Making energy work for your business A Special Advertising Supplement
A bright
idea SMUD partners with area businesses to help them thrive
Bob Kinert, Principal Energy Adviser at SMUD, leads SMUD’s team serving small and midsize businesses.
by Shannon Springmeyer
Photo by Anne Stokes
Y
our business started as a dream and a leap of faith.
SMUD is doing its part by providing education and rebates to
You put in your sweat, your passion and more hours
assist business owners in increasing profitability through effective
than you care to count. You watched that investment
energy management and energy-efficiency upgrades, Kinert says.
pay off with every new customer, every dollar
coming in, every spurt of growth.
“There may be opportunities in your business to change how you’re working with your energy to actually lower your costs,” he says.
Sure, it’s not easy. There’s never enough time, too much to do
SMUD educates business owners about opportunities for energy
and too many bills. But one thing that doesn’t have to drain your
savings through interactive tools, calculators and tutorials on the
resources is managing your energy. SMUD is partnering with local
SMUD website at smud.org/business, helping business customers
small to midsize businesses to help owners understand their energy-
understand how they’re being charged, how they use their energy
efficiency opportunities, saving them time and money.
and what changes could help them save money. Customers with
“Small and midsize businesses are the backbone of the regional economy,” says SMUD Principal Energy Adviser Bob Kinert. “We
further questions can also call SMUD for help at 1-877-622-7683. In addition, SMUD offers two programs designed for small
understand that if we can help our customers reduce their energy
to midsize businesses that help owners pay for energy-efficiency
costs, that will help them stay in business and be profitable.”
upgrades to equipment. Express Energy Solutions offers a doit-yourself approach, allowing
It might seem strange that a utility company wants its customers to pay less. But Kinert says it’s not strange at all. As a publicly owned, notfor-profit energy provider, SMUD believes that investing in local small and midsize businesses is good for our community, he says.
“ We are 100 percent committed to helping our small and midsize business customers be successful.” Bob Kinert, Principal Energy Adviser at SMUD
“It actually makes a lot of sense, both from an economic and an environmental perspective,” he says. “Energy efficiency is good for the environment, it’s good for all of our customers.” Kinert explains that reducing energy demand helps keep rates down by helping SMUD avoid the expense of adding capacity to serve rising energy needs, all while preserving our planet’s resources.
customers to look up all upgrades for which SMUD offers rebates and submit receipts online. Complete Energy Solutions is a more fullservice approach to performing energy-saving upgrades. SMUD
Energy savings add up SMUD programs can help business customers pay for up to
80%
of the installation costs of energysaving measures. With SMUD’s help, you can reduce your energy use by
20% or more.
can help pay for up to 80 percent of the installation costs, and some
upgrades pay for themselves completely within months. The bottom line, Kinert says, is business customers who want to save money on their utility bills should consider their rate, usage and equipment — and should turn to SMUD to get started. “We are 100 percent committed to helping our small and midsize business customers be successful,” Kinert says. Read on to learn more about SMUD’s money- and energysaving programs and tools designed especially for small to midsize businesses.
2 | Making energy work for your business | A Special Advertising Supplement | SMUD | smud.org/business
Electricity is more expensive at peak summer hours from 3-6 p.m. It may be
2x
more expensive, depending on your rate and electricity load.
Helping businesses
grow
Market owner expands store after keeping energy costs down by Mike Blount
I
f variety is the spice of life, KP International
LED lamps. LED lamps save Yung money because they
Market has it in spades. The sprawling
use much less energy and keep cooling costs down by
supermarket located in Rancho Cordova
producing less heat.
showcases a rich cultural diversity of foods
“Energy efficiency is so important because I’m
including Mexican, American, Korean, Russian and
saving my money,” Yung says. “That’s the biggest issue,
everything in between. It’s a place you can pick up
right? Right now, I’m saving about 50 percent on my
alligator feet from Florida and ponzu sauce for shabu
energy bill. That’s very good.”
shabu in the same trip. But even with all that variety, market owner BJ Yung wanted to expand his business even further. That’s why he worked with SMUD to identify ways to save money on his energy costs.
