Save the Date! April 30 is Energy Efficiency Day in Dinkytown

Free on April 30? Come to Dinkytown and support energy efficiency!

Energy Smart is hosting an event in Dinkytown on April 30 to celebrate local businesses that have committed to finding ways to save energy. In honor of Energy Efficiency Day, businesses in Dinkytown will be offering discounts and special promotions to shoppers that day, and prizes and contests will be available. The event is being co-organized with a group of University of Minnesota students.

Check out our Facebook event page to see the participating Dinkytown businesses and to keep updated on the promotions being offered and events of the day.

In recent weeks, Energy Smart has conducted site visits with more than 40 Dinkytown businesses to help them identify energy-saving opportunities at their businesses, everything from no-cost and low-cost opportunities to upgrading lights or other equipment. Each business receives a follow-up report that lays out the top energy-saving opportunities along with implementation steps and expected payback.

On April 30, participating businesses will be recognized for their good deed during the event. Energy Smart staff will be in Dinkytown providing tips and information energy-saving that day and handing out prizes to shoppers.

Stay turned in coming days for further details of Energy Efficiency Day in Dinkytown, or contact Energy Smart at (651)292-4652 to learn more.

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Tuning Up Your Air Conditioner for Summer

Summer in Minnesota is just around the corner. Now is a good time to think about making sure your air-conditioning system is as energy-efficient as possible, so you hopefully won’t rack up big cooling bills.

(Of course, the best way to rein in A/C bills is to limit its use altogether, but we’ll save that for another post.)

Before summer, it’s worth doing a little maintenance to ensure your business or home air-conditioning system is working properly. If you feel uncomfortable doing it yourself, there are plenty of professionals to help. But here are some basic steps:

-- Take off any cover. Many people with central air systems have an air-compression unit that resides outside. They put a cover on it over winter to prevent melting snow and other debris from seeping into it. But that cover should come off when the machine is being used.

-- Remove obstructions. Make sure there are no branches, dirt or other debris blocking the vents on the outside equipment. These can reduce the central air system’s efficiency. Trim away any branches blocking it and clear away any debris.

-- Change the filter. Whether it’s a centralized air system or a window air-conditioning unit, it has a filter. That filter should be changed regularly, even monthly, during the season you’re using it.

-- Clean the inside. Use a soft brush or vacuum and carefully clean the inside of the unit. Experts say it’s especially important to clean the evaporator coils of the unit.

-- Test it. Once you’ve cleaned the inside and everything seems ready to go, make sure it’s functioning properly. Wait for the temperature to reach at least 65 or 70 degrees outside and turn it on. Let it run for about 15 minutes. If you feel cold-air coming out, that’s a good sign. You might also use a room thermometer and check the temp near an air vent and compare it to the temp outside to make sure it's measurably cooler inside.

Any other tips you’ve found to making sure your summer cooling system is energy efficient?

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Twin Cities Among Top U.S. Cities With Energy Star Buildings

The Twin Cities may be cold much of the year. But it's hotbed for energy-efficient buildings.

A new ranking put out by the Environmental Protection Agency's Energy Star program shows the Minneapolis-St. Paul area ranks 11th among U.S. cities with the most Energy Star-labeled buildings. The Energy Star program awards its labels to buildings and manufacturing plants that achieve a high level of energy performance and efficiency. (You can read more about the program's rating criteria here.)

The Twin Cities had 89, producing an estimated $36.4 million in energy cost savings, according to Energy Star. Energy Star-labeled buildings in the Twin Cities include Southtown Center in Bloomington and the 5th Street Towers in downtown Minneapolis.

The U.S. cities topping Energy Star's list were Los Angeles, Washington D.C. and San Francisco with 293, 204 and 173 Energy Star-labeled buildings in 2009, respectively. (Minnesota fell slightly down the list from its No. 8 ranking in 2008.)

Building owners interested in pursuing an Energy Star label must submit detailed information about their building and its energy usage into a database. The Energy Star program also provides guidance to help businesses boost their energy performance in hopes of eventually receiving the Energy Star label.

Energy Smart can help Minnesota businesses with Energy Star application process. For more information, contact Energy Smart at (651)292-4652.

