The BOMA Toronto CDM Program Provides Incentives For Energy Saving Lighting Retrofits
Increasingly, commercial buildings in Canada are moving towards "green" lighting systems and for good reason – energy-efficient lighting retrofits reduce operating costs, while increasing the value of a building. Lighting retrofits, often result in reductions in energy use of 25 to 35 per cent But the question is, if it makes so much sense to retrofit, why aren’t more buildings doing it?
The business case for retrofitting lighting systems compares capital cost against savings: if the payback is too long the job gets shelved.
The BOMA Toronto Conservation and Demand Management (CDM) Program, launched on March 1 this year, offers incentives up to 40% of the cost of the retrofit for sustainable, measurable and on-peak demand reductions or annual energy savings. So in addition to the long-term operating savings accruing to the retrofit, owners save a significant portion of the first cost. When the benefits of the Program are factored into the business case, the project may well clear the financial hurdle to proceed.
For eligible measures that have the effect of reducing summer on-peak demand, the Program pays an incentive of $400 per KW reduction. Alternatively, Program participants can opt for a 5-cent per kWh of annual energy savings. Here’s a simple example, showing the effects on cost and consumption of a proposed lighting retrofit. The proposed replacement delivers the same light levels using more efficient lamps and ballasts.
| Existing | Proposed | |
| Number of Fixtures | 100 | 100 |
| Watts/Fixture | 175 | 100 |
| Demand all fixtures, kW | 17.5 | 10 |
| Hours of Operation/Year | 3,000 | 3,000 |
| Energy Consumption/Year, one fixture(kWh) | 525 | 300 |
| Energy Consumption/Year, all fixtures(kWh) | 52,500 | 30,000 |
| Utility Cost/kWh | $0.10 | $0.10 |
| Annual energy cost of one fixture | $52.50 | $30.00 |
| Annual energy cost of all fixtures | $5,250.00 | $3,000.00 |
| Annual Cost of Existing | $5,250.00 | |
| Annual Cost of Retrofit | $3,000.00 | |
| Annual savings | $2,250.00 | |
| On-peak demand reduction, kW | 7.5 | |
| Energy Savings/Year (kWh) | 22,500 | |
| Program Incentive: One of, but not both: | ||
| At $400 per kW | $3,000.00 | |
| OR | ||
| At $0.05 per kWh | $1,125.00 | |
By replacing the lamps and ballasts in this lighting system, the owner saves $2,250 per year. In addition, the BOMA CDM Program will contribute $3,000 to the project, subject to a cap of 40% of the cost of the job. There’s a good chance the Program incentive will move this project onto the "to-do" list for this owner.
Scotiabank is one of the first to apply to the Program for a lighting retrofit incentive. "We will be retrofitting and upgrading our lighting systems at Scotia Plaza and two other buildings," said Scotiabank Vice President David Morley. "The expected energy savings will total 750 kW or 3.2 million kWh annually."
Lighting is only one of the many measures the Program supports. Owners contemplating HVAC upgrades, chiller replacements, building envelope improvements, variable speed drive installations and switching an electric application to gas – all are eligible for incentives under the Program.
The BOMA Toronto CDM program is open to both members and non-members of BOMA who own commercial buildings (office, retail store, hotel, industrial building, warehouse, private institution or mixed use) in Toronto with an area of more that 25,000 square feet. The program window is relatively short – it expires in March of 2010. So owners and managers contemplating major retrofits with long lead times should consider getting their applications in soon.
In a typical office building in Eastern Canada, 30 to 40 per cent of energy is consumed by lighting. Lighting system upgrades are among the most costeffective steps that a property manager can take to improve the energy efficiency of a facility. Lighting system upgrades can also improve the appearance of a facility, increase occupant productivity and enhance security.
…and that’s a win-win-win for you, for the environment, and for future generations.
So get with the program! Visit www.bomacdm.com where you’ll find detailed information, guidelines, and an application package. Or call the BOMA CDM hotline at 416-440-0101.
The calculations are based on industry averages and therefore provide only an estimate of potential incentive amount.
BOMA Toronto and the OPA will not be held liable for any claims arising from the use of these figures in a business decision.
Please enter the following information for your commercial office building.
| Building Size (sq. ft.) | ||
| # of Floors | ||
| Project Type | ||
| Savings and incentive amount: | ||
| Annual Electricity Savings | ||
| Peak Demand Reduction | ||
| BOMA CDM Incentive | ||
| Impact on project economics: | ||
| Without CDM Program | With CDM Program | |
| Net Project Cost | ||
| Annual Utility Savings | ||
| Simple Payback | ||
Incentive calculator will give you preliminarily estimate of what your incentive could be. |
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