With the lack of new commercial and residential construction in northern Nevada, electrical contractors are drumming up new business by retrofitting outdated, energy-hungry commercial lighting systems.
Arnold Electric in Sparks found steady work in 2008 by replacing metal halide lighting fixtures with energy-efficient high-output T5 fixtures.
Arnold currently is retrofitting nearly 400 lights at the Summit Racing building at 960 E. Glendale Ave. in Sparks.
In September Arnold retrofitted the 660,000-square-foot Barnes and Noble distribution center in South Meadows, removing 974 metal halide lights that burned 400 watts each and replacing them with high-output
T5 lighting that consumes 238 watts. John Tiberi, an energy auditor and salesman for Arnold Electric, says Barnes and Noble will save about
$17,000 a month on its power bill, and the company also received $95,000 in green energy incentives from NV Energy. The job will pay for itself in just 14 months, Tiberi says. And as a result of a retrofit at the United Parcel Service center at 355 Vista Blvd., UPS will save
$9,000 a year, Tiberi says.
Without the retrofitting work, Arnold Electric Vice President Cecil
Arnold says business would be very slow.
"Hopefully 2009 will bring a lot more of this type of work," he says. "It is pretty much a no-brainer. A smaller facility like UPS is saving $9,000 a year, to a large facility like Barnes and Noble, who is saving $17,000 a month, that is money off the bottom line for any company."
Steve Miller, vice president of Intermountain Electric, says that although his company typically contracts for larger jobs, such as the
Peppermill Hotel and Casino expansion and the downtown Triple-A ballpark, Intermountain has done retrofit jobs in the past and seeks additional work in that area. Currently retrofitting accounts for about 5 percent of the company's business.
"In 2009 our pie is smaller," Miller says. "We are looking to any kind of work, such as lighting retrofitting, as a key component in our year."
This year Intermountain retrofitted lighting at two Air National Guard buildings, as well as at the Oakley manufacturing facility in Dayton. Miller says other work with energy-efficient lighting, such as in 890,000 square feet of industrial space developed by Panattoni Construction, came about as owners of buildings decided to switch from metal halide lighting to T5 fixtures during the design-build stage.
Allan Sisia, owner and president of Providence Electric in Sparks, says about 30 percent of his revenues in 2008 came from retrofit work. Sisia hopes to increase that percentage in the coming year.
"The lighting saves a tremendous amount of energy," he says. "The fixtures use half as much wattage, so it is good for the ecology.
"People will be spending money on what they can save money on," Sisia adds. "It is smart investing. With a good-size corporation, you can see
your payback in less than a year."
Arnold's Tiberi says a T5 fixture costs about $150, and incentives cover about 30 percent of cost with installation. NV Energy will compensate a company up to $100,000 a year, he says. Tiberi adds that five years ago when Arnold retrofitted the SanMar facility at 555 Vista Boulevard, replacing more than 1,200 lights, the rebate amount at that time was only $10,000.
Arnold Electric's VP says retrofit work has become a focus of his business.
"There are a lot of businesses that are just throwing money out the window because of their lighting," Arnold says. "Most businesses don't realize what they could be saving."
Beth Margulies, director of public relations for the National Electrical Contractors Association, says electrical upgrades and energy-efficient retrofits are an attractive option for businesses nationwide looking to lower operational costs.
"Lighting upgrades offer some of the most immediate opportunities for savings, and it's pretty straightforward," Margulies says. "The
Commercial Building Tax Deduction means that many of the costs for such upgrades can be submitted by the building owners for tax deductions savings in addition to what the owner will save in energy costs."
