EBaR Questions, Answers and Insights
This page provides information on EBaR issues and applications.Why Should I order an EBaR analysis?
What Exactly is EBaR Analysis?
Is it Possible to Increase Cash Flow Beginning in the First Month?
How Much Money Can I Save?
Do I Need an Engineering Background?
Is an EBaR Strategy Right for Your Organization?
Is It Worth the Effort?
Is It Worth the Effort? - Energy Savings
Is It Worth the Effort? - As a New Revenue Source
Is It Worth the Effort? - Is My Facility Big Enough?
Is It Worth the Effort? - Organization Type
Is It Worth the Effort? - From Do-It-Yourself to a Turnkey Project
Going Green, Carbon Foot-prints and EBaR
EBaR takes the hassle, cost and risk out of deciding if you should update your energy systems by identifying efficiency and financing options that provide immediate cash flow increases. Risk analysis ensures that you receive the cost savings you expect.
EBaR bypasses the auditing, engineering analysis, meeting with sales people and other time consuming and costly efforts to provide all the information you need to make a decision. The EBaR focus on identifying options with positive cash flow avoids using operating and capital expenditure budgets to reduce operating costs
Energy Budgets at Risk (EBaR) Analysis and Executive Reports
- Compare your builing's energy costs to similar buildings in your area
- Evaluate potential energy efficiency cash flow increases without spending thousands of dollars on engineering analysis
- Evaluate risks to ensure that you will actually achieve monthly savings you expect - before moving forward
- Document EBaR financial investment analysis, cash-flow impacts of alternative financing, and "next steps" in capturing cash flow savings.
Jackson Associates is available to provide additional consulting support including interfacing with potential contractors and providing energy efficiency financial analysis to financing sources.
EBaR analysis provides the following results:
- A benchmarking comparison of your building's energy costs to similar buildings in your area before and
after energy system upgrades
- Analysis of the energy cost savings and cash flow impacts of energy system upgrades
- Analysis of alternative financing options and their impact on your cash flow and savings
- Risk management analysis to ensure that you achieve the savings you expect
- Capital value and greenhouse gas impacts of efficiency and demand response investments
EBaR software uses your building information and energy use history to develop and apply a series of equations describing your facility's energy use and operating characteristics. These equations are combined with weather data, energy price forecasts, energy efficiency and demand response equipment performance in a widely used software process called Monte Carlo analysis. Graphical and tabular outputs provide risks and returns for individual energy efficiency and demand response investments. Jackson Associates widely-used 7+ million record MAISY Utility Customer Energy Use and Hourly Loads Database are used for benchmarking analysis.
Yes, With the appropriate selection of energy system upgrades and financing options, you can increase cash flow beginning in the first month avoiding demands on operating and capital expenditure budgets.
Numerous case studies indicate that individual commercial, institutional, government, and industrial firms can save as much as 30 % of energy cost beyond the amortized cost of energy efficiency investments. Utility, state, federal and other incentives for reducing energy use and peak power demands along with new control technologies provide all buildings, new and old, with significant opportunities for reducing energy costs.
EBaR Analysis and Executive Reports. No, EBaR is designed to provide meaningful analysis and results for both non-technical and technical users.
EBaR Executive Reports provide decision-makers with all the information needed to assess the financial benefits of moving forward with energy system upgrades. Click here to see an example EBaR Executive Report.
The short answer is Yes, energy operating expenses can be cut by 20 to 30 % in most buildings even after paying for energy system upgrades. EBaR provides a low-cost energy efficiency risk management analysis for your building to identify the kinds of savings available at your building.
EBaR identifies opportunities to increase cash flow with efficiency investments and demand response without impacting operating or capital expenditure budgets. EBaR analysis includes a risk management component that ensures savings are atually achieved.
The risk management aspect of EBaR analysis is especially compelling. Incorporating risk in traditional investment analysis by using short paybacks or high internal rate of return thresholds avoids rather than manages risk,bypassing many opportunities to increase cash flow with virtually no risk. EBaR analysis identifies best and worst case outcomes using well-excepted Wall Street risk managment principles to provide assurance that your efficiency decisions will provide the results you expect.
One of the great things about an EBaR analysis and Executive Report is that hardly any effort is required on your part. Answer the two dozen questions in the online form, enter information on your energy bills or send them to us to incorporate and receive an Executive Report documenting the EBaR analysis conducted for your building.
The Executive Report shows you cash flow savings you can expect to achieve and identifies the kinds of efficiency and other actions you will want your staff or contractors to perform. Questions on financing options, investment risks, and other issues related to your building are discussed in the report. The following for you building Every new initiative incurs a cost. Is developing an EBaR analysis
Energy Cost Benchmarking. One of the most telling indicators of the potential for energy costs savings is the EBaR benchmarking analysis that compares your costs to costs of similar buildings in your area. EBaR analysis can identify at least some high return, low risk investment that guarantee increased cash flow. Many buildings can increase cash flow by an amount equal to 20-30% of energy costs with low-risk investments identified with EBaR.
Efficiency Investments as a New Revenue Source. Profitable investments increase cash flow by saving more than the financing cost of the investment.
Efficiency investments can be viewed as generating a new revenue or income stream.
Is My Facility Big Enough? If an increase cash flow by an amount equal to 20-30% of energy costs makes a difference in your operating income, you will benefit from an EBaR analysis.
Organization Type. Organizations differ in their management and decision-making structure, budget flexibility, and risk tolerance. Commercial, institutional, industrial, and government agencies face different constraints and options in considering energy budget risks, efficiency investments, and energy purchase decisions. The EBaR framework applies equally to all organization types. Budget flexibility and risk tolerance are parameters of the analysis specified by users. EBaR strategic choices reflect budget and risk characteristics of individual users.
From Do-It-Yourself to Turnkey Projects. EBaR analysis provides value regardless of the extent to which efficiency projects are self-performed or contracted. Organizations who conduct their own final engineering analysis, make their own equipment purchases, and self-perform or contract for installation can apply EBaR to gain a full understanding of cash flow and eneergy cost savings, risks and rewards of alternative investments.
Organizations at the other end of the spectrum, who contract out analysis, engineering, financing, and other efficiency tasks can also benefit from EBaR analysis, first by using EBaR Executive Report results to see if energy system upgrades are warrented and then by requiring vendors to apply the EBaR software to present the results of EBaR analysis to protect against underinvestment or overinvestment and to ensure that proposed projects meet the organization's risk preferences.
The list of companies, municipalities, institutions, and other organizations publicly committing to carbon reductions and other green policies is growing by the day. The primary opportunity to meet these environmental goals is through energy efficiency investments that reduce energy use.
Many organizations reluctant to undertake carbon-reducing initiatives assume these actions will increase operating costs, resulting in reduced earnings or, for government and nonprofit organizations, a reduced level of services. Energy Budgets at Risk shows that carbon and other greenhouse gas emissions can be reduced with energy cost savings more than offsetting the cost of energy-efficiency investments. Thus, achieving carbon-reducing goals with EBaR analysis can add to the financial bottom line.
New carbon-trading mechanisms established both by government and private interests and the growing use of "efficiency certificates" in individual states pass incentives to reduce energy use through to individual facility owners. For instance, efficiency certificates permit individual facility owners to sell efficiency improvement credits to utilities who are required to meet requirements of "efficiency portfolio standards." These market mechanisms provide additional financial incentives to invest in energy efficiency.
The EBaR analytical framework is ideally suited to integrate carbon reduction and other green objectives in a strategy that comprehensively considers benefits, costs, and risks associated with energy efficiency investments.