Feature
by David Shevick
Reducing energy costs can provide landlords with significant investment opportunities. Many energy investments have 10-year or shorter simple paybacks; and this, combined with the fact that PG&E energy rates have typically risen 7% per year over the long-term, means that double-digit rate-on-returns can be made. This article focuses on ways to reduce energy bills that landlords pay. The two major areas of savings addressed here for landlords are domestic hot-water systems and washing machines.
Domestic Hot Water Systems
Conventional Tank Water Heaters
These, of course, are the mainstay of water heating. They come in two basic varieties: (1) energy-efficient versions that have electronic ignitions, motorized flue dampers and extra insulation; and (2) tank heaters without these features like those found in most homes. The energy factor or overall efficiency of the energy-efficient model is around 0.68 or 68% efficient and the less efficient model is around 56%. The life of this second less-efficient type of unit is approximately 12-15 years. The primary reason that these units have low efficiency is that the central flue running through the center of the tank is exposed to air and has constant heat loss. The failure mode of these tanks is that sediments build up on the bottom of the tank and act as an insulator to the burner fire below. Eventually, this insulation causes enough of a temperature difference near the bottom of the glass lining, and the tank cracks and fails.
Boiler/Direct-Fired Tank
The combination boiler/direct-fired tank is a traditional system that was actually used before the conventional heater. The conventional heater replaced the boiler tank because of lower initial cost but is enjoying a comeback due to its much longer life and higher efficiency. These units can last 30-40 years, and have efficiencies up to 92%, when used with condensing boilers.
Energy StarŪ Washing Machines
Through superior design and system features, ENERGY STARŪ qualified clothes washers clean clothes using 50% less energy in combined water heating and motor work than standard washers. Most full-sized ENERGY STARŪ qualified washers use 18-25 gallons of water per load, compared to the 40 gallons used by a standard machine. Most ENERGY STARŪ qualified washers extract more water from clothes during the spin cycle. This reduces the gas used in the dryer and saves wear and tear on your clothes. ENERGY STARŪ qualified clothes washers are available in both top-loading and front-loading designs. Because washers are used more intensively in apartment buildings than in homes, each washer can save up to $500 to $600 per year in energy.
Most landlords make contracts with route operators to provide coin-operated washing and drying machines for their tenants. The landlord typically collects a fee or percentage of revenues for allowing the route operator to locate equipment on their premises. The landlord pays for the water, electricity and gas for all this clothes washing, so the route operator is not under any incentive to install efficient equipment, which can cost twice as much as conventional washers. The major local route operators do have and offer efficient machines, but the landlord needs to request and negotiate with the route operator for their installation. There are incentives available through the LightWash program (a program that pays rebates for the installation of qualifying commercial clothes washers in multifamily common-areas) and both the landlord and route operator need to work together to apply for these incentives.
Other Areas for Energy Savings
Common Area Lighting
Obviously, replacing all incandescent lighting with compact fluorescent lighting is a must. Old-style (T-12, magnetic ballast) linear fluorescent fixtures can be replaced with T-8, electronic ballast fixtures for typical paybacks of 2-3 years with 12-hour per day run times and rebates of around 10%.
Occupancy sensors in intermittently used areas such as laundry rooms can be used to save energy. Dual-sensing (both infrared and ultra-violet) sensors work well when properly installed.
Solar Hot Water
If you have an existing solar hot water or pool system, it is often economical
to re-activate it with an experienced contractor.
Showerheads and Sinks
Installing low-flow showerheads and sinks are essential and have very quick paybacks.
Tenant Space Heating
Although tenants typically pay for their space heat, they eventually view the utility bills similar to the rent. Thus, installing energy-efficient windows and converting electric heat to gas are important. If you convert a steam heating system to electric heating, your tenants will have much higher energy costs. Make sure you have your heating systems evaluated by a qualified contractor or engineer.
The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of SFAA or the San Francisco Apartment Magazine. David Shevick is a registered mechanical engineer and licensed California contractor, specializing in plumbing, heating, and water heating as well as solar. He offers his services, from small repairs to major upgrades to apartment owners. He can be reached anytime at (415) 794-2084. Copyright © 2005 by the San Francisco Apartment Magazine. All rights reserved.