Monday, March 26, 2012

The Benefits Of An HVAC Audit

HVAC audits can be quite complex and involve dedicated personnel, or they can be less formal and folded into a preventive maintenance (PM) program. Focusing first on the biggest energy users — chillers, boilers and fan motors — maintenance and engineering managers can develop an audit program that locates substantial savings in energy costs, savings that often will pay for any additional maintenance burden created by conducting the audits.

Energy vs. labor

EMS provide savings in both energy and labor, and they provide critical information at the touch of a button — information that previously might have taken days for one person to accumulate. EMS provides timely reports and red-flags anomalies in HVAC operation data. It checks programmed schedules against temporary overrides and corrects the equipment schedule when necessary. In short, the system can save a great deal of energy.

But the system can’t replace a maintenance person going out into buildings taking air and machine temperatures and checking damper positions. On top of that, the EMS isn’t connected to older HVAC equipment — the systems that tend to have more problems.

Cutting waste

Using staff to find inefficiencies in the HVAC system might sound like a waste but not as much of a waste as inefficient system operation. Almost any facility that doesn’t do what we’re talking about is wasting 10-20 percent of their HVAC energy, mostly due to equipment that is doing more than it has to.

While many facilities take steps to head off building occupant complaints and premature mechanical failures of HVAC systems, their efforts often stop there. Little of that same zeal is given to efforts to fix operations that are energy inefficient.

One simple rule underlies the audit process: Get the HVAC equipment to do what it is supposed to do and nothing more. An audit is not surgery or rocket science.

We have found conditions in facilities that are obvious but overlooked and that can add up to significant wastes of energy. Often, maintenance staff can find and fix these conditions if their responsibilities are focused at least in part on energy efficiency.

Many maintenance staff have proven their abilities to keep facilities — even poorly designed facilities — running. It’s not the lack of ability. It’s the lack of focus and organization, a road map.

Deductive process

We ask managers to start the audit process by targeting the largest energy users, such as dampers, chillers, boilers, motors and pumps, since even small gains related to these components can yield significant energy savings. But before personnel actually check a piece of equipment, it is important to do a little research. How much energy does a piece of equipment need? And how much energy is it using?

Inspectors should start with the large and simple and work toward the small and complex, collecting utility bills, as well as actual use data. All of this information will help in determining whether or not a problem exists. Air-handling units are a case in point. Fan motors are major energy users, but how often are air-handling units checked against actual, scheduled need? Is the unit turning on and off according to actual space use?

Even facilities that have been recognized for their energy savings find that continual improvement via regular audits is necessary. You are going to have one or two air handlers with problems that software doesn’t tell you about on any big facility at any one time.

A focus on balance

Of particular importance in auditing large systems are a full-time contracted worker who serves as air and water system balancer and a full-time staff energy officer. And because the balancer gets his marching orders from the maintenance department and relieves maintenance of many headaches, he is a welcome team member.

The balancer makes sure systems provide the required level of comfort. As a result of this strategy, we can back off on schedules or fan speeds without affecting comfort, and the facility saves energy and money.

Facilities managers and staff must make a conscious effort, however, to reduce energy use. No one can assume that systems are running correctly just because no problems are evident.

Air-handling units are designed to operate most efficiently on the hottest days of the year when facilities need maximum air flow. During the winter, a space probably needs one-half that amount of air flow. If the temperature sensor is satisfied, managers might think air-handling units are working efficiently then, too. But that might not be the case. The operation of the HVAC system shouldn’t be a static thing. Building use changes over time. It’s important to regularly check the system to make sure that it reflects the change in use.

 

Selecting Audit Targets

A regular audit focusing just on energy efficiency would be best. Items to consider in developing an audit are these:

  • operation schedules vs. space use
  • damper operation
  • motor voltage and current
  • temperatures and pressures for chillers and cooling towers
  • supply- and mixed-air temperatures
  • simultaneous heating and cooling

A periodic HVAC system audit need not be an extensive investigation. The biggest energy users should be the highest priority, and auditors should first check the most obvious problems, such as equipment schedules. Most other operations can be included in PM schedules, and others can be done during routine maintenance.

Saturday, March 3, 2012

When Facility Executives Need HVAC Upgrades

You want to include a major HVAC renovation in the plan for this year. How do you convince an owner to complete a retrofit that the building needs? You need to demonstrate, first, how the upgrade will improve the building and, second, how this increases the value of the building for the owner.