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New Solar Rebates Available to Minnesota Businesses

Tackled energy efficiency and now dream about putting solar panels on your business’s roof? Now may be a good opportunity to finally do it.

The Minnesota Office of Energy Security yesterday announced a new program to provide rebates to small businesses that install solar electric systems. But you may want to act quickly: The rebates are available on a first-come, first-serve basis until available funds run out.

The program will provide $3 million in solar rebates, thanks to federal economic stimulus funding provided to Minnesota through the American Recovery and Reinvestment Act.

The rules are eligibility requirements are plentiful so read them carefully. To qualify, a business must:

- have 20 or fewer full-time equivalent employees
- be based in Minnesota
- use a licensed solar contractor that meets the program participation criteria.
- install a solar electric system with rated capacity between 0.5 and 10 kilowatts (kW)
- get an assessment in advance of installation by a solar site assessor to determine whether the business would benefit from solar energy (cannot be the contractor that installs the system)

Rebate applications received by April 30 (with projects completed by September 30) will receive a rebate of $1.75 per watt, up to a $17,500 maximum. Applications after April 30 will receive a rebate of $1.50 per watt, up to $15,000. (Solar electric systems generally cost $8 to $10 per watt to buy and install, so this rebate alone would cover roughly 17% of the cost.)

Read the full rules and steps involved with obtaining a state solar rebate for a Minnesota business.

The state rebates can be coupled with other financial incentives, such as utility rebates and sales tax exemption, available to businesses for solar energy systems – reducing the installation costs even more. Xcel Energy, for instance, unveiled its Solar*Rewards program this year that offers a $2.25-per-watt rebate to its customers for newly installed solar electric systems. Minnesota also offers sales and property-tax exemption to businesses that purchase solar electric systems. The federal government provides tax credits of up to 30% the cost of installation to businesses that install solar power systems through 2016.

You can find out more about solar energy incentives in Minnesota and federal tax credits here.

Have questions or need help finding out whether you qualify for the new solar rebate program? Contact Energy Smart at (651)292-4652.

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New Funding Strategies Emerging for Energy Efficiency

Many businesses are eager to make energy upgrades and reduce their operating costs. They just don’t have access to the cash needed to do it.

It’s a problem lawmakers both in Minnesota and nationwide are grappling with. As energy efficiency and conservation becomes a top national priority, so is finding innovative and easy ways to finance energy improvement projects.

New legislation sponsored by Minnesota state representatives Jeremy Kalin and John Doll would allow businesses to finance their energy upgrades through their special assessments on their property tax bills. The idea – called “PACE”, or property-assessed clean energy – would let local governments in Minnesota sell municipal bonds and use that money to provide loans for energy improvements that could be repaid through property-tax bills. Businesses or homeowners seeking to use the funding mechanism would be required to get energy audits

"If it costs $10,000 to upgrade your furnace and add solar hot water and there's a five-year payback, you would then amortize that $10,000 over the five years on your property taxes," Rep. Kalin told Minnesota Public Radio.

But while property-tax-based, there are other models of funding being tested and used around the U.S. Here are some other financing models being tested around the U.S.:


- On-bill financing: Some utility providers offer 100% energy-efficiency project financing for small- and mid-sized customers that is then repaid through regular utility bills. 

- “Green leases”: A property owner pays for energy efficiency improvements to a commercial building. The tenants then reap the benefits but also may pay some of the cost through somewhat higher rents. Green leases come in many formats and some carry stipulations for how the tenants must try to conserve energy.

- Local government low-interest loan funds: Some cities, including Portland, Ore., and other local governments are getting in the financing business by establishing low-cost loan funds for residents and/or small businesses.

- Efficiency services agreements: Large commercial and industrial facilities can make energy improvements with no upfront costs by working with an energy-services firm. The energy-services firm covers the entire cost of the energy upgrade and then gets paid back through the realized energy savings created by that improvement. (Read more about how this can work.)

- Managed energy services agreement (MESA): An energy efficiency financier pays for the energy upgrade while the commercial property owner continues to pay the regular, pre-upgrade energy bills. The financier gets paid back through the realized energy savings and then the upgrade belongs fully to the property owner once the upgrade is paid off.

