send in a question of your own
1. Paying for upgrades in a seasonal business.
2. Making energy efficiency happen on a limited budget.
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1: I'd like to lower energy costs at my business, but I have a restaurant/bar close to a ski resort, so cash flow is seasonal. Because of this, large investments are major challenges. Do you know of businesses faced with this problem that have found a way to pay for energy-efficiency upgrades?
-AC, Killington
A:
Paul:
Definitely. Many Vermont businesses, seasonal or not, are using financing for energy-saving upgrades. Financing can make it not only possible but also profitable to invest in energy efficiency. In some cases, this approach can result in positive net cash flow from day one - leaving you with more cash in-hand than before, and a quick return on your investment.
Dan:
Paul's got a good point. And financing allows you to pay for the project with energy savings, without having to make a large up-front capital investment.
Paul:
A great option for a business with a seasonal cash flow is financing with a seasonal leasing plan. These days, you can lease all kinds of equipment and systems, such as lights, boilers, insulation, and much more. Here's how it works: You let the leasing company know which months you prefer to make payments and which months you prefer to make a reduced payment or no payment at all. The leasing company then will tailor the lease to fit your needs. For example, you may not want to make lease payments during the summer months when customers aren't lining up to get into your restaurant/bar.
Dan:
As far as efficiency opportunities go, one of the most cost-effective investments you can make is to install energy-efficient lighting, such as High-Performance T8s, compact fluorescent lights, or track lighting that uses halogen infrared or metal halide technology.
Paul:
Efficiency Vermont offers rebates on qualifying, cost-effective, energy-saving lighting and equipment purchases. To find out about eligibility requirements for rebates, customized financing, or leasing options, visit the business rebate center or give us a call, toll-free, at 888-921-5990.
JNH - Middlebury, VT
A:
Paul: This is a pretty common question among small business owners. Fortunately, there are a number of financial incentives that can ease the initial costs of investing in energy-efficient equipment. Regardless of the type of business you own - from a farm to an auto repair center to a woodworking shop to a retail store - there are likely common, simple and low-cost upgrades you can implement yourself. Lighting, heating and cooling improvements are usually the easiest places to start because the upfront costs are typically minimal, and you'll see immediate and long-term energy savings.
Dan: Whether you're looking to upgrade what you currently have, install new equipment, retrofit your existing space or build a new facility, there are financial incentives available. Depending on the project, you can receive anywhere from $15 for each lighting fixture you install to well over $1,000 for selected heating, cooling and electrical equipment, including air economizers and transformers.
Paul: For larger projects, depending on the projected electrical savings and cost of the project, Efficiency Vermont can work with you to establish a plan for implementing the energy efficiency measures and develop a customized financial incentive package specific to your needs.
Dan: A great example is a convenience store we recently worked with in Grand Isle County. The business owner had a limited cash flow and was hesitant to invest in energy efficiency. We met with him, assessed his needs and mapped out a plan to conduct the upgrades in phases. First, we outfitted the store with highly efficient lighting, and a few months later we helped him revamp his refrigeration system. In each phase of the process the business owner received financial incentives, which made the project very affordable. On top of that, the long-term savings he's going to see on his electric bill are projected at $7,000 a year!
Paul: Business owners may also be eligible for tax incentives on certain energy-efficient upgrades completed between January 2006 and December 2008 through the federal Energy Policy Act (EPAct). These tax deductions are available to owners of private commercial buildings and designers of public commercial buildings that meet certain criteria. More details are available at www.energytaxincentives.org.
Dan: I'd also recommend visiting the Efficiency Vermont Rebate Center to see what financial incentives are available for your business.