Some managers may think it is simple to convince an owner to spend thousands of dollars on an upgrade. They assume that an owner will want to complete a project so the building remains state-of-the-art. However, most owners — institutions, for example — view the building as an asset similar to stocks or bonds. They need to see the value of the property increase as a result of their cash outlay.


A second reason commonly given by managers to owners is that the office building will operate more efficiently after the retrofit, thus reducing utility costs. However, tenants usually pay their share of the building’s operating costs based on the amount of space they occupy.


Therefore, the tenants, not the owner, will benefit from the reduced utility costs. The owner pays for the renovation at the time the work is done. The cost of the work is then amortized and passed through to the tenants over the lifetime or payback of the project. The owner will spend the money today and only recoup it over time while the tenants will experience the immediate benefit.


This is the challenge faced by a fictional facility manager we’ll call John Philips, who is responsible for the hypothetical Spencer Building. Built 10 years ago, The Spencer Building is a class A office building in a downtown market. Like many buildings in the marketplace, the 240,000 rentable square foot building is 100 percent occupied with no major leases rolling over for seven to 10 years. Philips is aware that the owner’s objective is to hold this building for at least two to five more years. Although only 10 years old, the building’s HVAC system has two problems. First, the energy management system is not state-of-the-art and does not provide the building with efficient operation and sufficient control. Second, the parts of the mechanical equipment are expensive to maintain.



Philips has recommended upgrading the EMS system and installing variable frequency drives (VFV) on major equipment motors. The upgrade of the EMS system will include new power supplies, bases, transducers, wiring and associated relays. The existing temperature sensors will be replaced and new direct digital controllers will be installed for the interior and exterior air handling units, 24 in all. Static pressure controllers, solar load sensors and control relays will also be added to the EMS, giving the operating engineers more control points to ensure tenant comfort levels and increased monitoring capability. All of the new sensors and relays will be linked by a networking cable in a user-friendly package to a desktop computer with a Pentium microprocessor, graphics card, high-speed modem, color monitor and color printer.


VFDs will be installed on all motors and pumps. VFDs provide a staged start-up of equipment, preventing “spikes,” or sharp increases in electric demand. Motor speed can also be controlled by a VFD to operate more efficiently when equipment is at part load. Other advantages to VFDs are increased equipment life, decreased maintenance costs and automatic restart of equipment after power failures.



The system upgrade was bid to five companies with the recommended vendor bidding on this work for $326,978. The vendor has also given the option of a lease of this system at $422,100 at 11 percent for 60 months. This cost includes energy accounting, bill auditing and benchmarking reports for the first year.


The economic analysis that follows is based on the upgrade package just described; however, a similar approach can be taken with any HVAC system upgrade.


Owner’s Plans

Because the building may be for sale in the next two to five years, Philips knows the owners will want an increase in value at time of sale and a quick return on investment. To prove the increase in value, Philips will rely on the income-capitalization method of appraisal. The income-capitalization method is based on the net operating income (NOI) — the result of subtracting the operating expenses from rents received. If rents go up or expenses go down, NOI increases; higher NOI means higher value.


What’s more, an HVAC retrofit may make a building more appealing to tenants than other buildings in the area, thus increasing rents. Further, a retrofit project usually decreases utility costs.


The income-capitalization method divides the income by a cap rate, defined by market conditions, to find value. Based on the NOI for the building and a cap rate of 9 percent, the current value of The Spencer Building is $50,666,666.



At the Spencer Building, occupancy is already 100 percent with no major leases expiring until the year 2015. Therefore, the upgrade will not attract new tenants so no increases in rent as a result of the project are expected.


However, if the building had vacant space and was located in a competitive market, it might have an edge in leasing over buildings with higher utility costs. A tenant pays operating expenses over a base year. A base year may be set at $10 per square foot. The tenant pays all operating expenses in excess of $10 per square foot; the owner bears the cost up to that amount. If the operating costs are $14 per square foot, the tenant is paying $4 per square foot. If the retrofit reduces costs by $0.50 per square foot, the tenants’ costs fall to $3.50 per square foot. The owner’s costs are not reduced. The benefit to the owner is that the tenant may be happy with the reduced costs and be more inclined to renew the lease.


