Hydro Quebec seems to have understood this hurdle and has created a new funding program aptly called the Buildings Program. It supports the implementation of electricity-saving measures for their commercial clients. Projects can involve lighting replacements or retrofits, building envelope improvements (such as insulation, doors, or windows), air conditioning and ventilation improvements – almost any project that involves measures designed to decrease electricity consumption.

Hydro Quebec is attempting to keep things simple and accessible for their business clients; essentially, the process is as follows:

1. The client first submits a letter of intent including basic project information.
2. Once the project is opened and given a number, the client submits more technical information including a description of the new materials or machinery to be used and the expected energy savings. In more complex cases, computer modelling is required to simulate building operation.
3. Next, a Hydro Quebec technical analyst is assigned to review the project and verify the expected savings. 
4. Hydro Quebec then confirms the incentive or amount of money they agree to pay towards the completion of the project (which is equal to as much as $0.18 per kWh of energy saved plus any consulting or technical fees incurred).
5. At this point, the client moves forward with the project including ordering and purchasing materials, and executing the retrofit or renovation. (This is an important step as no incentive will be paid if the project has started before Hydro Quebec has confirmed the project.
6. Lastly, the client submits all invoices for materials and consulting fees to Hydro Quebec. They verify the energy savings and pay the incentive to the client.

So let’s take a case in point. A building owner has a four-storey building or a facility with older model lights and no occupancy sensors. The lobby and common areas of the building are the main concerns because there are tenants who are responsible for their own electricity bills. In total, there are 140 light fixtures (fluorescent T12, for example) in the lobby, hallways and bathrooms and these are on basically all the time.

What happens if the building owner invests in newer, more energy efficient, light fixtures and bulbs as well as occupancy sensors which turn off lights when not in use? Here is a conservative estimate of the numbers:

Cost to change all the lights to T5 fluorescents : $8,000
Cost of motion sensors in bathrooms and hallways : $4,950
Cost of equipment installation : $7,000
Cost of professional consulting services : $3,000
Annual savings on Hydro Quebec bill : $15,000
Simple payback (basic measure of how long it takes to take back your investment) : 18 months
Additional Incentive paid by Hydro Quebec Buildings Program : $11,500
Revised payback taking into account Hydro Quebec incentive :  9 months

In summary, if the building owner were to consider investing in newer, more energy efficient, light fixtures and bulbs as well as occupancy sensors which turn off lights when not in use, he or she would immediately see significant electricity savings on the Hydro Quebec bill. With these savings alone it would take only 18 months to pay off the investment in more energy efficient lighting.  When you factor in a significant incentive payment from the Hydro Quebec Buildings Program, the payback period reduces to only 9 months to pay off the initial investment in materials, labour and consulting services.

The Hydro Quebec Buildings Program is open to clients with:

• New or old buildings
• Commercial buildings larger than 1000m²
• Multi-unit residential buildings with more than four stories
• Private institutional buildings and,
• Buildings that are a part of a major real estate development.

So while it is true that sometimes it is not cheap or easy to be green, there are often programs available to help people through the process. For more information, visit Hydro Quebec’s website: http://www.hydroquebec.com/business/efficiency/commercial/index.html

But let’s concentrate specifically on energy. Households and businesses can make significant strides to save energy, save money, and reduce emissions into the atmosphere. The best place to start – an Energy Audit.

Why would you want an energy audit of your home or business’s building? You can save money – a significant amount of it – as early as your next Hydro bill. In office buildings, for example, as much as 20% could be saved just by simple solutions that require little or no investment. Thirty percent is possible with limited investment and the investment often has a payback of about a year. Some companies have succeeded in making changes to their building and saved 40+% on annual energy costs.

Whether for a home, office building, retail outlet, factory or shop floor, the process is essentially the same. A certified engineer, technologist, or energy manager inspects the building or facility. This professional has been trained to identify opportunities to save energy through an analysis of your electricity bills and a walk-through inspection. In some complex cases, metering, testing and computer modeling may be required to determine actual annual energy consumption. An equipment list and information on how each piece of equipment is used, maintained and operated will round out your current or baseline picture.

The major areas that the energy manager will consider are:

• Building envelope (windows, doors, exterior walls)
• Heating, ventilation, air-conditioning system (HVAC)
• Electrical supply system
• Lighting
• Boiler and Steam System
• Hot Water System (Domestic)
• Compressed Air System
• Motors
• Special Purpose Equipment
• Water and Sewer

One aspect that can be confusing to clients is the level of detail necessary to get the job done of identifying energy savings, and like most consultant services, energy audits can come in different sizes. Some agencies, like Hydro Quebec, offer homeowners an online question and answer tool which outputs information on how energy is being used and some recommendations on how to save energy and money.  There is also a simple “walk-through” audit where the result is a list of items that a building owner may consider when attempting to improve the efficiency of his building. At the other end of the spectrum is an “investment grade” audit that would likely include in-depth baseline information, diagnostics, computer modelling, recommendations and engineering plans.

