Accurate analysis can lead to higher incentives

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  • Compressor savings at Weston Bakery Sudbury

Accurate analysis can lead to higher incentives

An industrial bakery has installed new efficient compressor with VFD.  The announcement reported that new compressor saved an estimated 147,600 kWh per year  and brought $18,600 in incentives. Calculation of incentive used prescriptive approach. Should the company has taken a custom track in incentive application the incentive could have been way higher.

Our analysis based on utility bills and production data shows that Weston has actually saved much more: through Aug-Dec 2012 savings amounted to almost 139,000 kWh, bringing estimated annual savings to 139,000/5*12=333,600 kWh – more than double compared to prescribed savings track they used.


Compressor savings at Weston Bakery Sudbury

Are results of custom track worth the investment?

Another way to calculate incentives is through a custom track. This is a longer path leading to higher incentives, higher certainty and higher trust at C-Level.

In our quick estimate, after consulting fees, Weston would have been at least $10K ahead in incentives, provided that cost of installation does not cup the incentive. For installations exceeding $100K custom track opens an opportunity to secure peace of mind and score $50K in incentives. Prescriptive track will rarely produce that much.

A side note to compressor manufacturer, will a field proof of efficiency of your compressor help close your next deal?

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By | 2020-06-03T10:33:21-04:00 November 8th, 2016|Categories: business case, Business value, Energy management education|0 Comments