5-15-15

8C — May 15 - 28, 2015 — NJAA CONFERENCE & EXPO — M id A tlantic

Real Estate Journal

www.marejournal.com

2015 NJAA C onference & E xpo

s energy bills rise, apartment owners are among the first By New Jersey’s Clean Energy Program Retain tenants by reducing costs: New Jersey’s Clean Energy Program pays off A ties for savings can also be found within heating, venti- lation, and air-conditioning (HVAC) equipment.

Energy efficiency offers the potential to reduce these expenses for both building owners and tenants. With the help of state and util- ity incentives, upgrading to more efficient equipment is now more achievable than before. In New Jersey, energy efficiency incentives are provided through New Jer- sey’s Clean Energy Program TM (NJCEP), a financial incentive program offered through the state’s Board of Public Utilities.

A study by the American Council for an Energy-Ef- ficient Economy (ACEEE) estimates that multi-family building owners and resi- dents could save up to $3.4 billion from energy-efficien- cy upgrades, ranking New Jersey among states with some of the greatest un- tapped potential. Advances in lighting tech- nologies have brought about fluorescent and LED fixtures that deliver quick paybacks often within two or three years. Significant opportuni-

rates. Adler Residential, owners of more than 800 multi- family residential units, rec- ognized these opportunities and chose to improve Troy Hills Village in Parsippany, New Jersey. The 50-year- old, 752-apartment commu- nity was centrally heated using hot water boilers and cooled with individual air conditioners before the sys- tem was overhauled with more efficient alternatives. Adler Residential turned to the NJCEP Pay for Per- formance program for more than $683,000 in incen- tives and expertise. With the Energy Reduction Plan developed by Pay for Per- formance energy experts, Adler Residential was able to determine the equipment that would be most cost ef- fective to replace, identify contractors best suited to implement the efficiency upgrades, and to receive financial incentives that are expected to reduce project costs by half. The $1.48 million Troy Hills Village project included replacing boilers and pumps with new condensing gas boilers, premium pumps and variable frequency drives (VFDs). More than 21,000 feet of hot water pipes were wrapped with insulation. The common areas and all exterior lighting were up- graded to LED fixtures. The new equipment is expected to save nearly 200 MWh of electricity and 23,500 MMB- tu of natural gas, amounting to an estimated $209,000 of savings each year. As much as $2 million in incentives are available un- der the Pay for Performance program for building owners who follow a whole-building approach that reduces en- ergy consumption by 15% or more. Both existing and new construction projects are eligible for the program. For more informat ion about the incentives avail- able in New Jersey and New Jersey’s Clean Energy Pro- gram, call 866-NJSMART or visit NJCleanEnergy.com/ MARE. Incentive programs are of- fered by utilities and states across the Mid-Atlantic re- gion. Check with your local utility or public service com- mission for opportunities. n

to feel the squeeze. The 2014 National Apart- ment Association Survey found that utility costs rep- resent about 3 percent of rents for individually me- tered properties and 7 per- cent for master-metered properties. For property owners in New Jersey, those costs can be as great as 12 percent, according to the New Jersey Apartment As- sociation.

The benefits go beyond saving energy. Energy-effi- cient equipment also tends to have lower operating and maintenance costs. These savings may help avoid the need to raise rents. Com- bined with lower tenant utility costs and more com- fortable spaces, investing in energy efficiency can also help reduce tenant turn- over and improve occupancy

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