lighting efficiency lowers your air-
conditioning requirements. In the
winter, heating your building with
your lights is expensive because new
lights operate much cooler than
old lights. Use your heating system
instead. Five years of ENERGY STAR
experience show that successful
lighting upgrades provide Partners
with dramatic savings and positive
reinforcement for pursuing further
projects. Lighting upgrades often
improve lighting quality, which can
boost worker productivity and en-
hance the appearance of your mer-
chandise. For all of these reasons, we
recommend you start with lighting as
your first upgrade area.
Stage Two: Building
Tune-Up
Bring your building back to its original
design performance by addressing
operations; maintenance, and small
repairs. You can do many tune-up
activities yourself, such as cleaning
equipment and replacing filters. Other
tune-up measures, such as adjusting
your furnace or repairing malfunction-
ing controls, will require the services
of contractors. Stage Two upgrades
improve occupant comfort and indoor
air quality, and the upgrades are no-
cost or low-cost strategies that lay the
foundation for further savings in later
stages.
Stage Three: Load
Reduction
Load reduction strategies reduce the
amount of heating, cooling, or electric-
ity use through low-cost measures that
are easy to implement. Reducing the
amount of heated or cooled air that
escapes from your building through
cracks in windows or ducts will reduce
your heating and cooling costs.
Window films, shades, and awnings
will reduce heat gain in the summer.
Or you can take advantage of land-
scaping measures such as adding trees
and vines to block direct sunlight.
You can take simple steps to ensure
that lights and office equipment are
not left on by accident. And select
ENERGY STAR-labeled new equipment
to guarantee the best future savings.
SMALL BUSINESS
Each stage of the program
builds upon the previous
stages to maximize
potential energy savings,
minimize investment
requirements, and improve
comfort and profitability.
ENERGY STAR® Small Business Guide 3 I
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Technical Support
Stage Four: Heating and
Cooling Distribution
System
In this stage, you should evaluate the
efficiency of the fans and pumps
associated with the heating, ventilating,
and air-conditioning (HVAC) systems
in your building. Upgrades to your
distribution system will save energy
while improving occupant comfort.
Stage Five: Heating and
Cooling Plant
By implementing Stages One through
Four, you will reduce the overall
heating and cooling requirements in
your facility and will now be able to
afford smaller and more efficient
heating and cooling units. Because
replacing heating or cooling equipment
requires the largest commitment of
capital, we recommend that you
implement these replacements last.
This is the stage when all your previ-
ous hard work and commitment will
pay off.
The five-stage concept is illustrated in
the chart on this page.
Where Can I Learn More?
If you would like more information
on the technical aspects of the ENERGY
STAR five-stage approach to building
improvements, call 1-888-STAR YES
and ask for the free ENERGY STAR
Buildings Manual.
Stage Five:
Heating and
Cooling Plant
• Reduce size after
Stages 1—4 upgrades
• Offers maintenance
advantages
• High savings potential,
but large investment
Stage One:
Lighting
• Fast payback
• Improves comfort
• Reduces cooling costs
Stage Two:
Building Tune-Up
• Low-cost measures
• Operations and maintenance
• Reduces heating and cooling costs
Stage Four:
Heating and Cooling
Distribution System
• Resize the system to meet
new loads
• Install advanced controls
StageThree:
Load Reduction
• ENERGY SiAR-labeled
office equipment
• Windows, window films,
awnings
• Cracks sealed
• Water heater insulation
32 ENERGY STAR® Small Bus/ness Cuide
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Technical Support
Lighting Part I: Concepts
SMALL BUSINESS
Approximately 75 percent of all
small business energy upgrades
are related to lighting. Because
lighting upgrades are so popular,
we have included this special section
on lighting concepts. If you have time
to read it, you can he an informed
shopper when it comes time to listen
to contractor upgrade proposals or
even to find your own lighting im-
provement opportunities. If you don't
have the time, aren't interested in the
background science, or just want to
focus on action, go straight to the next
section, Lighting Part II: Upgrades.
We introduce specific suggestions on
how to improve your lighting by up-
grading your fixtures.
Whether displaying your merchandise,
illuminating your factory, or providing
security for your parking lot, lighting is
one utility that you as a small business
owner cannot do without. The amount
and quality of the light can significantly
affect the performance of your employ-
ees. At the same time, light also forms
a significant part of your electric bill.
Fortunately, modern technology makes
it possible for many businesses to
improve lighting quality while reducing
costs. This section first reviews how to
determine the "right" amount of light
for your business, discusses lighting
quality issues such as color and glare,
and then introduces the different types
of lighting technologies in use.
Light Levels
When everyone worked with pencils,
paper, and typewriters, architects made
sure that working environments had an
abundance of light everywhere. Now-
thai so many office environments
require the use of computers, ideal
light levels and configurations are
different and often lower than in the
past. This means you may have the
opportunity to reduce your lighting
costs and improve your working
environment at the same time. Since
removing lamps often requires nothing
more than getting on a ladder and
pulling out the lamps, the cost can be
negligible and you can start saving
money immediately.
Although employee preferences play a
large role in optimizing light levels, the
Illuminating Engineering Society (IBS)
provides recommended light levels for
different activities as shown in the
graph on this page.
Compare your light levels to
recommended levels. In order to
compare your lighting to recom-
mended levels, you need to know
your own existing light levels. Call
your lighting contractor and ask them
to take the measurements for you.
Proper light levels and light
quality can measurably
increase sales and
productivity.
Recommended Light Levels For
Selected Activities
Graphics Studio
Kitchen,Work Bench,
Handwriting, Cutting
Conference Room,
Cashier, Reading
Auditorium Seating,
Halls, Restrooms
Restaurant Dining,
Social Hall, Storage
Public Areas, Dark
Surroundings
10 20 30 40 SO 60 70 80 90 100 110 120
Recommended Overall Ambient Light Levels (in footcandles)
ENERGY STAR® Small Business Guide 33
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Technical Support
Task lighting focuses extra
light just where you need it
and can reduce glare and
eye strain.
Deep-cell parabolic fixtures
are great for offices with
computers because they
reduce reflections in the
monitors.
Alternatively, you may want to con-
sider buying your own light meter.
They cost about $125 and are available
from lighting supplier catalogs. If
buying your own meter, be sure to
have a lighting expert train you before
you use it. Windows, reflections, and
shadows will distort your readings if
you're not careful.
Just try it. You don't have to bother
with all those technical criteria.
Remove a couple of lamps for a
couple of clays, and if you like the
new arrangement, stick with it.
Consider task lighting. Just because
you want bright light at the cash
register doesn't mean you need the
whole room lit up to that level. See
if you can reduce light levels in some
areas and focus light only where you
need it. This is called ''task-ambient
lighting." This type of lighting design
provides a blanket of lower level
"ambient" light for orientation around
large objects together with small
fixtures shining on the "task." The
current IBS recommendations for
computer use, for example, are 25
footcanclles ambient, with a task or
desk light providing 75 footcandles
at the work surface.
Experiment with daylighting. Turn
off lights near windows during day-
time hours; you can do this manually,
with a time clock or with special
"daylighting" sensors made just for
this purpose.
Light Quality
Isn't it frustrating to stare at your
computer screen and constantly find
yourself looking at the reflection of a
ceiling fixture? Have you seen a fellow-
employee tape cardboard around the
monitor? Does the light in the restroom
make your face look pasty and less
attractive than you know you looked
at home this morning? It's not that
work is bad tor your looks. All light is
not the same. It turns out that these
and other problems are lighting flaws
that can often be overcome when you
install more efficient lighting. Let's
consider solutions to the problems
one by one.
Solution 1: Task-ambient lighting.
Your problem may be fixture location.
Moving the monitor is one solution,
certainly, but a solution that more and
more interior designers recommend is
a combination of background ambient
and task lighting. Designers generally
agree that spot lighting gives a pleas-
ant ambiance, but it can cost more
to install because it recjuires more
fixtures. Because the overall amount
of light produced is lower with a mix
of background and spot lighting, the
arrangement uses less electricity. The
extra fixture investment can pay for
itself quickly in savings on your
electric bills. Happier employees can
be worth even more.
Solution 2: Upgrade fixtures. Many
older fluorescent fixtures use a pris-
matic plastic lens (see the glossary
in Section 3) to scatter light around
the room. This was great before the
computer age because it helped
ensure that all areas were evenly lit,
but lenses can create bright spots in
your field of view. Now that comput-
ers are used everywhere, the preferred
solution is often to use fixtures with
parabolic louvers (see page 87) that
direct light where you need it while
lowering glare. If you're considering
an upgrade in a room with computers,
definitely ask your designer or contrac-
tor about switching to fixtures with
louvers.
Solution 3: Improve color. All lamps
distort color compared to true sunlight.
but some lamps are better than others
at simulating sunlight. This property
of lighting is called color rendition.
Lamps that render close to true color
34 ENERGY STAR® Small Bus/ness Guide
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Technical Support
have a color-rendering index (CRI)
between 85 and 100. A CRI of 50 is
very poor. If you upgrade to T-8 lamps
from just about any type of T-12
lamps, your color will improve and
your product will look better. And
better looking merchandise is better
selling merchandise.
Different Kinds of Lights
Different types of lighting are available
for different applications, with a broad
range of lighting efficiencies and
varying degrees to which they distort
color. The efficiency of lighting (more
technically called efficacy) is measured
by the light output per unit of energy
use. Common incandescent lamps have
poor efficiencies, while fluorescent
lamps have much higher efficiencies.
See box on this page for illustrations
of the major lamp types.
Incandescent. Modern
incandescent lamps derive
from Thomas Edison's
work before the turn of the
century. They are inefficient
and usually have short lives
but produce a pleasant color
rendering similar to that of natural
sunlight.
Halogen. In the past five
years, halogens have
surged in popularity.
Halogen lamps are about
twice as efficient as regular incandes-
cent lamps and have longer lives.
Halogen spotlights focus light and add
a lot of pleasing ''sparkle." However,
they are relatively expensive to buy,
and they cost more to operate than all
types of lamps except incandescents.
Compact fluorescent.
Compact fluorescent lamps are
miniature versions of standard
fluorescent lamps and are
usually coated to make their
color more similar to that of
incandescent lamps. Compact
Types of Lighting
Lighting Technology
Incandescent
Halogen
Compact
Fluorescent
Tubular
Fluorescent
i
High-Intensity
Discharge (HID)
Low-Pressure
Sodium
ENERGY STAR® Small Business Guide 3 5
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Technical Support
Less than five percent of
the electricity consumed
by an incandescent lamp
is actually turned into
useful light.
fluorescents are 4 times as efficient as
incandescents and last 10 times as long
in many cases, so they too are growing
in popularity in the business world.
They are relatively expensive to buy.
Tubular fluorescent. The
ubiquitous fluorescent lamps
have a wide range of effi-
ciency but in general are
about four times as efficient
as incandescent lamps. They are cheap
to buy, last as long as 20,000 hours,
and are the staple for office lighting
throughout the country.
High-intensity discharge
(HID). This category of
lamp includes mercury
vapor, metal halide, and high-
pressure sodium. HID lamps
have traditionally been used
mostly in warehouses and
street lighting, but new research and
development have created a market
for lower power lamps for commercial
environments. HID lamps offer good
color, long life, inexpensive high
ceiling and security lighting, and new-
retail options.
Comparison of Lighting Efficiency
Least Efficient
Most Efficient
-
•&
Incandescent
Halogen
Compact
Fluorescent
Tube Fluorescent
Mercury Vapor
Metal Halide
High-Pressure Sodium
-White HPS
- Deluxe
- Standard
Low-Pressure Sodium
25 50 75 100 125
Efficiency (lumens per watt)
50
175
36 ENERGY STAR® Small Business Guide
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Case Study
Business Saves With the Right Light Levels
A growing software development firm in Portland, OR, signed a 10-year
lease to occupy a 30-year-old, 50,000-sq.ft. office building. The business
planned to renovate much of the space before moving in. Renovation
plans for each 10-ft. by 12-ft. office in the building included replacing a
pair of old, 4-lamp, 4-ft. fluorescent fixtures in each office with a pair of
new 4-lamp fixtures that had high-efficiency lamps and electronic ballasts.
Fortunately, the business asked its design consultant to check the light
levels before signing off on the remodel drawings. The consultant
checked and found that the existing light levels were about 75 foot-
candles (units of measure), when 50 footcandles would have been plenty.
So at no cost to the tenant, the designer changed the construction specifi-
cations to 3-lamp fixtures. There were 200 offices affected by this renova-
tion, meaning that the firm saved more than $15,000 in 10 years by asking
one simple question. That's a good deal.
Better Lighting Increases Sales and Productivity
New energy-efficient lighting can do more than just reduce your utility bills.
It can also add value by:
• Improving employee comfort and performance. Energy-efficient lighting generates less
localized heat than standard lighting, provides more pleasant color rendition, and helps
prevent people from getting headaches by reducing the amount of flicker from the
lights.Your employees will work better when their work environment is comfortable.
• Improving sales. Better color rendition means that your merchandise will look more
appealing. Much like Muzak in grocery stores, improved lighting will make customers
feel more comfortable, and they will choose to stay longer in your store.This leads to
more sales.
• Improving your business'image as an environmentally responsible partner in your community.
Your customers will appreciate your efforts to lower pollution and protect the Earth
for future generations.
ENERGY STAR® Small Bus/ness Guide 37
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Lighting Part II: Upgrades
What's your share of $17 billion?
That's the amount EPA esti-
mates commercial building
owners and tenants could
profitably save each year from lighting
upgrades.
In this section we will help you iden-
tify lighting fixtures and controls in
your own facility that can be replaced
and add profits to your bottom line
while keeping your investments a 3-
year simple payback or less. Many
ideas pay for themselves in less than
one year. Let's get started!
If you don't have time to read the
whole section, just take a quick look
at the next page, It's our Thrifty
Manager's High-Speed Do-It-Your-
self Lighting Assessment. Take a
look at the action list, and call your
lighting or electrical contractor if you
have any of the fixtures noted. It's
that easy.
The rest of this section expands on
the ideas in the High-Speed Lighting
Assessment and explores more com-
prehensive upgrades as well.
Remove Incandescent
Lamps
Replace these lamps with
anything else. Of the electric-
ity consumed by an incandes-
cent lamp, less than five
percent is actually turned
into useful light. Although
incandescent lamps are
appropriate for certain low-use areas
such as closets, in most commercial
applications incandescent lamps
should be replaced.
Incandescent Lamp
Replacement Options
Halogen
Compact
Fluorescent
To highlight your
product. Example of
application: retail
To keep the same
screw-in fixture.
Example of applica-
tion: hotel hallway
Tube For general
Fluorescent lighting.
Metal Halicle For white light in
high-ceiling areas.
Example of applica-
tion: warehouse
High- For use outside
Pressure or where color
Sodium doesn't matter.
Example of applica-
tion: outside security
LED For exit signs.
Note: "Energy Saver" incandescent
lamps aren't much more efficient than
regular incandescent lamps. They save
you money just by delivering less light.
Usually this is not the best solution.
Replace incandescent
lamps -with halogen
lamps. Flalogen lamps are
a type of incandescent
lamp that is about twice as efficient as
regular incandescent lamps. They last
two to four times longer than most
incandescent lamps, and they have
become increasingly popular in spot
lighting and other decorative applica-
tions. Halogen lamps are particularly
popular in jewelry and upscale retail
stores because they make gold and
gems really sparkle.
ENERGY STAR® Small Bus/ness Guide 39
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TheThrifty Manager's High-Speed Do-It-Yourself Lighting Assessment
Do you have any of the following?
EXISTING LAMPS
USED AT
LEAST
Incandescent lamps
Incandescent exit signs
6 hrs./day
24 hrs./day
Four or more fluorescent or
incandescent fixtures on a
single circuit
4 hrs./day more
than needed
Incandescent or mercury
vapor security lighting
10 hrs./day
Fluorescent lamps and ballasts
more than eight years old
I0hrs./day
If you do, here are some of your savings opportunities.
OLD
Incandescent
Incandescent exit
signs
Four or more fluorescent or
incandescent fixtures on a
single circuit
Incandescent or mercury
vapor security lighting
Fluorescent lamps and ballasts
more than eight years old
NEW
Compact fluorescent
LED exit signs
Occupancy sensor
Metal halide (white) or
sodium (light yellow)
T-8 lamp with
electronic ballasts
SAVE
($/yr/lamp)
$ 1 2 energy +
$3 O&M*
$22 energy +
$11 O&M*
$4 to $ 1 6 +
$4 O&M*
$40
$5
PAYBACK
IN LESS THAN
2 yrs.
3 yrs.
3 yrs.
4 yrs.
5 yrs.
