Energy Saving Proposal - Independence LEDindependenceled.com/pdfs/ACE Prize - Sample Proposal with...

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Greater Philadelphia Headquarters: 487 Devon Park Drive, PA 19087 Office: 484.588.5401 Fax: 484.588.0038 1

Energy Saving Proposal

12.3.12

Prepared for: Ron Sega - Director, Office of Energy and Environment - [email protected]

Dave DeAngelo - Facilities Associate Director - [email protected]

Molly Ergenzen - Business Associate Director - [email protected]

Prepared by:

Student Campus Representatives:

Chenxi Li – [email protected]

Emily Holloway - [email protected]

Professional Mentor:

Charlie Szoradi – CEO, Independence LED [email protected]

Support Photo/Research PowerPoint File (Under Separate Cover)

This Proposal was developed through the ACE PRIZE: www.ACEPrize.com

mailto:[email protected]





Table of Contents:

Topic and Background

Audience

Purpose

Design & Layout

Research Plan

Energy Solutions

Financing for End Users

Follow Up Steps

Reference

Independence LED –

Recent News and Highlights



1. Topic and Background

1.1 Policy Situation: T12 banned and Go green plan.

As of July 2012, The Department of Energy General Service Lamp Legislation has banned

the T12 florescence tube lighting system due to its defects in energy efficiency. This change

forces many facilities to upgrade their lighting systems and keep up with ever-changing

industry standards (“Connexion”, 2012). This ban had even sparked movement in

Washington, where President Barack Obama’s Go Green initiative promotes the replacement

of older bulbs with energy-efficient ones in order to reduce electricity cost and emission of

carbon dioxide.

1.2 Independence LED Company

Independence LED manufactures high-efficiency, industry leading LED products. Their

signature Eagle LED Tube System aims to reinforce the replacement of any types of

fluorescent products with their Multi-Tube Fixture Options (“Independence LED”). As

campus representatives for Independence LED, our project is designed to replace previous

fluorescent lighting system with their leading Eagle LED tubes, transforming the lighting

market on American college campuses.

1.3 Products

Independence LED’s products have high qualifications, approved by Buy American

Standards of the American Recovery and Rescue Act (ARRA). The company also provides

5-year warranty and quality assurance. (“Independence LED”)

1.4 Past Projects

Independence LED has partnered with various organizations to spread its remarkable

knowledge on efficient lighting systems. For example, the CASH for Clunkers Lighting

Project is a program designed to assist American businesses transition to efficient lighting

after the U.S. Department of Energy’s ban on inefficient fluorescent tubes. The company

successfully completed the Urban Health Plan Project, a movement toward a brighter, more

efficient workspace (“Independence LED”).

2. Audience

2.1 RPAC Facility Manager:

Dave DeAngelo



Title: Facilities Associate Director

Email: [email protected]

Molly Ergenzen

Title: Business Associate Director


Our proposal is to promote the energy saving program among Ohio State University. The

Recreation & Physical Activity Center (RPAC) is our first targeted building, due to its heavy

student and faculty traffic and large square footage; the current lighting system offers vast

room for improvement, preferably through the use of LED tubes. Before getting started, we

need to get the permission from the RPAC Facility Management Office; therefore, Mr.

DeAngelo and Ms. Ergenzen are our primary audience. Because their job responsibility

includes the management of all indoor and outdoor recreation facilities and cooperation with

the Environmental Services and Maintenance operations for the department, our plan is to

present the current inefficient lighting usage within the RPAC facility while presenting

advantages of the replacement program.

2.2 Ohio State University Sustainability Department:

Ron Sega

Title: Director, Office of Energy and Environment


The success of this program stems from the support and final estimation from Office of

Energy and Environment of Sustainability Department at OSU. We hope to show our

research and highlight our project’s long-term plan to reduce lighting inefficiency. Since this

is an official department directly managed by administrative board, it is rather important to

propose our program by official presentation and paper proposal.

3. Purpose

Going green is a new concept as public and individuals begin to switch to a more energy

efficient, natural lifestyle (Megan, 2012). To achieve the goal of being more energy efficient,

we put our eyes on the lighting system of the Ohio State University campus. Replacing

ordinary bulbs with more efficient LED tubes will save a significant amount of energy. As

one of the largest multifunctional buildings on campus, the RPAC has more than 630,000

gross square feet lit by fluorescent tubes. Our project aims to reduce the lighting power

consumption by replacing the existing bulbs with new LED energy saving bulbs.






