Packaging manufacturer cuts payback period in half with maximum bonus incentive
Self-serve bonus incentive program ends December 31, 2014
With energy effciency as a priority, south Richmond's Ideon Packaging is well aware of Power Smart industrial incentive programs. Operations team leader Mike Nunn used incentives for a major lighting retrofit in 2010.
But Nunn was pleasantly surprised by a recent Power Smart incentive application that came back with a bonus offer he had been unaware of. What had been a great incentive just got a lot better.
Ideon plans to replace an aging air compressor and add more air capacity to its operations. The proposed project cost is $51,100. Nunn submitted a Self-serve Incentive Program (SIP) application for the standard incentive*, which in this case is $18,863.
But what Nunn didn't know was that BC Hydro had just launched its SIP bonus incentive offer. Ideon's project qualified for the maximum incentive bonus — a 25 per cent additional incentive for the project, which is only available until December 31, 2014.
Efficient compressor helps cut costs for the long term
The additional $4,715 brings Ideon's total incentive to $23,578, creating an estimated payback period of about five years for the project. It would have taken nearly 11 years to pay back the project costs without the financial support.
The compressor upgrade is estimated to save 64,000 kWh of energy per year. Future energy cost savings are estimated to be more than $5,000 a year.
"The incentive's great, but the ongoing energy savings is what really makes a difference," says Nunn. "The energy savings lasts well beyond the incentive; that lasts forever and it's a big piece for us."
The SIP bonus incentive program helps improve your business case for lighting and compressed air projects that create long-term energy savings.
Submit your upgrade project between now and December 31, 2014, for a project to be completed prior to March 31, 2015 — and get long-term savings with a lower up-front cost.
Up to 25 per cent additional funding
The incentive bonus can add up to 25 percent additional increase on top of the standard incentive* you already qualify for. Your project may be eligible for funding up to the following maximums:
- a maximum incentive of $500,000
- an incentive maximum of 75 per cent of project costs
- an incentive maximum required to reduce the project payback period to one year (project cost less annual bill savings).
Don't miss out: are you eligible?
Act now to gain your incentive bonus if you fit the SIP eligibility requirements:
- BC Hydro industrial customers with annual electricity consumption of more than 500,000 kWh (about $25,000).
- Projects must focus on one of the following systems:
- Applications must be received by December 31, 2014. It's important to wait to receive your SIP Incentive Offer approval (via email) prior to starting your project and equipment purchases. We are not able to award Power Smart incentives to projects already underway.
- Projects must be completed and invoices must be received by March 31, 2015.
Completing a SIP application requires a few steps, so don't delay in making your application. Contact your lighting or compressed air vendor today to complete your application for the bonus offer before the deadline of December 31, 2014.
*The incentive calculation is dependent on many factors including, but not limited to interest rates, incentive rates and the electric tariff. Actual project incentives may differ. The bonus offer applies a 25 per cent increase to the standard SIP incentive rate range ($0.015 to $0.029 per KWh); the exact range is determined after a financial evaluation by BC Hydro.