Tariff Analysis
The first step in any comprehensive evaluation should include a review of the clients’ utility rate structure, often referred to as a Tariff Analysis.  In order to select the most effective conservation measures, it is critical to understand the structure of utility rates for each site.  Usage, demand, and power factor are just a few of the components that need to be evaluated prior to the selection of recommended conservation measures.  GalexC Conservation has extensive experience in evaluating utility bills throughout the U.S.  We are able to assist in both the education of the rate structure, as well as occasionally assisting with the negotiation of new rates to reduce costs immediately and without costs.

Incentives & Deductions
GalexC Conservation and its’ partners are experts in obtaining the highest deductions and incentives available to help clients offset project costs. By understanding the complex requirements of different programs, we help clients take best advantage of funds available through local, state, and federal programs.  Once we’ve identified the best programs for each client, we then handle the coordination and processing of all paperwork.  Where allowed and applicable, we can also take the risk of the incentives by receiving them directly and deducting the amount off the upfront capital of the project if it’s beneficial to our respective clients.

Maximizing EPAct Tax Deductions
One key area for improving the financials of a project is through the Energy Policy Act of 2005, or EPAct.  This tax law offers commercial enterprises a one-time tax incentive for energy-efficiency upgrades. Entities which don’t file federal income tax returns (such as governments and non-profit organizations) can still gain the value of the deduction through their contractor, designer, or ESCO.  This is done by having the contractor take the take advantage, deducting the amount of the value from the projects’ capital required.

EPAct provides tax deductions of up to $1.80/sq ft for projects that include improvements to the building envelope, HVAC, and lighting. If only one area is included in the project, such as lighting upgrades for example, it may still qualify for the lesser deduction of up to $.60/sq ft. 

Often, deductions and incentives influence priorities and will lead our experts to recommend structuring upgrades as a single comprehensive project as opposed to several successive smaller projects. The result - the client gains greater energy efficiency, higher return on investment, and faster payback.