Comparing with the incandescent light bulbs and CFL bulbs, LED light bulbs have two

shining characteristics that make them more suitable: low driven current and low energy

consumption. In other words, LED bulbs consume much less energy than ordinary bulbs and

have 8 times longer lifetime (Sperber, 2012). Considering the concept of Going Green, it is

high time to promote a new lighting system with LED technology on campus, which could

have remarkable economic and environmental benefits.

Because we are targeting a younger generation of energy users, we hope to inspire a new

concept incorporated with Going Green: Energy Fitness. Using the makeover of America’s

largest collegiate recreational facility, Energy Fitness breeds pride is physical and mental

health, and we hope this idea of healthiness starts with our lighting takeover.

4. Design & Layout

LED, light-emitting diode is a semiconductor device that emits light completely different

from the incumbent fluorescent bulb. An LED has several unique characteristics that sets it

apart from its competition:

Low DC driven current

Low supply voltage

Low energy consumption

To make the installment process as simple as possible, there are just two parts in this LED

lighting system:

External driver

LED tube

It is known that the common supply voltage is 120 volts AC; however, an LED needs a low

DC voltage. Thus, a driver for reducing the voltage and changing AC voltage to DC voltage

is needed. Some LED tube manufacturers prefer to use an internal driver assembled in the

Figure 1 External driver Figure 2 LED tube



fixture. Although it makes whole system more compact, it would create higher maintenance

fees because the entire fixture needs to be changed if it breaks down. Therefore, this system

prefers to use an external driver. The ballast is an essential part for a fluorescent tube; so

previous fixture already has a space for it. To make the replacement process simple and

reduce labor hours, the external driver is well designed to fit in the same space.

Due to its low driven current, one LED does not produce as much light compared to the

fluorescent tube. The LED array is needed and is made into a LED tube. The socket and the

length of the LED tube are designed to fit the previous fixture, so it is pertinent for the

facility management team members to properly install them. Replacing the tube and

switching the ballast with the external driver will allow for optimal efficiency.

5. Research Plan

The following research plan is designed to explore possible efficient energy solutions for

lighting systems on the Ohio State University’s campus.

5.1 Campus Building Research

Target Building: Recreation and Physical Activity Center

Target Area: Rafters, Hallways, Stairwells, Meeting Rooms, Racquetball Courts,

Lockers, MTV Loft, and All Gyms.

Target bulb type: 4-inch fluorescent tube and high-bay bulb.

Lighting system working hours: weekdays and weekends

This research were carried out by counting targeted bulbs in all area of the RPAC building

and finding out the corresponding working hours of the lighting system in different positions.

The number of fixtures and bulbs per fixtures were recorded. After this research was

completed, all raw data was analyzed using Independence LED’s developed ROI Calculator,

an excel spread sheet with various essential calculations to maximize efficiency and decrease

cost during the design process. When the data of existing bulb is typed in, the ROI calculator

will automatically generate the replacement LED product as well as the saving reports.

Therefore, multiple energy solution options are generated to allow for the best possible

purchase option for the University, accounting for the University’s budget and preference.

6. Energy Solutions

Option A: A comprehensive make-over of the entire RPAC facility’s lighting system

Option B: A change of only highest-powered bulbs. Excludes stairwells and hallways

Option C: A change of only high-bay related lighting fixtures



6.1 Option A: Comprehensive RPAC LED Replacement

In this option, Independence LED products will replace the entire RPAC lighting system. The

counting results are listed in Table 2. The original entire lighting system contains 4-inch

standard fluorescent tubes (29 watts and 35 watts) and high-bay fixtures (342 watts).

According to the Table 2, after replacement, 29 watts and 35 watts tubes will be reduced to

15 watts and high-bay fixtures wattage will be decreased to 100 watts. Assuming the cost of

electricity to be $0.12 and with 3.0% annual increase, the results presented in the Table 3

indicates that with Independence LED products, $89,310 electricity cost can be saved

annually. The sum of additional operating savings including bulb replacement saving,

maintenance saving and reduced heating loading is calculated to be $16,663. As a result, the

annual total saving is able to reach $105,973. $1,038,601 can be saved over a lifetime.

Furthermore, the total net cost to the costumer including installation cost and bulb cost is

estimated to be $459,332. With 52 months payback period, the return of investment is 23%.

