Nicht Tee Kugel, Dos

8 03 2011

This week I am testing an additional medium for the The Energy Rant; the cartoon.  Click here to try it out.  Send email comments with your thoughts regarding this mechanism to me at jli@michaelsenergy.com.

Major barriers to EE for large commercial and industrial end users include;

  • Lack of time
  • Lack of expertise
  • Lack of capital
  • Risk aversion

If you don’t think end users are short on availability, just ask them.  Most end users don’t have time to commit to energy efficiency projects and most of the rest think they don’t have time.  The ones who really don’t have time get seven paid holidays and two-three weeks vacation while the latter group gets eleven paid holidays and six weeks vacation, if you know what I mean.

Most commercial building owner/occupants think of lighting retrofit, adding roof insulation and replacing windows or maybe replacing a boiler they think is 60% efficient.  Lighting may be ok but the rest of this stuff is almost always going to have a negligible impact on energy consumption.  Efficiency to most industrial end users means, just keep it rolling – widgets per shift, less maintenance.  Many times increasing widgets per shift and reducing maintenance is accompanied by energy efficiency, especially when EE is the primary reason to do project.  However, there are bails of cash on fire in many places that are invisible to folks who focus solely on keeping things going.  In other cases, we’ve seen industrial end users think they’re going to meet their 10% reduction goals by turning lights off.  Pssst.  Your lights only consume 4% of your energy bills.

Not enough money.  I’ve investigated commercial real estate from both an owner’s and leaser’s perspective.  The owner makes the tenant pay the utility bills in many/most cases, so there is little incentive for the owner to do anything.  The tenant’s perspective is “I have a three-year lease, this isn’t my building, and I don’t even know if I’ll be here after three years.”  For industrial end-users, capital is very precious and can take force majeure to get.

Then there is a real risk that savings won’t transpire as indicated.  Lighting is about the only measure customer’s can count on with high probability.  This is unfortunate because it doesn’t need to be that way.  It’s just that there are a lot of schlocks who make assumptions like an old boiler is 60% efficient.  As my boss says, if a boiler is really 60% efficient, turn and run as fast as you can because it may be about to blow.  We’ve seen schlock estimates indicating over one therm per square foot savings by adding insulation.  You might achieve these savings if one of the walls on your facility was missing prior to implementation.

Now we arrive at the subject of this week’s rant: efficiency bid programs.  We see a lot of efficiency bid programs, some of which are delivered by clients of ours.  They are typically an alternative to conventional custom efficiency incentive programs provided side by side.  They work like this: develop a project with cost and savings estimates and submit a proposal to the utility for an incentive.  The incentive is always greater than the standard custom efficiency incentive or why bother with the development and bid?  The program is purportedly competitive – i.e., a “free market” for incentives to maximize bang for the program buck.  If it’s competitive, somebody must lose.  This isn’t tee ball.

I cannot see how these programs don’t get slaughtered in a net to gross analysis.  Net savings are actual savings attributable to the program.  Gross savings are actual savings, period.  What’s the difference?  Net includes the effects of the program.  Did the program influence the customer’s decision to move forward with an EE project?

Let’s get back to the barriers now.  Time.  It takes just as much time for a customer and a contractor and/or consultant to develop the project for bid as it does to develop the project for a standard incentive.  And it takes more time to shepherd the thing trough the bid process.  Efficiency bid takes MORE time.  Which leads me to…

Risk.  As mentioned, there is risk the project won’t generate savings because the energy analyst is a schlock.  But for efficiency bid, there is risk, presumably, that there won’t even be an incentive after thousands of dollars are spent developing the project.  Remember, if this program is competitive, somebody loses.  Who is going to spend gobs of time not knowing whether they will get an incentive?  If the standard custom efficiency incentive is the consolation prize and it’s enough for a “go”, then why would the program waste money on a premium efficiency-bid incentive?