So if you want to cut costs and save money, an energy audit is the place to start. It will be good for the environment and great for your bottom line.

My business partner began her journey towards all things environmental while she was expecting her first child. The realization that formerly innocuous cold medicine could not be consumed while pregnant got her to thinking: what is actually in the food that I eat and what else should I be avoiding? In her admirable Engineering-trained way, she got to work and studied just that. Her findings startled her to thinking not only about her own body and that of her unborn child, but also about our town, country and earth. What apparently innocuous substances are poisoning our environment and what can we do about it? 

The protection of the environment is certainly not a new topic, but in just a few years we have moved to a place where sustainability and protecting the environment is on most people’s radar, has become common platform for government, and is a major issue for business. Like any initiative, there is a continuum where some organizations are much further ahead than others. Some businesses are actively measuring their greenhouse gas emissons (GHGs), buying renewable energy credits (REC’s), building certified LEED buildings, and living up to stated and measurable sustainability policies. Others have changed their light bulbs to energy efficient company fluorescents or “CFLs” and figure they have gone as far as they need (or want) to go.

Small and medium-sized businesses – of which there are over two million with less than 500 employees in Canada – are getting more involved, but potentially to a lesser extent than big businesses. Environment Canada’s research on pollution trends over the last five years shows large firms appear to be outperforming smaller firms in reducing pollution. And given the resource restraints of the small and medium-sized business in an increasingly competitive and global marketplace, it’s no wonder.

Most small and medium-sized business owners indicate an interest in improving their environmental practices but many do not have the knowledge or resources to begin the process. A vast amount of environmental information is available these days, but applying it and ensuring the value or return on investment can be complex and time-consuming. On the technology front, it is difficult for business owners to wade through the options and determine a long-term path forward. They are often simply trying to solve an urgent problem (“My boiler is not working and it is -30º outside!”) and may rely on the expertise of a sales agent who is selling one type or brand of product. Lastly, financial resources are a common barrier to action.

So, while there might be a will to become a better steward of the environment, there is a common perception that it takes substantial green to become green.  And what are the benefits of being green? Aside from being “the right thing to do” for future generations, what can companies expect?

Industry leaders like Quebec-based paper and tissue manufacturer, Cascades, will tell you that that they have made impressive gains in energy efficiency at all their plants and have reduced their energy costs. More and more clients and partners are demanding to do business with responsible suppliers and this positively supports their brand. Employees are proud to work in an environment that supports a good cause and this good reputation extends to the recruitment of new employees. In addition, many government bodies and provincial utilities are willing to fund environmental or energy saving projects which takes the bite out of retrofit or building costs and encourages investment.

The benefits of top-line and bottom-line improvements as well as customer and employee loyalty are available – indeed crucial – to small and medium sized businesses as well. But where do these busy entrepreneurs start? How do these initiatives fit in to an already over-flowing week? Our company, Lean into the Green, specializes in helping businesses save money by becoming more energy aware: Identifying the uses of energy, prioritizing the energy savings opportunities, and then applying for project grants and funds. The second part of the engagement involves incorporating the company’s green efforts into their corporate and brand image.

The marriage of environmentalism and marketing is again, not necessarily a new topic, but one that energizes my partner and me. It’s a logical way to comprehensively address a company’s cost structure, product design and development, brand and marketing, customer and employee loyalty. Stay tuned to this column for more on the business of being green…

Large commercial buildings pose some specific challenges to determining energy savings opportunities due to the sheer size of the building, complexity of some of the installed systems, interdependency of these systems, and difficult negotiations between seasoned building owners and engineering companies.

Another aspect that can be confusing to clients is the level of detail necessary to get the job of identifying energy savings done.

Energy audits can come in many different sizes ranging from a simple “walk-through” audit where the result is a list of items that a building owner may consider when attempting to improve the efficiency of his building to a “investment grade” audit that would likely include in-depth baseline information, diagnostics, computer modelling, recommendations and engineering plans.

