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Palo Alto Housing Corporation Rebates and Financing Incentives We need water to survive PAHC oversees over 700 housing units for income-qualified residents across 21 properties. Significant potential for energy savings was recently identified in a comprehensive energy analysis of Arastradero Park Apartments conducted by Morgan Smith of Synergy Companies on behalf of the Program. As part of the analyses, Morgan discovered three water circulating pumps that operated 24 hours per day, every day of the week to pump hot water from boilers to residents’ points of use. Morgan recommended replacing all three pumps with Enovative Kontrol Systems’ Demand Control System that would only be required to operate one to three hours per day. The dramatic reduction in operating hours was made possible by remote temperature and pressure sensors that trigger the pumps to operate only when a faucet was opened and the temperature in the return domestic water pipes falls below a pre-set temperature (120 degrees) rather than all the time.

Enovative Kontrol Systems

Palo Alto Utility Rebates Program

Utility Rebates Program


Palo Alto Housing Corporation Rebates and Financing Incentives The new pumps are expected The new pumps are expected to reduce electric use by 90% due to the operating reductions plus 15% lower gas use due to less hot water losses through the building piping. The new pumps had a total installed cost of $10,500. A utility rebate covered 50% of the cost, or $5,250, but PAHC would still have needed to pay the remaining upfront cost of $5,250. The CPAUsponsored Zero Interest Loan Program allows local business to finance the installation of recommended measures with no interest and payments equal to the savings on their utility bills. However, the loan program is not available to non-profit organizations like PAHC and the improvements must pay for themselves within five years through electric savings alone. Unfortunately, while the PAHC project would pay for itself through natural gas savings in a little over one year, justifying the improvements on just the electric savings would be a 10-year payback.

Enovative Kontrol Systems

Palo Alto Utility Rebates Program

Utility Rebates Program


Palo Alto Housing Corporation Rebates and Financing Incentives That’s when the utility That’s when the utility and Synergy turned to EGIA. They knew that EGIA administered a CPAU-sponsored zero interest loan program for homeowners in Palo Alto that choose to pay for the installation of qualified energy-saving measures within six months with no payments and no interest as an alternative to choosing a rebate incentive. Unfortunately, that residential loan program was not available to businesses or non-profit organizations, such as PAHC. However, EGIA approached its commercial lending partner, LGI Financial Solutions, for assistance and they came through quickly and professionally with an innovative loan option. Within one week, LGI arranged for PAHC to be approved for a low-interest loan with monthly payments that would be offset by projected gas and electric utility bill savings so that PAHC would have net cost savings the very first month and every month thereafter until the loan was paid off and then pocket all the savings. The presentation was so compelling that PAHC reviewed its options and decided to pay for the improvements out of their capital budget rather than finance the purchase.

Enovative Kontrol Systems

Palo Alto Utility Rebates Program

Utility Rebates Program


Palo Alto Housing Corporation Rebates and Financing Incentives The utility-sponsored program “The utility-sponsored program made it easier for PAHC to go green and save money, too. The analysis by Synergy Companies showed us several opportunities to save on improvements like lighting and insulation as well as the water pump upgrades,” says Jim Brandenburg, Maintenance Supervisor, PAHC Management & Services Corp. “We knew the pump idea was a winner because they were due for replacement soon anyway, but we didn’t realize the energy and cost saving value of replacing the pumps before we had to with a system that was so much more efficient. Once we realized that the improvements would qualify for a rebate and the remaining installation cost could be paid from the savings, it wasn’t a tough decision to take the money from our capital budget. I feel badly for LGI going to the trouble of preparing loan documents, but I can see where the rebate plus low-interest loan would be very compelling for organizations that don’t have the budget to pay the upfront installation cost. We plan to track the pump savings at this property for the next few months, and if it saves as expected, we will be looking to replace more pumps at our other properties.” Jim said.

Enovative Kontrol Systems

Palo Alto Utility Rebates Program

Utility Rebates Program


Palo Alto Housing Corporation Rebates and Financing Incentives The City of Palo Alto and its Utilities Department “The City of Palo Alto and its Utilities Department are very invested in assisting all of our customers in finding and implementing efficiency and other sustainable solutions,” says Joyce Kinnear, Utility Marketing Services Manager for the City of Palo Alto Utilities. “We work with a number of industry allies to provide home and business owners the most comprehensive solutions available. We are excited that PAHC has been able to find and adopt such a positive technology.” Hotels, motels, senior centers and nursing homes served by City of Palo Alto Utilities are eligible to receive a free business energy use analysis with installation of energy-efficiency measures at no additional cost. The utility hires Synergy to directly install customized energy-savings upgrades such as: Air Duct Leaking Testing and Sealing; Compact Fluorescent Light Bulbs; Hard-wired Compact Fluorescent Light Fixtures; Low-flow Showerheads and Faucet Aerators; and Pipe-wrap. The audit often identifies additional measures that would be worthwhile investments for the business.

Enovative Kontrol Systems

Palo Alto Utility Rebates Program

Utility Rebates Program


Palo Alto Housing Corporation Rebates and Financing Incentives CPAU-sponsored CPAU-sponsored rebates can pay up to 50% of installed costs for qualified recommended measures and financing can cover the rest. The innovative water circulating pumps with sensors recommended for PAHC are a typical recommendation as are vending machine set-back devices and lighting and HVAC system upgrades. Also becoming increasing cost-effective as energy cost saving upgrades are keycard systems that replace traditional lock-and-keys with electronic cards and occupancy sensors that turn off lights and dial back heating and cooling systems then rooms and buildings are unoccupied. However, these types of systems can require an upfront investment of up to $50,000 for just a 30-unit motel and more for larger properties, which is why financing options become so important. The CPAU Zero Interest Loan Program for businesses will finance projects from $5,000 to $50,000 that qualify for a CPAU rebate. The monthly loan payments are calibrated to match the estimated monthly cost savings resulting from the energy efficiency improvements so a businesses overall monthly utility payment should not increase even while making loan payments.

Enovative Kontrol Systems

Palo Alto Utility Rebates Program

Utility Rebates Program


Palo Alto Housing Corporation Rebates and Financing Incentives The length of loan repayment The length of loan repayment is based on the simple payback of the efficiency project, not to exceed five years. Natural gas projects do not currently qualify for loan funds. LGI Financial Solutions stands ready to help Palo Alto businesses that having financing needs which are beyond the utility program design. LGI provides world-class financing solutions to small, medium and large sized organizations operating in North America. It is a leading provider of privatelabel and co-branded customer financing solutions. If your business has leased equipment from IBM, Dell, Lenovo, Sony or Gateway; financed security or lighting solutions from Siemens; or outfitted your workspace with office furniture from Quill, you’ve probably worked with them…you just didn’t know it.

Enovative Kontrol Systems

Palo Alto Utility Rebates Program

Utility Rebates Program


Palo alto housing corporation rebates and financing incentives