Whose Afraid of the Big Bad Wolf? Let Little This American Riding Hood Take You Through The Utility Energy Rebate Woods.
WHY YOUR LACK OF DECISION AND ANALYSIS PARALYSIS MAY BE ALL IN YOUR COMMERCIAL, INDUSTRIAL & MUNICIPAL MINDSET WHEN IT COMES TO ENERGY EFFICIENCY.
Article By: Heidi Fritz Martinez CEO Re-Motor America
#Confessions Of A Motor Gal
Some years ago I was helping a little car wash in Massachusetts apply for energy rebates through an one of the largest utilities in the world let alone the United States. I talked the car wash owner about the Prescriptive Rebate Program and explained that we needed to try as best as possible to calculate the hours of his facility for machine and motor usages in terms of annual hours.
So he explains to me he has about 250 cars a day in the summer and less in the winter time. However, that he still gets about 100 cars a day in the winter because of all the salt they use on the road. So we calculate it conservatively, find out he is eligible for the program and I find his utility account rep. Despite that they never turned machines off and on the motor the whole day as the motors were whizzing and wheezing all day long. So there was no sensor that was turning the car wash on and off only when it hit the entrance bay.
The utility schedules the pre-inspection which is exclusively to show that what was said on the paperwork matches the verbal answers, and most importantly that the number of motors for retrofit also match and no energy saving technology is already installed. (Sorry, no double dipping allowed.) If you don't apply, get an approval and have a pre-inspection FIRST before you install this can turn your rebate to $0.00.
The day of the pre-inspection arrives, we count motors, we confirm account numbers and then the Utility Account Rep says "OK, so how many cars a day do you run through your Car wash?"
The owner gets a little flush in the face and he goes:
"TEN, TEN cars per day".
I look over at him and I said nothing but I could tell by his reaction he could see the look of horror on my face.
Then the utility rep who literally wants to approve the application says:
"No seriously, like how many?"
Still the owner insists it is only ten. I had physically been to that car wash when over thirty cars going through in an hour let alone the whole day.
So the account rep denied the application and I go to him and say:
"Sir, with all due respect, what the heck happened?"
He replies:
"I am not going to tell the Power Company how much I make, we all know they know the IRS!"
So his fear talked him out of an almost $45,000 rebate, not to mention tens of thousands in the energy savings per year. Now for perspective, this is just a small car wash other commercial, industrial & municipal customers have way motor opportunities.
So I initially thought, is this fear shared by more than just small businesses?
A few years later I am helping a giant shark type of factory. I mean the kind that if you get them on your fishing pole, it better be good or your line is going to snap. None the less we were helping him apply for rebate funding for over 70 motors that were running inefficiently. So as I explain the custom and the prescriptive rebate programs. I also explain the process through the woods of the applications and the rules.
He turns to me and says:
"How can you even trust these guys? I am spending 6 million a year in power and why are you coming to help and not them!"
I mean company after company, factory after factory, high rise after high rise, even town after town this was happening. Some spoke with such reverence and whispered fear, I was worried we were going to have to find someone to do an exorcism because they spoke with such intense shock about their utility company that they refused to say the name aloud! I was starting to wonder myself is this Urban Legend? Are there really people locked in the utility company basements we should be checking on?
Where are these fears coming from?
I continued to listen and I finally had a breakthrough moment and understood. That as energy savings companies, as towns and mayors, as utility account reps, equipment vendors, program administrators, financial guys, OE Ms we didn't explain how the process works in plain and simple terms so that anyone could actually understand. We had literally failed at communicating our message to the decision making users of the program who needed it the most. Bluntly, when they didn't understand they met the misunderstanding with fear. Which is only natural when some energy programs do not even have a phone number.
So here is the good news, the meaning of the word audit in Energy Efficiency is a way more awesome thing than the meaning of the word audit for the Internal Revenue Service.
Since utility rebates are based on qualifying equipment and facility geographic eligible locations, it is just a simple way of quantifying opportunities for savings in lighting, wind, solar, building controls, electric motors, VFDs, IOT and several other proven technologies for energy savings.
As long as you are geographically in the locations which offer the money and have qualifying equipment you are most likely eligible! The power companies are looking for ways to conserve energy instead of building new plants. So the for rebates conservation, generation and renewable are generous. In order to apply you have to do a facility evaluation and submit applications and follow the processes through the winding roads. Some applications, especially ones not as well known or new technologies, may have some measurement requirements. Don't hesitate to ask for help!
Before you are tempted to explain to me about the worthlessness of a $50 dollar rebate, just know that in one decently large location I helped a few years ago got over $280,000 just in rebates just for one facility! It all depends on the scope of the opportunity some may be way more than that, some tinier facilities may be way less.
That is just one of the hundreds I helped over the years in the silent background. Well worth the 20+ hours it may take to complete the application and utility review. That estimated time, yielded them $32,000 an hour that it took to complete the review plus the annual energy savings. Arguably, well worth it. Especially when you have help to expedite the process.
These processes are a lot of paper but are not as complicated as they look. Help is out there. This can look very daunting from the beginning, especially if this is your first time through the energy rebate woods. We even have a one/two day training program available for facilities with multiple locations and facility managers to look for VFD & Motor Opportunities more closely.
Even, if you aren't eligible for rebates, there are also still "off balance sheet shared savings program options" to help you get energy programs installed yet this year but even for that you have to apply and submit the requested information. This program offering can be used with or without a rebate program in the US for technologies with proven, direct savings and low returns on investment.
Long story short, change your mindset. Do not let silly fears guide you through a pretty standard and simple processes. Equip yourself with information which can help calm some of these worries and do not be afraid to ask questions along the way. We are literally here to help if you need it. Just decide to reach out, decide to investigate technologies and install equipment because simple fact:
NOTHING SAVES ENERGY UNTIL ENERGY SAVING EQUIPMENT IS INSTALLED.
Motor Namaste
We welcome your feedback, please feel free to reach out to Re-Motor America with any questions or concerns. Our goal is to empower American commercial, industrial or municipal businesses, cities and towns to make smart energy product choices and to get the equipment actually installed to reduce energy waste and costs.
It sounds like these fearful business owners don't want to ruffle any feathers, in your first case the IRS can literally ruin your life and shut you down. A car wash is largely a cash business and so there is great temptation to pocket that money. Two hundred and fifty cars suddenly becoming ten illustrates the degree of fraudulent reporting that is occurring. The second case you bring up is a bit more difficult to decipher. Does the gentleman have a special relationship with the utility company, the city or maybe he's fearful of people installing new sensors on equipment he know already works. Is he fearful of unintended consequences or perhaps he is just incredulous of the savings and decided he didn't want to waste his time? An interesting article for me as I am unfamiliar with how the energy rebates work. I'm sure you have many interesting stories.