J
' Operations and Maintenance
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Technical Support
As an upgrade, the combination of
better color, higher efficiency, and
better cone reflectors means that many
users can replace 150-watt floodlights
with 35- or 60-watt halogen lamps and
still get brighter, more focused light
that has better color rendition. The
most popular halogen lamps cost
about $7 (compared with $1 for
incandescent lamps), but they last four
times as long as incandescent lamps
and save about $25 in energy costs
over their lifetime. They are a good
deal even before you consider labor
costs and the fact that they help move
merchandise. The high operating
temperatures of halogen bulbs can be
a fire and personal safety hazard in
some applications, so ask for advice
when you first buy and install the
lamps.
Halogen lamp retrofits typically pay
for themselves in less than three years
in energy savings alone if the fixtures
are used at least two hours a day for
screw-in retrofits or if used at least
eight hours a day for fixture
replacements.
Replace incandescent lamps
•with compact fluorescent
lamps. Compact fluorescent
lamps are fluorescent lamps
that have been specifically
made in a compact form to
replace incandescent lamps in tradi-
tional screw-in fixtures. Compact
fluorescent technology has improved
recently, and the lamps currently
available in the marketplace are
brighter and have very good color
rendition properties. For example,
most modern hotels have installed
compact fluorescent lamps for corridor
lighting. The fixture pictured on this
page contains a compact fluorescent
lamp and costs less than $40. Compact
fluorescent fixtures with reflectors
provide an excellent substitute for
floodlamps.
The table below shows the equiva-
lency of compact fluorescent lamps to
incandescent lamps. You can replace
these yourself—most major hardware
stores stock compact fluorescent lamps
that screw right in place of incandes-
cent lamps and cost less than $20.
Utility rebates can reduce your cost
even further.
Replace incandescent
lamps with tubular
fluorescent lamps.
Fluorescent lamps are the
common tube lamps
found in almost every small business.
They are usually about three to four
times more efficient than incandescent
lamps and can last 8 to 20 times
longer. With newer fluorescent lamps,
you can also specify color correction
to avoid the pasty image traditionally
associated with fluorescent lamps.
Tubular fluorescent lamps have much
lower maintenance costs than incan-
descent or compact fluorescent lamps.
Would you believe this attractive
fixture is made specifically for
compact fluorescent lamps and
costs less than $40?
if You Have
Incandescent Lamps
25 watts
40 watts
60 watts
75 watts
1 00 watts
Replace Them With These
Compact Fluorescent Lamps
5 watts
7 watts
1 3 watts
22 watts
27 watts
Comparing Incandescent Lamps and Fluorescent Lamps
Lamp
Type
Incandescent
Fluorescent
Energy
Costs
Much Higher
Much Lower
First
Cost
Lower
Higher
Life
Shorter
Longer
Color
Good
Better to
Worse
Maintenance
Costs
Higher
Lower
ENERGY STAR® Small Bus/ness Guide 4 I
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Replace your incandescent lamps with
just about any variety of fluorescent
lamp and your lighting, energy,
operating, and maintenance costs
may decrease by about 75 percent.
Replace incandescent
exit signs with light-
emitting diode (LED)
exit signs. LED exit signs use light-
emitting diodes that provide exit
lighting and are commonly seen in
electronic devices such as clock radios.
You can buy an upgrade kit to convert
existing exit signs for $25 to $75 and
do it yourself, or you can purchase
Annual Operating Cost Per Exit Sign
o
U
00
2 15-watt
Incandescent
4-watt LED
Exit Sign Type
Tech Talk: Components of a Light Fixture
Housing/Reflector
Lamps
Lens/Louver
new fixtures and install them for less
than S100. Because the upgrade kits
don't require any wiring, they are
easier to install yourself than new
signs if there is room inside the panel
to install them. LED exit signs use
about five percent of the energy used
by incandescent exit signs and 20
percent of the energy used by compact
fluorescent exit signs. LED exit signs
also last 10 to 20 times longer.
The best LED exit signs on the market
today are produced by manufacturers
who follow EPA ENERGY STAR guidelines
for energy efficiency. Look for the
ENERGY STAR label when purchasing
your new exit sign.
Given their installation costs, their
lower maintenance costs, and low
energy costs, they generally pay for
themselves in one to three years. For
more information on ENERGY STAR
manufacturers you can visit our Web
site at www.epa.gov/exitsigns.
See the bar chart on this page for
annual operating costs for exit signs.
Upgrade Fluorescent
Lamps
Even within the generally
efficient category of
fluorescent lighting, you
can reduce your energy
use by more than 66
percent by changing from the worst
to the best type of fluorescent tubes.
Fluorescent lamps were introduced at
the World's Fair in New York City and
San Francisco in 1939. Surprisingly.
their designs changed little over the
years until recent breakthroughs that
have significantly improved their
efficiency and the quality of the light
they produce.
T-8 lamps and electronic ballasts.
T-8 lamps use their smaller diameters,
phosphors, and coating to improve
efficiency by about 10 percent
42 ENERGY STAR® Small Bus/ness Guide
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Technical Support
compared with standard T-12 lamps.
Electronic ballasts use about 30 per-
cent less energy than old magnetic
ballasts. Ballasts are devices that
provide the proper voltage and current
to fluorescent lamps, which don't
regulate themselves like incandescent
lamps. T-8 conversions cost $50 to
$100 per fixture, so you might wonder
if it is worth the trouble. The answer
depends on your local electricity costs
and how often you use the lights.
Generally if you use the lamps 60
r
ivng
hours per week or more the answer
is "yes" or at least "yes. it's worth
finding out more information.'' All you
need to do is ask your local lighting
contractor or electric utility company
to perform a detailed analysis for you.
This can usually be done free of
charge.
Other ideas. T-8 lamps and electronic
ballasts aren't your only solution.
Modest gains are achieved from 34-
watt ''energy saver" lamps. De-lamping
and/or reflectors can help also, as
discussed later in this section. Some
designers are switching from fluores-
cent tubes to lower power metal halide
fixtures for a more industrial look.
Consider the example scenario shown
at the bottom of this page. There are
four different retrofit options. None is
the single "right" answer. They are all
viable, cost-savings, quality-enhancing
ideas. Choosing between them is a
business and design decision.
Explore Your Options
A business has 20 4-lamp, 4-ft. fluorescent fixtures in an office area.They are on about 50 hours a week. The primary tasks of
most occupants require computer use. Recommended light level is between 50 and 75 footcandles.
Current Light Level 95 footcandles
Current Energy Use 9,984 kWh/year
Current Annual Energy Costs (at $0.08/kWh) $799
Upgrade options
Energy
savings
kWh/year
Cost
$
Annual
savings
$
Simple
payback
years
Light level Light quality
L
Option I: Install 34-watt"energy saver" lamps.
Light level is lowered to about 85 footcandles.
Option 2: Install four T-8 lamps and an electronic
ballast in each fixture. Light level remains the same.
Option 3: Install two T-8 lamps in each fixture,
with a specular reflector. Fixtures are
"tandem-wired" so two fixtures share a single
ballast. Light level becomes 55 footcandles.
Option 4: Install new deep-cell parabolic
fixtures with T-8 lamps and electronic ballasts.
Fixtures are "tandem-wired" and light level
becomes 55 footcandles.
1,664
3,744
$360 $133
$ 1,280 $300
6,916 $1,340 $553
6,916 $2,600 $553
2.7 Improved Slightly better
4.3 Still too high Much better
2.4 Ideal Much better
4.7 Ideal
Ideal
ENERGY STAR® Small Business Guide 43
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If you replace your outside
security incandescent
lamps with sodium lamps,
your costs may decrease
by 80 to 90 percent.
Install High-Intensity
Lamps
If you work in a warehouse
with high ceilings and clon't
have fluorescent lamps, you
probably use high-intensity
discharge (HID) lamps.
Mercury vapor lamps use
older technology and are
less efficient than other HID lamps,
although they do provide a white light.
Upgrade from mercury vapor. At
a bare minimum, you should replace
mercury vapor lamps with more effi-
cient metal halide lamps as the old
lamps burn out. Even if you need
to replace the ballast or the whole
fixture, it turns out to be economical
for almost everyone and no one can
even tell you're doing it. Metal halide
lamps render colors as well as mercury
vapor lamps. They come in a variety of
power outputs from 50 to 2,000 watts
and have long life. They also come
with a clear or coated bulb. The
coated bulb has the best color rendi-
tion property and can be used for
display lighting.
Use metal halide for retail. You've
probably seen metal halide lights
without even realizing it. Most of the
new "big box retail" stores are illumi-
nated using metal halides. They are
the bright white lights typically hung
from the ceiling girders at 20 to 30
feet. If you have high bay retail, switch
from fluorescent to metal halide for a
brighter look without increasing your
energy costs. Typical payback: five
years, less if it increases sales.
Also, manufacturers have recently
started selling small metal halide spot-
lights. The bright white light combined
with the narrow beam and sparkle can
make merchandise really stand out—
the benefits of halogen with lower
energy costs!
Use metal halide or high-pressure
sodium in warehouses. Choose
high-pressure sodium where light
quality is not critical and rock-bottom
energy use is the goal. Typical pay-
back based on 12-hour-per-day
warehouse use is about three years.
Use metal halide instead in high-
profile or color-sensitive areas or
areas where people need to perform
detailed work.
Install high-pressure sodium
lamps outside. High-pressure
sodium lamps are popular for
warehouse, outdoor, street,
and security lighting. They
come in a variety of power
outputs from 35 to 1,000 watts
and have about a 20,000-hour
life. Sodium lamps are the most effi-
cient lamps you can buy. Most of them
Existing: Five I SO-Watt PAR38 Incandescent
Flood Lights
(1740 lumens each)
Lamp cost
25%
Energy cost
60%
Replace With: Two 70-Watt High-Pressure
Sodium Wallpacks
(4630 lumens each)
Lamp cost
Energy cost
15%
Savings
74%
Labor cost
44 ENERGY STAR® Small Business Guide
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have a light yellow tint, but some of
the newer lamps have an attractive
white color rendition and can even he
used for display purposes. These new
lamps tend to fade from white after a
certain number of hours of use, so be
sure to discuss the issue with your
contractor prior to installation in
customer service areas.
Watch out for low-pressure sodium
lamps. They are efficient but very
yellow and usually not recommended.
Replace your outside security incandes-
cent lamps with sodium lamps and
your costs may decrease by between
80 and 90 percent. The typical payback
time is less than two years.
Remove Lamps
What could be a better deal than
getting savings with no up-front cost?
In many offices 2 lamps in a 4-lamp
fluorescent fixture may be removed
while still meeting recommended
lighting levels. People working on
computers will probably prefer the
lower level because it increases the
contrast on their monitors. You can
experiment to see if removing lamps
makes sense in your facility. Corridors
are also good places to start because
these areas often are overlit. Cost: $0.
Simple payback time: 0.0 years.
Lowering the number of lamps can also
be an excellent measure when com-
bined with installation of reflectors.
Reflectors are not for everyone. We've
found reflectors are best applied to
areas that start with about 50 percent
too much light and 4-lamp fluorescent
fixtures. If that sounds like your site,
remove half of the lamps and add
reflectors to meet your target amount
of light. Ask a lighting professional if
they would be applicable in your
facility.
Your electrician can quickly replace an existing wall switch with an
occupancy sensor. You'll save money because the sensor will turn the
lights off when the room is unoccupied.
Controls To Turn Lights Off
One easy way to save money and help
your lights last longer is to turn them
off when they are not needed. Occu-
pancy sensors detect people in a room
using ultrasonic or infrared sensors.
These sensors cost between $25 and
$80 and are an excellent choice for
bathrooms or conference rooms that
are likely to be unoccupied for large
portions of the day. Photocells are
designed to turn exterior lights on
automatically when it gets dark.
Energy-Savings Potential With
Occupancy Sensors
Application Energy Savings
Offices (private)
Offices (open spaces)
Rest rooms
Corridors
Storage areas
Meeting rooms
Conference rooms
Warehouses
25-50%
20-25%
30-75%
30-40%
45-65%
45-65%
45-65%
50-75%
Note: Figures listed represent maximum energy-savings potential under
optimum circumstances. Figures are based on manufacturer estimates.
Actual savings may vary.
Source: CEC/DOE/EPRI
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Motion sensors are suited to exterior
security lighting, loading dock areas,
and doorways. These sensors turn
lights on automatically when a person
is detected.
Automatic dimming systems that adjust
lamp output based on measured
sunlight are also starting to find
application.
Other Lighting Technologies
Your lighting needs may be suited to
other technologies involving advanced
controls or alternative lighting equip-
ment. Many fixtures can simply have
some of the lamps removed with
installation of reflectors. You may have
exterior lighting suited to installation of
low-pressure sodium fixtures, which
are efficient types of lighting used
when lighting quality is not important
at all. You can find out about these
and other technologies by calling
the toll-free ENERGY STAR hotline at
1-888-STAR YES.
Take the First Sceplov-s -i
Implementation
The following steps will help you
decide whether you should proceed
further with the lighting upgrade
project.
1. Do the simple lighting assessment
on page 40; or
Investigate and analyze other
opportunities. Call 1-888-STAR YES
for more information. Then, calcu-
late simple payback for the project.
(Refer to the box below.)
2. Call your local contractor or one
of EPA's ENERGY STAR Allies if your
simple payback is five years or less.
Remember, you won't save a dime
until the new hardware is installed.
Every day you wait, you lose money
that can never be recovered.
Where Can I Learn More?
For more information on EPA's ENERGY
STAR Small Business program, lighting
technologies, and lighting contractors,
call 1-888-STAR YES and ask for
technical information on the equip-
ment you are considering replacing.
How To Calculate Simple Payback j
!
The Short Version !
Simple Payback = Measure cost x 1000 -7 [(watts before - watts after) x hours/year x energy cost] :
Example: j
Payback = $400 measure cost x 1000 4 [(SOOw before - lOOwafter) x 6000 hrs/yr use x $0.08/kWh] = 2.1 years i
46 ENERGY STAR® Small Business Guide
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Case Study
Energy for the Kids at Sligo Adventist School
When Kenneth Gair, Plant Manager for the
Sligo Adventist School, talks about his involve-
ment with EPA's ENERGY STAR program, his face
lights up. He has good reasons to smile—his
facility received an ENERGY STAR'S Partner of
the Year award in 1995 for the work done to
upgrade the lighting system in the school.
Maybe his best reason to smile is that all the
wasted energy that went into inefficient lighting
systems now helps to power the school's new
computer lab!
The lighting system at Sligo was more than 30
years old and very inefficient. Gair decided to
upgrade the system by starting with the areas
that would give him the quickest payback. He
started with the hallways by replacing incan-
descent lamps with T-8 lamps and electronic
ballasts. This upgrade improved light levels and
certainly caught everyone's attention. People
were very happy with their new working
environment. He then moved on to the cafete-
ria and the gym. Both areas were lit with 300-
watt incandescent lamps, which he replaced
with metal halides. In the gym, for example, he
replaced 36 300-watt incandescent lamps with
10 400-watt metal halides. Mr. Gair also up-
graded outside lighting to high-pressure
sodium fixtures.
Classroom lighting was upgraded to T-8 lamps,
and electronic ballasts and sensors were added
to each room. The hardest part about installing
the sensors, Gair says, was fine-tuning the
sensitivity and the delay time of the sensor. At
first he got a few complaints from teachers and
students because the lights would typically go
off in the afternoon when teachers were alone
in their rooms. Gair was able to establish the
right delay time to have the classrooms lit
when needed and to ensure that the lights
would only be off when they were supposed
to be off.
Technical information for carrying out the
program came mostly from EPA's ENERGY STAR
program. Gair received a video explaining the
significance of sensors and how to choose the
right one for his application. He used passive
infrared sensors in the classrooms and ultrasonic
sensors for the restrooms.
Gair used several innovative ways to fund his
upgrades. He gained the support of the school's
Parent Teacher Council and used the money he
received to finance his first project. Then he
applied for rebates at his local utility. The money
from the rebate was then funneled back to the
next project, and so on. Gair was able to do most
of the work himself. He managed to get extra
labor at an affordable price by hiring high school
students from the neighboring school.
Now that Gair has completed the lighting stage
of the program (Stage One), he is looking into
window replacement (Stage Three) and heating
and cooling system upgrades (Stages Four and
Five). Although these will be more expensive
upgrades, the success of his early project will help
Gair show that energy efficiency really does pay.
When we asked about his next project, he happily
marched us to the schoolyard to show us an all-
recycled playground!
ENERGY STAR® Small Business Guide 47
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Building Tune-Up
SMALL BUSINESS
All cars should get tune-ups or an
oil change every few thousand
miles to keep them running
smoothly and to help them last
longer. When was the last time you
gave your building and equipment a
tune-up? You'll get the same kind of
savings with a building tune-up as you
would with an automobile tune-up—
modest savings at a low cost—and an
opportunity to extend the life of your
investment. Every once in a while you
can even get a boost in horsepower.
