[et_pb_section fb_built=”1″ _builder_version=”3.22″ custom_padding=”0|0px|0|0px|false|false” hover_enabled=”0″][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”||3px|||”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”4.5.1″ text_font=”Nunito Sans||||||||” text_text_color=”#383838″ text_font_size=”18px” text_line_height=”1.5em” header_3_line_height=”1.2em” header_4_font=”Nunito Sans|100|||on|||#004382|” header_4_font_size=”22px” header_4_line_height=”1.6em” header_6_font=”Nunito Sans||||||||” header_6_text_align=”left” header_6_text_color=”#383838″ header_6_font_size=”18px” header_6_line_height=”1.8em” custom_margin=”||1px|||” hover_enabled=”0″ z_index_tablet=”500″ header_2_font=”Nunito Sans||||||||” header_2_line_height=”1.2em”]<\/p>\n

Perhaps no other building has as diverse an energy infrastructure as a multi-family property.\u00a0 <\/span>To meet the needs of tenants, each of whom have a very wide variety of energy-consumption requirements, property owners must operate their properties like \u2018mini cities\u2019:\u00a0 <\/span>A multifamily property may have an office center, recreational complex, gym, pool, sports facilities, and more.<\/p>\n

With such a high level of diversity, the maintenance staff responsible for a property\u2019s energy infrastructure must consider not just existing energy factors, but also those that may arise in the future.<\/p>\n

This means an effective multifamily property energy strategy must always include elements that are \u2018future-proof\u2019 – flexible to adapt and grow as the building\u2019s energy demands require.<\/p>\n

Yet, all too often, property owners\/operators tend to maintain various isolated energy systems that are incapable of meeting this demand.\u00a0 <\/span>These systems have become more and more costly to operate and maintain because they are rapidly aging and become more and more obsolete, requiring facility managers to more frequently outsource service and maintenance (a costly but necessary choice).<\/p>\n

And, as more people are working from home than ever before, energy consumption levels across your property portfolio have skyrocketed, putting even more unwanted strain on that aging energy infrastructure.<\/p>\n

\n

So, why not just upgrade to more modern and energy-efficient equipment?<\/b><\/h2>\n

Short answer:<\/span>\u00a0 <\/span>The cost.<\/span><\/h2>\n

These are extraordinary times.\u00a0 <\/span>Market uncertainty is at an all-time high, and social health and distancing concerns are having a serious impact on nearly every business model, causing ripple effects across the global economy. So most multifamily property owners are either out of money or are diverting resources to other initiatives,\u00a0 <\/span>their aging energy infrastructure seriously under-funded.<\/p>\n

And let\u2019s not forget one of the most common barriers to investing in energy efficiency upgrades or retrofits, particularly for multifamily property owners\/operators:\u00a0 <\/span>The low trust factor in the energy-savings concept.<\/p>\n

Property owners take one look at the high transaction costs to upgrading their energy infrastructure, review a \u2018fuzzy\u2019 ROI projection presented to them that may or may not be rooted in reality, and decide to push \u2018energy efficiency\u2019 far down their list of priority action items.<\/p>\n

So, despite the profound financial benefits of upgrading or even retrofitting existing energy systems to state-of-the-art energy-efficiency systems, owners\/operators lack the encouragement to make the decision to upgrade.<\/p>\n

<\/b><\/p>\n

Do you own your own power plant?<\/b><\/h2>\n

Take a look at how your multifamily property consumes energy right now.<\/p>\n

Did you build your own power plant to generate the electricity for your property?<\/p>\n

Did you build your own natural gas pipeline?<\/p>\n

No?\u00a0 <\/span>So then how does your property get electricity and gas?<\/p>\n

Because your utility<\/i><\/b> built those things.\u00a0 <\/span>They invested in building and operating the plant, the cables, the pipelines – all of it – in order to deliver to you what you really want:\u00a0 <\/span>The electricity and gas.<\/b><\/p>\n

And you take them as-a-service<\/i><\/b><\/span>, <\/i><\/b>paying no upfront capital costs to get all that electricity and gas generated and delivered right to your property.<\/p>\n

What if your utility contacted you and said:<\/p>\n

\u201cWe can come out next week and replace all your lighting, upgrade your aging HVAC system, put in a power management system – all of it – and <\/i>you don\u2019t have to pay anything out of pocket<\/i><\/b> \u2026 whatever money you save from the lower electric and gas costs will pay for the upgrades.\u201d<\/i><\/p>\n

