CLOSING ENTRY: Cooling off

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Summer is upon us, and that means vacations, barbecues and, unfortunately, increased cooling costs. But don’t sweat it — businesses of all sizes in the PSE&G service area can take advantage of programs to lower energy usage year-round, while also building a sustainable future.

At PSE&G, we know that every category of business deals with unique energy and economic challenges. Grocery and convenience stores are among the highest energy-consuming commercial operations, for example. Hospitals use energy continuously when taking care of patients 24/7/365. Meanwhile, according to the Environmental Protection Agency, approximately 30% of the energy consumed by U.S. office buildings is wasted.

That’s why we have a suite of energy efficiency solutions to fit every kind of business, and every kind of need.

For small businesses, there’s our Small Business Direct Install Program, which serves companies that have an annual electric average peak demand usage of up to 200 kilowatts. Businesses in this category include dry cleaners, barbershops and salons. These types of organizations might leverage the program to upgrade HVAC or refrigeration equipment, or even convert older lighting to new LEDs.

Eligible participants typically pay approximately 30% of total project costs, and sometimes as little as 20%. Once the work is complete, the business repays a portion of the total project cost – interest-free – over 60 months right on the PSE&G bill or in one lump-sum payment, if preferred. The energy savings will likely pay for the cost of the project.

PSE&G works with a number of contractors to handle installations. We have identified key vendors and work with various trade allies who serve as authorized PSE&G contractors to help our business customers meet their sustainability goals and lower their energy costs by implementing energy efficient upgrades.

Simple as A, B, C

Here’s some energy efficiency in action. The Westfield Memorial Library chose the Direct Install Program path to transform its heating and cooling infrastructure. As part of the work that was scoped, the library is replacing two boilers, a chiller and other key facility equipment, as well as swapping out existing lighting for LED fixtures, which will brighten walkways, entrances and exits.

Our program will provide the library with significant energy and project savings. Replacing the boilers and chiller will cost about $470,000, but the organization will only be responsible for $165,000 of the bill, thanks to incentives.

Next up, we have our Prescriptive Program, which is tailored to businesses that want to replace equipment and fixtures on a one-for-one basis, like switching from a 4-foot lamp to a more energy-efficient equivalent. As with the Direct Install Program, we connect participants with contractors and trade allies who provide installation services.

Not all companies fit into either the Direct Install or Prescriptive programs. Some need more personalized support to address requirements that are outside of our technical reference specifications. For instance, a business might want to replace a specialized or custom boiler. That’s when we turn to our Custom Program. Offering favorable incentives and repayment options, we work directly with companies to develop innovative solutions and install energy-efficient equipment.

These three energy-saving solutions have been successful so far. Altogether, more than 8,300 companies have participated, combining to avoid the consumption of more than 500,000 megawatt hours (electric) and more than 167,000 dekatherms (gas), for a cost savings of approximately $122 million as of March 2023. The combined electric and gas energy savings from these energy efficiency projects are expected to avoid approximately 311 thousand metric tons of carbon dioxide emissions per year, or roughly the amount emitted by 67,600 gasoline-powered cars on the road over a one-year period.

With summertime energy use bills 30% higher than the average for the entire year, now is the perfect time to explore PSEG’s energy-saving programs. Getting started is easy — we will work with you to determine which program is best for your business. After all, embracing energy efficiency doesn’t just help the environment, it makes excellent business sense.

Craig Bartley is the director of PSE&G Energy Services at PSEG Inc.