Check your timers and thermo-
stats. Did you adjust them for daylight
saving time? What about the last time
there was a power outage? Did your
weekly calendar compensate for last
Februaiy 29? Does the temperature
seem right? Most mechanical timers
won't correct for power outages.
Resetting them will improve comfort
and save you some money. Ask your
heating contractor to recalibrate your
thermostat the next time they visit.
Check your filters. Unless the filters
are inaccessible, you don't need to call
your heating and cooling contractor
out for an expensive visit just to make
sure you have clean filters. Check the
filters every month or two. Each dirty
$2 filter you replace will make your air
cleaner, work your fan less, and keep
the inside of the system cleaner so that
it operates more efficiently. Although
a new filter might only cost $2, each
dirty filter can cost you $5 a month in
extra energy consumption and can
decrease the life of your system.
Check your bills. Do you know how
much your electric bill is now com-
pared to a year earlier? Once or twice
a year, take time to look at and
compare your bills. Perhaps compare
them with your next door neighbor's
bills as well.
Replacing filters regularly is an easy way to get
high air quality, low energy use, and long life
for your heating and cooling equipment.
Case Study
Something To Dance About
During a periodic review, a dance studio manager in New York
City noticed that his total electric bill had gradually increased to
the point of doubling over the course of a year. He was now
paying about $500 per month instead of the $250 he used to pay.
His business hadn't changed and the rates looked about the same,
so he called the local utility for help. The utility company sent out
an energy auditor who performed a free assessment. The auditor
concluded that wiring inadvertently allowed the expanding
business next door to use the studio's power. That 5-minute
comparison and free assessment saved the studio $200 dollars
per month!
ENERGY STXR® Small Business Guide 49
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Office Equipment
There are a lot of mysterious
things about computers, but
energy use isn't one of them.
The computer that sits on your
desk may look innocent enough, but
it silently consumes $40 per year in
electricity. Although $40 isn't enough
money for you to justify throwing out
your old computer and buying a new
efficient one (there are plenty of other
reasons for you to do this), it is
enough money that you should
consider energy use when you shop
for a new computer.
Office equipment is the fastest grow-
ing electrical load in the business
world. Unfortunately, computers,
faxes, printers, and copiers waste
energy when they remain on and idle.
To reduce this waste of energy and the
pollution associated with it, manufac-
turers of just about every major brand
of office equipment have partnered
with EPA to introduce ENERGY STAR-
labeled machines that will automati-
cally power down when not in use.
The chart on this page shows the
typical savings you may achieve if
you buy ENERGY STAR-labeled office
equipment instead of its inefficient
equivalents.
It does add up. What would happen to
your profits if you could cut all of your
costs by 50 percent?
In addition to its direct energy con-
sumption, office equipment gives off
heat. Your air-conditioning unit must
work harder to remove this unwanted
heat. Introducing energy-efficient
office equipment provides the added
benefit of lowering utility bills due to
reduced air-conditioning loads. This is
Stage Three of the ENERGY STAR pro-
SMALL BUSINESS
Energy-efficient office
equipment may lower
utility bills due to reduced
air-conditioning loads.
gram. Some of the savings will be
given back in the winter.
Here's the kicker: You don't have
to spend anything extra to get this
savings. You also don't have to sacri-
fice any performance, and payback
time is 0.0 years. Your choices remain
virtually the same as before because
so many major manufacturers have
chosen to join ENERGY STAR. Just specify
ENERGY STAR products or look for the
logo on display models. EPA offers a
number of informational fact sheets
and brochures on ENERGY STAR office
equipment and maintains a detailed
list of qualified products that is up-
dated monthly. For more information,
call the ENERGY STAR hotline at
1-888-STAR YES or visit the Web site
at www.epa.gov/smallbiz.
i Don't Want To Wait
To Save
Modify user behavior so that it in-
cludes turning off computers, printers,
and copiers at night, over the week-
end, and even when the equipment is
fypical Savings If You Buy ENERGY STAR-Labeled
Office Equipment
Office Equipment
Computer
Fax Machine
Printer
Copier (Medium)
Copier (Large)
Annual ENERGY STAR-
Labeled Office Equipment
Cost Savings
$19
$13
$39
$57
$130
Percentage of
Total Operating
Cost
49%
52%
65%
57%
58%
ENERGY STAR® Small Business Guide 5 I
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not being used for a considerable
amount of time.
Consider networking your computers
to share printers so that fewer printers
remain idle during the clay.
Your computer may already have
energy saver software installed; if so,
make sure that it is enabled.
What You Will Save
Energy Cost Savings per Year
Savings at Different Electric
(kWh/yr) Rates ($/kWh)
$0.06 $0.08 $0.10
Percent
Savings
Save Now
Turn 24-hour equipment off at night so it runs only 9 hours
per day.
Savings per Computer 675 $41 $54 $68 61%
Savings per Large Copier 6,600 $396 $528 $660 56%
Save Later
Replace older 24-hour equipment with new ENERGY STAR
equipment that is used 9 hours per day.
Savings per Computer 795 $48 $64 $80 72%
Savings per Large Copier 8,910 $535 $713 $891 75%
How Does It Work?
The following facts on ENERGY STAR
office equipment will help you to be
a better shopper and decisionmaker
when buying and operating new
equipment.
Computers. ENERGY SiAK-labeled
computers automatically power down
to 30 watts or less when not in use
and are available from almost every
manufacturer. To optimize your ENERGY
StAR-labeled computer, make sure
that the power management feature is
enabled and that you have set it to
the shortest acceptable time for your
operation. Laptops use less energy
than desktops.
Monitors. These are among the
biggest savers. When not in use,
ENERGY S'lAR-labeled monitors automati-
cally power clown to 30 watts or less.
If you are going to implement a screen
saver, make sure you select one that is
compatible with the monitor's power
management feature. Most screen
savers available in the market actually
prevent the monitor from going into
sleep mode. Furthermore, turning
monitors off at night and during the
Make the Right Call. This 20-computer telemarketing center uses a lot of energy
for computers and cooling. ENERGY SrAR®-labeled computers would cut the center's
annual electric bills by about $500.
52 ENERGY STAR® Small Bus/ness Guide
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Technical Support
weekend is a practice that will provide
you dual benefits. It not only reduces
energy costs hut in fact extends the life
of the units by preserving the phos-
phorus substance that screen savers
were designed to save. Finally, when
buying a new monitor, consider the
size of the unit as part of your pur-
chasing criteria. Large monitors use
more energy, so buy the smallest
monitor that suits your operation.
Printers. ENFKGV StAR-labeled printers
that go into sleep mode when not in
use save you energy and money.
ENERGY SiAR-labeled printers that have
double-sided printing capabilities also
reduce your paper costs. Networking
one printer for several users is one of
the best strategies you can implement
to reduce energy consumption and
save your business money. Not only
will you benefit from reducing your
energy costs, but you will also lower
your capital expenditures by purchas-
ing fewer printers.
Facsimile Machines. Because fax
machines remain on 24 hours a day,
they hold huge energy savings poten-
tial—up to 50 percent. EM-:RGY STAR-
labeled fax machines save energy in
two ways. They go into sleep mode
after being idle for a set period of
time, and they sean double-sided
pages. You will not miss any faxes if
the fax machine goes into sleep mode.
Copiers. ENERGY SxAK-labeled copiers
are equipped with a feature that allows
them to automatically turn off after a
period of inactivity, which reduces
their annual electricity costs by more
than 60 percent. There are also several
strategies that you can implement
regardless of the type of copier you
operate. You can purchase a correctly
sized copier, use the 1- to 2-sided
copy option to ensure that the du-
plexing feature is being used, and
run copies in batches to decrease the
time your copier spends in the high-
powered mode.
Networking one printer for
several users can reduce
energy consumption and
save your business money.
ENERGY STAR® Small Business Guide S3
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Paper
SMALL BUSINESS
You may not think of your paper
use as an area to save energy.
but it is. Paper producers in
this country buy more than
$3.5 billion of energy each year. In
fact, every $5 ream of paper you avoid
using eliminates about $0.34 worth of
energy production and related emis-
sions by a paper mill, not to mention
the energy spent to harvest and ship
the trees and to ship the paper to
your desk. In this section, we review
simple steps to optimize your use of
this valuable resource. You will save
money, reduce waste, and protect our
nation's forests so they can be enjoyed
by generations to come.
Recycled papers and other products
are rated by their "post-consumer
content" and "total recycled content."
These percentages are usually in very
small print on the paper packages.
"Post-consumer content" is the more
important factor and refers to fibers
that have been used and are then
collected through recycling programs.
"Total recycled content" refers to the
total nonvirgin content of the paper,
including production scraps and post-
consumer fibers. Paper does not have
to be conspicuously labeled "environ-
mentally friendly" to have a high
recycled content, so a little research
can identify some real bargains.
Paper can have a high
recycled content even if
it is not conspicuously
labeled "environmentally
friendly."
Double-Sided Copying
Copy machines often have the capabil-
ity to automatically copy on both sides
of a piece of paper. Selecting 2-sided
copying for long documents, articles,
or drafts can instantly reduce your
paper use without adding any associ-
ated inconvenience. For more informa-
tion, see the chart on this page.
Recycled Paper
Many paper products currently contain
some recycled content. Recycling
allows fibers to be reused in the
production cycle so that fewrer trees
are required to provide the same
amount of paper. Cardboard and
newsprint may contain as much as
75 percent recycled content, while
standard copy paper often has less
than 5 percent recycled content.
Selecting papers with high recycled
content can be the simplest way you
can help preserve our forests.
Double-Sided Copying Makes Great EJusiness
Sense Because It:
• Reduces the amount and cost of paper used.
« Lowers mailing costs because the paper amount and weight
are reduced.
» Produces less paper output, which takes up less storage space
in offices.
« Often has a more professional appearance.
» Reduces the environmental impacts of paper throughout the
paper production process; therefore, fewer trees are harvested,
there are lower chemical and energy inputs during pulping, and
transportation and storage costs are reduced.
* Shows a business' commitment to environmental protection.
Andrew Duncan, Greening of the Campus Conference Proceedings. Ball State
University, Indiana. 1996. Page 162.
ENERGY STAR® Small Business Guide 55
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Energy for Paper Production and Use
Production
Printing
using
laser
printer
Printing
using
ink-jet
printer
Conserving paper is an important step in saving energy, lowering pollution, and
ensuring the long-term health of our forests.
Recycling
Many municipalities sponsor programs
to collect paper and fiber products
such as corrugated cardboard; paper-
board (cereal boxes); white, colored.
or glossy paper; newsprint; and books
bound with glue. Collecting and
returning your used paper to a recy-
cling center will return that fiber for
reuse and may reduce your waste
disposal costs. If you are a large user
of one or more of these products, you
can set up your own collection pro-
gram with a local salvage company.
You will be paid by the ton for the
materials that you collect, and you will
save from reduced disposal costs.
Be sure to include a statement such as
"Printed on 50 percent recycled paper
containing 20 percent post-consumer
waste" on printed materials to highlight
your company's commitment to the
environment.
There are also creative ways that
companies are reducing their paper
use and streamlining their operations.
Some items that are routinely issued as
memos to all employees can simply be
posted on area bulletin boards. And
instead of making a copy for each
person, you can circulate many doc-
uments using a routing tag containing
the names of relevant personnel. An
employee checks off his or her name
and passes the material to the next
person on the list.
Many businesses have revolutionized
their operations through corporate
e-mail and local area networks (LANs).
In addition to greatly improving inter-
nal communication and facilitating
team projects, these tools can signifi-
cantly reduce paper use by replacing
memos, time sheets, forms, and draft
documents.
56 ENERGY STAR® Small Business Guide
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Water Heaters and
Water Use
Most small businesses use
hot water even if only for
employee hand washing.
Restaurants, hotels, and other
businesses that use hot water for large
purposes such as dishwashing and
doing laundry can spend 25 percent
or more of their total energy bill on
hot water. Fortunately there are many
low-cost, easy-to-apply methods for
reducing your hot water costs.
Water Heaters
Turn off your water heater. Al-
though this may seem obvious, it
really is a great idea. Buy a 7-day
thermostat (you can get one for about
$30) to turn off your electric water
heater at night and on weekends and
to turn it back on one hour before
your business starts up in the morning.
If you have a big water heater, you
can get even more aggressive and turn
it off an hour or two before quitting
time. The already-heated water will be
sufficient for late-day needs. You'll
save anywhere from $10 to $50 per
year with a water heater timer.
Along the same lines, consider shutting
off a dedicated water heater that is
rarely used and turning it on only
when it is needed.
If you use a circulating pump, be sure
that it is shut off when the facility is
unoccupied. Again, a timer will help
you remember. Circulating pumps
increase heat loss through pipes that
circulate hot water. A 1/8 horsepower
pump that is turned off for 2,000 hours
per year will save you S25 in pump
energy alone.
Lower the thermostat setting. The
hotter the water temperature, the faster
you lose energy through the pipes and
water heater tank walls. Therefore,
lower the thermostat to provide hot
water at the lowest acceptable tem-
perature. Some tasks, such as doing
laundry or washing dishes, and some
businesses, such as health care facili-
ties, require higher water temperatures
than others. These temperatures may
be set by state and local codes. A
small office with an electric water
heater that is used only for hand-
washing purposes would save about
$10 per year if the setting is changed
from 130 degrees to 120 degrees at
no cost. See the chart on page 58 for
some recommended hot water
temperatures.
If one task, such as laundry, requires
significantly higher temperatures than
other tasks, it may be more efficient to
reconfigure your piping to include a
blending valve. (The hottest water
should be piped directly from the
heater to the high-temperature task;
the water for the remaining tasks
should branch off and pass through a
blending valve, which mixes in cold
SMALL BUSINESS
The hotter the water
temperature, the quicker
you can lose energy
through the pipes and
water heater tank walls.
Summary
To optimize energy use of your water heater:
* Minimize hot water use.
* Provide hot water at the lowest temperature that
is acceptable for the task.
# Insulate the tank and pipes.
* Obtain hot water from the most efficient
sources.
« Perform periodic maintenance procedures.
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Typical Recommended Hot Water Temperatures
Process
Temperature
(degrees Fahrenheit)
Hand Washing
Showers
Laundry *
Dishwasher Rinse **
105
110
160
180-195
* Check code requirements.
** Many dishwashers have booster heaters. Check with the manufacturer to determine
minimum temperature requirements.
Before you buy a new
water heater, consult the
EnergyGuide label so that
you select an efficient
model.
water to reduce the water temperature
for the other tasks.) Alternatively, you
may wish to install separate heaters for
high-temperature and low-temperature
tasks or to provide booster heaters
for high-temperature tasks. Some
machines provide their own booster-
heating mechanisms.
Insulate your tank. To reduce heat
losses in your hot water system, make
sure that your hot water storage tank
and the hot water pipes connected to
it are insulated. Few hot water tanks
are totally uninsulated nowadays.
Move your water heater. If you are
remodeling, take the opportunity to
relocate your water heater as close as
possible to the main point of water
consumption. This will reduce heat
loss from the pipes.
Buy a new water heater. If you buy
a new water heater, be sure to consult
the EnergyGuide label on the appli-
ance so that you select an efficient
model. Consider using a heat pump
water heater, particularly in situations
where the simultaneous cooling it
would provide would be useful. A
relatively new and more efficient
technology, heat pump water heaters
remove heat from the surrounding air
and transfer it to the water. Because
these water heaters also cool and
dehumidify the surrounding air, they
are particularly beneficial in warm,
humid areas such as kitchens and
laundry rooms. Another excellent
alternative is tankless, instantaneous,
on-demand water heaters, which are
quite popular in Europe. They are
growing in popularity here, too,
especially in areas where relatively
small amounts of hot water are used
on occasion. Tankless water heaters
eliminate tank losses and are great for
office buildings that only have sinks.
Tankless water heaters typically supply
up to two gallons per minute of hot
water, about the same as required for
a shower and more than enough for
most office sinks. One catch is that
they may require heavier wiring, so
check with your contractor before
making a decision.
Or, don't buy a new water heater.
Consider turning your standard water
off except for emergencies and using
"free" waste heat recovery to meet
some of your water heating needs.
Waste heat sources include laundry
or dishwashing rinse water, steam
condensate lines, and refrigeration
equipment.