True story, last week we considered pursuing one of these bids for an industrial customer for which we had done a study.  We decided against it because (1) we only had a month to get it submitted and in that month you need to get the customer on board and a month is a nanosecond for a capital intensive corporation to allocate (2) extremely scarce capital, and therefore, (3) it was too big a risk for even us, the consultant, to get the whole thing pulled together in a month, at the mercy of the corporate bean counters.  There is far too little upside for our risk of getting something we have almost no control over to happen.

Somebody has to lose if this is competitive.  Most likely only the biggest customers are going to pursue these projects.  A major customer spends a bunch of time to put a bid together and then is told, sorry, you lose.  Now the utility is faced with a colossal PR disaster with a major customer that will raise Cain all the way to PSC’s office.  OR, the customer takes the standard custom incentive as a consolation prize, in which case the whole bid thing was a ruse to get extra program money – a free rider.

These efficiency bid programs probably look great on the surface but if one really understands market barriers and how large end-users allocate and budget capital, it seems like a big free rider program to me.  They take more time, not less.  They add risk rather than decrease risk.  They potentially provide more capital assistance, but at what I see is a disproportional addition of risk.

Tidbits

  • Ameren Missouri says they will pare back EE programs because they are costing shareholders return on investment.   Wow – although I consider it unfortunate, it’s understandable and refreshing to some degree to get straight talk from a utility that actually believes this.  I think a good portion of utilities really think this way but lead on as though they are saving the universe.   Do what it takes to look good to the regulators but with minimal real impact.  Come to think of it, these utilities may be like The Firm.  Once a partner in the EE programs and made aware of the scam, you’re stuck unless you want your car to accidently explode when you leave for home.  BTW, programs can be developed for utilities to make money on EE.  Just call 608.785.1900.
  • Don’t look now, the Chevy Volt has even less than the advertised 40 mile battery range – like about 40% less during cold weather as batteries don’t work well in cold weather.   Not only that, as mentioned in “A Frivolous Novelty” it takes about 5 kW to heat the cabin of the vehicle.  I “mistakenly” thought this was a big deal.  Not really.  At about 0.5 mile/kWh, the battery juice is consumed in less than a half hour.  That’s 50 kWh for 25 miles of driving but only 2.5 kWh for heating.  Who is going to pay $40,000 to be limited to 25 miles between charging?  Raise your hand.  Not all at once, it may make the planet wobble.
  • In one last bit of refreshing honesty, this guy provides a good assessment of plusses and minuses of the ban on the standard incandescent lamp:   Good assessment – far above average for that matter.

written by Jeffrey L. Ihnen, P.E., LEED AP

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Dumb Bears

15 02 2011

A senior sales director for MXEnergy, “the fastest growing natural gas and electricity retail provider” states, “As we observe the unrest in Egypt and other parts of the world, we recognize the volatility of the natural gas market.”  What?  He like many others “on both sides of the aisle” use the Middle East and our real dependence on foreign to twang the audience’s emotional strings.

The goings on in Egypt will have nearly zero affect on natural gas prices here in the mainland, U.S.  Why?  Because nearly all of our natural gas is produced here and we import from hostile regimes like Canada.  LOL!  The guy is using Middle East unrest and the threat of rising oil prices to translate to high gas and electricity prices here at home.  I think renewable energy at maybe 1-2% of our electricity supply may produce more electricity than oil does.  C’mon.  Don’t feed me this bull dung.

Then there is Al Gore’s movie the inconvenient truth, lower case on purpose.  The movie is one giant tug at the heart strings with flooding, starvation, cuddly polar bears dying.  In reaction to the movie, the president at Veriform, a steel fabricator, was so moved by the film he reduced his energy bills by 58% by investing $46,000 to save $90,000 annually.  Something tells me there is a little bit of number manufacturing and/or trickery going on here.  This leads the reader to believe that $90,000 is the 58% but it’s a little hard to fathom a steel fabricator with a $160,000 annual energy bill.  And what was the guy doing before?  Heating his facilities with electricity with all the doors and windows open?  He saved this with lighting, heating controls (e.g., thermostats?), and insulation?

