energy savings for hotel & lodging industry
TRANSCRIPT
Hotel & Lodging Energy SavingsFrom Concept to Completion
Northern California Hotel & Lodging ConferenceDoubletree Hotel - San Jose, CAMay 21, 2015
Speaker Information
Ricky Chu, CO-FOUNDERRayco Energy
Twitter: @RaycoEnergy
Email: [email protected]
Established Energy Retrofit Company in Northern California
Rayco Energy • Delivering Projects since
2008 to Niche Markets• Multi-Family & Non-Profit• Financial-driven projects
Projects• $50K-$2Million in Size• HOA’s & Apartments• Commercial Buildings
Key Metrics Achieved• Pay with Savings Model• PACE Financing• MCE, PGE, SCE, SDGE
Experienced Team• Same ownership since 2008• Optimal market factors for
energy retrofitting
What Rayco DoesWe provide energy solutions with a pay with savings approach.
VFD Retrofit – Oakland,Ca LED Lighting Upgrade, Sunnyvale,Ca
Pool Arbor Solar Project, Dublin,Ca
A Diversified Approach
6%
10%
35%
22%
27%
Variable Speed Motors
Other (Energy Storage, EV Charging etc.)
LED Lighting
Solar PV & Solar Thermal
Building Envelope Upgrades
Our experience has shown a shift away from large scale solar projects to energy efficiency projects. We are flexible enough to change with market factors compared to solar only companies.
Our Secret Sauce – Case Study
• Option 1 – Solar Only Approach• Energy Savings: $10,000 per year• Total Project Cost: $74,000• Project Components: 16kW Solar System
• Option 2 – Whole Building Approach• Energy Savings: $10,000 per year• Total Project Cost: $60,000• Project Components: 10kw Solar System, Full Building LED Lighting Retrofit,
Central Building Monitoring and Controls.
PAST
Past Approach
•Going Green is “Too Expensive”•No Budget for It.• Single Trade Focus• Limited Rebates by California and
DOE• Little to No Regulation on Energy
Standards
PRESENT
Filling the Void Today
Combining Simple Energy Efficiency Measures with Solar PowerLeasing AlternativesEnergy Engineering (Peak Demand)Balancing Modernization with Going GreenPartnering with Property Owners, Construction Managers, Architects, Engineers, Consultants
How are we different from Solar City (or any other big box solar company?)
Solar City:• No Energy Efficiency Focus• Aggressive Sales Rep Based• All About the Lease• Most Solar Companies Our Approach:• Make the building more efficient before doing any solar• Develop a project plan that integrates rebates and lifecycle
maintenance costs• Partner with CM’s, Architects and PM’s to develop win win projects• SHOW CLIENT THE MONEY (Finance driven projects)
Pay with Savings Approach
Annual Energy Savings: ~$40,000
Annual Loan Payment: $36,000
Cash Flow Year 1 to HOA: +$4000
Recent 40kW Solar Project and Energy Retrofit
Project Cost: $225,000
Typical Terms: 6 -10 Years 4.5%-5.5% Interest Rate
REBATES & TAX SAVINGS• Solar Tax Credit• 30% Tax Credit to Building Owner• Expiring Dec 31 2016
• MACRS Depreciation Schedule• Solar energy equipment is eligible for a cost recovery period of
five years.
• Rebates are geographic specific• SF/SAN MATEO/EAST BAY Energy Watch• Marin Clean Energy• Silicon Valley Power
The Keys HOA 792 Units Walnut Creek,Ca
Common Area Bi-Level LED Lighting, New VFD Pumps for Pools and Water Features, Pool Cover, Demand Controls, New Pool Central Heater, In-Unit Water Saving Measures
BayRen MultiFamily Rebate:$595,000Energy Savings Per Year: $100,000Project Cost: $800,000
KEYS GARAGE BI-LEVEL LED
Modernizing FacilitiesDublin Ranch Golf Community – Dublin,Ca 1400+ SFH
• Size: 400 units – Single Family Community
• Electrical Costs Current: $24,000+ (Pool Meter)
• Electrical Savings: $20,000 per year
• Challenges: Pool deck too hot in summer, electrical costs increased 6% because of peak demand pricing, pro-active board
• Solutions: Custom designed steel trellis system with integrated solar pv, LED bollards.
• Result: Allowed for huge increase in the amount of residents using the pool.
Before
Before
The Hook
During
AFTER (West Arbor)
After (South Arbor)
PACE Financing • PACE (Property Assessed Clean Energy) is a simple and
effective way to finance energy efficiency & solar energy upgrades to buildings.
• Hotel/Lodging owners are using PACE because it saves them money and makes their buildings more valuable. PACE pays for 100% of a project’s costs and is repaid from 1 - 20 years with an assessment added to the property’s tax bill.
• PACE financing stays with the building upon sale
• Fully Tax Deductible exactly like your property tax.
Example – Pasadena,CaHotel Renovation Project• A $6.8 million PACE project financed the energy efficiency
component of a full scale renovation of the DUSTIT Constance Pasadena Hotel in downtown Pasadena, CA.
• PACE Project Size: $6.8 million• Term: 20 yearsProject Scope• Deploy LED lighting and a new highly efficient HVAC system• Implement a central control of HVAC and lighting system to reduce
wasted energy in unoccupied rooms.• Increase guest comfort through sophisticated in room lighting and
heating and cooling controls.• Decrease water use without detracting from the guest experience.
Project Sizes can be $50,000 - $6 Million
The property owner cited the following reasons for using PACE financing:
• PACE provided up-front financing which freed up to $6.8MM worth of working capital
• The deal was closed within 2 months of the initial application because of the co-operation and communications between all parties
• PACE is transferable upon sale because the assessment is tied to the property and not the owner
• PACE financing was treated as an off-balance sheet expense, preserving borrowing capacity for other capital projects.
• Go Green!
Why Rayco? We Are Local• I am delighted with my new solar system, installed by Rayco Energy.
From end to end, Rayco handled every aspect of the process with great professionalism and skill. Prior to purchasing the system, Rayco Co-Founder Ricky Chu met with me twice to present different options and answer my questions. Ricky knows his business extremely well, is not pushy at all, and most definitely cares as much about ROI as his customers do.
The installation went extremely smoothly with no surprises, and I am loving watching my meter run backwards.
I also appreciate that Rayco is a lean, local, owner-operated company, unlike larger solar companies that deploy armies of very young sales reps who are good at reciting scripts but not especially knowledgeable about their product (many have knocked on my door over the years - hopefully the presence of solar panels on my roof will put a stop to that.)
It's a great time to go solar, and Rayco is a great solar company.
-D. Jonas Livemrore,Ca
The Big Players Understand
Clay Nesler, VP of global energy and sustainability, Johnson Controls: “In our 2013 global survey of 3,000 facility and energy management executives, we found that 73 percent of organizations had made internal or public goals to reduce energy consumption. We also found that organizations that made public goals implemented 50 percent more efficiency measures last year and were 2.7 times more likely to increase investments next year than organizations without goals.”
