In Part 1, I shared a proven way owners are sustaining optimum facility performance at maximum return-on-investment by replacing a sporadic, project-by-project approach with a lower-cost, continuous process. The key attributes of this unique approach include:
Results-oriented
Continuous, consistent, comprehensive
Always adapting, improving
All opportunities identified and prioritized
Low cost of entry
Analytics-enhanced
Vendor neutral
The three key
steps, that become a reinforcing loop, are:
Strategy: set metrics, goals and timeline
Plan:Establish and apply best practices and tools: templates, checklists, master documents and standards
Execution: Manage and measure results, creating learning loops to the strategy and plan
Maximizing Retro-commissioning (RCx) ROI
Retro-commissioning is the facility optimization opportunity with the highest ROI. The outline of the RCx optimization process follows:
Strategy: benchmark your facilities, apply criteria to prioritize, set goals and establish budgets and timelines
Plan: select a pilot (highest ranking) facility, and begin establishing and applying best practices and tools; example master documents used by owners include:
Proforma template - range of potential results at a fixed simple payback
Master scope document - energy vs. maintenance focus
EEM implementation and M&V management
Selecting, procuring and applying analytics
Maximizing utility incentives
Integration with utility analytics and monitoring-based
commissioning
Execution: manage and measure results - energy savings, utility incentives, payback, etc. - creating learning loops to improve your future strategy and plan
Integration is the Key: It is important to perform RCx as part of a continuous, comprehensive process. Otherwise, degradation will wipe out much of the
optimization in a few years. The key to overall, sustained optimization is the integration of the individual optimization strategies and plans. Retro-commissioning has a direct link to monitoring-based commissioning and utility analytics for tracking and sustaining the optimization.
Proven Results: We are often asked “how can we be confident in budgeting for retro-commissioning before the study is done?" That’s a very good question. The answer is the total savings isn’t certain, but the return-on-investment is. Here’s how:
You can fix or cap the simple payback, eg, 1.5 or 2 years
You will select the EEMs to implement, which determines the cost, utility incentives and savings; that’s how you control the simple payback
You can also cap your total or net cost if necessary, again achieving the targeted simple payback
This works because the more EEMs you select, the higher the cost, but also the higher the utility incentives and savings; and vice versa: if you select fewer EEMs, your cost will be lower, but so will your utility incentives and savings. The owners we work with have averaged a simple payback of 0.67 years on over 50 RCx projects; all projects have met
expectations.
Full ROI: While the RCx financial return (savings and utility incentives) has the most immediate impact, the full ROI includes maximizing:
Operation and maintenance savings
Equipment life
Occupant comfort/health/productivity
Carbon emissions reduction
Low Cost of Entry: If funding is a challenge, you might choose to retro-commission a smaller facility, or break down a larger one into phases, and/or over multiple fiscal years.
Next Up – Part 3: Commissioning of New Construction and Renovation
To learn more about how your peers are strategically planning and executing to deliver maximum facility return-on-investment, email me at dsitton@sittoncg.com or call me at (314) 309-2029 to arrange a complimentary session.