Read an interesting white paper by CalCEF Innovations, a program run by the California Clean Energy Fund, to find out more about new strategies for funding energy efficiency.

What kind of funding mechanism do you think businesses need for energy efficiency?

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Spring Clean Your Way to Energy Savings

It’s the time of year when many people stash away winter gear and prep their businesses and homes for the warm summer months. It’s also a good opportunity to make sure a business or home is running as energy efficiently as possible.

Here’s a checklist of ways to turn your spring cleaning into an energy-saving event:

Redirect ceiling fans. Air conditioning often produces the highest electricity bill in a business or home, especially when it’s used consistently during the summer months. So a worthy goal is limiting your air conditioning use as much as possible. One way to avoid A/C use is using ceiling fans. In the winter months, ceiling fans should go clockwise to push rising warm air downward. In the summer, however, the fans should circulate counterclockwise for the opposite effect. It’s usually as easy as flipping a switch in the center of the fan.

Change air-conditioning filters. Keeping your air filters clean will not only improve air quality, but will ensure your system is working as efficiently as possible.

Dust off electronics, light bulbs and vents. Dust prevents electronics and other infrastructure from running at maximum capacity. Make sure to dust off all light bulbs, office equipment and electronics. Also make sure to clear dust off vents to prevent air circulation obstruction.

Seal air leaks. Just like warm air seeps out of buildings or homes in the winter, it seeps in during the summer. It’s estimated that 30% of heating and cooling bills are consumed by air leakage. You can buy weather stripping and duct tape and specialty kits to seal up air leaks you encounter.

Use a programmable thermostat. One good way to control cooling costs is to use a thermostat that allows you to program the temperature throughout the day, thereby using less cooling when rooms or homes are unoccupied. You might, for instance, keep the setting at 72 degrees in the summer when the space is occupied but raise the temp to 78 when after closing.

Vacuum refrigerator coils. Dust that builds up on refrigerator coils can force the fridge to work harder to keep things cold. So remove it.

Tune up the AC. Even if your filters are new, there are other issues such as low coolant levels that may be taxing your air-conditioning system. Getting a professional maintenance check before summer can ensure your system is working efficiently.

Any other ways you make sure your business is energy efficient in the summer?

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Tax Incentives for Energy Upgrades to Businesses

With the April 15 tax deadline looming, you may be contemplating ways to reduce your tax bill for next year. One smart solution: Get Uncle Sam to pay you for cutting your energy use.

Beyond the assortment of utility rebates, grants and low-cost loans available to businesses for energy upgrades, the federal government also offers tax incentives to businesses that substantially reduce their energy use. (Keep in mind that the value of the incentives vary. A “tax credit,” for instance, reduces your tax bill dollar for dollar, while a tax deduction lowers your taxable income before the tax obligation is calculated.)

Here are some incentives to consider in 2010 and in coming years:

Commercial Building Tax Deduction: In 2008, Congress extended a tax deduction that allows owners or tenants of new or existing commercial buildings to deduct as much as $1.80 per square foot on the cost of energy upgrades, such as installing high-efficiency interior lighting and heating, ventilating, air-conditioning and hot-water systems. The improvements must reduce the energy usage by a certain amount. The deduction is available through Dec. 31, 2013. Read the full details about the incentive here.

Combined Heat and Power System: Through 2016, businesses may be eligible for a tax credit of as much as 10% of the cost of purchasing a combined heat and power system or geothermal system, which are generally used in larger commercial facilities. Read more.

Renewable-Energy Production: Also through 2016, businesses may be eligible for a 30% tax credit on the purchase of solar photovoltaic panels, small wind turbines, fuel cells and solar water heaters. Read the specifics.

Fuel Cells and Microturbines: Businesses that put into place fuel cell power-generation system through 2016 may receive a tax credit of 30% the cost, up to $3,000 per kilowatt. Mircoturbine systems may be eligible for a credit of up to 10% the cost, capped at $200 per kilowatt of power. Read more.

Consult your accountant or another tax professional to find out whether these incentives make sense for you and your eligibility.

Many tax incentives are also available to consumers who make energy-saving improvements to their homes. Read more about those incentives here.

Have you made any energy improvements in recent months? How quickly are they paying for themselves?

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