Energy Efficiency

There are three categories of energy efficiency, and they are determined by the ROI / payback.  Those categories are:

1. Stupid simple.
2. Low hanging fruit (fast payback)
3. Marginal investment return.

Stupid Simple is basically fixing broken stuff. Compressed air leaks, faulty steam traps, vent louvers stuck open, lack of condensate return, flash steam and incorrect temperature controller set points are ubiquitous problems in every manufacturing plant. They are easy to fix and save money instantly.

Low Hanging Fruit represents equipment upgrades that are so much more efficient that their payback is typically less than 2 years. The most notable are LED lighting, VFD (variable frequency drives) and chiller heat recovery.

Marginal investment return.  Almost all energy-efficiency investments have a positive ROI but in many cases the payback period is much longer than that required by most companies. Non-strategic investments, those that do not increase the top line, open new markets or attract new customers are less attractive and therefore energy efficiency investments are often required to have meet a 2 year or less payback period. Most energy-efficiency investments cannot meet these criteria. An alternative way to enjoy increased efficiency while keeping your investment capital powder dry for strategic investments is to work with a concierge utility, like Exergy Energy. We gladly make energy-efficiency investments because it makes us more profitable and in our business, these investments are strategic.