One time we had a coworker of my wife’s over for a cookout and he was describing a program on Discovery Channel, if I remember correctly, that chronicles a polar bear that starves to death.  So I mentally roll my eyes and think, I’ve got to see this program.  The next day or next week I tuned in watching the polar bear swimming around in open water, jumping in, climbing out, jumping in, swimming, and at the end he’s on an island with nothing but gigantic walruses, the things with 18 inch tusks.  These things are too huge for a polar bear to take down.  They have skin an inch thick and about three feet of blubber.

The bear is after the cub, calf, pup, piglet, baby, squab or something like that – the little ones.  But the five ton adults are pig piling the little guy like a loose ball at the line of scrimmage in an N.F.L. game.  The bear is jumping on the backs of these school-bus size blubber bags – like a guy trying to tackle a Clydesdale.  He of course gets nowhere and walks away with a dejected look with sad music and depressing voice over.  Who knows if the bear actually died or they just made up the whole story fabricated from lost footage of Mutual of Omaha’s Wild Kingdom, with Marlin Perkins.

The conclusion: global warming was destroying the habitat of the bear’s favorite food, seals, and therefore, the gasoline you are releasing into the air when driving your car, killed the bear in the film.  My conclusion: assuming the bear really starved, what a dumb bear that doesn’t know how to hunt.  What about the seals that were spared?  Somewhere a bunch of seals that would otherwise be dead are basking in the sun.

Back to Al Gore’s film.  When I first saw the film’s promotional poster (you can get an eleven by seventeen keepsake for fifteen dollars) I immediately thought this is fitting and wonderfully ironic.  If you know anything about the weather at all – anything, you know low pressure systems, hurricanes, snow storms, rainstorms, and tornadoes spin counterclockwise in the northern hemisphere.  Yet the hurricane cartoon on the movie poster spins clockwise.  Chances this was intentional to represent a storm in the southern hemisphere: 0%.  All credibility: gone.  If this had one bit of “scientific” “peer review” (aka like-minded conspiring), why couldn’t anybody see this?  Al Gore won an Oscar and a Nobel Peace Prize, while the U.K. has all but banned the film for being full of bull dung.

We don’t need these convenient lies.  Get it?  To sell energy efficiency.  Exaggerating, embellishing, and just plain manufacturing facts catch up with you.  This, like climate gate, does our industry no good.  Just the facts ma’am.

Tidbits

Lisa Jackson, EPA administrator, is convinced ever increasing regulation is going to be an economic boom.  Did you know every dollar the EPA levies in regulation returns $40 to the economy?  Wow!  What is the ticker symbol?  I’ll margin my account to the max.

Saying these regs will be a net job generator is ludicrous – like the breaking windows to put people to work parable.  That’s exactly what this is.  Just look at this report, and specifically page 7.  Where is the higher cost of energy factored into the equation?  Somebody has to pay for all this stuff.  Higher energy prices are like higher taxes.  The more that is spent on energy, the less there is left to buy goods and services – that are provided by workers, formerly located in the United States.  This doesn’t even pass the laugh test.

written by Jeffrey L. Ihnen, P.E., LEED AP





Abracadabra; 10%!

6 07 2010

“Thrown under the bus.”  Now there is a term that has to be going out of style pretty soon.  The phrase is used practically daily by everyone, especially in the news-talk business.  Where did that come from?  Why is it so popular and useable?  Has it ever happened?  It seems it would be very difficult to do.  You would have to take the guy down like roping a calf and somehow stuff them under the cargo hold while the bus is going down the road I guess??  Your timing, strength and technique would have to be impeccable.  It may deserve to be elevated to an Olympic sport. Seems like it would be like trying to stuff a cat into an ice cream bucket.

