Building Retrofit Example
(Shared energy cost savings business model)
Using a 130,000 sq.ft. (Home Depot size) building with five hundred and thirty 400W fixtures on twenty four hours a day as an example, approximately 65% of two hundred thousand dollars ($130,000) in electrical costs per year are attributable to lighting, with about $50k per year being recoverable through the use of daylighting technology (conservative estimate-considering day length, cloud cover, current rate schedules- [Los Angeles Dept. Water and Power]). Assuming 70% of stores in a 1000 store retail chain geographically appropriate for installation would result in a savings for the customer of 15.75 million annually. The customer would also save approximately 1.75 million annually in re-lamping expenses.
Additionally, each building (depending on the type of air conditioning) will have up to a 1/3-watt reduction in AC loads resulting in an additional potential 30% savings in electricity equal to $15k per year per store/$7.3 million per 700 stores with a total annual customer savings of $23.3 million per 700 installations.
· Many commercial buildings impacted by high electric rates have sacrificed desired illumination levels because of excessive energy costs, frequently by turning off every other fixture- such as is commonplace in San Diego County. Even with such reductions in consumption, The exampled building located in San Diego (with three times the state’s average kWh rate) would have energy savings over $75,000 per year- 50% greater than in the Los Angeles DWP service area. Adoption of the Solartech system in such facilities would provide even greater energy cost savings and the return of original levels of illumination.
· Average electricity costs in other countries are often significantly higher (as much as four times that of the US average) allowing for proportionately greater energy cost savings.