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Source: LED Lights the Way – MHP Magazine

LED lights the way to savings

The use of LED lighting has expanded exponentially over the past several years as prices continue to drop and quality and reliability improve.

American Energy Services

Multifamily companies make up more than 25 percent of American Energy Services’ (AES) LED lighting installation and retrofit projects.

“As property owners start to go beyond simple retrofits and explore the advantages LED and intelligent controls offer, they learn to create aesthetics and unique spaces that appeal to new demographics,” AES President and CEO Jim Caprara said recently.

He said he expects multifamily will become fast adopters of the technological advances in LED lighting, which he believes is a promising growth area.

Caprara, who joined the company as its top executive about a year ago, cautions apartment companies against a DIY approach to an LED lighting retrofit, recommending partnership with an energy expert when considering such a changeover.

The first step in an LED retrofit project overseen by an energy services company like AES generally is an investment-grade audit to establish the unique needs of a client’s buildings, collect utility data and be able to provide a solution leveraging rebates, grants, financing and other guidance, he explained.

The company that provides audits and energy solutions for Fortune 500 companies, government agencies, healthcare and educational facilities and property management companies then proceeds with a turnkey installation, taking on all the logistical and operational elements of the project.

AES targets savings of 50 percent to 70 percent per month on clients’ energy costs through customer rebates and in-electric rate and property-linked funding.

The rebates are available for LED lighting products from almost all electric utility providers and through state programs, with even more rebate money coming available this year, Caprara said.

In-electric rate funding is an innovative new offering through major utility companies that provides funding for energy efficiency projects with no out-of-pocket costs, with the financing of the project paid over the long term as part of the client’s energy bill.

One property-linked funding option is designed to help property owners finance their energy efficiency projects at very affordable fixed rates. The projects are financed with no money down and are repaid as part of the property tax bill over the long term. An Energy-as-a-Service leasing program also is available that can create immediate cash-flow with no up-front costs.

Savings like those at Bozzuto-managed The Fenestra in Rockville, Md., and Augsburg Village in Baltimore, Md., are typical of the financial benefits that an AES LED lighting retrofit provides to the multifamily industry, said Caprara.

The lighting upgrade project at the Rockville community, coupled with an energy-efficiency community awareness campaign conducted by Bozzuto Management Company, is credited with contributing to a 3.5 percent reduction in whole building energy use at the 492-unit CIM Group-owned, mixed-use apartment community that helped Bozzuto earn a Category Winner designation in multifamily energy reduction in the EPA’s National Building Competition about a year ago.

An interior and exterior LED lighting retrofit by AES at Augsburg Village, a retirement community in Baltimore, Md., resulted in a 46 percent reduction in energy costs for lighting, or $50,692 annually.

Because Augsburg Village’s lighting upgrade significantly reduced its monthly energy usage, the cost of the project was covered by the community’s savings. After the project was paid off in just over two years, Augsburg Village’s energy bill dropped by thousands of dollars, Caprara said, explaining how AES facilitated the retrofit with no up-front capital from the owner and zero out-of-pocket expense.

“We provide multi-tier proposals addressing our customers’ requirements and stay with our customers, not simply change out lights,” Caprara said, explaining the benefits of the company’s recently launched Service Excellence Program.

The program, which is available in conjunction with any AES proposal, offers an all-inclusive approach for greater savings and efficiency beyond the initial sale. Available for up to 10 years, the program covers materials and labor for any needed repairs as well as an annual health check audit.

The company’s Intelligent Controls enhance LED lighting efficiency, as well, he said.

“Nearly 30 percent of lighting cost is wasted on empty rooms or fixtures running at excessive light levels. Today, this is easily addressed with occupancy and dimming controls,” said Caprara, explaining that the intelligent lighting controls AES offers allow users to take advantage of color and temperature modifications creating enhanced and controlled environments that save money and improve security.

Contrary to what one might expect, he said, retrofitting an apartment community with LED lighting can be less expensive than an install during an apartment community’s development.

“When you put LED into a new building, you don’t get any of the rebates and you can’t prove savings. So, a lot of times, the retrofit is actually less expensive,” he said.

Traditional rebate options vary greatly by geography and utility company and may cover system components ranging from lights, fixtures and control systems to sensors and lighting integration. “There’s probably a sunset to it, at some point in time, when all the rebates are going to start going away,” he said, but right now, they are an important source of savings.

As LED technologies become more widely adopted, the utility and rebate companies are looking for the next development in technology leading to potential savings, he explained.

“This next wave is coming in the form of adaptive and intelligent lighting controls that allow a customer to optimize the performance of their lighting systems. That’s what’s coming next,” Caprara predicted.