Many multifamily buildings include upgrades and retro-fits as part of their annual budgets. While many of these projects will result in some form of energy savings because of improved technologies, the total amount of energy savings realized in any one year generally will not rise to a level of 15% or more. A 15% reduction in energy consumption is the threshold requirement to qualify for NYSERDA MPP funding.
While this yearly "do not qualify for funding" scenario is the norm for most buildings because their projects do not meet the required 15% threshold, now may be a good time for a reset. With the current window of opportunity for NYSERDA MPP funding, start your reset by making a few back of the envelope calculations included in the following steps:
* First: Itemize your capital improvements that are currently in work as well as those completed in the past year. Then consider projects to be included in future budgets - boilers, pumps, fans, insulation, lighting. Now do some quick math and estimate the aggregate of your energy savings including past, current and future projects.
* Second: Multiply the number of apartment units in your building by $500 and then by $700. Example: 200 units x $500 = $100,000 and 200 units x $700 = $140,000. In this example, your NYSERDA MPP funding potential will range between $100,000 and $140,000 or more.
* Third: Recheck your energy savings calculations. Be sure you have included your past (limited to 12 months), current and future projects. If they add up to an estimated energy savings of 15% or more, it is more than likely that you are in funding territory. If your total is not quite at 15%, you may still be able to qualify with the right strategy.
* Fourth: Reach out to an approved NYSERDA MPP partner. Having a MPP partner is a NYSERDA requirement. Your MPP partner will navigate the funding process for you. Review your energy related projects with your MPP partner who can assist in developing your winning funding strategy. Missed NYSERDA MPP funding opportunities can be recaptured and combined with future projects. With the right strategic approach, you and your MPP partner will be able to scope out a strategic plan that will meet the necessary requirements to be able to successfully qualify for valuable NYSERDA MPP funding.
Think of this unwinding of MPP funding as your opportunity to reduce future energy costs and improve the value of your building with found money.
George Crawford is a principal at NYG Green Partners, New York, N.Y. Tags: