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Making the Case for Events2HVAC

Jan 22

Written by:
1/22/2014 1:12 PM  RssIcon

 

Convincing administrators and executives to fund energy efficiency projects can be a challenge for any facility or energy manager. But if you can present your case for Events2HVAC in the financial language that they understand, you will be one step closer to success. Let me introduce you to a tool that will help you do just that: the Building Upgrade Value Calculator.

The Building Upgrade Value Calculator is a Microsoft Excel tool that was developed as part of BOMA’s Energy Efficiency Program (BEEP) to help commercial real estate managers improve energy efficiency in their buildings. Though it was designed for office buildings, it can be used for other types of buildings as well. Based on your project information, the tool will calculate the following financial values:

  • Net investment cost per square foot
  • Simple payback period (SPP)
  • Return on investment (ROI)
  • Net present value (NPV)
  • Internal rate of return (IRR)
  • Potential impact on net operating income (NOI)
  • Potential impact on asset value

Note that the Building Upgrade Value Calculator will NOT calculate your expected savings with Events2HVAC. You must estimate that for your own facility. You can use the methods outlined in Potential Savings with Events2HVAC Event Automation Software to estimate your savings. You will then use your estimate as an input to the Building Upgrade Value Calculator.

In addition to your Events2HVAC project’s costs and estimated annual energy savings, you should input estimated labor savings related to the software. Estimate the man-hours you will save each week because you will no longer manually enter event schedules into your building automation system, then multiply those man-hours by 52 weeks, and multiply that by the hourly salary of a person who does that task to get estimated annual savings. You might also include some man-hours for fewer customer calls related to rooms that are not comfortable or time spent unlocking and locking doors if you are integrating electronic door locks with Events2HVAC.

The final input you will want to consider is any incentive or rebate that your Events2HVAC project qualifies for from the federal government, your local government, or your local utility. The last box of the Energy Project Information section of the calculator provides a place for you to put in the monetary value of rebates or incentives. (You can learn more about energy efficiency grants and rebates that might apply to Events2HVAC projects in this blog post: Grants, Rebates, and Financing Options for Energy Efficiency.)

One additional key feature of this tool is that you can input information for several projects at once. So if you want to do a lighting retrofit, implement Events2HVAC, and install occupancy sensors in bathrooms, you can put them all into a portfolio of requests to make them more attractive. The portfolio approach is often discussed in facility management circles as the best way to get energy efficiency projects approved and funded. It also saves you time because once the portfolio is approved, you can get to work on implementation rather than going back to the drawing board two months later to get support and funding for the next project on your list. Note that if you input multiple projects into the calculator, it will treat them as one big project for the purposes of the value calculations. It will not break out each project separately. In fact, that is the point of the portfolio approach. If you want calculations for each individual project, you can put them in separately first and print or save the results, then add them in as a portfolio later if you choose to do so in order to gain approval and funding.

After you input all of your data and click Calculate, you will see a screen summarizing all of the value calculations previously listed, as well as additional financial information if you are considering obtaining a loan in order to purchase Events2HVAC and you have included the loan information in your input.

That leads us to the best part. On the summary screen, you can click on the Generate Letter button to generate a letter to your administration that includes all of the calculated values. The letter is worded in a convincing manner and in the language that administrators and executives expect and understand. You can then edit the letter in Microsoft Word to make it more appropriate for your specific needs. This letter can serve as a cover letter for a larger proposal that includes appropriate Events2HVAC datasheets and case studies, along with other materials you consider necessary for your funding request.

If you use the Building Upgrade Value Calculator to evaluate your Events2HVAC project and seek approval and funding, please email us at sales@streamsidesolutions.com to let us know how it works for you. Though it does not do everything for you, it should save you a lot of time and energy – just like Events2HVAC will do for your building or campus!

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Founded in 1998, Streamside Solutions provides software products, solutions and services for the building automation industry.


Phone: (888) 320-4277

        

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