The financing options suggested by Independence LED involve 36 months and 60 months

with 8% interest rate for both options. For the 36-month financing period, the monthly

payment is estimated to be $14,394 and the net cash flow is -$5,563. However, for the 60

months payment, the monthly net cash flow will only be -$482.

In addition to the capital saving, Independence LED products are also able to tremendously

reduce the carbon dioxide emission with 9,624,372 lbs for the whole lifetime, which will

fuels the Energy Fitness campaign.

6.2 Option B: Highest Powered Bulb Replacement Excludes Stairwells and Hallways

In this option, 29 watts bulbs will not be replaced and only 35 watts and 342 watts bulbs will

be changed to Independence LED products. With the same electricity price assumption, THE

annual total savings are $89,840, and the total net cost is $350,936. Within a 47-month

payback period, the return of investment is 3 percent higher than option A at 26%. For a

60-month financing period at 6% interest rate, positive monthly net cash flow is measured to

be $702. This means the LED savings is $702 higher than the purchase payment. All detailed

information is listed in Tables 4 through 6.

6.3 Option C: High-Bay Replacement Only

Only 342 watts high-bay bulbs will be replaced by Independence LED products in this option.

According to the saving report listed below, the total annual saving is $16, 064, and the total

net cost is $41,647. With a 31-month payback period, 39% of return of investment is

measured. For 36 months and 60 months financing period, the monthly net cash flows are

estimated to be $72 and $533 respectively. All detailed information is listed in Tables 7

through 9.



Table 1: Option A: Comprehensive RPAC Job Information



Table 2: Option A: Audit of the RPAC's Available Lighting Fixtures



Table 3: Option A: Saving Report

Table 4: Option B: Job Information



Table 5: Option B: Audit of the RPAC's Available Lighting Fixtures



Table 6: Option B: Saving Report

Table 7: Option C: Job Information



Table 8: Option C: Audit of the RPAC's Available Lighting Fixtures

Table 9: Option C: Saving Report



6.4 Comparison Among Three Options

The following data is summarized in Table 10, which includes: total annual saving, total net

cost, ROI, and net cash flow. As can be seen from the table, Option A has the highest annual

saving with the lowest net cash flow. Option B generates the highest net cash flow with a

relatively high return of investment. Option C provides a low net cost but high return of

investment and net cash flow. In conclusion, Option B and Option C should be considered.

Table 10: Comparisons Among Three Options

7. Financing for End Users

On the financing front, Independence LED works with multiple lender companies such as De

Lage Landen, Green City Finance, and NextGen Partners. De Lage Landen is able to lend

$50K or larger purchase orders up to $2M. Green City Finance lends up to $100M, and their

target is $250K or larger for purchase orders. Next Gen Partners is able to provide full service

and managed service contracts.

8. Follow Up Steps

If the energy solutions were approved by The Ohio State University, the following steps are

necessary to continue the project’s next stages:

Completion of a credit application to determine the interest rate and approval

Assessment of the opportunity by The Lenders and preparation of proposals for

review by OSU

Selection of the most appealing program and signature of an agreement

Completion of payment on the LED’s to Independence LED and the installer if

relevant by The Lenders

Completion of the first monthly payment (which is less than the current cost of

electricity) and the subsequent monthly payments

Payment $1 at the end of the term to own the LED equipment.

Total Annual

Saving

Total Net Cost ROI Net Cash Flow

Option A $105,973 $459,332 23% (with 52 month) -$482 (60 month @ 8%)

Option B $89,840 $350,936 26% (with 47 month) $702 (60 month @ 6%)

Option C $16,064 $41,647 39% (with 31 month) $533 (60 month @6%)



Reference

Bellantoni, Christina. "Obama: Go green, grow economy - Washington Times." Washington

Times - Politics, Breaking News, US and World News. N.p., n.d. Web.6 Nov. 2012.

<http://www.washingtontimes.com/news/2009/apr/22/obama-go-green-grow-econo

my/>.

Connexion. (2012). T12 Phase Out: T12 Fluorescent & Incandescent Lamp Phased Out.