What sane property owner would say no?!?<\/p>\n

Sadly, your utility isn\u2019t going to do anything like that for you.<\/p>\n

\n

But what if someone else could?<\/b><\/h2>\n

Here\u2019s how multifamily property owners are upgrading their portfolios right now, even in today\u2019s crazy economy:<\/p>\n

It\u2019s called: Energy Savings as a Service<\/b> (or ESaaS<\/b>).<\/p>\n

ESaaS<\/b> removes the capital expenditure requirement typically needed to launch and fund an energy efficiency upgrade project. \u00a0 <\/span>It\u2019s a turnkey upgrade solution<\/b> that covers all the equipment, installation, maintenance, repair, and servicing – and lets you take advantage of buying heating and cooling BTUs and lumens for lighting for less than you currently spend.<\/b><\/p>\n

Your budget therefore becomes a moot issue, as you don\u2019t need any out-of-pocket expenditure.\u00a0 <\/span>You keep your capital, and just get lower energy costs – right from day one (no \u2018fuzzy ROI\u2019 projections or confusing charts to decipher).
<\/b><\/p>\n

And it won\u2019t impact debt ratios, lines of credit or conflict with core purchases, because it\u2019s not a loan.<\/p>\n

You get an energy-efficiency upgrade that instantly lowers your energy costs, and you get it the exact same way you currently get your electricity and gas from your utility:\u00a0 <\/span>Zero capital, zero debt.<\/p>\n

Saving money is always a smart move.\u00a0 <\/span>Saving money in today\u2019s economy is even more crucial.\u00a0 <\/span>Energy Savings as a Service <\/b>(ESaaS) makes it all possible for you right now, without any risk.<\/p>\n

Prove it to yourself<\/strong> – talk with an energy specialist who can determine if ESaaS is the right solution for your multifamily property.\u00a0 <\/span>Call Mike Erickson today at 844-768-7227.<\/strong><\/p>\n

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We all want to continue to do business or pursue our missions, and Onsite Utility Services Capital (\u2018OUS\u2019) is here to assist all organizations do just that, by helping to do the two things necessary right now\u2026 Conserve Capital and Reduce Expenses. <\/p>\n","protected":false},"author":1,"featured_media":231157,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"

You know your lighting retrofit or energy efficiency project is saving you money, but did you know it can also generate a new revenue stream?\u00a0Imagine additional income without any additional risk or investment that could continue for up to four years. Within the PJM Interconnection, energy efficiency (EE) projects, originally done to reduce energy usage and maintenance costs, provide a payback and increase the profitability of the company \u2013 can now also serve as a source of additional revenue for your organization.\u00a0<\/p>

The PJM Capacity Market<\/strong><\/p>

PJM is the Regional Transmission Operator in Delaware, the District of Columbia, Maryland, New Jersey, Ohio, Pennsylvania, Virginia, and West Virginia, as well as parts of Indiana, Illinois, Kentucky, Michigan, North Carolina, and Tennessee. It is their responsibility, throughout those areas, to ensure that the electric grid has enough capacity to meet the demand for electricity. To do this, PJM has developed the PJM Reliability Pricing Model (RPM).<\/p>

The RPM is used to generate long-term pricing signals to capacity resources and Load Serving Entities (LSE) in a manner that is consistent with the PJM Regional Transmission Expansion Planning Process (RTEPP). Or more simply, it helps PJM determine where additional capacity is needed with respect to the electric transmission system, while also providing incentives for those need capacity resources to be developed.<\/p>

Traditionally, electricity generators (nuclear, coal and natural gas fueled power plants) have been the primary participants, committing their electricity output to the grid through an auction process. In return, PJM has compensated these generators financially for their capacity commitments and the lights have stayed on.<\/p>

But with fewer new power plants being constructed, older ones facing retirement, and certain planned transmission projects unable to get off the ground, grid congestion is not only a continuing threat but a growing one that can seriously impede the efficient distribution of electricity that Americans have come to expect.<\/p>

To combat these circumstances that have left PJM with less generation resources to meet electricity demand plus the 15% reserve capacity they need, PJM has begun to reward those that help reduce electricity demand just as they would a generator supplying more electricity.\u00a0\u00a0After all, a penny saved is a penny earned, right?\u00a0\u00a0EE projects and Demand Response (DR) participants, both of which reduce electricity demand (EE does it permanently and DR for up to 10 hours), are now considered capacity resources by PJM and are therefore eligible to participate in the RPM and receive capacity payments.<\/p>

