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Energy Conservation – It Is Free!

What? There is no such thing as free. There’s got to be a hidden cost. How can anything worthwhile be free? Let’s explore that concept.

How do you define ‘free’? If someone were to walk up to you and offer to pay you $200 per month for a brand new energy efficient lighting system, would that be ‘free’ or even better than free? That sounds too good to be true. Can a business afford to send its customers a monthly check? Probably not. Can your business afford to throw cash away every month by wasting energy? Probably not. Positive cash flow is essential and is very evident in successful companies. The corporate executives seek ways to improve cash flow every day.

How can O'Brien Energy Solutions help you become more successful? We can improve your bottom line by establishing an ongoing energy conservation program in your offices, manufacturing plants, warehouses, schools, and sports facilities. We can help you meet government and utility company energy efficiency standards. Certified Energy Auditors, Certified Energy Managers and Professional Engineers are available to help you achieve energy savings and implement projects.

Here is an example: We have found many warehouses and manufacturing plants with High Intensity Discharge (HID) lighting fixtures. The fixtures were probably installed twenty to thirty years ago. Lighting technology has progressed to a point where HID lighting has been surpassed by fluorescent lighting that is typically 30 – 50% more efficient. Also, occupancy sensors and photocell technology can be installed with fluorescent lighting to further improve the efficiency of your lighting systems. Paybacks are typically in the range of 2 – 3 years, and may even be less, if your facility runs more than one shift.

How do you install a new lighting system for ‘free’? Let’s make the following assumptions. Say the project cost is $24,000 and the estimated monthly savings is $1,000, yielding a two year payback. If you decide to finance the entire amount for three year period, the monthly installments would be about $878. This would give you a positive cash flow of $122 per month. So, without using any of your own cash, you get a brand new energy efficient lighting system. This puts money back into your business to fund new product development or equipment upgrades.

In Michigan and other states, utility companies have incentive programs to partially fund installation of energy efficient lighting systems and equipment. Typically they pay about 25% of the total project cost. These incentives significantly lower your payback period.

Please contact Dick Green on 313.819.8303 or dick.green@obrienenergysolutions.com for further information.