Maintenance
To maximize savings and keep your
hot water system operating efficiently,
you should perform periodic mainte-
nance procedures. Storage-type water
heater tanks should be flushed out
about annually to remove sediments
that reduce system efficiency. (Flush-
ing involves opening the drain valve at
the bottom of the tank and drawing off
water until the water runs clear. Follow
your manufacturer's instructions. In
areas with high mineral content in the
water, you may need to do this more
often.) The burners of gas- or oil-fired
water heaters should be tested and
adjusted annually to make sure that
the fuel is being burned as efficiently
as possible. In addition, it is good
practice to periodically flush your fix-
tures with very hot water to control
bacteria growth.
58 ENERGY STAR® Small Business Guide
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Solar Water Heating
You really can't do any better than
solar energy for energy savings and for
the environment. Solar water heaters
are simple devices that capture the
sun's energy to heat water for ordinary
use. They are often piped directly into
systems with conventional water
heaters, lowering your energy costs
while still providing hot water on
overcast days. Solar water heaters are
extremely cost effective for heating
swimming pools, where other types of
heating can be very expensive.
Solar water heating is an established
technology used throughout the world.
In California, solar systems are the
only type of pool water heating
allowed by many local codes. Even the
pool built for the Atlanta Olympics is
heated with a solar system, though this
was a unique, showcase system. While
you may think of the large number of
units in sunny areas like Florida or
California, you may be surprised that
even in the rainy areas of the Pacific
Northwest, solar water heaters can pay
for themselves in less than 10 years.
Check with your local utility, your
state energy office, and your tax
preparer to find out about incentives
or tax benefits that apply to solar
energy systems. You can get more
information, locate a solar installer,
or find a supplier for a do-it-yourself
system by contacting the American
Solar Energy Society at (303) 443-3130
(Well site: www.sni.net/solar/).
Water Use
You may wonder why an energy
manual is discussing water use.
Certainly within your own facility it
costs money to heat the water. But the
water company also spends a lot of
money on energy to pump and purify
the water it delivers to you. So a
portion of your water bill is actually an
energy bill. The same logic holds true
for sewage treatment. If you have a
business such as a restaurant, bakery,
food-processing plant, hotel, nursing
home, or laundry and your business
uses large amounts of water, you will
benefit even more from water use
optimization.
Like everything else, savings from
water measures can vary. You can save
on the cost of the water, you can save
on sewage, and you can also save on
energy costs for pumping or heating
processes. Because savings come from
so many sources, water reduction
upgrades are frequently profitable.
Efficient showerheads and faucet
aerators are inexpensive devices (they
generally cost between $2 and $20)
that screw into existing pipe fittings to
help reduce water consumption. These
devices reduce the amount of water
used in common daily tasks. If your
business is a hotel, motel, or restau-
rant, you can use these devices to
significantly reduce your water-heating
bills as well as your water bills.
By repairing a seal that leaks a drop
of electrically heated hot water every
five seconds, you can save about 400
gallons erf water, 85 kilowatt-hours
(kWhs) of electricity, 125 pounds of
carbon dioxide, and S10 per year.
Solar water heaters use
the sun's energy to heat
water and can help you
lower your energy costs.
Installing an aerator on a faucet takes just 10 minutes and costs less than
$10. Aerators save on water use and water heating costs, even though the
flow from the faucet appears to be the same.
ENERGY STAR® Small Business Guide 59
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Case Study
Water Heater Tune-Up
Consider the case of an office manager of a 2,000-sq.ft. office
building who discovered a leak in the pipes from a 40-gallon
electric water heater. While repairing the leak, she decided to
install an insulated blanket wrap around the water heater to
prevent additional heat loss. The cost of the installation, the
insulation, and the repair was approximately $40. By setting the
water heater thermostat to a setpoint of 120 degrees Fahrenheit,
the office manager saved $35 per year and had a 1-year payback.
That extra $35 goes to business profit year after year.
Repairing a seal that leaks
a drop of electrically
heated hot water every
five seconds can save you
about 400 gallons of
water, 85 kilowatt-hours of
electricity, 125 pounds of
carbon dioxide, and $ 10
per year.
Automatic controls such as valves or
springs with sensors that turn faucets
off can also help save water. The
spring-loaded valves will automatically
turn the water off when the user
releases the handle. Photocell-
equipped sensors are gaining popular-
ity in controlling water use in rest-
rooms. Almost all major airports have
installed them due to their high inten-
sity of use and because luggage and
other articles tend to tie up travelers'
hands. These sensors detect motion
and shut the water off after the
user leaves.
The amount of water used when flush-
ing toilets can be drastically reduced
without compromising efficacy by
using new-design, low-volume toilet
fittings. These fittings can reduce the
amount of water used per flush by
about 66 percent by using improved
water flow characteristics. High-quality,
pressurized, low-volume toilets tend
to cost about $200 more than gravity
toilets, but they are worth the premium
if the toilets will be flushed more than
20 times per day.
New washing machines with a hori-
zontal axis design use much less
water than the older types of washing
machines. The new machines can help
save water as well as reduce water
heating costs for laundries, hotels, and
nursing homes. They can also reduce
the amount of detergent that is used
for washing the same amount of
clothes. The newer design machines
occupy less space and do not produce
as much heat as the older design
washing machines, which use much
more hot water; thus, your rent and
air-conditioning requirements can
also be reduced. New machines also
remove more water from the laundry
during the spin cycle, thereby greatly
reducing drying time and energy use.
Xeriscaping and Gray Water
Wouldn't you rather be having fun in
the summer instead of taking care of
the landscaping around your facility?
Xeriscaping (xer means "dry," from
Greek) is the technique of utilizing
native, hardy, low-maintenance plants
for landscaping. Xeriscaping can save
you money on your water and mainte-
nance costs. And because native plants
cope better with your particular soil,
climate, and insects, they require fewer
pesticides and less fertilizer (something
your 4-legged neighbors and feathered
friends will appreciate). If you enter
•'xeriscape'' into your Internet search
engine, you will find dozens of
Web sites offering information and
programs.
60 ENERGY STAR* Small Business Guide
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Water from sinks or washing machines
that may contain soap but is otherwise
still clean is called ''gray water." Many
drought-prone areas of the country
have encouraged use of this gray
water for landscaping purposes. St.
Petersburg, FL, has even installed a
city-wide system that provides re-
claimed water for 7,000 homes and
businesses. Other cities clo not permit
reuse of gray water at all because of
water quality concerns. For more
information on promotional programs
or restrictions on gray water use, call
your local building permits office
or check out the EPA Web site at
www.epa.gov.
If your business is involved in any
type of manufacturing or processing
that uses water, you should consider
reusing the waste water in some other
process where your water quality
requirements are not as stringent. For
example, a growing microbrewery in
Portland, OR, implemented an upgrade
in 1992 that allows it to use its extra
processing water for washdown. The
plumbing was tricky, but the upgrade
was ultimately veiy low in cost and
saved a lot of natural gas.
Where Can I Learn More?
If you want more information on smart
water heating, the Gas Manufacturers
Association (GMA) publishes a Con-
sumers ' Directoty of Certified Efficiency
Ratings for electric, gas, and propane
water heaters.
We also recommend:
• Central Maine Power (for informa-
tion about heat pump water heat-
ers): www.cmpco.com/customers/
focus_sheets/
• Indoor Water Efficiency Spreadsheet
(contains information on calculating
energy savings): http://
solstice.crest.org/environment/
gotwh/general/indoor-water/
index.html
• Iowa Energy Center (for information
about buying, installing, and
upgrading hot water systems):
www. energy, iastate.edu/
homeseries/bookl
• Water Wiser, The Water Efficiency
Clearinghouse (for information on
water efficiency and conservation):
1-800-559-9855;
www. waterwiser. org
* Wisconsin Energy Bureau (for
general information on water
heaters plus a compilation of the
GMA ratings): www.doa.state.wi.us/
deir/
Bus/nesses involved in any
type of manufacturing or
processing that uses water
should consider reusing the
waste water in some other
processes where water
quality requirements are
not as stringent.
ENERGY STAR® Small Bus/ness Guide 6 I
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Refrigeration
Refrigeration equipment is one
of the highest energy users in
the eompetitive, low-margin
supermarket, deli, and restaurant
businesses. Upgrades that reduce your
refrigeration costs can make your small
business more competitive with other
small businesses and with large busi-
nesses also.
One of the most exciting aspects of
refrigeration is that there have been
so many great developments over the
past 25 years to make systems more
efficient. The down side of all these
innovations is that they can be hard to
keep up with. Big chains have experts
with full-time responsibility for such
matters. You don't. So look for help.
If your equipment is more than 10
years old, call a local refrigeration case
supplier and request a checkup. You'll
be surprised at all the possibilities.
A typical new residential refrigerator
uses about 800 kilowatt-hours per year
and costs about $64 per year to run.
This is less than half what you'd pay for
the same size unit that is 20 years old.
No-Cost Action Items for
the Refrigeration Amateur
Keep the doors shut. Repeated
fluctuations in temperature will damage
your food quality and will cost you
money.
Check the temperature settings. If
your settings are lower than necessary,
chances are you are wasting energy.
The most common recommended
settings are between -14 degrees and
-8 degrees Fahrenheit for freezers and
between 35 degrees and 38 degrees
Fahrenheit for refrigerators.
Properly load your refrigerator.
Overloaded units disrupt air flow
patterns necessary to cool the products
efficiently, and they allow deterioration
to occur. On the other hand, under-
loaded units waste energy. If you have
several partially filled units, consoli-
date them.
Properly position refrigeration
units. Don't put your soda display
case right next to your deli bun
warmer or in direct sunlight. Your
refrigerator will have to work harder to
maintain the desired cool temperature.
Make sure that there is enough venti-
lation available for your refrigerator's
mechanical equipment. A 1-inch gap
on the sides and a 4-inch gap at the
back are recommended for refrigera-
tion units to allow the condenser and
fan to have access to a steady flow
of air.
Clean the cooling coils. Dirt accumu-
lation impairs proper heat transfer and
lowers the efficiency and capacity of
refrigerators.
Check the door seals. Tight seals and
properly closing doors prevent warm
air from entering the unit, which
reduces cooling energy and prevents
frost buildup. Use this rule of thumb:
If you can easily slide a dollar bill into
the seal, have the seal adjusted.
Performing each of the above activities
can save you between $5 and $25 per
year. These activities can also improve
your product quality and extend the
unit life. At no cost except a few
minutes of your time, these activities
are a bargain.
Shorten defrost cycles. This is
starting to get a bit technical. Fifteen
SMALL BUSINESS
A new residential-size
refrigerator with the
ENERGY STAR® logo is guar-
anteed to use 30 percent
less energy than required
by federal government
standards.
ENERGY STAR® Small Business Guide 63
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ENERGYG
Compare the Energy Use of this Refrigerator
with Others Before You Buy.
This Model Uses
776kWh/year
T
Energy use (kWh/year) range of all similar models
Uses Least
Energy
776
Uses Most
Energy
1467
Refrigerators using more energy cost
more to operate.This model's estimated
yearly operating cost is:
Use the EnergyGuide label to select efficient
residential-size refrigerators. (Also available
for other appliances.)
minutes an hour isn't perfect
for everyone or for every
season. If you're in a dry
climate or season, gradually
decrease your defrost cycle
time until you see hints of frost
buildup on the coils. Back the
setting up a bit, and you are
optimized. This procedure, like
others, can help extend the
unit life.
Refrigeration Capita!
Investments
Specify glass doors when
you buy new display cases.
They bring a modern look to
your store and keep cold air
where you want it (with the
food) and warm air on your
Refrigeration heat recov-
ery to water heaters or
spaces is almost standard
now in grocery stores with
substantial hot water
needs.
customers. If you can find a low-cost
contractor, upgrading your open display
cases by adding glass doors to them
will reduce your energy costs by as
much as 40 to 50 percent.
Request a humidistat instead of a
tinier to control the anti-sweat
heaters in large display cases. This
is similar to the defrost cycle idea
mentioned earlier, but it involves
automation.
Upgrade your "rack" system with a
floating head pressure system. These
pressure systems allow the compressor
to work less when it is cool outside,
and they consistently demonstrate
savings of 20 to 30 percent.
Heat recovery to water heaters or
spaces is almost standard now in
grocery stores that have large systems
with substantial hot water needs, such
as delicatessens. In most cases, you can
completely disconnect your old water
heater.
Order new units with efficient
lighting for new display cases. The
lower wattage lights will help you
reduce cooling costs by reducing the
work done by the compressor to cool
the heat generated by the lamp and
may improve the appearance of your
products.
If you are in the market for a
residential-type refrigerator, look for the
ENERGY STAR58 logo—your guarantee of
savings. And use the EnergyGuide label
to help you identify how a particular
model compares with others in the
market and what its annual operating
costs are. You can then base your
purchasing decisions on the price you
can afford to pay and the highest
efficiency available in that range.
Calculate the simple payback for
the cost premium to see how much
increased efficiency you should buy.
Specify high-efficiency evaporator
fans when buying new display cases.
At less than 1/10 horsepower, you
wouldn't think that these little fans are
a very big deal, but when considering
that a grocer may use a hundred of
them, it adds up. It is normally worth
paying the incremental price premium
when buying a new unit.
Purchase freezers and refrigerators
with Energy Efficiency Ratings (EERs)
ranging from seven to nine for
medium-temperature systems and
from five to six for low-temperature
systems.
A Note About CFCs
The major challenge that the refrigera-
tion industry has faced is the mandated
phaseout of chlorofluorocarbons (CFCs).
Until recently, many refrigerators used
CFC-based refrigerants. The foam
insulation built into older refrigerators
also contains CFCs. Because CFCs
deplete the ozone layer and contribute
to global warming, new refrigerants
have been developed to replace CFCs
and are currently available in new units
or as replacements for CFCs in old
units. Call the EPA Stratospheric Ozone
Hotline at 1-800-296-1996 for informa-
tion on converting your existing refrig-
erators or disposal methods.
64 ENERGY SWR® Small Bus/ness Guide
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Building Construction
The phrase "set in stone" is
frequently used to describe
things that cannot be changed
and must be accepted as a fact
of life. This may be how you view
your building's construction and the
way it affects your energy bill. Just
because your building is set on a firm
foundation doesn't mean that you can't
make some changes—large or small—
that can reduce the impact that your
building's exterior has on what you
pay to heat and cool it. What's more,
most of the changes you make to
reduce your energy costs will also
bring along improvements in comfort
and in your building's appearance.
Fortunately there are many small-scale
upgrades that you can make to your
building's envelope (the walls, roof,
and windows) that can make the
building cost less to heat and cool.
Unlike the equipment inside your
facility, simply changing a wall or a
roof just because the original equip-
ment isn't efficient enough isn't really
a feasible solution. Sometimes win-
dows of opportunity do occur to
upgrade your building's construction
at relatively little extra expense. For
example, roofs need to be replaced
periodically, and the additional
expense of adding insulation or
reflective coverings at that time can
be justified by the savings they will
provide. Similarly, energy-saving
window upgrades may be worthwhile
when your building's facade is being
remodeled to modernize its appear-
ance. In turn, when it is time to re-
place your heating or cooling system,
you may find that by investing some
money in wall or roof improvements,
you can reduce your building's heating
and cooling needs enough to reduce
the size and cost of the unit equipment
you need to buy. Alternatively, if your
current system can't quite heat or cool
enough on extreme temperature days
but is still new enough that you would
rather not replace it. you can make
building improvements to reduce your
heating and cooling loads enough to
allow your current system to meet
your needs.
Most of the upgrades that you can
make to your facility involve reducing
heat losses in winter, reducing heat
gains in summer, and reducing air
leakage throughout the year. The
particular envelope upgrades that
make the most sense for your building
depend on both the climate and the
layout of your facility. A business
owner in Phoenix, AZ, will be more
concerned about what the summer
sun is doing to his cooling bill than he
would be if his business were located
in Caribou, ME. Similarly, the business
owner with a 1-story building will
j'' L-Fc-J a crT
SMALL BUSINESS
You can reduce heat losses
in winter, reduce heat
gains in summer, and
reduce air leakage
throughout the year by
upgrading your facility.
Concentrate Efforts Where They Will
Do the Most Good
ENERGY STAR® Small Business Guide 65
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By replacing the existing windows with new 2-pane windows, this school improved
indoor comfort while reducing winter heating requirements.
Case Study
Envelope Modifications Provide "Cool" Savings in
Eastern North Carolina
A comfortable atmosphere in the classroom is essential to learning.
An elementary school in North Carolina was faced with unbearable
heat in the summer and erratic temperatures and drafts in the
winter; neither condition was conducive to learning. To help ease
the uncomfortable atmosphere, the administrators decided to
provide air conditioning by replacing the school's existing steam
heat system with fan coil heating and cooling units that had
individual room thermostats. They also replaced the single-pane
windows with double-pane windows and insulated panels. The
new windows, coupled with insulation added to the roof in an
improvement project a few years earlier, reduced the size of the
air-conditioning equipment needed, which resulted in a lower
installation cost. What was the result of this air-conditioning and
window replacement project? The school reduced its heating costs
that winter by nearly 35 percent. And the benefits from replacing
the windows were not limited to cost savings; the increased
comfort levels created by eliminating drafts and the newer, more
modern appearance of the school have boosted the teachers'
morale and the children's pride in their school.
