Energy And Atmosphere Credit Onsite Renewable Energy

Now let's take a look at installing renewable energy measures for our hypothetical project. In this case, we are almost always faced with considerably higher capital costs, relative to annual savings. However, an important mitigating factor may be the incentives available. Many states and utilities, along with the federal government, offer tax credits, and direct payments that can reduce the effective capital cost of such measures by 50 percent or more. Table 8.7 shows the EVA analysis for two options: a solar electric (photovoltaic) system or a wind power turbine, while Fig. 8.6 shows the cumulative cash flow from both project elements. Many projects are beginning to

TABLE 8.7 ENERGY & ATMOSPHERE: CREDIT 2 ONSITE RENEWABLE ENERGY

LEED CREDIT SOLUTION

LEED CREDIT SOLUTION

NON-LEED

#1: PV SOLAR ELECTRIC

#2: WIND TURBINE

BUILDING

SYSTEM

SYSTEM

Soft Cost Impacts

None

Additional MEP

Additional MEP

engineering $20,000

engineering $20,000

Hard Cost Impacts

None

1. Roofing upgrade for

1. Wind turbine system

PV system $50,000

$ 250,000

2. PV system $500,000

2. Tax incentives

3. Tax incentives

$75,000

$150,000

Life-Cycle Benefits

None

Energy cost reduction

Energy cost reduction

$20,000/year

$15,000/year

consider these options, so pay close attention to the analysis! In both cases, with strong federal, state, and local utility incentives, the paybacks are less than 15 years. Since solar and wind technologies are visible statements of a low-carbon future, a project might well decide to include one or both for that reason alone. Looked at another way, a 13-year payback is nearly a 7 percent annual return at current energy prices. What you effectively get is an inflation-protected bond yield that compares favorably with similar investments.

Figure 8.6

---WiND SYSTEM

Cumulative cash flow EA Credit 2: onsite renewable energy.

Figure 8.6

---WiND SYSTEM

Cumulative cash flow EA Credit 2: onsite renewable energy.

TABLE S.S INDOOR ENVIRONMENTAL QUALITY: CREDIT S CONSTRUCTION IAQ MANAGEMENT

LEED CREDIT SOLUTION

LEED CREDIT SOLUTION

NON-LEED

#1 BASIC IAQ

#2 ADVANCED IAQ

BUILDING

MANAGEMENT PLAN

MANAGEMENT PLAN

Soft Cost Impacts

None

None

None

Hard Cost Impacts

None

1. MEP equipment

1. MEP equipment

protection procedures

protection procedures

and materials $13,000

and materials $13,000

2. MERV 8 filters $ 2000

2. Temporary

dehumidification/fresh

air system for duration

of finishes $100,000

Life-Cycle Benefits

None

1. Maintenance cost

1. Maintenance cost

reduction $10,000/

reduction $20,000/

year

year

2. Liability cost reduction

2. Liability cost reduction

$50,000/year

$100,000/year

Solar Panel Basics

Solar Panel Basics

Global warming is a huge problem which will significantly affect every country in the world. Many people all over the world are trying to do whatever they can to help combat the effects of global warming. One of the ways that people can fight global warming is to reduce their dependence on non-renewable energy sources like oil and petroleum based products.

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