$623,000 in annual energy savings and $601,000 in rebates, resulting in approximately $13.7 million of savings over the 15-year term of the contract
Energy conservation measures and building improvements at nine schools
Improvements are anticipated to reduce the school district’s energy costs by about 25 percent
Hempstead School District, a Long Island Model suburban-urban culturally diverse public school system, is dedicated to providing students with comprehensive, challenging curriculum and effective instructional programs in a safe and nurturing environment. With a focus on improving school buildings and learning environments, Hempstead School District partnered with ENERGY SYSTEMS GROUP® (ESG), a leading energy services provider, to implement an $11 million energy performance contracting (EPC) project that will include comprehensive energy efficiency and infrastructure improvements for nine schools. The project self-funding, or paid for by energy savings, thereby not requiring additional budget dollars from the school district.
The proposed scope of work includes a wide range of energy conservation measures and building improvements at nine schools. These improvements include interior and exterior light-emitting diode (LED) lighting upgrades, cooling plant and steam trap replacements, pool upgrades, pipe and valve insulations, building energy management systems, exhaust fan controls, building envelope improvements, water conservation, and a solar photovoltaic system.
As a result of these improvements, the school district is anticipated to save about $623,000 in annual energy savings and $601,000 in rebates, resulting in approximately $13.7 million of savings over the 15-year term of the contract. These improvements are anticipated to reduce the school district’s energy costs by about 25 percent and will measurably improve the learning environment while reducing the school district’s carbon footprint.
Energy Performance Contracting (EPC) is a turnkey service sometimes compared to design/build construction contracting which provides customers with a comprehensive set of energy efficiency, renewable energy, and distributed-generation measures. This service often is accompanied with guarantees that the savings produced by a project will be sufficient to finance the full cost of the project. A typical Energy Performance Contracting project is delivered by an Energy Service Company (ESCO) and consists of the following elements:
The ESCO provides all of the services required to design and implement a comprehensive project at the customer facility, from the initial energy audit through long-term Measurement and Verification (M&V) of project savings.
The ESCO arranges for long-term project financing that is provided by a third-party financing company. Financing is typically in the form of an operating lease or municipal lease.
The ESCO tailors a comprehensive set of measures to fit the needs of a particular facility, and can include energy efficiency, renewable energy, distributed generation, water conservation and sustainable materials and operations.
The ESCO provides a guarantee that the savings produced by the project will be sufficient to cover the cost of project financing for the life of the project.