In 2013, Yung added a 16,000-square-foot food court serving international cuisine. He also has plans to open an international cafe that will serve boba tea and Vietnamese coffee. Part of the reason he’s been able to
The Express Energy Solutions program provides business owners the flexibility they need to improve their businesses and save money. The program has a do-it-yourself approach, allowing business owners to work with their own
continue to grow his business
“ Energy efficiency is so important because I’m saving my money.” BJ Yung, KP International Market owner
Through SMUD, Yung learned about upgrades he
By the numbers How much did SMUD programs save KP International Market on its energy costs? By changing its lighting to LED lamps alone, the market saves $8,464 every year. Here’s a breakdown of the improvements to the market and the savings received through incentives:
expansion project cost Yung about $9 million. But SMUD the energy-efficiency upgrades
he made in his store as part of the project, which saved him $40,000 on his construction costs. SMUD not only helped defray the initial installation costs of the
energy and money. In the case of his market, which
upgrades, but the improvements will continue to save
he was doubling in size to 80,000 square feet, the
Yung money each month on his electricity bill for years
refrigeration system was the largest user of energy.
to come.
the refrigeration system to the cooling system in his
Photo by Anne Stokes
In total, construction for the
could make to his business that would help him save
Yung learned that he could save on costs by joining
BJ Yung was able to expand his business, KP International Market, to double its size and still save money on energy. The Express Energy Solutions program helps business owners identify areas to increase energy efficiency and offers rebates for upgrades.
saving on energy.
helped Yung receive rebates on
contractors or SMUD Energy Advisers to identify areas to improve energy efficiency.
is because of the money he’s
grocery store. Another way Yung discovered he could save money
“We took advantage of it, and yes, it’s saving my money,” Yung says. “[Business owners] should look into the energy assistance program because it really pays you back. It will cost you money upfront, but you will get
was by switching the light fixtures — long rows of
your money back in two to three years, and the savings
track lighting with fluorescent bulbs — to ones that use
are good.”
Improvement Incentives Installing LED lamps.............................................. $16,390 Refrigeration ECM motors........................................ $4,740 Refrigeration night covers....................................... $4,050 VFD for HVAC ........................................................ $2,000 LED refrigeration case lamps.................................... $495 Refrigeration strip curtains...................................... $408 Total SMUD incentives............................................ $28,083 Estimated annual energy savings.............................. $35,000 smud.org/business | SMUD | A Special Advertising Supplement | Making energy work for your business | 3
Three ways to save Reduce your business energy costs with these three easy steps Step 1: Understand Your Rates There are three small to midsize commercial rates:
» GSN_T
For small businesses with very low energy demands. Charge for energy use only.
» GSS_T
Why it’s important: Most people know that if you use less energy,
spikes in your energy demand, which can lock your
you’ll pay less. But many people don’t realize their
bill at a higher rate for one year. If you can reduce
business may be charged a site infrastructure fee
your overall average energy demand, you can not only
in addition to the energy used, if they have higher
For small businesses with modest energy demands. Includes charge for energy use and a demand charge.
what you do use.
energy demands. The site infrastructure fee offsets SMUD’s costs to ensure the customer’s higher energy needs are met.
» GUS_S
For midsize businesses with higher energy demands. Includes charge for energy use and a summer demand charge.
use less energy, but get charged a lower rate for Visit smud.org/business for help in understanding your bill, your rate, how demand works and more.
Operational practices may be creating temporary
Step 2: Understand Your Usage Once you understand your rate, look for behaviors in your daily operations that could affect your energy usage.
For example, employees at a local
manufacturing company were plugging in electric forklifts to charge at the end of one shift, just as air conditioners were working their hardest at the hottest part of the day.
This created a sharp spike in energy demand, and locked the customer’s bill at a higher rate. Installing an inexpensive timer on the
plugs for charging forklifts shifted the energy
Go online at smud.org/business to calculate your business’ energy consumption and analyze your energy efficiency with SMUD’S Commercial Energy Calculator.
demand to off-peak hours, and lowered the customer’s bill.
Step 3: Upgrade Equipment With Help From SMUD Finally, look for energyefficiency upgrades that can help you reduce your overall energy consumption.
SMUD offers two programs to help you find and pay for improvements with rebates, incentives and financing: Express Energy Solutions (a do-it-yourself approach) and Complete Energy Solutions (a full-service approach). Both programs include energy-saving upgrades in these areas and more throughout your business:
»L ighting Occupancy sensors, fluorescent and LED lights, CFLs, LED exit signs, display lighting, accent lighting, advanced lighting controls
»O ffice Equipment & IT Plug load occupancy sensors, computer network power management software, data center cooling
»H eating, Cooling & Energy Management Systems High-efficiency heating and air conditioning systems, advanced evaporative coolers, AC and heat pump systems, efficiency retrofits of air conditioning systems, programmable thermostats, window film, energy management control systems and much more
»F ood Service Ovens, fryers, griddles, steamers, ice machines, insulated holding cabinets and much more
» S olar Water Heaters SMUD can pay up to 30 percent of project costs for installing energysaving solar water heaters.