Window R-Values*
Single Pane
Double Pane
Triple Pane
1.0
2.0
2.9
Decrease R-Values by at least 20 percent if
aluminum frames.
Increase R-Values by about 30 percent if low
emissivity.
* See page 69 for more information on R-Values.
probably be more concerned with roof
upgrades than a business owner with a
10-story building because the roof has
a much larger impact on the 1-story
building.
Windows
Windows are one of the most appeal-
ing parts of any building, providing its
"look" and, of course, the coveted
window offices. But windows are also
an area where a lot of your heating
and cooling costs can go literally out
the window. Windows typically have
low insulating levels, as anyone who
has sat next to a large, single-pane
window on a cold winter day can
attest. In addition, windows can also
allow a lot of unwanted summer heat
gain, especially if they're located on
the west or south side of the building.
In recent years, window manufacturers
have developed low-emissivity (low-E)
windows with dramatically higher
insulating values and reduced heat
gains, but it is unlikely that these are
being used in your building if it was
built before 1990.
Unless you have single-pane windows
and live in a cold climate, the savings
from replacing your windows with
more efficient windows are hard to
justify financially unless the replace-
ment is done as part of a larger
renovation. You can improve the
efficiency of your existing windows,
however, by installing window films.
Window films are thin coatings that
can be applied to the interior surface
of windows to help block radiant heat
gains and losses. These coatings are
similar to those used in low-E win-
dows. Their primary benefit is in
reducing summer heat gains, because
they can prevent from 6l to 80 percent
of the incoming solar radiation from
entering your building. In winter these
coatings can help reduce heat losses
by preventing 19 to 44 percent of
66 ENERGY STAR® Small Business Guide
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indoor heat from escaping out the
window. In addition to providing
energy-cost savings, window films
improve comfort by moderating heat
losses and gains, reducing glare and
overheating, increasing privacy by
restricting visibility from the outside.
improving the appearance of the
windows, and reducing the fading of
carpets, furniture, and merchandise.
Window films typically cost between
SI.35 and $3.00 per square foot to
install, and they generally have a
lifetime of 7 to 12 years. They must be
installed properly to avoid bubbles,
cracks, or damage to your windows.
Window accessories also affect your
energy costs. White roller shades and
Venetian blinds, when fully drawn,
reflect heat. Draperies or curtains,
when made of a tightly woven,
opaque material in a light, reflective
color, can reduce heat gain. If a curtain
fits tightly against the window, it can
also reduce winter heat losses. Aw-
nings on the south, east, and west
sides of your building can reduce
summer heat gains; trees planted on
the east and west sides of the building
can also reduce summer heat gains.
The chart below provides the simple
guide to when you should use your
shades, depending on the season and
the time of day.
DAY
'••, U M H ? *• Down Block the sun
vV'ir-< : t ' Up Let in the sun
NIGHT
'.at?" HF- Up Let building i
heat out j
WSN'F. Down Keep building |
heat in i
Roofs and Walls
Your building's roof can generally be
improved two ways: by improving
the insulation and by improving its
reflectivity to reduce heat gains. Your
priorities will depend upon the type
of building you have and where your
business is located. Roofing improve-
ments are generally better investments
for buildings that currently have a
poorly insulated roof and in locations
with extreme temperatures in either
summer or winter.
If heating costs are a priority at your
facility, or if you work in a warm
climate and have an attic, roof insula-
tion could be a good investment. If
your business has attic space, insula-
tion may be added at any time to the
attic floor at a relatively low cost either
by blowing in insulation or by install-
ing batts of insulation on the attic
floor. Depending upon the type of
roof, insulation may be added on
either the inside or the outside of the
roof. If you have a flat roof, your best
bet will probably be to wait until your
roof needs replacement and to install
rigid insulation on the roof exterior
when the roof is being replaced.
How much insulation is enough? Your
state or local building codes will
usually require a minimum level of
insulation, but keep in mind that this
figure is a minimum required amount.
Because codes have gradually in-
creased the amount of insulation
required, many old buildings will have
less than the amount required by
current codes. To get a better idea of
advisable insulation levels for energy
cost savings in your area, check with
your state energy office or local
electric utility. The American Society
of Heating, Refrigerating, and Air-
Conditioning Engineers (ASHRAE)
recommends an R-Value between 25
and 30 for optimum energy efficiency.
See the chart on page 68 for some
roofing rules of thumb.
Roof insulation could be a
good investment if heating
costs are a priority at your
facility or if you work in a
warm climate and have
an attic.
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Roofing Rules of Thumb
Existing Condition Cost Effective To Add Insulation?
New Construction —
Existing Buildings:
Current Insulation Level
0-1 inches -
2—4 inches -
5-9 inches -
More than 9 inches
Yes, always. R-19 to R-38 depending on
location and codes.
Yes, always.
Yes, if attic is accessible or if built-up roof
is being repaired.
No, in moderate climates. Just add when
remodeling.
Yes, in extreme climates and where the
attic is accessible.
No.
When unconditioned air
from outside slips into
your building, or condi-
tioned air from inside
seeps out, you have to pay
to heat or cool the extra
or replacement air.
If your air conditioner runs signifi-
cantly more than your heating system,
ask your roofing contractor about
reflective roof coverings for your area.
Recovering the roof with a light-
colored stone, coating, or membrane
is less expensive than a full roof
replacement. The lighter color will
cause your roof to absorb less heat
and will extend the life of the roof
by slowing its deterioration. Another
alternative is a roof spray system,
which has moisture sensors that
control a spray of water over the roof
to keep temperatures down. If your
building has an attic space, you may
be able to install a radiant barrier. A
radiant barrier is essentially a layer of
aluminum foil that can be tacked to the
underside of your roof deck with the
shiny side facing down toward the air
space in your attic. It blocks 95 percent
of the heat that would otherwise be
radiated downward from your hot roof
deck. All of these options result in
lowered roof or attic temperatures,
which make your upper floor a much
more comfortable place during the
summer. In one application in New
Orleans, for example, the installation
of a radiant barrier and attic vents
dropped the attic temperature by 50
degrees. You can imagine the effect
on comfort downstairs.
Finally, forced ventilation in attics can
drop temperatures by 30 degrees or
more for a big increase in comfort
and savings.
Reducing infiltration
When unconditioned air from outside
slips into your building, or conditioned
air seeps out, you have to pay to heat
or cool that extra or replacement air.
Consequently, it pays to minimize this
infiltration, especially because the
methods to reduce it are generally
inexpensive and easily applied.
Reducing infiltration will also improve
your occupants' comfort because
nobody is comfortable sitting next to
a draft.
Use caulk to seal air-leaking cracks and
to install or replace weather stripping
around doors and operable windows.
Small air gaps may look inconsequen-
tial, but they add up. A 1/8-inch air
gap along the opening of a pair of
6-foot-8-inch doors is equivalent to
a 10-square-inch hole in the wall.
Replace the glass in any broken
windows as soon as possible. Make
sure all doors and windows close
properly and—an often forgotten
procedure—cover the exterior portion
of any window air conditioners in
the winter.
If you have a loading clock, several
measures can potentially cut your costs
and increase the occupants' comfort
and productivity. When the loading
dock door is open, make sure that any
doors that separate the loading area
from the rest of the facility are closed.
(If there are no such doors, you may
wish to install some.) If the opening is
larger than needed, consider making it
smaller. Have trucks back up as close
as possible to the opening to reduce
the amount of heated air escaping the
area. If the loading dock door is
68 ENERGY STAR® Small Bus/ness Guide
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Technical Support
regularly left open, install a curtain of
plastic strips or an air curtain to help
reduce heat loss. Alternatively, con-
sider radiant heaters, as discussed on
page 75.
If You Plan To R«-mcuie!
Your options for reducing your
building's energy costs are limited to
some extent by the choices that were
made when your building was built.
Making the decision to use energy-
efficient windows and appropriate
insulation levels is far less expensive
when a building addition is still on
the drawing board. At this point the
actual cost for each upgrade should
be considered the incremental cost
between the more and less efficient
alternatives. The options that provide
the best return on investment can be
identified by comparing the incremen-
tal cost with the energy cost savings
that will accrue over the lifetime of
the building. Software packages are
available and can be used to analyze
these choices. If your architect is
unfamiliar with these methods, you
may wish to hire a consultant to help
you make the optimal choices.
Increasing the insulating value oi
existing walls is difficult to justify from
a cost-savings point of view. If a cold
wall is a significant comfort problem,
however, you may wish to do so. If
you have frame walls, you can have
insulation blown into the wall cavities.
Otherwise, you can increase the
insulating value by adding a layer of
insulation over the existing interior
wall and covering it with new wall-
board. (You will also need to move
out any light switches or electric
boxes.) This solution will decrease
the size of the room slightly. See the
figures on this page for variations of
wallboard coverings.
Consider installing a vestibule at your
primary entrance, particularly if your
business sees a lot of visitors. A
Technical Cioseup: R-Values
R-Values measure the effectiveness of insulation.The
higher an object's R-Value, the better it resists heat loss
(or gain). Heat loss through an object is inversely propor-
tional to its R-Value, so you get more bang for your buck
from increasing the R-Value of a building component that
initially has a lower R-Value than you would with a higher
one. Increasing insulation from R-l to R-20 will save you a
lot more money than increasing from R-20 to R-40. For
example, adding an R-Value of I to a window that currently
has an R-Value of R-1 represents a 50-percent decrease in
heat loss;adding R-l to an R-15 wall decreases its heat loss
by 6.25 percent.
vestibule consists of a space
between two sets of doors that acts
as an airlock to reduce the amount
of air that enters or escapes from
the building as people enter or
leave. You may be able to create
one by installing an extra set of
doors inside your building, or you
may wish to build it as a small
addition. This area does not need to
be heated or air conditioned. In
addition to reducing energy costs,
this modification will dramatically
increase the comfort of anyone who
works near the doors. Studies show
that vestibules can reduce related
infiltration by more than half. Such
a measure likely will not be justifi-
able solely on energy cost savings
unless it is part of a larger upgrade,
but it is justifiable when you
consider the added comfortable
•work space it provides.
R Value
Without
Insulation
Drawing 1 R-5
Drawing 2 R-4
Drawing 3 R-5
With
Insulation
R-l 2
R-8
R-9
metal ceiling suspension
3/4" lath and plaster
air space larger than 3 1/2"
I
ENERGY STAR® Small Business Guide 69
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Heating and Cooling
Heating, ventilating, and air-
conditioning (HVAC) systems
account for 39 percent of the
electric energy used in commer-
cial buildings in the United States.
Consequently, almost every business
has the potential to realize significant
savings by improving its control of
HVAC operations and improving the
efficiency of the systems it uses.
1970s-Style Conservation:
It Still Works
The most straightforward method for
saving on your HVAC bill is simply
to operate the systems less, both by
turning the systems off (or back) when
the building is not occupied and by-
choosing more efficient temperature
setpoints so that the systems run
less often.
A week contains 168 hours. If your
business operates during only 40. or
even 80, of those hours, you occupy
your facility during only a fraction of
the week. Consequently, savings are
available by setting back your thermo-
stat when the building is unoccupied.
The term "setting back'' is used to
indicate both changing the tempera-
ture setting (setting back to a lower
temperature in winter and setting up
to a higher one in summer) and
making sure that the fan switch on the
thermostat is set to "auto" rather than
"on." A fan left in the "on" mode runs
nonstop 24 hours per day; in "auto"
mode, the fan cycles on only when
heating or cooling is being supplied.
In some instances the fan savings can
be significant even when only minimal
temperature setback changes are
made. If your system draws in ventila-
tion air from outdoors, cycling the fan
during unoccupied hours can also help
with humidity control in humid areas.
How much can you save? That de-
pends upon your climate, the size and
shape of your building, how much you
set back your thermostat, and how
many hours per week your business
operates. Substantial savings are also
available by adjusting your tempera-
ture setpoints—lower in the winter
and higher in the summer. Change
your thermostat settings gradually, no
more than a degree or so per week, to
see how low (or high, for summer) a
setting you need to maintain a com-
fortable facility. Make these changes
without advertising the fact that you
are doing so to avoid having staffers
begin grumbling about changes before
they can actually feel them. This
method can also help identify problem
areas in your system. Check out the
areas where you first receive com-
plaints about comfort to determine
whether the problem is one of inad-
equate air supply, excessive drafts,
or intense sunlight.
Hire a contractor to repair your old
valves and steam traps. A steam trap
costs approximately S50. If broken, it
can waste hundreds of dollars each
winter. One supplier estimated that
an average of 20 percent of traps are
broken nationwide. Broken steam
traps not only waste money and
energy, but they also cause extreme
discomfort.
SMALL BUSINESS
Save on your HVAC bill by
turning the systems off (or
bock) when the building is
unoccupied.
ENERGY STAR® Small Business Guide 71
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Case Study
Programmable Thermostats Bring
Needed Comfort in Seattle
Centerplex, a Seattle-based ENERGY STAR® Small Business Partner,
owns a 26,500-sq.ft. commercial office with 43 tenant firms and
100 occupants. Centerplex's owner, Jonathan Pool, has imple-
mented a variety of energy-saving modifications that have reduced
his electric bill by 50 percent. Among these modifications is the
installation of ten programmable thermostats, which save energy
by resetting the heating and cooling setpoints when sections of
the facility are unoccupied. The programmable thermostats
provide the added benefit of reducing tenant complaints about
erratic temperatures. The programmable thermostats, along with
energy-efficient lighting and window improvements, have netted a
savings of $23,000 per year within an overall payback period of
only 1.5 years. Mr. Pool made an interesting observation about his
efficiency efforts and their ultimate effect on his bottom line.
"I think there is a spillover effect. When you rent space to others
the practices that you engage in attract compatible people.
Conservation attracts people who support conservation. They
generate less waste and are easier on both each other and the
physical plant." His overhead goes down, and his profit goes up.
1980s Efficiency
Improvements:
Programmable
Thermostats
Although night-setback and
temperature-setpoint changes are
simple enough to be done manually,
an automatic control is much more
efficient and reliable. Electronic, pro-
grammable thermostats, which allow
you to program in desired setpoint and
cutoff times for a 7-day week, are
available for $50 to $200. Most models
include manual override features, so an
executive who needs to come in on a
Sunday afternoon when the system is
in setback mode can override the
setback and work in comfort without
having to reprogram the system. Be
sure to locate the thermostat in a
location where the temperature is
representative of the entire area served
by the system—not next to the air-
conditioning diffuser or a coffee pot.
Many businesses find it worthwhile to
install a locking enclosure around their
thermostats to avoid unauthorized
tampering with the setpoints. If you
have a heat pump, be sure you get a
heat-pump-programmable thermostat
with a "smart recover)'" feature, which
will bring your system on early enough
to minimize the use of electric strip
heating. Heat-pump thermostats cost
about twice as much as other thermo-
stats because they have to control
multiple types of heating.
1990s and Beyond:
Whole-Building Energy
Optimization and
Management Systems
Programmable thermostats are effective
and work quite well, especially with
individual-unit air conditioners and
heaters. If your facility uses larger,
central systems such as boilers and
chillers, you may wish to use an
energy management system (EMS)
instead. As we approach the next
millennium, the EMS market will likely
expand into smaller and smaller
facilities. In addition to the setpoint
and night-setback features, •which
can be handled by a programmable
thermostat, an EMS can be used to
provide savings in many other ways.
Depending on the type of system you
have, an EMS might be used to provide
some of the following money-saving
automatic control functions:
• Consider installing an economizer.
There may be times when you need
cooling in the building but the
outside temperature is low. An
economizer allows your system to
circulate outdoor air for free cooling
during these periods. If imple-
mented without an EMS, economiz-
ers will cost $500 to SI.000, stalled,
on each rooftop unit.
72 ENERGY STAR® Small Business Guide
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• Adjust supply-air temperatures
based on indoor and outdoor
temperature and humidity to let
the heating and cooling systems
operate most efficiently.
• Adjust chilled-water and hot-water
temperatures based on indoor and
outdoor temperature and humidity
to let the cooling and heating
systems operate most efficiently.
• Implement holiday period automatic
setpoint adjustments.
• Monitor space temperatures to
minimize overheating or over-
cooling of spaces on a zone-by-
zone basis.
An EMS can be used to control other
functions in your building as well,
such as lighting. It can be monitored
and controlled from a console in a
remote location, such as your home
or your maintenance manager's home.
