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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5 Ways to Save Energy For Little or No Cost

Before you spend a lot of money upgrading equipment, make sure you’re not missing out on easy ways to save energy. Many energy-saving strategies cost little or nothing at all, require little time and can pay for themselves immediately or within a year or two.

So what are the no-cost, low-cost energy-saving tactics you might not currently be doing? Here are five:

1. Unplug equipment at night or when unused for long periods. Electronics continue to draw power from the outlet even when they’re turned off. This so-called phantom energy can amount to 30% of a home energy bill. To prevent wasted energy, unplug your equipment or buy power strips and click them off.

2. Set power-management or “sleep mode” settings on all computers. Many computers and monitors sit idle for hours, wasting energy and driving up your electric bills. You can save about $40 a year just by enabling the power management settings so the computer goes to “sleep” after a certain number of idle minutes. (Read our recent blog post to learn more.)

3. Install low-flow faucet aerators. “Low-flow” faucet aerators replace some of the water that comes out of a faucet with air – effectively lowering your water heating bills, your water bills and your sewage bills. Low-flow aerators – which tend to have flow ratings of 1.5 gallons per minute –generally save 25% or more water in the faucets they are installed on.

4. Seal air leaks. Air leaks can account for 15% or more of a home or workplace’s heating costs, which easily run $500 or more annually. Sealing those leaks is generally pretty affordable and can pay for itself in less than two years, according to the Department of Energy.

5. Use a programmable thermostat. According to the U.S. Department of Energy, using a programmable thermostat to set back the temperature 10 to 15 degrees Fahrenheit for eight hours during a 24-hour period can save roughly 10% on heating and cooling bills – or up to 1% savings for every degree room temperature is turned back. Using a programmable thermostat, which you can usually buy for $50, makes setting back the temps in your home or office at times when they’re not in use particularly easy.

Want help finding no- and low-cost energy saving ideas for your business? Energy Smart provides no-cost site visits to Minnesota businesses and helps businesses identifying energy-saving opportunities. Contact us at (651)292-4653 to schedule a site visit.

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Want to Save $40 in the Next 10 Minutes? Put Your Computer to Sleep.

Many people don’t take advantage of one of the quickest and cheapest (read: free!) energy-saving tactics around: Activating the power-management settings on their office or home computers.

At the 2010 Energy Design Expo and Conference in Duluth last week, Scott Pigg of the Energy Center of Wisconsin presented findings of a new study he and other researchers conducted that sought energy-saving opportunities in the home. Researchers collected some data by electronically metering activity on about 35 home desktop computers. The study found that 35% of the desktops had long idle periods, 30% were left on around the clock and 15% were not used much at all. Only 20% of the desktops were turned off when not in use.

When 32 of the households were later interviewed by phone, only four indicated they currently had the power-management settings enabled on their computers and nine enabled them during the interview.

The reason few people use these settings may be confusion or not fully understanding the energy- and cost-saving benefits. Power-management settings –- often called “sleep mode” settings –- control when a computer effectively deactivates its internal functions to save energy. When sleep mode settings aren't activated, a computer will stay on and consume a lot of energy until the user manually turns it off. Enabling the power-management settings allows a computer user to automatically have the computer de-power when it has been idle for a certain number of minutes. But unlike shutting down a computer manually, the sleep mode settings put the computer into an energy-savings mode that allows the computer to spring back on with a shake of the mouse.

Keep in mind that sleep mode shouldn’t be confused with screen savers, as screen savers aren’t meant to save energy. Power-management settings can be activated to put both the computer and the monitor into sleep mode after a certain number of idle minutes.

The savings potential for activating your computer’s power-management settings are quite lucrative, especially when you consider how much time computers are left on while idle. Enabling power management settings on a computer that’s typically always left on can save 400 kilowatt hours annually – or roughly $40 a year – the Energy Center of Wisconsin found. Spread that savings across a business that has, say, 10 computers and that’s $400 of savings per year. (You can find a preliminary report of the Energy Center’s study here by clicking on the link that starts "Habits, Adjustments or Acquisitions ...".)

Setting power management settings generally takes three minutes or less. Each operating system is different, but most have a “Power Options” or “Power Management” option in their control panel that lets you set them. Read Energy Smart’s instructions on how to do it.

Do you have the sleep mode settings enabled on your home or work computer? Have you found other ways to save energy in your computer use?

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