How to Lower Your Company's Energy Bills

Factories. The biggest energy draw in an industrial facility is the industrial process, which also adds to the plant's cooling load. Processes vary across industries, but motors are common to most of them, and they are an easy place in which to find energy savings. New, highly efficient NEMA premium motors (NEMA is the National Electrical Manufacturers Association) are up to 8 percent more efficient than the oldest motors now deployed. Most motor manufacturers have free software to calculate the energy savings of a new motor; the DOE has a version, MotorMaster+. A variable speed drive, which can be attached to motors on pumps and fans, is an even more powerful tool; it can increase the system's energy efficiency 50 percent, with a payback of as little as six months.

Further, certain small and medium-size manufacturers qualify for a daylong energy assessment conducted by one of the 26 universities that serve as Department of Energy Industrial Assessment Centers.

3. Start Fresh

A new building could incorporate all these features and more -- it would probably, for instance, generate much of its own energy, with solar panels and other technologies. It would be sited and designed to take maximum advantage of the sun to light the building but still minimize the heat buildup in summertime.

Because so much of the potential to save energy is embedded in planning rather than technology, green features add only 1 percent to 2 percent to the total cost of a new building, according to the U.S. Green Building Council. But they can save 30 percent to 50 percent on energy costs and 40 percent on water costs.

Incentives to Clean Up

The recent stimulus bills created and extended tax incentives for green initiatives. But the Feds aren't alone in attempting to green the economy. In some states, the combined incentives can defray 80 percent of the initial cost of installing rooftop solar panels.

Federal incentives: These include a 30 percent investment tax credit (or production tax credit, or grant) for renewable-energy systems, including micro wind turbines and solar and fuel cells. There's a tax deduction of up to $1.80 per square foot for buildings that meet a 50 percent energy savings target in HVAC, hot water, and interior lighting systems. In addition, there's accelerated depreciation for smart meters and grid equipment, as well as for renewable technologies. (For more information, go to energy.gov/additionaltaxbreaks.htm and energystar.gov/index.cfm?c=products.pr_tax_credits.)

State and local incentives: These vary widely by state and include tax credits, rebates, grants, and loans. Some programs are far more generous than their federal counterparts -- the solar credit in Arizona reaches $50,000 per company per year. For a list of offerings by state, see the Database of State Incentives for Renewables & Efficiency (dsireusa.org).

Utility incentives: There are rebates for installing renewable-energy and energy-efficient systems; low-interest loans and grants to finance energy efficiency and renewable projects; and production incentives that purchase renewable energy, particularly electricity from rooftop solar panels. Utilities offer incentives in 42 states. For a complete list, go to dsireusa.org.

Solar Rent to Own

Companies have been reluctant to invest thousands of dollars in renewable-energy systems such as solar panels -- and with good reason. It can take years to recoup the investment, even with incentives. And most companies aren't in the energy-production trade; such an endeavor can distract from the core mission.

In recent years, however, so-called solar-services companies have appeared, to help businesses take advantage of their roofs. With a solar-services company, the client bears no upfront cost and no responsibility for upkeep; the solar provider installs the panels and operates them for the life of the contract. The energy firm sells the electricity back to the customer, usually at a discount off utility rates. The California Solar Center (californiasolarcenter.org) publishes a guide for firms considering a solar-power purchase agreement.