Prioritizing Energy Efficiency Projects

You may wonder, "Where should I start?" Do I replace one piece of equipment or system at a time? Or, should I do a comprehensive upgrade of my entire facility? The answer will vary depending on each individual business' situation. The age of your current equipment and facility systems, your type of business, your local utility rates, your hours of operation, and your access to capital are all key factors in what level of upgrade makes business sense. One place to start is with low-cost and no-cost changes such as those listed in the Energy Saving Tips section of this guide.

If cash flow is an issue, you may want to wait until a piece of equipment or system fails or is a certain number of years old before replacing it with an energy-efficient model. However, if you are building a new facility or doing a major remodel, you should incorporate energy-efficient upgrades into your design due to the lower incremental cost of "doing it right the first time." For an existing facility, it may come down to what is financially feasible for your business at a particular time. Ask your contractor if they can assist you in prioritizing your energy-efficiency projects.

In addition, the following resources may be helpful to you:

• ENERGY STAR Cash Flow Opportunity (CFO) Calculator
  This spreadsheet program was designed to help decision-makers address three critical questions about installing energy efficiency projects: how much energy efficient equipment can be purchase from anticipated savings?; shoulding the equipment be purchased now or in the future?; and is money being lost by waiting for a lower interest rate?
• ENERGY STAR Building Upgrade Manual's Business Analysis Section
  This guide explains the tools necessary to evaluate profitability, cash flow, and liquidity and presents a framework for using these tools to analyze building upgrade investments to improve energy performance.
• Building Toolbox : Planning and Financing Your Project
  Find guidelines, tools, success stories, and links to guide you through the entire process of planning and financing for green, sustainable building projects. Form the U.S. Department of Energy's Building Technologies Program.

Produced in partnership with the U.S. Small Business Administration, Business Gateway and ENERGY STAR®