What\u2019s a Capacity Payment Worth?<\/strong><\/p>

That really depends on many factors, such as what region of PJM you\u2019re located in and the availability of capacity resources.<\/p>

EE projects can earn this income for up to 4 years from the time that the project is commissioned.\u00a0Submit your project today for an estimate of additional revenue.<\/u><\/b><\/a><\/p>

How You Can Begin Receiving This Revenue<\/strong><\/p>

The RPM, which has been used since 2007, successfully gains capacity commitments three years in advance. These commitments are received through multiple auctions that occur each year within each of PJMs 26 regions; helping to stabilize pricing signals, yet still allowing pricing to be locational. In order to begin receiving capacity payments for your EE project, you will need to participate through an RPM auction(s).\u00a0\u00a0These auctions include a Base Residual Auction (BRA), which occurs each May and secures each region\u2019s capacity three years in advance,\u00a0while establishing the\u00a0compensation that capacity resources will receive for their commitments.\u00a0\u00a0There can also be up to three incremental auctions per delivery year to account for adjustments in resource commitments. Only those with PJM membership access, though, are able to participate in RPM auctions.\u00a0\u00a0PJM also requires EE projects to take the following steps before they will accept their capacity bids in RPM auctions:<\/p>

1. First you must submit an Initial Measurement and Verification (M&V) Plan to PJM. The Initial M&V plan will identify existing facilities and what they will be replaced with; provide details on the project; describe energy and capacity savings, and develop an on-going monitoring program for the project.<\/li>
2. You need to establish credit with PJM before you will be allowed to participate in the RPM auction.\u00a0<\/li>
3. Then an Energy Efficiency Resource Modification (EE MOD) can be submitted into the eRPM system.\u00a0<\/li>
4. An Initial Post-Installation M&V Report is submitted to PJM. This will include results from audits and monitoring of the project.\u00a0<\/li>
5. You must permit PJM or an independent third party to conduct post-installation M&V audits.\u00a0<\/li><\/ol>

   Once these steps are completed your EE project will be able to bid into the RPM auction and you will be eligible to receive capacity payments. Refer to PJM Manual 18 and 18b for the details of this PJM program.<\/p>

   As you might expect, though, the efforts to get your project qualified for capacity payments is time consuming, has financial costs, comes with some risk, (remember you are participating in a market) and is time sensitive.\u00a0\u00a0You can only receive payments for 4 years from the date of commission, so it becomes very important to be ready to bid your EE project into the capacity market as soon as possible to maximize your benefit.<\/p>

   To eliminate the costs and risks and to ensure access to the PJM RPM, you can partner with a third party, such as Onsite Utility Service Capital, LLS, which would split these proceeds equally with you for handling the complicated and onerous Energy Efficiency Capacity, RPM and monitoring processes as well as taking on the performance and market risks.<\/p>

   Act now to maximize your revenue from this newly found income stream.\u00a0Submit your project today for an estimate of additional revenue.<\/u><\/b><\/a><\/p>

   Onsite Utility Services' (OUS) Team has worked extensively with the PJM Reliability Pricing Model.\u00a0\u00a0Our energy professionals have helped our clients successfully bid developed Energy Efficiency projects into the RPM auction.\u00a0 OUS Team members come from diverse backgrounds in the energy industry, allowing us to provide our clients with a comprehensive view of energy opportunities.<\/p>","_et_gb_content_width":"","footnotes":""},"categories":[14,13],"tags":[],"class_list":["post-231280","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","category-ous-capital-news"],"_links":{"self":[{"href":"https:\/\/onsiteutilityservices.com\/wp-json\/wp\/v2\/posts\/231280","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/onsiteutilityservices.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/onsiteutilityservices.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/onsiteutilityservices.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/onsiteutilityservices.com\/wp-json\/wp\/v2\/comments?post=231280"}],"version-history":[{"count":0,"href":"https:\/\/onsiteutilityservices.com\/wp-json\/wp\/v2\/posts\/231280\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/onsiteutilityservices.com\/wp-json\/wp\/v2\/media\/231157"}],"wp:attachment":[{"href":"https:\/\/onsiteutilityservices.com\/wp-json\/wp\/v2\/media?parent=231280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/onsiteutilityservices.com\/wp-json\/wp\/v2\/categories?post=231280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/onsiteutilityservices.com\/wp-json\/wp\/v2\/tags?post=231280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}