»D ry Cleaning to Wet Cleaning Conversion Wet cleaning is more environmentally friendly than dry cleaning. Get up to $4,200 in rebates to make the switch.
»R efrigeration Cooler/freezer doors, fan controls, LED lighting, custom efficiency retrofits, anti-sweat heater controls, evaporator fan controls, night covers and more
Visit smud.org/business for more information, tips and tools. SMUD can help you understand your bill, your energy usage and both Energy Solutions programs.
Gas station owner John Caputo, left, discusses refrigeration upgrades with CES Program Manager Anson Battershell. SMUD rebates and incentives help business owners install a wide variety of energy-saving equipment. Photo by Anne Stokes
4 | Making energy work for your business | A Special Advertising Supplement | SMUD | smud.org/business
SMUD’s Energy Solutions help you save
Keeping energy costs
As a business owner, improving the bottom line is never far from your mind. The energy experts at SMUD get that. They also know that increasing energy efficiency at your commercial, industrial or agricultural property can pay major dividends through savings on your electricity bill. The less you use, the less you pay — and the better your bank account.
down
It’s a simple formula. But on your own you may not know where to start or how to pay for it. Luckily, you’re not alone. SMUD offers two commercial Energy Solutions programs designed with businesses in mind.
Q & A with Rodney Turner by Mike Blount
A
s the Program Manager of SMUD’s Express Energy Solutions program, Rodney Turner
Photo By Anne Stokes
How does SMUD help business customers save? Technology is always moving forward. At one time, CFLs
works to help business owners keep their
were the most energy-efficient replacement for incandescent
energy costs down. Turner explains how
bulbs. Now, there are LEDs that are even more efficient.
SMUD helps business customers find energy-efficient
Lighting is generally a quick project that will increase
solutions and save money.
efficiency. Heating and cooling is another place we can
Why should business owners focus on their energy use? It’s part of their operating costs and affects their profit
look, as well as windows and adding window film to reflect heat from coming in. That’s heat that your air conditioning would have to remove. If your restaurant has a large walk-in
margin. If their energy use is lower, that’s more profit for
freezer, adding an auto-closing door can help keep cold air
them. They can use that money to help their business grow.
from escaping. These are a few examples of the ways we can
And why pay more than you have to?
help increase energy efficiency, and we offer incentives and rebates to help customers make these changes.
What are some common questions that business owners have regarding energy use? “Why is my electricity bill as high as it is?” Customers
What’s the difference between savings and incentives?
sometimes don’t know how much energy their equipment
Savings are what our customers plan to achieve in
uses. It could be from equipment being left on or a heating
reducing their energy use and electric bill. Rebates and incentives help offset the cost
system left running after the business is closed. It could also be from equipment that isn’t energy efficient. We try to understand how they use electricity. So, the next question a customer will ask is, “What can I do to lower my
“ When it comes to energy efficiency, we are your best resource.”
of the improvement project. If
Rodney Turner, Program Manager for Express Energy Solutions
incentive back, based on the
usage?”
new equipment a customer buys
When it comes to energy efficiency, we are your best resource. You can call us with a question about saving energy and we’ll do our best to try to answer it. We understand the importance of keeping costs down to keep businesses solvent.
Or, customers who prefer more guidance from an energy-efficiency expert can sign up for Complete Energy Solutions. It offers an energy assessment walk-through, a customized proposal and a list of approved contractors to choose from. Basically, your project is managed for you, from start to finish. Whether you decide to do it yourself or let the energy experts take the wheel, SMUD’s Energy Solutions programs can help you save energy throughout your business. Plus, SMUD offers rebates to help you pay for your energy-saving upgrades. Financing also may be available. With rebates that cover up to 80 percent of the project costs for small businesses and 60 percent for midsize businesses, plus energy savings of 20 percent or more, most projects pay for themselves in one to two years.
meets our efficiency standard, we’ll send the customer an energy savings they achieved. We also rebate the cost of
certain equipment. Of course, the driving factor is the energy How can SMUD help them lower their usage?
Through Express Energy Solutions, customers can choose to manage their own projects. This do-it-yourself approach helps you locate the rebates for the improvements you know you need, and lets you choose your own contractor.
savings the customer will have over time, but incentives and rebates are there to help the customer take that next step.
Up to
80%
of your upgrade costs covered, with rebate
It’s just good business for everyone.
To learn more about each program, see the next page, or visit www.smud.org/business. smud.org/business | SMUD | A Special Advertising Supplement | Making energy work for your business | 5
Julie Amaral manages Love Laundry in Midtown. The owner, Chris Wilson, invested in energy-efficient equipment for the laundromat through SMUD’s Express Energy Solutions program.