The American Society of Heating Refrigerating and Air Conditioning Engineers or ASHRAE does an excellent job at explaining the short comings of the walk-through audit and the merits of a more comprehensive approach. So while a walk-through audit might seem like a good place to start in an incremental approach, a building owner runs a significant risk of not finding significant or measurable energy savings. A comprehensive audit will cost a client more upfront but the cost is well justified by

the greater energy savings opportunities identified and by avoiding duplication of effort as many improvement descriptions, which guide implementation can be provided in the audit.  A comprehensive approach using structured techniques can make the work easier and provide a framework for substantial and measurable energy savings.

The full article can be found at http://www.ashrae.org/members/doc/shapiro_8090903.pdf.

Of course, we could be talking about energy management or pest control but the issue is the same: If the client flaunts his successes in resolving energy waste (or ridding his premises of cockroaches) that story is a double-edged sword. On one hand, there is the obvious good news that the client has moved in the right direction – is using less energy, saving money, and in a more market competitive position. On the other hand, this company’s clients could come calling for their share of the savings. Or, in our more…er…delicate example, the pests are gone but why were they there in the first place? (and what else is hiding under the rug?)

For a small startup, testimonials and references are the lifeblood of new business. It takes a confident client – not to mention true delivered value – to step up and broadcast his support. (We are ever grateful for these clients!) But it got me thinking of other industries that might face a similar situation:

• Human Rights Law
• Professional Mental Health Services
• Private Investigators
• Soil Contamination Removal
• Bankruptcy services

What other industries face this dilemma? How have they built their business, conveyed their authority, and built trust if not from stated client testimonials?

Traditional trades people are finding new challenges and opportunities for their skills with the boom of green construction.  New methods and materials are being learned and, as reported by the Calgary Herald, residential construction is affected along with commercial and institutional buildings.

But what happens once the green building is up and the tradespeople have moved on to their next project? Grant Trump, CEO of Environmental Careers Organization (ECO) Canada comments:

“You can build a building that’s incredibly energy efficient, but if it’s not operated properly, you lose all of those efficiencies. The vast number of those (building) operators are in skilled trades.”

So while using green construction, retrofitting, and operational efficiencies has a major impact on reducing energy consumption, it also has significant implications for tradespeople.

They now require a better understanding of environmental health and safety legislation, LEED building standards and how to optimize the efficiency of highly complex and technology-based new building systems and materials.

Read more: http://www.montrealgazette.com/entertainment/Green+construction+transforms+trades/3481261/story.html#ixzz0z8R6STs8

According to the 2009 GMA / Deloitte Green Shopper Study 95% of shoppers would buy more sustainable products. But, interestingly enough, only 22% of shoppers actually purchased green products. The substantial difference between these two statistics highlights the fact that the green opportunity exists, but that there is a gap in the market. The bottom line is that there are not enough green products being produced and marketed to meet consumer demand. And it is likely with education and awareness that this demand will continue to grow.

The Green Shopper Study involved the surveying of more than 6000 American shoppers in 11 major retailers of varying formats. Below you will find a summary of the key sustainability trends and shoppers insights determined in the study:

•  54% of shoppers consider sustainability to be one of their decision making factors.

One in five shoppers surveyed considers sustainability to be a dominant or primary decision-making factor in many merchandise categories. An additional one in three shoppers was influenced by sustainability as a consideration

• Green shoppers are a large, high-value segment of importance to retailers and many manufacturers. 

Green shoppers visit stores more frequently, buy more products on each trip, and demonstrate more brand and retailer loyalty. They are less price sensitive than the average shopper and they are generally not bargain hunters.

• Green is an important brand differentiator. 

It adds recognized social benefits to the value proposition for many shoppers.  It also acts as a frequent tie breaker that tips the balance when other purchase drivers are in parity.

• 57% of green purchasers intentionally bought more sustainable products

78% of these intentional purchasers switched to the green product because of its characteristics. Once someone has made the switch to a green product, they are very likely to stick with it and buy it regularly. When a shopper makes a conscious selection of a green product that they are making a personal contract that implies social responsibility and they are less likely to change products in the future.

• A little more than half of intentional green purchasers indicated that they would pay more for green products.

 But pricing is only one of many levers that product strategists can pull. Collaboration with retailers, consumer education, labelling, and trial are all important tactics that can make a difference to the adoption of your sustainable product to the loyal green customer.

• The larger potential population of shoppers that lean towards green want price and performance parity for sustainable products.

However, some shoppers don’t understand why a green product should cost more if it was manufacturered with less packaging or it was transported less distance.

What can we conclude from these findings? 