Cutting Costs

The retrofit at the Spencer Building will reduce costs in several ways. The EMS will improve staging of equipment during start-up and shutdown schedules and increase detail of temperature sensing and automatic adjustment. The VFDs will reduce utility costs by operating at only the speed required to satisfy the comfort load; the current system provides constant volume and constant speed flow. Based on a review of the equipment and historical electrical data, energy savings are estimated at:




  • EMS base system utility savings: $96,154

  • VFD installation utility savings: $40,872

  • Total estimated annual utility savings: $137,026

  • Savings per square foot: $2.570


The system costs $326,978. As outlined above, the annual utility savings are $137,026, creating a payback period of 2.39 years. Annual utility savings will increase NOI by $137,026. This, in turn, produces an increase in value based on the income-cap method of $1,522,511. The new value of the building is $52,189,177.


Range of Benefits

Philips can present this project to the owner by citing the benefits of the upgrade. The physical improvements include:




  • Improved system control through installation of state-of-the-art equipment

  • Cost savings due to VFDs and improved response to temperature

  • Ease of operation by use of “point and click” methods

  • Reduction of engineering staff time required to program the system and to check concerns through the system rather than a physical site inspection

  • Reduced maintenance cost


More important are these financial benefits:




  • A payback period of less than 2.5 years

  • An increase in value in excess of $1.5 million dollars

  • Lower operating expenses for tenants


To win approval for capital projects, a facility manager must have two things: knowledge of the owner’s objectives and the ability to prove the improvements meet those goals. After this upgrade, the Spencer Building will have a state-of-the-art HVAC system and be worth more than before the renovation. This combination will make the building more attractive to potential purchasers. Based on the numerous benefits, the owner would probably approve this upgrade at the Spencer Building.

Thursday, March 1, 2012

DtiCorp.com Is Introducing The New Honeywell VFD Core Products

Fort Lauderdale, FL – Popular Honeywell online retailer DtiCorp.com (http://www.DtiCorp.com) is introducing the brand new Honeywell Variable Frequency Drive (VFD) Core Products. Honeywell’s Variable Frequency Drive (VFD) product line continues to expand and improve. Contractors will earn a rebate of 10% on their first VFD CORE purchase during the period of March 12 – June 1, 2012. VFD CORE addresses the need to save time for installation and provides the lower total installed costs. VFD CORE is rated for constant torque for industrial applications and variable torque for HVAC applications.




The new Honeywell VFD CORE is a great solution for contractors and building owners, reducing installation time and total installed costs, while providing savings year after year. The VFD CORE is rated for both Variable Torque (HVAC) and Constant Torque (Industrial) applications and is available from 1HP to125 HP with NEMA1 enclosures for both 208/230Vac and 460Vac.



Key features of the new VFD CORE:




- A “Quick Startup” guide and “Startup Wizard” guide you through installation and programming process in minutes.


- The multi-language, four-line-text keypad allows four parameter sets to be stored in one keypad for quick upload and download between VFDs.


- Maximum application flexibility with three analog inputs, ten digital inputs, two analog outputs and three relay outputs.


- Plenum rated with up to 15 preset speeds.


- Harmonic protection with a three percent direct-current (DC) choke on the D and E frame drives.


- Manual or Auto Control options for ease of use and manual override.


- Three-Year warranty.





Product Availability:



- The new VFD CORE drives are in stock and can be ordered immediately.



Promotion Details:




- Contractor purchases must be logged by June 15, 2012 and reimbursements will be provided by July 15, 2012. The promotion only applies to a contractor’s first VFD CORE purchase. If multiple VFDs are purchased on the same PO, the CPRO reimbursement will be applied to the largest VFD purchase for maximum credit.



About Us: DtiCorp.Com (http://www.DtiCorp.com) carries more than 35,000 HVAC products, including industrial, commercial and residential parts and equipment from Honeywell, Johnson Contols, Robertshaw, Jandy, Grundfos, Armstrong and more. Our online catalog is easy to navigate and search, and all products have a picture and a description. If a customer has any questions about a product, they can call 800-757-5999 and speak with one of our product experts. Our mission is to offer the best prices anywhere to our customers.



Julian Arhire

Manager DtiCorp.com

Phone: 954.484.2929

Fax: 954.484.5155

Web: http://www.DtiCorp.com



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