EMS suppliers typically estimate that
their EMS can cut the heating and
cooling bills of a business with a
central chiller and heating system
by 10 to 50 percent (many estimates
are clustered in the 20-percent range).
Improving Your System
Efficiency
The remainder of this section offers
suggestions on how to improve the
efficiency of various types of HVAC
systems. Because advice is offered
on a variety of different systems, not
every suggestion will apply to your
facility. One piece of advice does
apply uniformly to every business,
however, regardless of the type of
HVAC system: Maintain your
HVAC system.
Regular maintenance is an often-
overlooked key to saving on your
HVAC costs and improving the
performance of your system. Although
some maintenance jobs may require
Approximate Percentage Savings
Thermostat Setback
Degree-Days*
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
*Look up your degree-days on the
glossary in section 3.
From
Setback Temperature
60
13%
12%
11%
10%
9%
8%
7%
7%
6%
5%
55
25%
24%
22%
20%
19%
16%
15%
13%
11%
9%
50
38%
36%
33%
30%
28%
24%
22%
19%
16%
14%
map below. For a definition of "degree-day," see the
Savings based on 65 degrees Fahrenheit and assuming setback for 14
weeknight and all weekend.
hours per
Source: "Reducing Energy Costs Means a Better Bottom Line." National Frozen Foods
Association/U.S. Department of Energy.
Zone I — Greater than 7,000 heating degree-days
Zone 2 — Between 5,500 and 7,000 heating degree-days
Zone 3 — Between 4,000 and 5,500 heating degree-days
Zone 4 — Less than 4,000 heating degree-days
Zone 5 — Less than 4,000 heating degree-days and greater than 2,000 cooling degree-days
ENERGY STAR® Small Business Guide 73
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If you plan to upgrade any
heating or cooling equip-
ment, first implement
your other ENERGY STAR®
upgrades. Earlier upgrades
(such as lighting replace-
ments or building con-
struction improvements)
may change the size
requirements for your new
heating or cooling system.
calling in an outside technician, many
can be accomplished inexpensively
using in-house staff. Because it also
extends the life of your HVAC equip-
ment, regular maintenance provides
significant cost savings for minimal
investment.
Most procedures will be included in a
standard preventive maintenance visit
by an air-conditioning contractor. This
type of system checkup will typically
cost less than $100 for a single system,
with additional units included at a
discount. Some examples of systems
checks and standard maintenance
procedures that you or your contractor
should do on HVAC systems include:
• Replacing your air filters regularly.
Accumulated dirt and dust make
your fans work harder. Clean filters
help system performance and help
reduce allergens in your office. You
can do this without a whole system
checkup.
• Cleaning the beat-transfer coils in
heat pumps, air conditioners, and
chillers. Make sure that leaves and
plants are not obstructing outdoor
coils and have any bent coils
straightened. In addition to saving
energy, this measure will increase
the capacity of your system.
• Inspecting ducts and piping for
leakage and missing or damaged
insulation and making the indi-
cated repairs. Insulation is especially
important in unconditioned spaces.
• Making sure that furniture or other
obstructions do not block airflow
around radiators, convectors, and
air intakes and diffusers.
• Identifying any areas in your
facility that are unused but are
being conditioned. Consider turning
off the HVAC to these areas or
closing the vents.
• Adjusting temperature and humidity
setpoints seasonally. Unless it is
absolutely required for humidity
control, consider turning off
"reheat" from late spring to fall.
• Having your fuel-fired boiler or
furnace checked out at least annu-
ally, before the heating season starts.
Have the technician check the
combustion efficiency and report
the results along with any sugges-
tions for improving boiler efficiency.
In addition to the maintenance
changes suggested here, making
operational changes and/or upgrading
some aspects of your HVAC system
may result in significant savings. These
upgrades are more complex in scope
and should be undertaken only after
consultation with an engineering
professional.
This is Stage Five
Do you remember the five-stage
approach from pages 31 and 32? If you
plan to upgrade any heating or cooling
equipment, be sure to do this after
your other ENERGY STAR upgrades have
been implemented because your
earlier upgrades (such as lighting
replacements or building construction
improvements) may result in a change
in size requirements for your new
heating or cooling system. If you have
a large or architecturally unique site,
insist that the contractor complete a
sizing worksheet or run a computer-
ized sizing analysis for your facility in
its current state of repair. If you think
the results inflate your needs, seek
another quote.
Never buy oversized heating or cooling
equipment on the theory that more
capacity is better. This simply is not
true. Grossly oversized cooling equip-
ment will cycle too often and will be
unable to sufficiently dehumidify your
space, which creates a serious comfort
issue. Such equipment will also cost
more to run all year long. Heating
equipment will be equally inefficient
74 ENERGY SWR® Small Bus/ness Guide
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if oversized. This advice is difficult,
perhaps the most difficult in this whole
guide, to follow. Nobody wants to
spend $5,000 on a new air conditioner
and find themselves sweating when
cooling is sought. But both comfort
and costs are at stake. Get the right
size, not the right size plus one. and
you'll be happy.
If your system was properly sized
before making any ENERGY STAR im-
provements, your contractor may find
that your system is now oversized and
savings can potentially be realized
by downsizing portions of it. If your
system was undersized before you
began your ENERGY STAR upgrades,
you may find that your improvements
have, in effect, balanced your loads
and capacity by reducing your build-
ing loads and increasing your equip-
ment capacity.
Hot New Technologies:
Variable-Speed Drives,
Heat Recovery, and
Radiant Heating
Variable-Speed Drives (VSDs). If you
have a larger system in your building,
you may be able to take advantage of
the savings available through installing
VSDs on air blowers or even pumps.
VSDs allow sophisticated control of
how much air or water is provided by
heating and cooling equipment, which
has a significant effect on how much
energy is consumed.
Heat Recovery. Your business may
require high levels of fresh air (for
example, a laboratory with fume
hoods). Installing heat recovery
equipment will allow you to recapture
some of the energy you have invested
in heating or cooling that air and
transfer it to the fresh air stream.
Radiant Heating. For areas where
high ceilings, high infiltration, or low
insulation levels make heating the air
costly, natural gas-fired radiant heating
(wrhich heats occupants directly) is the
answer. For warehouses, shop areas,
and loading dock areas, installing
radiant heaters can lead to big savings
on your heating bills.
To find out more about these and
other technologies, call the toll-free
ENERGY STAR hotline at 1-888-STAR YES
and ask for materials suited to your
business. And remember, we're here
to provide you with unbiased techni-
cal information for all your energy-
efficiency upgrades.
Tips for Selecting Heating
and Cooling Systems
• Proper sizing is critical to
efficient performance.
• Check if utility rebates are
available.
• When buying smaller heating or
cooling equipment, look for the
ENERGY STAR logo—your guaran-
tee of savings.
• Call the ENERGY STAR hotline
(1-888-STAR YES) to request all
the materials you need to make
you an "energy smart shopper."
This heat recovery unit transfers energy from the exhaust air to the
incoming air, lowering heating and cooling costs. Heat recovery is
cost effective in facilities such as laboratories, restaurant kitchens, or
automotive shops that have large, central exhaust systems.
ENERGY STAR® Small Business Guide 75
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Technical Support
Case Study
HVAC Equipment Pays Back in North Carolina
The cost of replacing HVAC equipment can be a burden for a
small business, but a smart shopper can use the replacement as
an opportunity to reduce operating costs by purchasing energy-
efficient equipment.
Sud Associates, an engineering firm in Durham, NC, needed to
replace HVAC equipment in its 2,200-sq.ft. office building. The 23-
year-old system was a gas furnace with a continuously burning
pilot light and an open flue. Cooling was provided by a condens-
ing unit with a poor seasonal energy efficiency ratio (SEER) of 7.
The new heating system included a gas furnace with electronic
ignition and a forced draft fan. Cooling equipment with a SEER
of 12 was installed. This new system outperforms the old one,
cutting both electric and gas usage while increasing comfort. The
electronic ignition eliminates the continual gas use by the old
pilot light, and the forced draft fan contains any heat lost through
an open flue. The new gas furnace has cut gas usage by more
than 20 percent in its first heating season. Elimination of the pilot
light's energy use will add to the total savings. As the system is in
its first year of installation at the time of this writing, actual
cooling savings results are not available. However, electric savings
due to the increased energy efficiency of the cooling equipment is
predicted to be approximately 40 percent.
Time for Another Repair?
Due to the high cost of large HVAC
equipment, the energy savings alone
may not justify replacement of equip-
ment that is in good working order.
If your equipment requires frequent
repairs or is nearing the end of its life
expectancy, however, it may be wise
to consider replacing it from a preven-
tive maintenance standpoint and an
energy savings standpoint, as a sched-
uled replacement can generally be
negotiated at a lower cost and with
less inconvenience than the emergency
replacement of a failed unit. Call your
utility to find out if it offers rebates on
high-efficiency equipment.
Technical Talk: Special Types of Heating and Cooling Systems
Systems That Simultaneously Heat and Cool. In reheat systems, air that is colder than required is supplied to a specific area and then
reheated before it enters the room. In dual-duct or multizone systems, heated air is mixed with cooled air. Although these systems provide
good temperature and humidity control, this simultaneous heating and cooling is inherently wasteful and should be minimized. If this is being
done for humidity control, consider alternatives such as desiccants and heat pipes.
Single-Zone Chilled-Water Systems. Consider reducing the air volume and, during relatively dry seasons, raising the cooling supply
temperature. Also consider conversion to a variable-air-volume (VAV) system.
Water-Side Systems. Consider downsizing oversized pumps and motors, installing variable-speed drives on pump motors, and converting
single-loop configurations to a configuration with primary and secondary loops.
Water-Cooled Centrifugal Chillers. If your chiller predates 1990, it may be using R-l I or R-12 refrigerants. Manufacture of these has been
banned due to the Clean Air Act of 1991, reducing their availability and making their prices skyrocket, so any upgrade should consider
converting the chillers to utilize newer refrigerants. Consider replacing your chiller if it is more than 20 years old.
Boilers. Consider replacing an oversized, inefficient boiler with a smaller, more efficient boiler. Also consider upgrading an existing boiler with
energy savings options such as a newer, more efficient burner (which will also reduce emissions), baffle inserts (to increase the efficiency of
fire-tube boilers), combustion controls (to optimize efficiency each hour), warm-weather controls for hot-water boilers (to reduce the water
temperature during milder weather), economizers (to preheat feedwater), and condensate return systems (for open-loop steam boiler
systems). If you have multiple boilers, keep in mind that it is more cost effective to run one of them at full load than both at part load.
Large Central Systems. If you have a large central system and you find that one area of your facility operates for substantially more hours
than the others, it may be cost effective to install a smaller, dedicated system in that area.
76 ENERGY STAR® Small Business Guide
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Technical Support
Other Ideas for Energy
Optimization
Ideas on energy optimizations and
related profit enhancements are
far more numerous than the ones
presented in this guide. The
possibilities are endless. In this section
we will point out a few more specific
ideas, hut don't let us constrain you.
Anywhere energy is used can he an
opportunity for improvement.
Motors
The rules of thumb here are simple.
First, buy high-efficiency motors
whenever you replace old motors.
Second, if you use a standard effi-
ciency motor (less than 100 horse-
power) 24 hours every day, replace it
with its high-efficiency equivalent right
away and your profits will increase
in less than five years. Beyond that,
your decision is mainly a factor of the
motor-cost premium, hours of use, and
your electricity cost, shown in the table
in dollars per kilowatt-hour ($/kWh).
Cooking Equipment
Don't preheat your cooking equip-
ment. Don't preheat your electric or
gas equipment for more than a few
minutes. Although chefs are not likely
to appreciate your telling them how to
run their kitchens, it's worth a try.
Use the microwave or gas stove in
place of electric resistance cooking
when possible. Both cost less.
SMALL BUSINESS
Buy the efficient version. Many
fryers, broilers, soup kettles, and other
equipment have optional controls and
features that minimize their energy use.
Often they are worth the additional
cost, but we cannot offer a guarantee.
Improve kitchen ventilation. Turn
off your makeup air unit whenever you
are not cooking and especially at night.
These units, together with the exhaust
hoods, demand tremendous amounts
of energy. You need to provide a safe
and comfortable environment without
odors and smoke, but turn both
systems off when they are not needed.
Should You Buy a High-Efficiency Motor?
Example: 25 Horsepower Motor
$208 Cost Premium for High-Efficiency Motor
$1,028 Total Cost for High-Efficiency Motor
Motor Use
Hours/Year
Annual Cost Savings at Electric Rate Shown
$0.05 $0.08 $0.10 $0.12
J Always buy standard efficiency.
Buy high-efficiency motor upon burnout.
Buy high-efficiency motor immediately.
ENERGY STAR® Small Bus/ness Guide 77
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Technical Support
This blower operates 24 hours a day, supplying fresh air to this all-night
business.The nameplate on the front of the motor indicates 78-percent
efficiency. Replacing it with a new 87-percent efficiency motor could save
$82 a year (at $0.08/kWh), paying back the investment in 3 to 4 years.
Fuel Conversions
Electric resistance heating is typically
the most expensive option when
compared with natural gas, propane,
and other fuels. If you already have
gas onsite but still use electric-
resistance heat for water heating,
clothes drying, cooking, or other pro-
cesses, ask your plumbing or general
contractor to tell you what it will cost
to convert your equipment. It could be
a very good investment for equipment
you use often or were going to replace
anyway.
78 ENERGY STAR® Small Bus/ness Guide
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„ . Technical Support
SMALL BUSINESS
The Bottom Line
Invest in energy optimization. It makes good business sense
for so many reasons. You'll typically get a 30-percent re-
turn—or better—on your investment, and ENERGY STAR Small
Business will help you find sources that can provide financing
if initial funding is a problem.
ENERGY STAR Small Business Partners profit because of cost
savings and because sales and productivity can increase. EPA
provides Partners with good press,Web links, posters, and a
variety of tools that can help you promote your responsible
management of natural resources. This marketing can turn
into increased sales. New, efficient technologies can also help
with sales directly by making your products look better and
by making employees more comfortable and productive. All
of these ideas ultimately help your bottom line.
Don't worry. You don't have to become an energy expert or
spend a lot of time working on new projects to get all these
benefits. Because you're a Partner, we'll help you find reliable
auditors and contractors so you can turn your attention
back to your business. When you do need technical support
to be a smarter shopper, we're here with the information
you want. Call us at I-888-STAR YES or visit our Web site
at www.epa.gov/smaiibiz.
What's left to decide? Call an expert and
get started!
ENERGY STAR® Small Bus/ness Guide 79
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SMALL BUS
Support!
Material
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Supporting Material
Supporting Material
SMALL BUSINESS
AHU: See Air Handling Unit.
Air Diffuser: A device used to distribute heated or cooled air to a space.
Air Handling Unit (AHU): A unit that usually contains filters, fans, and other
components to heat, cool, humidify, or dehumidify interior air.
ASHRAE: American Society of Heating, Refrigerating, and Air-Conditioning
Engineers.
Ballast: A device in fluorescent and high-intensity discharge (HID) lighting units
that modifies incoming voltage and controls current.
Blending Valve: A valve that mixes hot and cold water to provide water at a
lower temperature.
Boiler: A vessel designed to transfer heat produced by combustion or electric
resistance to water. Boilers may provide hot water or steam, depending on design
and settings.
British Thermal Unit (BTU): A unit of heat energy equal to the amount of heat
required to raise the temperature of one pound of water by one degree Fahren-
heit at sea level. This is roughly equivalent to the heat given off from burning a
wooden match.
Building Envelope: The exterior surface of a building's construction—the walls,
windows, doors, roof, and floor. Also called the building shell.
CFL: See Compact Fluorescent Lamp.
CFM: Cubic Feet per Minute, a measure of air flow.
Chiller: A cievice that generates a cold liquid that is circulated through an
air-handling unit's cooling coil to cool the air supplied to the building.
Color-Rendering Index (CRI): A scale indicating the effect that a given light
source has on the apparent color of objects viewed under it. It is expressed on a
scale of 0 to 100, where 100 represents the color appearance of the object in
daylight or under incandescent lights. Values of CRI above 80 indicate good
color rendition.
Compact Fluorescent Lamp (CFL): Small fluorescent lamps frequently used as
more efficient alternatives to incandescent lighting. They typically have 10 times
the rated life and 3 to 4 times the efficacy of incandescent lamps.
Condensate Return System: A system of piping that returns the heated water
condensing within steam piping to the boiler and thus saves energy.
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Condenser: Heat exchanger in a refrigeration system that rejects heat from
the system.
Convector: A heating unit that circulates heated air by means of natural convec-
tion. Normally consists of a heating element within an enclosure, with an air inlet
below and an air outlet opening above.
Cooling Tower: A device that dissipates the heat from water-cooled systems by
spraying the water through streams of rapidly moving air.