Well, it is obvious that consumers want green products, but retailers and brand marketers are losing green sales at several key points along the path to a purchase. The largest opportunities to capture shoppers interested in green products involve building awareness, educating shoppers, making green products easier to find and recognize, enhancing in-store communications and inspiring shoppers at the store shelf.

(source: 2009 GMA/Deloitte Green Shopper Study)

Energy Benchmarking your building or facility could be an interesting exercise to see where you stand. It is the comparison of energy use relative to a set of similar buildings. It provides a very useful starting point for individual energy audits and for identifying energy-saving measures. It helps guide building operators in determining if there is a potential for significant improvement in energy efficiency and reduction in energy operating costs.

Calculating your Energy Cost Index (ECI) is sometimes used as a simple measure of energy efficiency. The ECI is the annual energy spend per conditioned square foot and is a very basic way to measure yourself against others and your own past performance.

ECI = Total Energy Spend ($) / Area (ft²)

A Productivity Index is also an effective and easy way to evaluate and monitor your energy efficiency over time. Examples of a productivity index are:

• Btu/person, Btu/ton, Btu/item produced
• kWh/person, kWh/ton, kWh/item produced

But your competitors are not exactly going to open their books to you so what to do? The Canadian Industry Program for Energy Conservation (CIPEC), sponsored by Natural Resources Canada (NRCan) has developed a benchmarking and best practices program for Canada’s industrial sectors. The program is designed to help industry achieve significant energy efficiency gains. CIPEC, in collaboration with its association partners, has established indicators to enable industrial companies to compare their energy use, greenhouse gas emissions and practices with similar operations. These indicators can help guide industry toward achieving greater energy efficiency by identifying energy cost-saving opportunities for each industrial sector. CIPEC offers benchmarking guides and publications for the following sectors:

Another good source of information is the Commercial Buildings Energy Consumption Survey (CBECS). It is a national survey that collects information on U.S. commercial buildings, their energy-related building characteristics, and their energy consumption and expenditures. The following graph illustrates typical Energy Use Indices  for various types of commercial buildings. 

The Energy Use Index or EUI is a basic measure of a facility’s energy performance. It is the ratio of total Btu’s of energy used annually to the total ft² of conditioned space. 

EUI = Total Energy (Btu) / Area (ft²)

Also in the U.S. is the Energy Information Administration (EIA). This government agency collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment. The most recent published survey took place in 2003 and provides a plethora of energy data for comparison purposes.

Once you have calculated your productivity index, compared your energy usage to similar buildings or facility what then? If you are spending less, keep up the good work! If you are spending more, an energy audit could be a good next step to find the culpable energy guzzlers.

Stay tuned for Part 2 – Benchmarking Tools

What is an Energy Audit?

A Lean into the Green Energy Audit starts with an on-site inspection of your building, property or facility in order to identify energy saving opportunities of an equipment, maintenance, and/or operational nature. These opportunities are then quantified through monitoring, metering or testing. In some cases computer modeling may be necessary to determine the actual annual energy consumption. Economic analysis will determine which options are the most cost-effective for your business.

The Energy Audit includes a detailed analysis of energy bills for the last 12-36 months. The analysis uncovers the proportionate use of each different energy source as a part of the total energy cost and in turn may identify previously unknown sources of energy waste.

A facility Equipment List and data on operational uses of the equipment will complete the picture and ultimately provide an understanding of major energy-consuming tasks in your building or facility. The Major Systems to consider are:

1. Building Envelope
2. HVAC
3. Electrical Supply System
4. Lighting
5. Boiler and Steam System
6. Hot Water System (Domestic)
7. Compressed Air System
8. Motors
9. Special Purpose Equipment
10. Water and Sewer

Finding Your Energy Management Opportunities

Identifying Energy Management Opportunities (EMO’s) requires a good knowledge of energy efficiency technologies available to do the same job with less energy and cost. Cost Benefit Analysis will then help prioritize the options.

The final step is to develop an Energy Action Plan. The Lean into the Green Energy Action Plan includes a customized list of recommended EMO’s, an implementation schedule, and an ongoing monitoring program.

Is an Energy Audit Worth It?

Calculating your Energy Cost Index is an excellent way to determine if an Energy Audit is a worthwhile investment for your company. The Energy Cost Index is dollars per conditioned square foot per year.

Energy Cost Index = Annual Energy Spend ($) / Building Area (ft² or m²)

If your Energy Cost Index is greater than $2/ft² it is likely that there is opportunity for improvement in your energy consumption.  Don’t delay – many energy saving solutions are no cost/low cost fixes which take very little time to implement. You could start saving as soon as your next energy bill. Contact us today to set up your Energy Audit.