Energy Conservation Has Its Perks

Utility Companies Offer Businesses Incentives

Small businesses in New Jersey can operate with greater energy efficiency while qualifying for grants, incentives, and rebates that offer the potential to cover significant portions of their capital outlay. Beyond energy savings, these incentives lead to safer, more efficient buildings, more reliable equipment, and improved productivity.

In South Jersey, for example, Pat’s Pizzeria – a successful restaurant with five locations – needed to replace aging HVAC units at three locations. Theo Roustopoulos is a third-generation owner/operator of the pizzeria, operating what he calls “mom-and-pop small businesses in old buildings.” Like most small business owners, finding ways to replace failing equipment while saving energy is always on his radar.

Roustopoulos found Atlantic City Electric’s (ACE) Small Business Direct Install program. The utility provided incentives covering nearly 80% of the required upgrade costs. Upgrades included new HVAC units as well as upgrading to energy-efficient LED lighting. The overall cost of the project was $75,400. However, after incentives, the net cost to the restaurant was only $20,378. In addition, the reduced energy consumption provided more than $10,000 a year in energy savings. 

Also in South Jersey, retailer Five Below, Inc. recently upgraded the lighting in its warehouse facility in Pedricktown. Swapping out 3,000 light fixtures in the 1-million-square-foot facility is a costly endeavor. However, Bob Malovich, general manager of the distribution center, was delighted that the $975,000 cost was offset with $865,114 in incentives, leaving a net cost of just $114,361. That is before factoring in the 1,029,968 kWh per year in electricity savings and the fact that the site was able to reduce its carbon footprint by about 40%.

“The building feels more vibrant and alive,” Malovich notes. 

“In terms of energy efficiency programs, I think we’re successfully leveraging innovative technologies,” notes Amber Perry, senior vice president of regulatory strategy and policy for Atlantic City Electric, adding that the company’s portfolio of energy efficiency programs is designed to comply with New Jersey’s Clean Energy Act signed by Gov. Phil Murphy in 2018.

ACE’s business incentives include: a Multi-Family Program, providing assessments and access to interest-free financing; Energy Solutions Program, assisting commercial customers in identifying and undertaking large energy efficiency projects; Prescriptive and Custom Program, providing incentives for commercial and industrial customers to install high-efficiency equipment, and; Direct Install Program, providing small businesses with a no-cost energy assessment, incentives, and interest-free financing.

“We also recently received approval on one of our largest energy efficiency initiatives from the New Jersey Board of Public Utilities (NJBPU). It is a diverse set of programs that innovate how we think about investments for businesses with LED lighting, heating, and cooling, as well as equipment maintenance,” she explains. 

Incentives are being offered for companies willing to upgrade equipment and shift energy usage to off-peak periods when possible. The program includes rebates for carbon reduction in buildings, time-of-use rates for switching usage to off-peak times, as well as incentives for flexible load management and energy management reporting initiatives.

“These newer programs are focused on building decarbonization,” Perry notes. 

South Jersey Gas/Elizabethtown Gas 

“Utilities across New Jersey are working to stabilize energy bills despite growing demand for energy, which is outpacing supply,” notes Maureen Minkel, spokesperson for South Jersey Industries. “At SJI, our two utilities, South Jersey Gas and Elizabethtown Gas, are investing in innovative technologies, such as renewable natural gas (RNG), to help cost-effectively meet renewable energy goals. We are dedicated to delivering energy services at the lowest possible cost to more than 735,000 customers across New Jersey.” 

The utility recently received NJBPU’s approval to significantly expand its energy efficiency programs, providing increased energy and cost-saving opportunities for residential, commercial, and industrial customers.

“The new energy efficiency programs will be the largest to date. South Jersey Gas’ $307 million energy efficiency program consists of $167 million of direct investment, $125 million in financing options, and $15 million in operation and maintenance expenses. Elizabethtown Gas’ $219.9 million energy efficiency program consists of $133.5 million in direct investment, $71.7 million in financing options, and $14.7 million in operation and maintenance expenses,” she explains.

PSE&G  

Public Service Electric & Gas (PSE&G) also offers small businesses incentives to implement energy savings initiatives. The company will provide a free, on-site energy assessment, recommend energy efficiency upgrades, and provide a detailed cost estimate. Once approved by the customer, PSE&G pays 100% of the up-front costs, and the work is done by a PSE&G-authorized contractor. When the work is complete, customers repay as little as 20% of the total – interest-free – over 60 months on their PSE&G bill. PSE&G-eligible upgrades include lighting retrofits (including sensors and controls) heating, ventilation, and air conditioning (HVAC) systems, as well as commercial refrigeration equipment and motors.

New Jersey Natural Gas

In 2009, New Jersey Natural Gas (NJNG) launched SAVEGREEN, an umbrella for NJNG’s energy-efficiency programs. Since then, the company has helped more than 100,000 customers take advantage of rebates and incentives for energy-efficiency improvements.

“We have great programs available for businesses to replace aging equipment with high-efficiency options,” notes Todd Van Aken, director of SAVEGREEN. These programs include rebates, incentives, and financing options. According to Aken, savings can be even greater with whole-building solutions.

“NJNG can help business customers upgrade space heating, cooling, ventilation, and water heating systems,” Aken explains, adding that “efforts to tighten up the building envelope, upgrade lighting and make smart building enhancements can significantly lower energy costs.” 

SAVEGREEN is also exploring the next generation of energy-efficiency technologies such as carbon capture, natural gas heat pumps, and hybrid heating.

“Hybrid heating, also known as dual-fuel heating, combines an air source heat pump for cooling and heating in milder weather with a gas furnace or boiler for heating during colder temperatures,” Aken says. “This allows customers to utilize each system when it is most efficient, with opportunities to maximize bill savings and emissions reductions.”

While it may seem counterintuitive for a utility to provide opportunities to reduce energy consumption, the fact is, these incentives really do exist and are significant enough to warrant the attention of all business owners in New Jersey. 

To access more business news, visit NJB News Now.

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