CRI: See Color-Rendering Index.
Dampers: Single or multiple blades that are opened or closed in order to control
the amount of air entering or leaving an air-conditioning system. Control can be
either manual or automatic.
Deep-Cell Parabolic: A type of fluorescent fixture recommended for areas with
computers. These fixtures direct light down, minimizing glare and reflections in
computer monitors. See also louvers.
Degree-Day: A rough measure used to estimate the amount of heating required
in a given area. A degree-day is defined as the difference between the mean
daily temperature and 65 degrees Fahrenheit (F). This is based upon the assump-
tion that no heating is required when the temperature is above 65° F, and that
proportionately more heating is required the further the average temperature is
from 65° F. Cooling degree-clays may also be calculated to estimate cooling
requirements.
Demand: The average rate of electrical usage used over a specified period of
time (typically a 15-minute, 30-minute, or 1-hour period). Measured in kilowatts
(kWs).
Demand Charges: Fees charged by a utility company for electric demand.
These charges are often highest during weekdays in summer.
Desiccant: A substance that is capable of extracting and retaining water from
humid air.
Dual Duct: A type of heating, ventilating, and air-conditioning (HVAC) distribu-
tion system that involves simultaneous heating and cooling. Two supply ducts
(a "hot deck" and a "cold deck") serve each space, and the hot and cold air
from them are mixed in the appropriate proportions before being supplied to
the space.
Economizer: A mode of HVAC operation using outdoor air for cooling when
outdoor temperature and humidity levels are suitable.
Efficacy: A measure of how efficiently a light source can produce light,
expressed in lumens (of light output) per watt (of power input). For example, a
100-watt light source producing 9,000 lumens of light output has an efficacy of
90 lumens per watt.
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Efficiency: A measure of how much of a desired output is produced per unit of
input; typically calculated as the amount of useful energy supplied divided by the
energy consumed.
Electric Resistance Heat: Heat produced by a flow of electricity through high-
resistance wire, tape, or film.
Electronic Ballast: A ballast for fluorescent lights that uses semiconductor
components to increase the incoming electrical frequency from 60 hertz (Hz) to
much higher levels (20,000 to 40,000 Hz), allowing lamps to operate with virtually
no flicker and consume 12 to 25 percent less power than with standard ballasts.
Electronic Dimming Ballast: An electronic ballast that allows variable levels of
light output.
EMS: See Energy Management System.
Energy Management System (EMS): A control system capable of monitoring
environmental and system loads and adjusting HVAC operations accordingly in
order to conserve energy while maintaining comfort. It may also be used for other
control and monitoring, such as lighting and security.
Engine-Driven Chiller: A type of chiller that uses an engine fueled by natural
gas, fuel oil, or diesel fuel instead of an electric motor.
Envelope (Building): The exterior surface of a building's construction—the walls,
windows, doors, roof, and floor. Also called the building shell.
Feedwater: The water that is fed into a boiler to be heated.
Filter: A device that removes fine particles from the air stream in an air-handling
system.
Footcandle (fc): A unit of measurement of the lighting levels on a surface,
equal to one lumen per square foot.
Geothermal Heat Pump: See Ground Source Heat Pump.
GPM: Gallons Per Minute, a measure of flow rate for water or other liquids.
Gravity Dampers: Devices that close off a duct automatically by force of gravity
when not kept open by fan-forced air flow.
Ground Source Heat Pump: Also called "Earth Coupled" and "Geothermal,"
these heat pumps use underground coils to transfer heat from the ground to the
inside of a building. Compared with conventional heat pumps, ground source heat
pumps can have 40-percent higher efficiency but cost more to install. See also
Water Source Heat Pump.
Halogen: A type of incandescent lamp with higher efficiency than standard
incandescent lamps. Halogen produces a bright white light ideal for retail
applications.
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Head: Pressure that a pump or fan has to work against for liquids to flow.
Heat Pipe: A passive heat exchanger that uses a refrigerant as the heat
transfer medium.
Heat Pump: An electric device with both heating and cooling capabilities.
It extracts heat from one medium at a lower temperature (the heat source) and
transfers it to another medium at a higher temperature (the heat sink), thereby
cooling the first and warming the second.
Heat-Transfer Coils: A component of heat pumps, air conditioners, and chillers
that is used to transfer heat. They must be kept clean and clear of obstructions to
operate efficiently.
HID: See High-Intensity Discharge.
High-Intensity Discharge (HID): A generic term used to describe mercury
vapor, metal halide, and high-pressure sodium lamps and fixtures. Low-pressure
sodium lamps, although not technically HID, are sometimes informally included
in the use of this term.
High-Pressure Sodium (HPS): An efficient type of lighting often used for
warehouse and exterior lighting. HPS fixtures emit a slightly yellow-orange light.
HPS: See High-Pressure Sodium.
Humidifier: A device that adds moisture to air.
HVAC: Heating, Ventilating, and Air Conditioning.
Hydronic: A ventilation system that uses heated or cooled water circulated by
pumps throughout the building.
Illuminance: A measure of the amount of light incident on a surface or plane,
expressed in lumens per square foot (footcandles) or lumens per square meter
(lux). Commonly referred to as "light level."
Internal Rate of Return (IRR): IRR is the interest rate that is equivalent to the
present value of expected future cash flows after considering the initial cost of
the project.
IRR: See Internal Rate of Return.
Kilowatt (kW): Unit of power (demand) equal to 1,000 watts.
Kilowatt-hour (kWh): A unit of electric energy equal to the energy consumed
by a 1-kilowatt load operated for one hour.
LED: See Light-Emitting Diode.
Lens: A translucent or transparent piece of glass or plastic that shields the light
source and redirects and scatters light passing through it.
Light-Emitting Diode (LED): An illumination technology used for exit signs that
requires very little power and has a rated life greater than 80 years.
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Louver: Grid type of optical assembly used to control light distribution from
a fixture. Can range from small-cell plastic louvers to the large-cell anodized
aluminum louvers used in parabolic fluorescent fixtures. See also Deep-Cell
Parabolic.
Low-Emissivity (low-E) Windows: A new window technology that lowers the
amount of energy loss through windows by inhibiting the transmission of radiant
heat while allowing plenty of light to pass through.
Low-Voltage Halogen: An incandescent lamp that produces bright white light at
a higher efficiency than standard incandescent lamps. The high "sparkle" from
low-voltage halogen lamps makes them well suited for retail spot lighting.
Lumen: A unit of measurement of light flow or luminous flux (the quantity of
light emitted from a light source).
Luminaire: A complete lighting unit, consisting of one or more lamps, a housing,
the optical components to distribute light, and electrical components (ballasts,
starters, etc.) necessary to operate the lamps.
Megawatt: One million watts.
Metal Halide (MH): A type of lighting that combines high efficiency and an
appealing bright white light. MH fixtures can be used for interior and exterior
lighting. They are becoming the fixture of choice for retail areas with high
ceilings.
MH: See Metal Halide.
Mixing Box: A component of an air-handling system in which air streams from
two different sources are combined to form a uniform air stream.
Modified Bin Method: A method for calculating the required heating or cooling
for a building based on determining how much energy the system would use if
outdoor temperatures were within a certain temperature interval (or "bin") and
then multiplying that energy use by the amount of time that the temperature
interval typically occurs at the site. Bin weather data for a variety of sites are
tabulated by both the U.S. Air Force and ASHRAE. The energy use for all of the
applicable temperature bins is summed to determine the total estimated energy
use by the system.
Multizone: A type of HVAC distribution system that involves simultaneous
heating and cooling. Hot and cold air are supplied at the multizone unit and
mixed in appropriate proportions to provide the supply-air temperatures needed
in each zone.
Occupancy Sensor: A device that detects the presence (or absence) of occu-
pants in an area and causes equipment to be adjusted accordingly.
Payback, Simple: A traditional measure of the economic viability of a project,
generally defined as the length of time it takes for savings from an investment to
equal the cost. Although frequently used because of its ease of calculation,
ENERGY STAR*' Small Bus/ness Guide 87
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Supporting Material
Ml- •
payback frequently does not give an accurate representation of the total lifecycle
value of an investment.
Photocell: A light-sensing device used to control light fixtures and dimmers in
response to detected levels.
Prismatic Plastic Lens: The cover installed on many standard fluorescent
fixtures. These lenses are often bright light sources that create uncomfortable
reflections in computer monitors.
Programmable Thermostat: A control device for HVAC systems that allows the
user to program in various temperature and fan settings for various times.
Radiant Heaters: A technology that heats building occupants by radiating heat
from an electric or combustion source. Because radiant heaters use radiation
instead of convection to transfer heat, they are very efficient in areas where high
ceilings or high infiltration make heating the air costly.
Refrigerant: A substance used to provide cooling, either as the working sub-
stance of a refrigerator or by the direct absorption of heat.
Reheat: A type of HVAC air distribution system in which air maintains comfort in
a building by cooling the air to a low temperature (typically 55 degrees F) at the
air handler and then reheats it near its point of use. This system provides good
temperature and humidity control but wastes considerable energy.
Retrofit: Upgrading a fixture, room, or building by installing new parts of
equipment.
R-Value: A measure of thermal resistance or the ability of a material or group of
materials to retard heat flow.
Setback: Setting a thermostat to a lower temperature when the building is
unoccupied to reduce heating energy consumption. This may also refer to setting
the thermostat to higher temperatures ("setup") during unoccupied periods in the
cooling season and operating the fan in "auto" mode (rather than constant
operation) during unoccupied periods.
Shading Coefficient: The amount of the sun's heat transmitted through a given
window compared with that of a standard 1/8-inch-thick single pane of glass
under the same conditions.
Static Pressure: The condition that exists when an equal amount of air is being
supplied to and removed from a space.
Steam Trap: A valve that allows condensed water to flow out of a steam supply
line without allowing any of the steam to escape.
Supply-Air Diffuser: A device used to evenly distribute supply air to a space.
Tandem Wiring: A wiring option in which a ballast is shared by two or more
fixtures. This option reduces labor, material, and energy costs.
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Thermostat: A device typically contained in heating, cooling, and refrigeration
systems which automatically responds to temperature changes and activates
switches controlling the equipment.
Ton: A unit of measure of refrigeration or air-conditioning capacity; by definition
equal to 12,000 BTU/hour. This is a holdover from when refrigeration was
primarily used to make ice (for people to use in home iceboxes). A "three ton"
refrigeration unit could make three tons of ice from 32 degrees F water in a day.
T-12 Lamp: Industry standard nomenclature for a fluorescent lamp which is
twelve 1/8 of an inch (1 1/2 inch) in diameter. Other standard lamp sizes include
T-8 (1 inch), T-10 (1 1/4 inch), and T-5 (5/8 inch).
Variable Air Volume (VAV): A type of air-handling system that maintains comfort
in a building by supplying varying quantities of air throughout the building based
upon the needs of individual spaces.
Variable-Speed Drive (VSD): A device that is used to adjust the speed of an AC
motor to match load requirements. Since motors require less power to operate at
slower speeds, this provides energy savings.
VAV: See Variable Air Volume.
VSD: See Variable-Speed Drive.
Waste Heat Recovery: Recovering heat that is discharged as a byproduct of one
process to provide heat required by a second process. For example, recovering
heat going up the flue of a boiler to be used to preheat boiler feedwater.
Water-Side Systems: HVAC systems in which water is used to provide heating or
cooling, including pumps, chillers, boilers, and other equipment.
Water Source Heat Pump: Heat pumps that use wells or heat exchangers to
transfer heat from water to the inside of a building. Although most of these units
use ground water, a small number of installations use surface water, such as
ponds or streams. Compared with conventional heat pumps, water source heat
pumps can have 50-percent higher efficiency, but cost more to install. See also
Ground Source Heat Pump.
Watt (W): A unit of electric power. It defines the rate at which electric-
energy is consumed.
Xeriscaping: (From the Greek xer, which means dry.) A technique of utilizing
native, hardy, low-maintenance plants for landscaping. Xeriscaping reduces
water, pesticide, and fertilizer requirements.
Zone: A distinct area to which heating or air conditioning is supplied.
ENERGY STAR® Small Business Guide 89
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Supporting Material
Publications
and Programs
Request any of the following free materials by calling
1-888-STAR YES. And remember, ENERGY STAR® Small Business
Partners may request information related to any program, not
just the Small Business program. EPA updates the material in this fast-
changing marketplace regularly. Call for the latest information.
Information on the EPA ENERGY STAR Family of Programs
• ENERGY STAR Small Business: for businesses of 100.000 square feet
or less
• ENERGY STAR Buildings: for businesses greater than 100,000 square feet
• ENERGY STAR Buildings Allies: for companies involved in the energy
efficiency business
• ENERGY STAR Office Equipment: for companies that sell computers,
copiers, and other office equipment
• ENERGY STAR Residential: for home builders
• ENERGY STAR Transformers: for electric utility companies
• ENERGY STAR Heating and Cooling: for residential heating and cooling
system manufacturers
The following types of information are available for all of the
above programs
• Information packs: general program information
• Technologies: reports on high-efficiency equipment (available for the
Buildings, Heating and Cooling, and Office Equipment programs)
• Case studies
• Analytical software tools
• Communications and promotional materials
90 ENERGY STAR® Small Bus/ness Guide
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Supporting Material
Average Energy Use and Costs Throughout the United States
Calculate Your Total Energy Intensity
I. Collect one year of bills for each energy tvoe and multinlv hv these conversion factors:
Annual kWh of electricity x 3.4
Annual therms or ccf of natural gas x 100
Annual gallons of #2 fuel oil (diesel fuel) x 140
Annual gallons of #6 fuel oil x 150
Annual Mlb. of purchased steam x 1040
Annual gallons of propane x 91 or
Annual pounds of propane x 22
2. Write down the size of your facility, in square feet
3. Calculate your total energy intensity by dividing (A) by (B),
and write this number on line (C).
Total (A)
(B)
(C)
kBtu/year
square feet
kBtu/sq.ft/year
4. Find the climate map with your location shaded.Then find the average energy use and costs for similar buildings on the
adjacent table and compare them with your energy use from line (C).
How do you rate?
U.S. Climate Zone 1
Building Type
Education
Food service
Health care (inpatient)
Health care (outpatient)
Lodging
Office
Public assembly
Religious worship
Restaurant
Retail
Warehouse (non-refrig.)
Warehouse (refrigerated)
Annual
Energy Use
(kBtu/sq.ft.)
77
155
270
118
133
93
66
53
250
77
59
65
Annual
Energy Cost
($/sq.ft.)
$0.93
$2.32
$2.65
$1.33
$1.42
$1.46
$0.95
$0.48
$3.99
$0.99
$1.09
$1.45
U.S. Climate Zone 2
Building Type
Education
Food service
Health care (inpatient)
Health care (outpatient)
Lodging
Office
Public assembly
Religious worship
Restaurant
Retail
Warehouse (non-refrig.)
Warehouse (refrigerated)
Annual
Energy Use
(kBtu/sq.ft.)
88
169
269
84
92
95
77
61
250
87
64
65
Annual
Energy Cost
($/sq.ft.)
$1.08
$2.19
$2.63
$1.25
$1.54
$1.49
$1.26
$0.68
$3.99
$1.21
$0.80
$1.45
ENERGY STAR® Small Business Guide 9 I
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Supporting Material
U.S. Climate Zone 3
Building Type
Education
Food service
Health care (inpatient)
Health care (outpatient)
Lodging
Office
Public assembly
Religious worship
Restaurant
Retail
Warehouse (non-refrig.)
Warehouse (refrigerated)
Annual
Energy Use
(kBtu/sq.ft.)
69
213
204
80
96
80
66
35
226
64
51
65
Annual
Energy Cost
($/sq.ft.)
$0.99
$2.73
$2.35
$1.30
$1.86
$1.59
$1.19
$0.45
$4.16
$1.25
$0.93
$1.47
U.S. Climate Zone 4
BuildingType
Education
Food service
Health care (inpatient)
Health care (outpatient)
Lodging
Office
Public assembly
Religious worship
Restaurant
Retail
Warehouse (non-refrig.)
Warehouse (refrigerated)
Annual
Energy Use
(kBtu/sq.ft.)
66
232
227
74
115
72
72
38
134
68
36
96
Annual
Energy Cost
($/sq.ft.)
$1.17
$2.49
$2.89
$1.36
$1.65
$1.54
$1.32
$0.59
$3.03
$1.36
$0.83
$2.02
U.S. Climate Zone 5
BuildingType
Education
Food service
Health care (inpatient)
Health care (outpatient)
Lodging
Office
Public assembly
Religious worship
Restaurant
Retail
Warehouse (non-refrig.)
Warehouse (refrigerated)
Annual
Energy Use
(kBtu/sq.ft.)