Pick a program
Photo by Ron Nabity
SMUD can help businesses save money by saving energy. It’s good for the planet, good for our community and good for business. Which commercial Energy Solutions program is right for your business?
Express Energy Solutions The do-it-yourself approach Who’s eligible If you are a SMUD customer with commercial electric service, you can take advantage of Express Energy Solutions.
Clean and green Laundromat owner saves a bundle with Express Energy Solutions by Evan Tuchinsky
I
n the laundromat business, Chris Wilson knows that
West Sacramento — made him a good fit for the program’s
energy counts. Utilities represent his largest variable
do-it-yourself approach.
cost — with the power to generate a competitive edge or become an economic drain.
Wilson chose LED lighting for the building’s interior and external signage, plus timer switches for inside rooms and photo
That’s why Wilson invested in SMUD’s Express Energy
Solutions when he opened Love Laundry in Midtown Sacramento. He checked the website, found rebates and put
sensors for outside lights. He expects to recoup the expense not offset by rebates within 2 1/2 years. Meanwhile, since opening in December 2013, Love
efficiency measures in his plans. “I knew going in we needed to design a modern, clean laundromat with all the new equipment,” Wilson says. “I wanted to do it the right way, and so my overall cost structure for utilities would be low. “Most laundromats don’t go for the extra cost of LED lighting. But I plan on
Laundry has saved more than projected for
“ A business owner who’s retrofitting should go to the website and see what’s available.” Chris Wilson, owner of Love Laundry
energy costs: between 20 and 30 percent each month. In fact, even though the Midtown laundromat has longer hours of operation, electricity usage is greater at his West Sacramento location, which hasn’t been upgraded. “A business owner who’s retrofitting should go to the website and see what’s
keeping this laundromat for a long time, and with energy rates always going up, that was the deciding
available,” Wilson says. “There are more options as well —
factor. Up front it’s a greater cost, but in the long run it really
if we were to get into air conditioning, there are all sorts of
makes sense.”
opportunities.
For Love Laundry, Wilson renovated an older laundromat.
“It’s really easy, simple and kind of a no-brainer.”
His experience — he also owns Wash & Dry Launderland in
6 | Making energy work for your business | A Special Advertising Supplement | SMUD | smud.org/business
Who it’s for Express Energy Solutions was designed for all sizes of commercial, industrial and agricultural customers. If you know what upgrades you want to install, the do-it-yourself approach offered by Express Energy Solutions might work for you. You choose your contractor, you keep the rebate. What it does Express Energy Solutions helps commercial customers lower their energy bills by offsetting the cost of energy-efficiency projects with rebates for a wide range of measures. The customer arranges and coordinates the installation, then receives rebate funds. How it works 1. Identify the energy-efficiency measures you wish to take and visit www.smud.org/ees to see which are covered by rebates. 2. For lighting, heating and cooling projects, arrange a pre-inspection with SMUD. 3. Install the measures, either on your own or with a contractor. 4. Fill out the Express Energy Solutions application at www.smud.org/ees. Be sure to have your receipts and documentation on hand. Reimbursement SMUD will mail a check within 30 days of receipt of your application. More information Visit www.smud.org/ees or contact Rodney Turner, Express Energy Solutions Program Manager, at rodney.turner@smud.org or 916-732-5635.
Felipe Martin installed energy-efficient lighting with help from SMUD’s Complete Energy Solutions program at the office building he owns. These and other measures add up to big savings on his energy bill each month. Photo by Anne Stokes
Complete Energy Solutions The all-inclusive approach Who’s eligible Small to midsize businesses on the SMUD GSN_T or GSS_T rate schedules may participate in the Complete Energy Solutions program. Who it’s for Commercial, professional and agricultural firms that prefer the guidance and structure of Complete Energy Solutions over the do-it-yourself approach of Express Energy Solutions. What it does Complete Energy Solutions brings together commercial customers and a SMUD program partner, EcologyAction, which conducts an assessment to determine what improvements would increase energy efficiency. Once the customer decides which improvements to make, EcologyAction coordinates the renovation project. Rebate funds from SMUD help offset the cost, up to 80 percent of the project costs. How it works 1. Call 855-822-2936 to determine if your business is eligible and to schedule a no-cost energy assessment. 2. Receive and review your personalized proposal, which contains your recommended improvements and estimated energy savings. You’ll also see the estimated project cost, the amount covered by the rebate and how quickly the project will pay for itself. 3. W hen you are ready to move forward, contact EcologyAction, who’ll help you choose an approved contractor to install the energy-saving upgrades. Reimbursement You can choose to pay the trade contractor the entire amount at the time of service and have the rebate sent directly to you, or you can have the rebate sent directly to the contractor so you only pay the balance. Financing also may be available. More information Call 855-822-2936, visit www.smud.org/ces or email ces@ecoact.org.