Retrieved from http://www.connexiones.com/t12-phase-out

Independence LED. (2011). About Us. Retrieved from http://www.independenceled.com

Independence LED lighting. (2011). New LED tube standard: External drivers. Independence

LED Lighting. Retrieved November 5, 2012, from http://www.independenceled.com

/q3_2012_report_external_drivers_are_%20new_standard

Megan. (2012). Green Baby Items. Retrieved November 16, 2012, Retrieved from

http://gogreen.org/blog/green-baby-items/

Ohio State Recreational Sports. (n.d.). The Ohio State University. Retrieved from

http://recsports.osu.edu/people/

OSU Sustainability Department. (n.d.). Office of Energy and Environment. Retrieved from

http://iee.osu.edu/about/contact.cfm

Recreation & Physical Activity Center (RPAC): Ohio State Recreational Sports. Retrieved

From http://recsports.osu.edu/facilities/recreation-physical-activity-center-rpac

Sperber, A. N., Elmore, A., Crow, M. L., & Cawlfield, J. D. (2012). Performance evaluation

Of energy efficient lighting associated with renewable energy applications.

Renewable Energy: An International Journal, 44423-430.doi:10.1016/j.renene.

2012.01.001

http://www.independenceled.com/about_us

http://iee.osu.edu/about/contact.cfm

http://recsports.osu.edu/facilities/recreation-physical-activity-center-rpac



INDEPENDENCE Recent News and Highlights

Independence LED Lighting, LLC – www.IndependenceLED.com Independence LED is a

leading U.S. Manufacturer of high-efficiency LED tubes and fixtures that replace the less

efficient fluorescent tubes and metal halide high bay fixtures that dominate commercial and

industrial lighting.

U.S. NEWS: Q3 2012, Independence LED celebrated the completion of the Largest LED

tube Retrofit in U.S. history: http://independenceled.com/largest_led_tube_retrofit_in_the_us

International NEWS: On Thursday 11/15/12, Independence LED received the confirmation

that the company had won the 30,000 tube order from a European bid on seven Hospitals.

This is a $2.4 M account that has been six months in the making. Independence LED was

among five LED manufacturing finalists world-wide that was then narrowed to two. The

buyers said that Independence LED won the bid, because the other finalist (one of the largest

lighting companies in the world) has an internal driver LED tube and only a three year

warranty. Independence LED has the more robust external driver technology with the deep

fin aluminum heat sink, over 50,000 hours of life, and a five year warranty.

Highlights: Independence LED moved the manufacturing of its LED tubes from China to

Boyertown, PA in Q2 2010. The company has seen a tremendous lift in demand resulting in

revenues tripling over each of the past two years. Clients range from industrial Distribution

Centers to Fortune 100 Companies and from independent businesses to National Chains.

Over the course of 2011 Lockheed Martin’s engineering team conducted the reviews and

approved the Independence LED tube system over others for the coveted Con Edison Rebates

in the NYC Metro Market. The Independence LED “External Driver” system has set a new

standard, and it also earned the Underwriters Laboratories (UL) and the Compliance

European (CE) Listings on the complete driver and tube retrofit kit system. Their Deep Fin

thermal management and Flex Density™ system provide cost-effective U.S. manufacturing

with scale and reliability. For property owners and managers, the LED tubes cut the cost of

electricity by 50% or more over fluorescent tubes. Installation accounts range from Morgan

Stanley to MetLife and from Distribution Centers like Davis and Warshow to national auto

service chains like Monro Muffler. The recent retrofit of 50 different Monro Muffler locations

across CT and NJ includes over 6 miles of tubes and the Distribution Center may stand as the

largest facility installation of LED Tubes in the U.S. Market to date. The Cushman and

Wakefield management team for MetLife has specified the Independence “Eagle” LED tubes

for its properties, resulting in multiple new orders across the U.S. In 2011, the Company won

the Green Business of the Year Award from the Main Line Chamber of Commerce.

http://www.independenceled.com/

http://independenceled.com/largest_led_tube_retrofit_in_the_us



To review their Technology Differentiation, Spec Sheets, and Retrofit Photo files, plus Videos,

please see this page of their website: www.IndependenceLED.com/BootCamp

Here is the link to a recent Newsletter: http://independenceled.com/q3_2012_newsletter

Innovative Financing: Independence LED offers a groundbreaking Lighting Service

Contract, which enables facility owners and operators to benefit from energy savings without

any initial costs or on-balance sheet liability: See

http://independenceled.com/lighting_service_contract

http://www.independenceled.com/BootCamp

http://independenceled.com/q3_2012_newsletter

http://independenceled.com/lighting_service_contract

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