Some precursors to “thrown under the bus”:  Thrown down the stairs (that’s already been coined but I think it was much underrated); Taken to the woodshed (already coined, gaining traction in politics); Burned at the stake!  Wow, now there’s an old one that probably died at the hands of political correctness; Tarred and feathered; Fed to the lions; Thrown to the wolves.

Some suggested new ones:  Thrown from the train?  Rammed through the wood chipper?  Shoved into the hammer mill?  Sentenced to Oprah?  Boiled in milk?  Shredded with the Sunday paper?  Canned with tuna?  Bagged with the grass clippings?  Thrown in the lake of fire?  Fed to the Stay Puft Marshmallow Man?  Pitted and stuffed with pimento?

“Low hanging fruit” is another favorite of mine – not.  What does low hanging fruit mean?  Well, everybody has their definition of what they think it is but they are not all the same.  Low hanging fruit to me includes all energy efficiency measures that fit in a four year lumped package.  Low hanging fruit to a firm that does performance contracting may represent a package of measures that has a combined five to seven year payback.

In some, circles low hanging fruit means all the energy savings you (consultant) can generate with your magic wand, while rubbing a rabbits foot and humming the cheesy Steve Miller hit, ♫♪Abracadabra ♪♫. Like politicians who think alternative energy is a low cost, abundant source of energy that we just aren’t trying hard enough to develop, these customers seem to think they can cut their energy bills by 10-15% by spending virtually nothing on consultants, hardware, software, programming or contractors.

You can save a lot of energy, and if/when real time pricing becomes available, a lot of money in your home with behavioral changes.  Turn the thermostat up in hot weather; wash clothes on the weekends or after 9 at night, lock your electric water heater and maybe your dehumidifier out during peak hours, and even turn the lights off when you leave the room!

Which of these sorts of measures are going to be available to commercial and industrial facility managers? – shut the lights out when you leave and maybe they can eek the temperature up a couple degrees in hot weather before people start to howl.  How much will this save? Somewhere between 0.01% and 1.00%.  There it is, your abracadabra free audit.

We are working with customers that have savings goals of 10-15% for huge manufacturing facilities and they plan to start with the “turn out the lights” solution.  This is a potential huge waste of calendar time while they watch their bills roll in over subsequent months.  They won’t see savings because it’s down in the grass and well within the “noise” of typical energy consumption gyrations from month to month and year to year.

Getting to the goal can be done with cost effective measures but cost effective and free are two different things.  Ten to 15% savings isn’t going to happen without spending money on expertise, time, and in many cases some equipment or controls.  There is no magic/free solution and the sooner this is accepted, the sooner customers can get on with achieving their energy goals.

Tidbits

Tidbits provides comment and follow up on recent news and posts to this blog.

I said at least twice that the disaster in the gulf would be underestimated.  Two thousand barrels a day turned into 5,000 and now I think the most recent estimate is 50,000 barrels a day.  Touché.

I also said the robotic government bureaucracy would act like idiots.  Recently, the EPA was threatening to keep the A Whale gigantic skimmer with a capacity of 500,000 barrels of treatment per day from performing because its discharge of cleaned seawater may not meet the EPAs standards.  I hope the EPA isn’t around if I should get in an accident and my arteries are spewing blood all over the road.  They may not allow a good Samaritan doctor from plugging the leak.  The area and the doctor’s instruments may not meet hygiene standards.  What morons.

Thirteen countries offered up ships to help contain the “spilled” oil.  Thanks, but no thanks guys.  We don’t need your help.  The 80 year old (or so) Jones Act in a sop to the unions, prohibits foreign vessels from docking in US ports in consecutive stops.  It’s refreshing to know unions take precedent over beaches, birds, turtles, and fishing and tourism industries.  The only thing worse than bureaucracy is a crony one.

written by Jeffrey L. Ihnen, P.E., LEED AP





Horse and Buggy EE Programs

8 06 2010

In many states, energy efficiency programs are meeting annual savings goals and their incentive cash is depleted in a fraction of the year.  States where energy efficiency programs are a new offering are especially quick to meet goals.  These states include Ohio, Michigan and Illinois.  These states rely heavily on lighting, which accounts for somewhere in the range of 90% of the total savings.  Even mature states like Wisconsin and California still get well over half their savings from lighting and other prescriptive measures (rebates).  Wisconsin surpassed goals and ran out of incentives last program year.

