Downtown Energy Saving Grant Program
Ann Arbor DDA Energy Conservation Program Enters Second Year!
In support of the City's Green Energy Challenge and the DDA's goal to encourage a more sustainable downtown, the DDA created the Downtown Energy Saving Grant Program in 2008. The 2008 program was met with such great success, that the DDA decided to continue and expand the program in 2009.
Grant Elements:
Phase I provides approved applicants with free energy audits for buildings or businesses within the DDA District. The audits, conducted by a recommended contracter, reveal opportunities for energy savings, including door and window leaks, areas of poor insulation, and outdated lighting or heating systems and controls. The full audit report provides grant recipients with a tailored list of recommended energy-saving measures and renewable energy opportunities as well as estimated installation costs, energy savings and payback periods for each measure.
There are two goals for the energy audits. The first is to educate the building owner about their building, how energy is used and how much it is costing them each year for heating, lighting, air conditioning, computers, etc. The second goal is to provide them with a decision making tool on energy-saving measures that could be implemented to reduce their energy costs.
A qualified energy audit must be completed before eligibility for Phase II.
Phase II of the DDA program provides rebates for the installation of improvements identified in the energy audit. These improvements may include more efficient lighting, insulation and air-sealing, new heating and cooling equipment, energy-efficient windows, etc. In this program phase, the DDA will match up to 50% of the total improvements with a maximum of $20,000 rebate for each building or business.
The application deadline for Phase I grants was September 30, 2009. The DDA is no longer accepting applications for the 2009-10 grant year.
The 2009-2010 Grant Year:
The DDA set aside $200,000 for this Energy Saving Grant Program in 2009/10 with the intention to distribute these funds to as many locations as possible.
They received 50 applications for a total of 691,737 square feet and approved all buildings for phase 1 grants at it's October 14th, 2009 Partnerships Committee meeting. Since approval, grant recipients have begun to select their energy auditors from a pre-qualified list and audits will soon be underway.
New components added to the DDA program this year include a partnership with the City of Ann Arbor Energy Office to make zero interest loans available to participants through a federal grant and also, the DDA energy program will provide assistance to applicants to take advantage of the utility rebates now available from DTE Energy for energy improvements. These rebates can be added to the DDA rebates.
The 2008-2009 Grant Year:
In 2008-09, 44 businesses were approved to receive a free energy audit. As of November 2009, energy auditors completed 34 audits, representing over 377,00 square feet of commercial building space and over $700,000 in annual energy costs.
The energy audits identified $883,000 in recommended energy improvements with a savings of $178,300/yr showing that these improvements will pay for themselves in 5 years. With DDA matching grant funds the average payback is reduced to 3.5 years and if installed, these measures will reduce energy costs by an average of 25%.
Many of these businesses have begun taking steps toward installation of these measures. So far, 7 have completed installation - choosing to invest $71,051 in energy saving measures with a DDA contribution so far of $26,578 toward phase 2.
Program Impacts:
Curtis Commerical L.L.C. and The Neutral Zone Teen Center are among the building owners who benefitted from DDA energy audits in 2008-09. Upon receiving their energy audit both committed to investing in energy improvements, ranging from lighting and windows to more energy efficient heating and cooling equipment.
Even though Curtis Commercial has made energy efficient investments in the past, they credited the DDA's program for spurring these additional improvements. “We would not have done them … had it not been for the support of the DDA,” Curtis said. “There's no question that we have accelerated and prioritized the energy efficiency programs provided through the DDA as our capital improvement projects for this year and next.”
This program is the latest in a number of DDA initiatives to promote sustainability as an essential component of downtown development. The DDA anticipates that the Energy Saving Grant program will help building and business owners find ways to save overhead costs and reduce their carbon footprint through energy efficiency and use of renewable energy.
If you are interested in more information, please contact the DDA Energy Engineer, Dave Konkle at konkle@toast.net
If you have additional questions or comments, please contact us using the following information:
150 South Fifth Avenue
Suite 301
Ann Arbor, MI 48104
Email: dda@a2dda.org
Telephone: (734) 994-6697
Fax: (734) 997-1491