CFO Studio Magazine - CFO Innovation Award Winners

L ooking for a low-risk capital investment opportunity? Look no further than the potential within your workplace. Replacing or upgrading outdated, energy-consuming equipment can deliver proven returns—especially when available incentives are factored in. For businesses in New Jersey, those incentives are provided through New Jersey’s Clean Energy Program™. A study by the Rockefeller Foundation and Deutsche Bank Group estimates that more than $72 billion of profitable energy- efficiency investments remain untapped in U.S. commercial buildings. Advances in lighting technologies, for instance, have brought about fluorescent and LED fixtures that deliver quick paybacks often within two or three years, in addition to brighter and more productive workplaces. But lighting technologies are often just the tip of the iceberg. Significant opportunities for savings can also be found within heating, ventilation, and air-conditioning (HVAC) equipment. According to the U.S. Energy Information Agency, more than 40 percent of energy consumed in U.S. office buildings supplies HVAC equipment. So even a small reduction in energy use can result in major savings. Variable frequency drives, variable air volume systems, and heat recovery units are all mature and proven technologies, offered by established manufacturers. Panasonic’s new North America headquarters in Newark, NJ, is an example of a company making smart, energy-efficiency investments. The 12-story, $200 million office tower built in 2013 features $918,000 worth of advanced lighting and HVACmeasures that have resulted in significant energy savings. Panasonic reduced building energy use to 15 percent below code. This qualified the company for $440,459 in incentives through the Pay for Performance program administered by New Jersey’s Clean Energy Program . Using these incentives, Panasonic has been able to reduce the simple payback period for the project from seven to four years. By investing in technologies such as a heat recovery unit, daylight sensors, and cogeneration chillers that convert waste heat into cooling, Panasonic is saving an estimated $118,900 each year in energy costs alone. These technologies also helped the headquarters receive Leadership in Energy and Environmental Design (LEED) Gold and Platinum certifications. Grants to Companies Newly constructed buildings are not the only places where energy efficiency investments make sense. Equipment more than 15 years old has often reached the end of its useful life. Replacing or upgrading aging equip- ment, introducing occupancy sensors, or making subtle adjustments such as relocating thermostats to more optimal locations, are all examples of profitable measures that the average office building can undertake. New Jersey’s Clean Energy Program offers incentives for energy upgrades in both existing and newly constructed buildings. Small-to- midsized commercial and industrial facilities with less than 200 kWof peak electricity demand qualify for the Direct Install program that covers up to 70 percent of a project’s cost. Larger buildings qualify for the Pay for Performance program, with up to $2million for each project, if the project reduces energy consumption by 15 percent or more. Since 2013 New Jersey’s Clean Energy Program has granted over $152 million to some 4,200+ companies that have invested in their buildings, resulting in an estimated $73 million in annual energy savings. Learn how you can add up the returns for your business. Get started on investing in your building or facility by contacting New Jersey’s Clean Energy Program at 866-NJSMART or NJCleanEnergy.com/CFO. C New Jersey Board of Public Utilities’ Clean Energy Program Hidden Financial Opportunities Energy efficiency is delivering proven investment returns 2nd QUARTER 2015 WWW.CFOSTUDIO.COM 37