There are many ways to solve the “excess savings problem” from reducing or eliminating incentives on some things or eliminating program offerings.  In Wisconsin, they are sort of cutting incentives across the board and getting rid of comprehensive energy retrofit in existing commercial and industrial (C&I) facilities, where everyone knows the greatest potential exists.  Comprehensive energy retrofit in WI is dead because they killed feasibility studies.

Wisconsin must know something Minnesota, Iowa, Illinois, Michigan, New York, California, Johnson Controls, Honeywell, Siemens, and dozens of energy service companies (ESCOs) around the country are oblivious to.  These states’ programs rely substantially on comprehensive energy retrofit and it’s actually the holy grail of energy efficiency.  But not in Wisconsin.

Wisconsin instead relies on the discount model.  See Incentive or Discount, January 12, 2010.  The powers that are believe this is the most cost effective (only) way to deliver savings and that feasibility studies once paid for by the program just rot on the customer’s shelf.  But there are numerous ways to avoid this.  You just have to develop an integrated program that holds customers accountable for implementing measures.

When Wisconsin (Focus on Energy, Focus for short) took over the energy efficiency programs from the investor-owned utilities about 10 years ago, one of the goals was market transformation.  Market transformation simply means making energy efficient products and services the normal way of doing business such that ratepayer-funded programs are no longer needed, or their need is greatly reduced.  Market transformation has long since been cast aside.

Instead, Focus has been transformed into something that seems to be directly at odds with its market transformation charter.  Service providers in the market, ones with expertise and no bias (don’t sell stuff) are locked out by an apparatus that cannot work for them.  Eliminating feasibility studies was the equivalent of adding a mote full of alligators around the fiefdom with razor wire atop the castle wall to keep the serfs out.

The idea that feasibility studies are a waste of money is just plainly incorrect.  Nearly all of our feasibility studies are acted on.  Last year we kicked off a retrocommissioning program with three pilot studies – no commitment from the owners whatsoever.  We just wanted to demonstrate potential.  Two of three have already been implemented.  One has almost a year’s savings accumulated with 25-30% electric and gas savings, on their bills.  The third project is close to implementation, which will probably be completed by year’s end.

In another study, we projected 30% savings for a high school. Actual results were 40% savings, indicated by energy bills.  One college campus: 20% gas and electric savings projected, 20% savings realized.  Another campus 15% and 22% electric and gas savings projected, respectively.  Actual savings from bills: 25% and 20%.  A medical clinic with about 25% savings projected:  actual savings in the first 3 months of post-implementation operation total a full half year of projected savings.  Every one of these projects needed measure identification, cost and savings estimates, and return on investment analysis.  We started with a blank slate.

We have a study underway for a huge food processor and are projecting 3.5 million kWh savings, from only a portion of their air handling systems (68 units).  We are looking forward to moving on to the ammonia refrigeration and compressed air systems. This customer has been very progressive with energy projects over the past 7-8 years and is willing to get everything that meets their financial criteria.  In fact, when we delivered the proposal they agreed to move forward with the study on the air handlers but said, “but I don’t think you’ll find anything”.

The bottom line is, a comprehensive program that includes front-end screening, study, Implementation design, implementation, functional performance testing of measures, and customer training will be acted on by customers.  Of the 10 or so projects, including dozens of campus buildings, where we have used this process, savings have been 20% or more in every case, up to 40%, and actual savings from pre and post implementation bill comparisons have always come in above study projections.  Projects include everything from retrocommissioning to major equipment/system retrofits to new controls systems.

