Article provided by: Elena Cahill of Globelé Energy, LLC
We hear of energy benefits, tax credits, incentives and the like all the time but yet seldom do we actually use them to the fullest. At Globelé Energy, LLC (www.GlobeleEnergy.com), we encourage and assist our clients in taking full advantage of these opportunities by providing customized solutions to solve energy needs. To start, below is a list of resources available to the Connecticut commercial real estate owner and lessee.
1. Connecticut Energy Efficiency Fund (CEEF)- Energy efficiency money and renewable energy product money. http://ctsavesenergy.org/
2. Connecticut Clean Energy Fund – Renewable energy money. http://www.ctcleanenergy.com/
3. Municipal Energy Efficiency Fund- Energy conservation money. ttp://www.ct.gov/opm/cwp/view.asp?a=2994&q=437162 -
4. IRS 179 (d) tax deductions for energy conservation work performed. http://www.irs.gov/formspubs/article/0,,id=177054,00.html
5. IRS renewable installation credit or rebate
6. IRS bonus depreciation
7. Deregulated electricity and natural gas supply purchase.
The energy benefits available are cumulative as well. This should encourage the building owner or lessee to make the benefits a substantial consideration in their decision making process when planning work to their buildings.
The CEEF energy conservation money is available for ratepayers of the non-municipal utility companies. The fund has 4 commercial programs available. Be sure to contact the fund prior to beginning any projects you are considering to learn which fund may apply and the criteria involved.
Conserving energy in a building can be done in many ways, below are a few examples of types of projects that can qualify for incentive money:
- Putting mechanicals or equipments on timers.
- Changing mechanicals to a more energy efficient models.
- Using an energy management system to control the mechanicals.
- Using the energy management system to alarm you of problems.
- Insulating all parts of the building such as roofing and piping
- installing window inserts, films or energy efficient e rated windows
- Using energy star approved LED lighting or lower watt CFL lighting.
Creating your own energy is easier to accomplish than it may seem. If you are co generating energy, you can then use the co generated energy in peak times which will save you money two ways. Co generating will save you the k/Wh charge as well the KW charge and likely the KW charge savings are greater than the k/WH savings. Some examples of co-generating include:
- natural gas or diesel generator
- solar thermal system
- solar panels
- wind turbines
- geothermal energy
In the ever speculative world of deregulated energy, purchasing deregulated electricity and natural gas can be lucrative, even with the reduction in electricity supply cost from both CL&P and UI in January. The key is understanding and finding the right product for you. The three most common products are:
- fixed contract product
- variable product (with or without a locked in contract)
- variable with a cap product
Contracts can range in length from 1 month to 5 years. Your utility rate class will usually be what the supplier or broker will use to determine the deregulate rate they can offer you.
What to be careful of:
- variable product in a locked contract, ask questions about when it can go up and how high it can go up as well
- the length of your contract, if you take a long contract and the utility company reduces their supply rate below your rate, you will have to pay a penalty to get out if you are locked into a contract
- what is included in your price, are the ancillary fees included or not.
An example of how deregulation works well. You are on the UI January 1 , 2011 commercial rate of .1056 and you are offered a one-year contract for .0874. You consume 25,000 k/Wh a month. Your deregulated rate would afford you a savings of $455.00 in one month and $5,460.00 in one year if the k/Wh usage remained constant. Imagine companies who are using 250,000 k/Wh a month, the savings are $ 4,550.00 a month, $54,600.00 annually and it goes on.
For the Federal incentives we will refer you to your accountant. We recommend you call your accountant as soon as you can and ask him/her about the bonus depreciation available this year. Then remember your accountant will be as good as the information you give him/her. Begin separating your receipts and be sure to let your accountant know what projects you have done that conserved energy in the areas of lighting, HVAC and enveloping.
For more information, or assistance in the area of energy conversation for your business or property, please call;
Elena Cahill
Globelé Energy, LLC
240 Sargent Drive, New Haven, CT 06511
203.799.8200 Office
203.314.6089 Cell
203.823.4911 Fax
www.GlobeleEnergy.com
