In tough economic times, companies eager to conserve

By Stephanie Tavares

Friday, April 24, 2009 | 2 a.m.

As the country attempts to launch an energy revolution, businesses are increasingly looking at how they consume electricity.

About one-fifth of energy consumption in the United States is in commercial buildings — many of which rely on aging and inefficient lighting and temperature control systems to keep the workplace comfortable.

At the monthly luncheon of the Technology Business Alliance of Nevada, Gary Wood, Southern Nevada Water Authority’s renewable energy programs manager, spoke about how businesses can reduce their energy use and take advantage of the green trend.

Businesses are already switching to more efficient lighting, heating and air-conditioning systems, which are the biggest energy consumers in a building.

Sales of energy-efficient alternatives are expected to grow even as the recession deepens, thanks to new financing mechanisms.

Many efficient lighting and temperature control systems salespeople are pitching performance contracting as a way for companies to reduce energy consumption and update their systems with no upfront cost.

In a performance contract, the contractor guarantees a certain energy savings once the retrofits or new systems are in place. Then businesses pay the contractor the monthly difference between the old electric bill and the new one. The system pays for itself through savings. Once it’s paid off the company reaps the full benefits of savings.

Wood noted that it’s important for any company considering entering a performance contract, either as a contractor or purchaser, to have a good lawyer familiar with these agreements to ensure a fair outcome for both parties if something goes wrong and the system doesn’t deliver the promised savings.

But lighting and air conditioning are just the beginning. After that, companies should look at energy-saving windows, insulation and water heating systems, Wood said.

Businesses that use lots of electronics, such as computers, should consider installing software that can power down the system when the office is closed.

“I think we’ll see a lot more use of those as the technology evolves,” Wood said.

He noted that businesses can make a commitment to these changes, even in rough economic times.

There are a number of financial-assistance programs for energy-conservation upgrades.

NV Energy has several programs including a free thermostat program, the CoolShare program and an air-conditioner replacement rebate program.

Beyond that, NV Energy also has a rebate program for renewable energy installations.

The state and federal governments also offer programs and incentives including tax credits. The federal government offers a tax credit for renewable energy installations as well as extended depreciation.

A new local public-private partnership is also hoping to increase energy conservation in Las Vegas.

A group of business leaders from the gaming sector have partnered with local municipalities and the Southern Nevada Water Authority to launch a nonprofit organization to help fund weatherization and energy conservation.

Wood said it’s supported by MGM Mirage, Harrah’s Entertainment, Henderson, Las Vegas and the Water Authority.

The group would ultimately like to offer grants and low-cost loans for retrofits of nonprofit buildings and low-income housing.

Henderson and Las Vegas are handing over part of their weatherization allocation from the stimulus money to this group, and the other partners have offered help in marketing and other aid.

The organization would also be funded by the sale of “green chips” that could be purchased by visitors wishing to offset the environmental impact of their travel.

The group is also organizing a sustainability summit for the fall, Wood said.

With strong government support, energy conservation could become big business in the coming years.

The federal government is supporting weatherizing homes of low-income residents and nonprofit groups, and all that work has to be done by someone.

It’s also a chance to get energy-efficient products off the shelves.

NV Energy has a program where any product proven to reduce energy consumption will be promoted on the company’s Web site. There is a testing process each product must go through, but it brings the product directly to users looking for it, Wood said.

For more information on tax credits and other incentives, log on to www.dsireusa.org or nvenergy.com.

Stephanie Tavares covers utilities and law for In Business Las Vegas and its sister publication, the Las Vegas Sun. She can be reached at 259-4059 or at [email protected].