Ironically, we completed a “no risk” study with Focus last year including controls, refrigeration and HVAC.  The customer went forward with all recommended measures.  Again, all we started with was a customer that wanted to cost-effectively save energy, a blank sheet of paper.  No “pre-packaged” projects.  I.e., no free rider.

From a program perspective, this is very cost effective because savings are huge and concentrated and studies do not get stranded.  The problem with some (as in, not all) program administrators whether they be third parties or utilities is they are steadfastly wedded to the status quo with a divorce rate Vatican City would cheer.  The typical disjointed process with reams of paperwork and delays at the outset, no assistance between study and implementation, no hook or commitment from customers to do anything with the study, and no functional testing at the conclusion of implementation is doomed to fail.

The solutions to the “waste of money” issue are simple and they work very well, but some administrators and in some cases regulators need to open their minds and ditch their horse and buggy program paradigms.

And by the way, the attribution rate, which is the savings that occur as a result of an integrated program including feasibility studies, is near 100%.  See the food processor guy’s quote above.  He didn’t think we would find anything.  Tell me.  Would these 3.5 million kWh savings have occurred in the absence of a thorough investigation?  How does a customer who buys an efficient boiler have any idea what the incremental cost and energy savings of his new equipment are?  Does that constitute decision making based on energy efficiency?  Perhaps some programs could improve their attribution rates on C&I programs if they would actually lead customers to implement energy efficiency measures rather than chasing contractors, like lawyers chasing ambulances, to capture savings that are going to happen in the marketplace anyway.

written by Jeffrey L. Ihnen, P.E., LEED AP





Need Not Miracles

23 02 2010

Thousands, make that millions of people, including some smart people and congress people, when talking solutions for our energy efficiency low-carbon future are continuously babbling about “technology” that will save us all.  Bill Gates says we need Miracles.  Whadahyou talking about man?  The White House announces $130 million for a new building energy efficiency effort – “a multi-agency initiative to spur regional economic growth while making buildings more energy efficient.”  It will be “an Energy Innovation Hub focused on developing new technologies to improve the design of energy-efficient building systems”.  Get ready for cold fusion to reemerge.

Let me tell you somethin’, we don’t need to throw bazillions of dollars into developing these new magic elixirs – not now anyway.  We need the public and organizations to take action with the “miracles” that are already on the shelf at your local home improvement center or mechanical and electrical contractors’ warehouse.  You saw last week’s rant on people at Boulder lead to the energy efficiency trough but refusing to drink.  This is the problem.  Why develop a bunch of other junk that people won’t buy?

I’ve been in the energy efficiency market for 14 years and there has really been very little progress in energy efficient products or technologies for commercial buildings during this period.  Why?  In large part because there are physical and scientific barriers.  Boilers and furnaces were available in the 90% plus efficiency then as they are now.  Electric motors run in the mid 90% efficiency range.  There is this theoretical barrier of 100% efficiency that Mr. Gates may think is just a nuisance.  Maybe it’s just that nobody has thought about it hard enough.  Chillers, lighting, variable frequency drives, compact fluorescent lighting, energy recovery – there have been no major breakthroughs with this stuff in 14 years.  Prices for some things have come down a lot and quality has improved.  The thing is, these technologies have become very cost effective as prices have dropped and energy costs risen.  Just use them already!

Other innovative system designs such as displacement ventilation and chilled beam cooling systems have been refined but I don’t think they were born in the past 14 years.  But even an “efficient” system can waste energy like congress can.  See previous posts “Dermal Beauty, Ugly to the Bone”, “The More You Spend, The More You Save”, and “LEED and the Not Happenin’ Energy Savings”.

Rather than developing miracles that many think are just sitting there waiting to be discovered, let’s use cost-effective technologies we have right now.  Compact fluorescent bulbs use 70% less electricity than incandescent, but they still only take up 30% of unit sales with the rest being incandescent in the screw-in category.  And this is in CA where programs have been running forever.  Beyond that, you would be amazed at how many variable frequency drives are spinning away at or near 60 Hz (that’s full speed) because of some bonehead control setpoint; heating and cooling systems fighting one another like a car traveling down the road with the brakes applied; many pieces of large “efficient” equipment like huge air compressors online blowing off compressed air (wasting it) or otherwise running at full capacity when only a tiny fraction is needed; it’s dogs and cats living together – mass hysteria!

