Fixed budget agencies such as municipal governments,
state-supported universities, K-12 public school corporations, and many hospitals will have to contend with these rising costs. We all know they simply cannot turn off the
lights to reduce energy cost. We also can predict with certainty the state will
not increase base budget dollars to offset the increased utility cost each
year. Therefore, something has to
give. If there is a set amount of money
and energy cost rises, what options do they have? In our homes we can address this issue by
reducing the number of times we go out to eat or go to the movies or fewer
pizza deliveries, etc. etc.
In governmental agencies these choices are much more impactful
and can cause harm to the public: Do
they reduce public safety officers in order to leave the street lights on? Do I increase class size to air condition the
school? Do I eliminate services and send patients to a different hospital? These are very difficult decisions for our
elected and non-elected officials responsible for these agencies.
At Telamon Energy Solutions, we are suggesting to these
agencies to not wait but to address energy consumption now. We suggest they address this dilemma by first
investigating energy savings options. We
are offering to do an energy analysis for these clients. This analysis addresses many high energy users
such as HVAC systems, hot water heaters, kitchen areas if they have them, and luminaries
inside and outside. We then meet with
the decision makers and suggest ways they can update equipment to reduce energy
costs. We have seen in many instances
payment for this new equipment can be paid via energy savings in the first 2 to
4 years of savings.
We also do an analysis of using self-generated solar energy
for a portion of their energy needs. The
key here is to produce a portion of your energy needs on-site. Here is an example: The typical elementary school of 700 students
burns about $100,000 of electricity per year. If you self-produced $40,000 of solar electricity on the roof of the school, you
reduce your cost for electricity to $60,000 per year for 20 years (assuming no
other changes). Even after eight (8) to
ten (10) years when energy cost has risen 40%, your new adjusted cost goes to
$84,000 still saving $56,000 per year ($60,000 X 1.4 compared to $100,000 X 1.4). The cost to produce this $40,000 of
electricity varies by region but as Mike referenced in his April 11 blog, the
cost to self-produce electricity is reducing to the point you can pay for your
solar array in three (3) to five (5) years.
Telamon is excited to be able to provide these energy
cost-saving options to cash-strapped governmental agencies to help find ways to
prevent difficult decisions later.
-Bruce Breeden
Director Business Development
Telamon Energy Solutions
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