In addition to saving energy and reducing utility expenses, there are additional and often unreported benefits from conserving energy. These non-utility benefits contribute value worth an additional 18 to 50 percent of the energy savings.
Non-utility benefits can be expressed many ways, but generally fall into the following four quantifiable categories:
A. extended equipment life;
B. reduced maintenance costs;
C. reduced risk to energy supply price spikes; and
D. the ability to sell carbon credits.
In addition, there are strategic benefits (which are site-specific and not quantified here):
E. enhanced public image; and
F. reduced risk to environmental/legal costs.
A Simple Illustration of These "Secret Benefits"
For this example, consider a large facility with 10,000 light fixtures. Through a variety of energy conservation measures, it is common to reduce consumption by 25%. First, we will calculate the dollar savings from electricity conservation. Then, we will show the secret benefits, which have impacts beyond the utility budget.
Assume the fluorescent lights are relatively new and consume 60 watts per 2-lamp fixture and operate 5,000 hours per year. Our baseline energy consumption is:
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