Preparing a Successful Energy-Savings Proposal

The analysis and documentation that go into a successful presentation

Convincing a client to incur the additional first cost of an energy study during systems implementation is as much about marketing as it is about technology. The old adage that a good product sells itself applies as much to this situation as with any other product or service. If the concept is approached correctly and the right principles are applied, there is a good possibility everyone will come out a winner. This article discusses the preparation required for a successful energy-savings proposal.

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To be of service to a client, an engineer should become as familiar with the client's business as possible. Meeting with the client (or end user if the client is a second party) to discuss the business's daily operations and walk through its facility to observe common activities and practices should be an integral part of this effort.

A general examination of site activity schedules could reveal potential wasted energy. For example, certain types of equipment may be run during peak utility hours, using large amounts of electricity. A plant could realize the same production volume while significantly reducing equipment operation costs by running equipment during a second or third shift.

An examination of the types of energy used, as well as relative unit costs, is critical for a proper energy-usage evaluation. A building that primarily utilizes electricity for heat and power will need to be evaluated differently than one that uses natural gas or fuel oil for the same applications. For example, an engineer may wish to examine the feasibility of using cogeneration, photovoltaic cells, or battery storage as options for electrical power. Likewise, the engineer may want to investigate optional fuel mixtures, reclaimed waste oil, or alternate gases (such as propane/natural gas) if fossil fuel is a major energy source.

When examining energy-reduction options, such as alternate fuel sources, in-house scheduling, or alteration of energy-usage habits, an engineer must become familiar with base costs, rate schedules, and market trends for each utility. Additionally, future energy usage and economic trends need to be anticipated.

An engineer also needs to survey for possible avenues of energy waste in existing buildings as well as anticipate the conditions for retrofits, major renovations, and new construction. This should be completed while the engineer considers potential methods of energy-waste reduction and energy-use improvement or optimization and energy sources currently in use and those that may be used in the future.

Lastly, potential savings areas should be addressed with the client. (In this case, the term “savings” refers to one or more of the following sources: first, maintenance, replacement, and/or life-cycle costs; energy-usage and/or energy-cost reduction; a minimum payback period; and government/utility grants, incentives, and/or rebates.)

To find potential savings in existing buildings, consider:

  • Modifying current practices that impact energy usage.

  • Modifying current powered systems and/or components.

  • Replacing existing systems and/or components.

  • Implementing entirely new systems.

To find potential savings in new buildings, including major renovations and additions, consider:

  • Developing a baseline energy model for comparison.

  • Developing new energy models.

  • Implementing systems or combinations of systems.

The engineer needs to be responsible for asking questions and working closely with the client to determine which savings avenue will be the most beneficial and acceptable.


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