Business owners often face a dilemma when considering replacing or updating their heating, ventilation, and air conditioning (HVAC) systems. Although operating an energy-efficient HVAC system is a proven money saver in the long run, the initial cost of installation can be a major concern. In a 2012 Energy Efficiency Indicator report, organizations worldwide cited HVAC improvements as one of the top energy-efficiency efforts they made in the 2011-2012 period. In the United States and Canada, 77% of respondents cited HVAC improvements as an energy-efficiency measure. Yet when executives in the U.S. and Canada were asked to name the top barriers to pursuing energy efficiency, the No. 1 answer given was a lack of funding to pay for improvements (37%).
The big question then becomes how to fund the investment:
To help businesses reduce costs and become more energy efficient, various government opportunities provide commercial and industrial customers incentives and rebates for installing high-efficiency gas and electric equipment, including packaged HVAC systems, chillers, and water/steam boilers. Here are a few resources to check out for related incentives:
- Consider Section 179D of the Energy Policy Act of 2005, which includes full and partial tax deductions for investments in energy-efficient commercial buildings that are designed to increase the efficiency of energy-consuming functions. Partial deductions of up to $.60 per square foot can be taken for measures affecting HVAC, lighting, and the building envelope, creating potential for $1.80 per square foot if all three components/subsystems qualify.
- A quick search of the Database of State Incentives for Renewables & Efficiency for our home state of Kentucky reveals comprehensive information on state and federal corporate energy efficiency tax credits and utility rebate programs applicable to commercial, industrial, and residential sectors.
- Meanwhile, the U.S. Small Business Administration offers a listing of state, local, and regional programs that offer financial assistance to help small businesses become more energy efficient.
- Business and building owners can also search the U.S. Department of Energy’s state incentives and resource database, where they can access thousands of rebates, grants, loans and other incentives for implementation of energy savings projects in facilities.
And, of course R.L. Craig Company is always a resource for your air management questions and needs!