McKinsey  determined that the U.S. can cost effectively reduce energy consumption by 23% compared to BAU (business as usual – I like that one).  To become zero carbon, the first thing that needs to happen is minimize consumption through energy efficiency with existing technologies, system design, and controls optimization.  Once this happens, money that used to fly out the window to pay energy bills piles up so fast that renewable sources can be purchased, even though it may not be cost effective.  I’ve been through the exercise using a college campus as an example.  The perverse thing is that the more money an entity is wasting on energy, the easier it is to become carbon neutral.  How can this be?  There is a huge cash flow going to pay energy bills.  Much of that can first be cost effectively captured through energy savings.  Since more waste is eliminated, more cash piles up and renewable sources can be purchased sooner as the last leg to carbon neutral.  Of course you don’t want to be wasting energy in the first place, but if you are….

Why isn’t this happening?  There are enough barriers and discussion to fill a rack of encyclopedias but I’ve had enough for this week.

written by Jeffrey L. Ihnen, P.E., LEED AP





Incentive or Discount?

12 01 2010

I read this article http://www.usatoday.com/tech/news/2010-01-05-home-energy-efficiency-demand_N.htm and the thought came to mind, “are energy efficiency incentives really incentives pushing people to implement energy efficiency – or coupons offering a discount for energy efficiency measures?”  What’s the difference?  I would say it’s huge.

Retailers abhor it when the trained shopper waits for deep discounts to buy, obviously at a much lower profit margin.  Likewise, there is nothing airlines hate worse than an airfare war.  Buyers of “American made” automobiles (GM, Ford, Chrysler) have been trained to wait for huge incentives, which is one of the reasons two of three essentially failed.  Again, the price-sensitive buyer waits for the discounts to surface.

Energy efficiency programs to many, if not most consumers really represents a means to discount new stuff they want and they go coupon clipping through their energy efficiency program to get it.  If the coupon isn’t there they will often times wait for it.

The goal of many energy efficiency programs is “market transformation”.  Transformation to what?  Transformation to a free-market no-incentive energy efficiency industry, or transformation to dependency perpetuating programs?  I would argue the latter has occurred to a large extent.  End users demand free money before they implement energy efficiency measures, even if they are excellent investments.  Perhaps this is why some programs have dropped the catch phrase” market transformation”.

What is the problem here?  In short, energy savings are typically invisible and saving money isn’t as attractive as getting free money.  (which reminds me, it always cracks me up when people tell me they like higher withholding on their taxes so they get a check after the first of the year – of their own money)

What’s the solution?  Demonstrate the savings!  How can this be done?  It depends on the level of energy savings.  We have started to track energy bills on all commercial energy efficiency projects we’re involved with.  We can use energy bills because typically, savings estimates are greater than 20% of the bill and we’re not afraid to look at the results.  In fact, we’re looking to the results to build a long case study list to sell more projects.

For the home there are several home monitors that not only track total energy consumption, they track consumption of every circuit in the distribution panel.  So if your kids take 15 minute showers you may be able to meter your water heater and charge them for it.  Think about that!

The other major benefit of monitoring energy consumption is persistence of savings over the long term.  When people have access to energy consumption data, I believe they naturally start to monitor and use less energy, that is, if they care in the first place.

So what is the conclusion here?  Maybe utility and other energy efficiency programs should start incentivizing metering and energy tracking.  There are challenges with this but they can be overcome.  In addition to saving more energy as described above, it will expose snake-oil salesmen.  Everyone could use fewer of these guys.  In fact, that will be the subject of another rant.

written by Jeffrey L. Ihnen, P.E., LEED AP