Energy Efficiency in Corporate Facilities

April 7, 2009

The Cleanest and Greenest Energy Is Energy Not Used

• Energy efficiency is the quickest, safest, most cost-effective way to immediately reduce the emission of greenhouse gases

– Immediate

– Verifiable

– Economical

Lime: Less Is More Efficient

Who Are We?

• Leading provider of energy efficiency and renewable energy design/build solutions with:

– National footprint

• 370 employees in 14 offices throughout the U.S.

– Broad array of services

• energy engineering, lighting, HVAC, water, weatherization, renewable energy

– Blue-chip customer base

• Over 75 years combined experience in energy conservation and efficiency

What Do We Do?

• Design, engineer, and install proven best-of-breed technologies in existing facilities. These measures:

– Reduce direct operating expenses

– Provide immediate financial results with high ROIs

– Improve work space and employee productivity

– Enhance the value of the facility

– Reduce environmental footprint

Who Do We Do It For?

• Commercial and Industrial Businesses– Corporations, Manufacturers, Property Owners, Property

Managers, Utilities

• Energy Service Companies (“ESCOs")– Federal, State and Municipal Government Agencies

• US Post Office, Schools K-12, Private and Public Universities, Public Housing, Correction Facilities, Military Facilities

5

Opportunity

LightingHVAC/

Mechanical

Lime is focused on delivering high ROI energy efficiency solutions that target some of the largest energy expense line items on its customers’ P&L.

Electrical

Services

Energy Savings

Water WeatherizationRenewable

Energy

Delivery Process

• Opportunity Assessment

Performance Period

ImplementationDevelopmentOrigination

• Site Survey

• Conceptual Design

• Final Cost & Scope

• Execute scope of work

• Demonstrate ROI

• Handle documentation for rebates and incentives

Why Lime Energy?

Why we win…

• Intellectual capital and experience to identify and analyze opportunities

• Systems and processes in place to deliver efficiently & cost-effectively

• Strong, referenceable relationships

• Ability to develop on a national scale but implement locally

Why Energy Efficiency?

• Promote energy efficiency as available now – no need to wait for promising new technology.

• No matter how you measure financial merit, energy efficiency probably has the highest return on investment of anything you can do in your business.

Other Reasons Beyond Payback

A warehouse operation in Seattle improved their selection accuracy from 99.4% to 99.9% after the lighting retrofit.

A recent survey of 538 senior business executives and 18 in-depth interviews that “almost three-quarters (73%) of firms polled will make energy efficiency a high or moderate priority over the next two years in a bid to cut costs.”

An office tower will be using their new lighting fixtures to reduce glare and avoid worker complaints – and the new fixtures will be paid for out of energy savings.

A food products factory in Chicago installed the new lights when their primary customer asked them what they are doing to help the environment.

Energy Efficiency Today

Building energy costs run $1.50 to $3.50 per square foot.

What is your energy cost per square foot?

1. Find out and track it.

2. Create a team to investigate options.

3. Act on projects that have a good return on investment

Your energy cost today does not have to be as high as it is.

Make an objective

Manage as if you want to reach that objective

Your Energy Costs

Your energy cost today does not have to be as high as it is.

Make an objective

Manage as if you want to reach that objective

Seven Reasons for Energy Efficiency

Reason number 1

Don’t throw your cash in the trash

Seven Reasons for Energy Efficiency

Reason number 2

Your employees will be happier

Orcon quote and picture

Seven Reasons for Energy Efficiency

Reason number 3

Tax deduction

Seven Reasons for Energy Efficiency

Reason number 4

You get new stuff

Pictures of new equipment

Seven Reasons for Energy Efficiency

Reason number 5Your facility is more valuable

“If you look at the impact, you are getting higher rent, lower energy costs and lower vacancy costs,” says [CoStar CEO Andy] Florence. “You have three things working on the income statement to the positive. You are going to have a much higher valuation of the building.”

Higher Building ValuationsHow much higher valuation? The report found that an ENERGY

STAR building sold for an average of $351.60 per square foot in 2006, 30 percent higher than a non-ENERGY STAR building, which sold for an average of $270.15 per square foot. Since 2003, ENERGY STAR buildings also have been appreciating in value faster than non-ENERGY STAR buildings.

Source: CoStar report on Energy Star performed for the US DOE

Reason number 5 (continued)

Net Operating Income and Value Go UPIncome Gross Rents Possible 100,000    Other Income    3,000Potential Gross Income 103,000    Less vacancy Amount    2,000Effective Gross Income 101,000    Less Operating Expenses  31,000Net Operating Income  70,000

Estimated Value =

Seven Reasons for Energy Efficiency

$700,000Net Operating Income

Cap Rate

$70,000

0.10==

Also, a higher NOI helps you on your debt coverage ratio.

Seven Reasons for Energy Efficiency

Reason number 6

Do some publicity

Seven Reasons for Energy Efficiency

Reason number 7

Make it a financial winner

High ROI, rebates, loans to achieve positive cash flow

Some Good Projects Available Today

Lighting retrofit – production areaMetal halide to fluorescent has a 30% to 50% return on investment – save $0.50 to $1.00 per sf every year.

Lighting retrofit – office areaEven if you have T-8 you can get a 20% to 30% ROI and upgrade your fixtures to indirect/direct for less glare.

Lighting retrofit – dock area, outdoor30% return on investment and lights last a decade.

Some Good Projects Available Today

HVAC Filter maintenanceUse low pressure drop filters or change filters more often.

HVAC unit change-out

Process motor

Air compressor

Steps to Success

1) Start with your bill – how much per square foot?2) Audit your building, what are the biggest categories of

energy use?• Indoor lighting• Outdoor lighting• Process motors• Air conditioning• Heating• Other electrical

3) Decide what you want your bill to be next year 4) Take the steps to get there5) Track your progress

• Our industry is hiring while others are firing.

• Our installations have a payback.

• Our product improves the air quality and fights global warming.

• Energy efficiency makes companies more competitive.

• Significant federal money is available to our industry.

• Our installations provide benefits beyond simple payback.

The Future of Energy Efficiency