56
195
202
100
102
68
54
34
161
56
33
55
Annual
Energy Cost
($/sq.ft.)
$1.11
$2.89
$2.76
$1.67
$1.62
$1.55
$1.17
$0.59
$3.20
$1.26
$0.77
$1.17
92 ENERGY STAR® Small Business Guide
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Supporting Material
Aerators, faucet, 59
Air-conditioning, 10, 51, 66. See also
Heating, ventilating, and
air-conditioning (HVAC) systems
Air flow blockage, HVAC systems, 74
Air leakage, reduction of. 31, 65,
68-69, 74
Ally Services and Products (ASAP)
Director}'. 3, 15
American Society of Heating, Refrigerat-
ing, and Air-Conditioning
Engineers (ASHRAE), 67, 83
American Solar Energy Society, 9, 59
Attics, forced ventilation in, 68
Attic vents, 68
Awnings, 20. 31-32, 67
B
Background ambient lighting, 34
Ballasts, electronic, 37, 40, 42-43, 47, 83
Bids. 15-17
Bill analysis, 21, 49
Binding arbitration, 17
Blending valve, 57-58, 83
Blinds, Venetian, 67
Blowers, 78
Boilers, 74, 76
Building construction. 8. 65-69
Building envelope upgrades, 65-69, 83
Building tune-up, 7, 31-32, 49
Carbon dioxide (CO,). 23-24
Ceiling fans, 10
Centerplex, Seattle-based, 72
Chilled-water systems, single-zone, 76
Chillers, 74, 76, 83
Chlorofluorocarbons (CFCs), 64
Color-rendering index (CRI), 35, 83, 84
Color rendition, 34-35, 37, 41
Compact fluorescents, 7, 9, 28, 31,
35-36, 39-41, 83
Computers, 7, 20, 33-35, 45, 51-53
Consultants, 3, 8-9
Contractors, 3, 8-9, 15-17
Controls contractors, 8
Cooking equipment, 77
Cooling, 8, 10-11, 13-14, 22, 31-32, 63,
65-66, 68, 71-76. See also Heating,
ventilating, and air-conditioning
(HVAC) systems
Cooling coils, refrigerator, 63
Copiers. 51-53, 55
Copying, double-sided, 55
Curtains. 67
Customer comfort, 10, 27, 37
Day-lighting, 34
Defrost cycles, 63-64
Degree-days. 73, 84
Demand charges, 11. 84
Desiccants, 76, 84
Display cases, refrigerated, 64
Distribution system, HVAC, 32
Doors, air leakages from, 68-69
Door seals, refrigerator, 63
Draperies, 67
Economizers, 72, 84
Electrical contractors. 8
Electric bill. 11-12, 21, 23-24, 49
Electric energy intensity, 11-14
Electric resistance cooking, 77
Electric resistance heating. 78. 85
Electronic ballasts, 37, 40, 42-43, 47, 85
E-mail, 20, 56
Employee productivity, 27, 37
Energy audits, 3, 8-9, 16, 49
Energy efficiency, learning about, iii,
7-9
Energy Efficiency Ratings (EERs), 64
EnergyGuicle-labeled appliances,
58, 64
Energy inflation, protection from. 27-28
Energy Management Systems (EMSs),
8, 22, 72-73, 85
Energy saver lamps, 39, 43
Energy Services Company (ESCO),
3, 6, 8, 16
ENERGY STAR® Small Business Guide 93
-------
Supporting Material
ENERGY STAR Buildings Allies, v, 3, 9, 15
ENERGY STAR finance directory. 5
ENERGY STAR five-stage approaeh,
31-32, 47, 74
ENERGY" STAR Partner, failure to honor
agreement as, 23
ENERGY STAR program results, 23
ENERGY StAR-labeled equipment, iii,
31-32, 51-53
ENERGY STAR Small Business
Agreement, iii
ENERGY STAR Small Business
program, iv, 23-24, 28, 79
ENERGY STAR Small Business Web site,
iv, v, 5, 9, 51, 79
ENERGY STAR Web site, 15, 20
Energy use, measurement of, 11-14
Entrances, 69
Envelope (building) upgrades,
65-69, 85
EPA Stratospheric" Ozone Hotline, 64
Evaporator fans, high-efficiency, 64
Exit signs, light-emitting diode (LED),
7, 31, 39-40, 42
Exterior lighting, 44-45
Fan cycling, 71
Fans, 10, 32, 64
Faucet aerators, 59
Faucets, automatic controls, 60
Fax machines, 51, 53
Fiber products, recycling of, 56
Filters, 8, 31, 49, 74
Finance directory (ENERGY STAR), 5
Financial analysis, 21-22, 27-29
Floating head pressure system, 64
Flood lights, 44
Fluorescent lamps, 34-37, 41-43.
See also specific type
Freezers, 10, 63-64
Fuel conversions. 78
Furnaces, 31, 74
Gair, Kenneth, iv, 47
Gas Manufacturers Association
(GMA), 61
Gas stoves, 77
Global warming, 23-24, 64
Gray water, 60-61
Green Lights program results, 23
Green pricing. 23-24
H
Halogen lamps, 35-36, 39, 41, 85
Heating, 8-9, 11, 13-14, 22, 31-32, 49,
57, 59, 65-68, 71-76. See also Heating,
ventilating, and air-conditioning
(HVAC) systems
Heating, ventilating, and air-
conditioning (HVAC) contractors, 3, 9
Heating, ventilating, and air-
conditioning (HVAC) systems, 3,
9, 32, 71-76, 86
Heat pipes, 76, 86
Heat pumps, 74, 86
Heat-pump thermostats, 72
Heat pump water heaters, 58, 61
Heat recovery, 58, 64, 75
Heat-transfer coils, 74, 86
High-intensity discharge (HID) lamps,
35-36, 44-45, 86
High-pressure sodium (HPS) lamps,
36, 39. 44-45, 47, 86
Home offices, 24
Hot water temperatures, 57-58
Humiclistats, 64
Humidity control, 71, 74. 76
I
Ice makers, 10
Illuminating Engineering Society (IBS),
33
Incandescents, 7, 28, 35-36, 39-42, 47
Infiltration, reduction of, 68-69
Installation support, 8
Insulation, 32, 57-58, 67-69
Internal Rate of Return (IRR), 28-29, 86
94 ENERGY STAR® Small Business Guide
-------
Supporting Material
K
Kaplan, Steve, 10
Kilowatt-hour (kWh). 23-24, 86
Kitchen ventilation, 77
Landlords, 19-20
Landscaping, 31. 60, 67
Large central systems. 76
Leasing arrangements. 19-20
Lens, prismatic plastic. 34. 86
Light-emitting cliode (LED) exit signs,
7, 31, 39-40, 42, 86
Light fixtures, 35-36, 39-43, 45. See
also specific type
Lighting, 7. 31-37. 39-47
Lighting assessment, high-speed
do-it-yourself, 39-40, 46
Lighting contractors, 8
Lighting controls, 45-47
Lighting efficiency, 35-37
Lighting upgrades. 10, 31, 34-35. 37.
39-47
Light levels, 33-35, 37, 45
Light meters, 21-22. 34
Light quality, 34-35
Loading docks, 68-69
Load reduction, 31-32
Loans, 5—6
Local area networks (LANs). 56
Louvers, parabolic, 34-35, 87
Low-emissivity (low-E) windows,
66. 87
Low-pressure sodium lamps, 35-36, 45
M
Maintenance. 10, 31-32, 58. 60. 73-74
Marketing, as ENERGY STAR Partner, 20,
28, 37, 79
Mechanical contractors, 8
Mercury vapor lamps, 36, 40, 44
Metal halicle (MH) lamps, 36, 39-40,
43-44, 47, 87
Metering, 21-22, 34
Microwaves, 77
Monitors, computer, 34, 52—53
Motion sensors, 46
Motors, 77-78
N
National Association of Energy Services
Companies (NAESCO), 8
Nitrogen oxides (NCO, 23-24
Occupancy sensors. 7. 20, 45, 87
Office equipment, 7. 20, 31-32, 51-53,
55. See also Computers, Copiers, Fax
machines, Monitors, and Printers
Operations and maintenance
contractors, 8
Operations and maintenance savings, 27
Outside security lamps, 44-45
Paper, 7, 55-56
Paper conservation, 55-56
Paper recycling, 55-56
Parabolic louvers, 34
Payback, simple, 28-29, 46, 87-88
Performance contracting, 6
Photocells, 45, 60
Plant, HVAC, 32
Pollution prevention, 23-24
Pool, Jonathan. 72
Post-consumer content, of paper, 55
Printers. 51—53
Prioritizing, 31-32
Prismatic plastic lens, 34. 88
Profits. 27-29
Programmable thermostats, 20, 22,
72, 88
Proposals, request for, 15-17
Pumps, 32, 57-58, 61, 72, 74
Radiant barriers, roof, 68
Radiant heating, 69, 75, 88
Recycled paper, 55-56
Recycling, paper, 55-56
Reference check, of contractors, 17
Reflective roof coverings, 68
ENERGY STAR® Small Business Guide 95
-------
Supporting Material
Reflectors, 10, 41-43, 45
Refrigerated display cases, 64
Refrigeration, 8, 10, 13-14, 63-64
Reheat systems, 76, 88
Remodeling, 69
Rent costs, reducing energy and, 19-20
Request for proposal (RFP), 15-17
Roof coverings, reflective, 68
Roof insulation, 67-68
Roof spray system, 68
Roof upgrades, 65-68
R-Values, 66-69, 88
Savings reinvestment, 6
Savings verification, 21-22
Screen savers, 52-53
Seals, 59-60, 63
Seasonal energy efficiency ratio (SEER).
76
Sensors, 7, 20, 34, 45, 47
Setback, of thermostats, 71-73, 88
Shades, 20, 67
Showerheacls, 20, 59
Simple payback, 28-29, 46, 87-88
Single-zone chilled-water systems, 76
Sligo Adventist School, iv, 47
Small Business Administration loans,
5-6
Sodium lamps, 35-36, 39-40, 44-45, 47
Solar water heaters, 20, 59
Spot metering, 21-22
Steam traps, 71, 88
Stoves, 77
Subway franchise, 10
Sud Associates, 76
Sulfur dioxide (SO,), 23-24
Sunlight simulation, 35
Supplier loans, 6
T-8 lamps, 35, 40, 42-43, 47
Task lighting, 34
Tax implications, 6
Temperature settings, 63, 71-74
Tenants, 19-20
Thermostats, 8, 20, 22, 49, 57-58,
71-73, 89
Thermostat setback, 71-73
Time investment, 3
Timers, 22. 49, 57
Toilets, 20, 60
Total recycled content, of paper, 55
Tubular fluorescent lamps, 35-36,
39, 41
u
Utility bill analysis, 21, 49
Utility loans, 6
Variable-air-volume (VAV) system, 76, 89
Variable-speed drives (VSDs), 75. 89
Venetian blinds, 67
Ventilating. See Heating, ventilating, and
air-conclitioning (HVAC) systems
Ventilation, 13-14, 68. 77
Vestibules, 69
w
Wallboard coverings, 69
Walls, 67-69
Washing machines, 60
Waste heat recovery, 58, 89. See also
Heat recovery
Waste water, reusing, 60-61
Water-cooled centrifugal chillers, 76
Water heaters, 8, 10, 57-61, 64
Water-side systems, 76
Water temperature, 57-58
Water use, 8, 59-61
Web sites, iv, v, 3, 5, 6, 8, 9. 15, 20, 24,
51, 59, 61, 79
Whole-building energy optimization and
management systems, 72-73
Window films, 31-32, 66-67
Windows, 31-32, 65-68
X
Xeriscaping, 60, 89
96 ENERGV STAR® Small Bus/ness Guide
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Energy-Efficiency Quicklist
This guide recommends a lot of different energy upgrades.Where should you start? First walk
through your business with this Quicklist in hand and use it to identify money-saving opportu-
nities.Then post the Quicklist on your wall and check off items as you perform upgrades to
keep track of your progress.
Lighting
[ 1 Replace incandescent light bulbs with compact fluorescent lamps
r~j Convert exterior lighting to high-pressure sodium or metal halide lighting
Q^| Upgrade fluorescent fixtures with T-8 fluorescent lamps and electronic ballasts
|^| Remove or disconnect unnecessary lights
QJ Convert exit signs to LED
I I Lower light levels where appropriate, such as around computer monitors
[ | Install occupancy sensors in areas such as bathrooms that are frequently unoccupied
| I Install timers or photocells on outside lights
Water Use and Water Heating
QJ Install a water heater insulating blanket and wrap the first three to six feet of hot water supply
pipe with pipe insulation
| | Install faucet aerators and efficient showerheads
| | Select native or other low-water plants for landscaping
| | Find and fix leaks
Refrigeration
| | Repair doors and seals so they close tightly
I | Make sure fans and equipment are not obstructed
I | Combine refrigerated goods and disconnect unneeded refrigerators
Building
I I Install weather stripping, caulking, or seals on openings that create drafts
| | Add or repair insulation to create a continuous blanket around building
Heating and Cooling Systems
| | Clean and replace filters regularly
Q Set back your heating, ventilating, and air-conditioning (HVAC) systems when the
building is unoccupied. This includes setting the fans to "auto" rather than "on."
j^| Repair leaks in system components such as pipes, steam traps, and couplings
QJ Make sure radiators, convectors, air intakes, and air diffusers are not obstructed so
that air can flow freely
Reduce your water heater settings to the minimum required temperature
-------
-------
ENERGY STAR Small Business Building Shopping List
Buying or leasing a building with these preferred technologies can lower your operating costs and may
give you a competitive advantage. Use this list when walking through a prospective building to see if
the building will help or hurt your profit. Call I -888-STAR YES if you have any questions.
Yes No
Yes No
Lighting
General
Heating
T-8 Fluorescent Lamps
Compact Fluorescent Lamps
Occupancy Sensors
LED Exit Signs
Low-Glare Daylight
Warehouse High-Pressure Sodium (HPS)
or Metal Halide (MH)
Lighting
Retail Halogen
Office Light Level Below 75 Foot-
candles
Deep-Cell Parabolic Fixtures
Exterior HPS or MH
Photocells or Timers
Cooling
Hot Water
Building
Insulated Pipes
Water Heater Insulating
Blanket
Faucet Aerators
Efficient Showerheads
Solar Hot Water
Low-E Windows
Awnings To Block
Summer Sun
Window Film
Roof Insulation
Wall Insulation
Tight-Closing Doors/
Windows
Reflective Roof
Operable Windows
Other
Notes
inches
inches
Heating and Cooling Distribution
Energy Management System
Programmable
Thermostats
Variable-Speed Drives
Energy-Efficient Motors
High-Efficiency Gas Furnace
Pulse Combustion Boiler
High-Efficiency Heat Pump
Insulated Pipes/Ducts
Ducts All Inside Building
Envelope
Electronic Ignition
(No Pilot Light)
Newer High-Efficiency
Cooling Units
Economizers/"Free Cooling"
Coils Clean and Free of
Moisture
Locker Room
Access to Bike Path
Subway or Bus Nearby
Xeriscaping
Lease That Rewards Efficiency,
-------
-------
fi »
Name
Address
City
Phone
State
ZIP
Here's What We Did:
«>tage One: Lighting
Yes
Compact Fluorescent Lamps
T-8 Fluorescent
High-Pressure Sodium or Metal Halide Lighting
Occupancy Sensors
Other Controls
LED Exit Signs
—>tage Two: Building Tune-Up
Set Up Scheduled Maintenance
Heating/Cooling System Tune-Up
Heating/Cooling
New Controls or Emergency Management
Systems
Hot Water Tank and Pipe Insulation
Reduce Hot Water Use
-Stage Three: Load Reduction
Building Insulation
Leakage Reduction
New Windows
Window Film/Solar Screens
Four: Heating and Cooling
Distribution System
Yes
High-Efficiency Fan and Pump Motors
Variable-Speed Drives
tage Five: Heating and Cooling Plant
New, High-Efficiency Air Conditioning
New, High-Efficiency Heating
System Upgrades
My Bills
I rent/own (circle one) my space.
Have all planned upgrades been completed?
Yes or No (circle one) If yes, when?
Comments
Annual Savings
Total $ (all bills).
Electric Savings _
Gas Savings
Oil Savings
Square footage upgraded
_, actual or estimated (circle one)
, kWh or dollars (circle one)
_, therms or dollars (circle one)
_, gallons or dollars (circle one)
| I Please send me the public recognition information pack.
Q I'd like to be considered for a case study about my upgrade.
-------
Program Manager
ENERGY STAR Small Business Prograr
U.S. EPA 6202}
401 M Street SW
Washington, DC 20460
(fold here)
-------
ISBN 0-16-049393-5
Illllllllllll .9.0000
9"780160"493935"
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