Savings made easy Customer lowers energy costs with Complete Energy Solutions by Evan Tuchinsky
F
elipe Martin thinks green. As a property owner and
he says — and exterior lights would pay off in two years,
businessman, he pays attention to the bottom line,
“which is still huge.”
but he’s also conscious about the environment. So when Martin heard about Complete Energy
Martin also opted for motion-sensing switches, which automatically turn off overhead lights after a period of
Solutions from SMUD, he jumped at the chance to participate
inactivity, and vending controls that reduce the energy
in a program that could improve the efficiency of Fifty
consumed by vending machines when the building is
West — his two-story, 70,000-square-foot office building in
unoccupied. Though the ROI period would be longer — five
Sacramento.
years — he authorized the installation.
“I was spending about $12,000 a month in electrical bills — that seemed a little excessive,” Martin says. “A SMUD
“Reducing the carbon footprint is always huge for me,” he explains. “Yeah, the cost was more on a couple other parts
representative mentioned the program, how there were rebates
of the project, but as far as the motion
and how they could save me
sensors, it was more about reducing our
a plan for upgrades that clearly
“ [Business owners] can save a lot of money and save a lot of energy just by making one phone call.”
spelled out the cost, rebates and
Felipe Martin, owner of Fifty West office building
money.” He picked up the phone and requested an assessment of his energy use. SMUD’s partner, EcologyAction, presented him with
return on investment based on projected savings. SMUD provided Martin with more than $31,500 in rebates, covering nearly half of the installation costs. “It was a fairly minimal cost compared to what the ROI was going to be,” Martin says. Modifications to Fifty West’s interior lighting would pay for themselves in just three months — “that’s pretty amazing,”
energy consumption and just being a little more green.” With his upgrades in place, Martin stands to save more than 165,560 kWh and $17,700 yearly on his electricity bill, meaning he’ll have recouped his out-of-pocket costs for the entire project in less than two years. And the savings
will continue to add up, year after year. Martin describes Complete Energy Solutions as a “seamless, easy process” and would recommend the program to other business owners. “They need to know that they can save a lot of money and save a lot of energy just by making one phone call.”
smud.org/business | SMUD | A Special Advertising Supplement | Making energy work for your business | 7
SMUD helps businesses save Saving energy around your business is good for the planet and good for your bank account. From a single upgrade to a comprehensive energy-efficiency site renovation, SMUD has the rebates, incentives, financing, tools and expertise to fit your needs. Get started saving energy and money at your business today. Here’s how:
Express Energy Solutions
Find and submit rebates for energy-efficiency upgrades — easily and all online. smud.org/EES 916-732-5635 express.energysolutions@smud.org
Complete Energy Solutions
A full-service approach to upgrading your site. Call for a free energy assessment. smud.org/CES 1-855-822-2936 ces@ecoact.org
SMUD Business Tools Online
SMUD’s interactive tools and information can help you understand your bill and rates, calculate your energy consumption, identify opportunities for saving energy, find rebates, see success stories and more. smud.org/business
Access your savings at smud.org/businessrebates.
SMUD can help you save money, too. John Caputo, owner of the Arco gas station at 2933 65th St. in Sacramento, is saving electricity and money thanks to SMUD’s Energy Solutions. He installed energy-efficiency improvements, including lighting, occupancy sensors and refrigeration upgrades, and SMUD helped him pay for it. The results speak for themselves: • SMUD rebates and incentives funded 60% of the project costs. • Caputo’s out-of-pocket costs were recouped in only one month through energy savings. • His monthly electricity savings are estimated at $468/mo., totaling $27,616 over 5 years.
• The upgrades will save an estimated 55,463 kWh/year. That’s like taking more than 7 passenger vehicles off the road. Or planting 81 acres of trees over the next 10 years. ow can SMUD help your H business save energy and money? Go online or call today to find out.
SMUD ranked highest in
Customer Satisfaction “Highest Customer Satisfaction With Business Electric Service in the Western U.S. Among Midsize Utilities” SMUD received the highest numerical score among midsize utilities in the West region in the proprietary J.D. Power 2014 Electric Utility Business Customer Satisfaction StudySM. Study based on 23,715 total online interviews ranking the 9 largest providers in the West (AZ, CA, CO, ID, MT, NM, NV, OR, UT, WA, WY). Proprietary study results are based on experiences and perceptions of consumers surveyed April-June and September-December 2013. Your experiences may vary. Visit jdpower.com.