Environmentally conscious companies now have a financial incentive for going green. Arizona's two largest energy providers are rolling out incentive programs for businesses to conserve energy.
Arizona Public Service Co.'s new Business Solutions Program is offering incentives to businesses for a number of energy-saving measures, down to actions as simple as replacing light bulbs.
Salt River Project is targeting businesses by expanding a solar energy incentive project.
These two programs are designed to help lessen the up-front costs businesses incur when making energy-saving moves that ultimately help the utilities. If companies are using more energy-efficient lighting and cooling systems, for example, APS and SRP don't need to create as much power. Companies benefit in the long run with lower energy bills.
Experts say businesses increasingly are looking to take energy-conserving measures, but such efforts still are in their infancy. Incentives, they say, help to get more businesses thinking about energy conservation.
According to the U.S. Government's Energy Information Administration, more than half of all energy consumption in America comes from the commercial and industrial sectors. Slightly less than half comes from the residential and transportation sectors.
APS' program, which was funded by customers and approved by the Arizona Corporation Commission, is budgeted for $10.5 million over two years. Each participating company can earn up to $300,000 in incentives. Companies make the energy improvements, then fill out an application on aps.com to earn the incentives.
"Just for switching from a traditional light bulb to one of the new high-efficiency bulbs can earn a company $1.75 per bulb," said Roger Krouse, who is overseeing the program for APS. "Once we approve their application, four to six weeks later we send them a check."
In the APS program, certain improvements, such as changing the lighting, have specific monetary incentives attached to them. But custom incentives also are available for more complex energy-saving projects by filling out different applications.
"The incentives are designed to encourage participation because it covers some of the cost," Krouse said. "Lighting and air conditioning in most offices is more than half of all the energy used, so there is potentially a lot of money to be saved -- and you get incentives for saving that energy."
SRP is building on its energy incentive portfolio by gearing its EarthWise Solar Energy program toward businesses for the first time. The program is designed to encourage commercial customers to install large solar electric systems. An incentive of $2.50 per watt is available for business customers who install solar electric systems larger than 10 kilowatts.
According to SRP, a 10kw solar system would cost about $70,000 to install, but a business could recoup $25,000 to $30,000 of that through SRP incentives and another $21,000 through federal tax credits. With an estimated 18 percent annual energy savings, in theory, the system would pay for itself in 12 years.
"This program significantly reduces the costs to a commercial customer interested in installing solar at their facility," said Lori Singleton, SRP manager of environmental initiatives. "We recognize many businesses within our service territory are interested in offsetting their energy usage with clean, renewable energy."
Commercial customers may apply for up to $500,000 in incentives per system and also will receive online access to their system energy production via a wireless automated metering system. Reservations will be made on a first-come, first-served basis from a $2 million annual program budget.
With rising gas prices and global warming continuing to make headlines across the country, energy conservation increasingly is on the mind of business leaders -- and more are beginning to act.
"Companies are doing a lot more than in the past, partly because of social pressure and partly because some are finding that it can help their profits," said Jim Buizer, a sustainability expert and special adviser to Arizona State University President Michael Crow. "I think we're right on the cusp of big changes."
Buizer said utilities across the country are rolling out incentive programs to encourage conservation.
"I think with utilities, these incentives are becoming hugely popular," he said. "They are thinking in the long term they have a responsibility to the environment, and there are only so many natural resources."
Herman Orcutt, partner with The Orcutt/Winslow Partnership architectural firm in Phoenix, said companies only now are starting to think more about energy conservation.
"Some (companies) are aware and receptive, and that's good news because commercial buildings in the U.S. are a major part of the energy consumption," he said. "I think it will take awhile, but with more incentives, the better it will be."
Orcutt pointed to advances in solar and other alternative energy technologies as making it easier for individuals and companies to conserve. Still, people first need to make the decision to start conserving.
"There's a lot we can do now that a lot of us don't do -- things like not putting windows on the east and west sides of buildings and adding more insulation can make a big difference," he said.
Get connected
Arizona Public Service Co.: www.aps.com.
Salt River Project: www.srpnet.com.
The Orcutt/Winslow Partnership: www.owp.com.
