Obama, Better Buildings and the Innovators

Elisa Wood
February 11, 2011 | 6 Comments

When Obama unveiled his Better Building Initiative last week, it wasn’t just the usual architects, builders, and energy efficiency service companies that perked up with interest. A whole new segment of energy efficiency companies saw opportunity: the innovators.

Emissaries from the high tech world, the innovators are a growing force in energy efficiency. They bring web and wireless to what was once a field more about windows and weatherization.

Obama’s plan would create new business for the innovators by providing incentives to reduce building energy use. Buildings represent a large market for the US energy efficiency industry because they eat up 20% of the nation’s energy. Obama has proposed tax deductions, financing, competitive grants and other incentives as part of his budget.

Where do the innovators fit into this? Daintree Networks offers one example. The Silicon Valley company provides open platform, wireless technology for lighting controls. Lighting is a big deal in buildings; it is responsible for about 40% of a building’s energy bill. Lighting controls increase efficiency by automatically shutting off or dimming unneeded lights. The controls are often used in conjunction with occupancy sensors. The sensor detects when people empty a room and signal to the control system to turn off the lights.

“Anyone who is considering lighting upgrades now is asking about controls. It is no longer just about replacing light bulbs and fixtures, but about the control implementation,” said Danny Yu, Daintree Networks CEO.

With controls in only about 7% of commercial buildings, the market potential is large for innovators like Daintree Networks. So Yu has his eye not only on federal energy policy, but also activity by the states.

“We are very keen on seeing what policies are coming down the line, exploiting them with innovation, and then educating the market. We have focused on California and the Northeast,” Yu said, adding that prime areas for lighting controls have the “magic combination” of high electric rates and strong efficiency incentives.

But he especially likes the Obama plan because of its national scope. Incentives that vary from state to state tend to discourage energy efficiency efforts that scale across geographic boundaries.

“The Obama Better Buildings Initiative is an important first step in establishing national policy to drive energy efficiency in the commercial building sector. Energy efficiency within existing buildings should be considered a massive and mostly untapped resource. Adding greater incentives, financing options and a more consolidated approach to strong building regulations helps to solve many of the challenges currently standing in the way of greener facilities,” Yu said.

Will the Obama’s initiative win Congressional support? Yu is optimistic. “Energy efficiency is often the low-hanging fruit. The government has realized this,” he said. “Among the innovation companies, there is a very clear sector rotation into energy efficiency. The government seems to be following the venture capital community. We are very worthy in this category. I’m very excited to see the validation of the business model.”

Details about the Obama Better Building Initiative are here.

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6 Comments

jim douglas
February 16, 2011

I have found that most government incentive programs are to complex, requiring tax paper work and upfront engineering and planning costs. Californias Title 24 and Comcheck, in other states, are building dept requirements already in place. They are fairly simple requiring lighting controls, energy efficient lighting (and are pushing LED lights). It is all based on ASHREA 90.1 prescripive energy saving requirements. It has been in place for the last 30 years.

The biggest obstacle for these things to work are educating the users and installers as to commisioning and maintanance. Most people will not turn off the lights because they are to busy working and the cost of energy is still to low to really effect there pocket books. Try to keep it simple.

Joel Fairstein
February 16, 2011

Your statement that lighting accounts for about 40% of a building's energy bill is false. Look at the pie chart in the source you cited--it clearly shows a range of only 4% to 20% depending on building type. A quick check on reputable sources on Google shows lighting consumes a range of 11% to 22% which averages out about the same. Check your facts before publishing. As Davy Crockett instructed us, "First be sure you are right, then go ahead."

Regardless, lighting energy demands will tend downward as LEDs becoming more affordable. I wonder if if it's cheaper to put one's lighting control investment into LEDs and train building staff turn them off when not in use. Sometimes a low-tech solution is the best solution.

Bob "The Clean Energy Guy" Mitchell
February 14, 2011

Thomas: In a perfect world, everybody would remember to "flip the switch" and with enough effort, people can change (my mother would be so happy to hear me say that, btw!).

Anyway, there are times and situations where automation would simply make it easy enough to make it happen. A while back I was inside of of The Dalles Dam across the Columbia River and the entire power plant was lit...all 8800 feet of it.

Also, every light in the place seemed to be on. Now I realize that they had plenty of juice to play with, but waste is waste!

The turbines operate every bit as efficiently in the dark as they do in the light. Light is only needed when a person needs to enter the area and every person authorized to enter the area wears an ID badge. Why couldn't that ID Badge control turning the lights on?

Elisa: Regarding something that Mr. Yu pointed out, I agree that having a national scope when dealing with this issue would be a great thing!

Thanks for a nice article!

Bob "Free As The Wind" Mitchell

Maxie Coale
February 14, 2011

I agree with you, Thomas Mayrand, that change is better than any incentive when it comes from within. Unfortunately, not everyone can switch lights off or unplug appliances at work. If you work in the emergency room of a hospital, for example, I doubt you'll give a thought about light switches when it gets chaotic. That's why small things like control systems that automatically shut lights become important in commercial buildings.

It's much easier to practice energy saving methods withouth the help of systems when you're at home however. So homeowners have no excuse when it comes to contributing to the health of the environment: http://greenenergyinsiders.com/?p=1197

Thomas M
February 13, 2011

Not sure if your ideas towards energy reduction in buildings are all that true. Do we need incentives and technology to save energy. My hand and brain are probably a more efficient energy savings device than anything you can come up with. With one finger I can turn off a light. With one hand I can open a shade or curtain to allow in free heat and light or close them to keep out the hot sun. I can unplug an appliance with phantom loads. I can reduce the amount of time I use an appliance or light. I can use manual appliances instead of electric ones. I can use alternative means for heating or do things to reduce heat needed, eg. put on a sweater or extra blanket. I can use alternative methods for cooking. I can use SHW and SH air. I can install a clothes line outside or inside...etc. etc......
Try not to focus on fixing the building to save energy, try to fix the people in the building first.

Anumakonda Jagadeesh
February 13, 2011

President Obama's Better Building Initiative opens up Energy Efficient Building area in a big way. In fact Enormous energy can be saved in High Energy Efficient buildings. Many countries including India are adopting the Energy Efficient Buildings concept.

Dr.A.Jagadeesh Nellore(AP),India

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Elisa Wood

Elisa Wood is a long-time energy writer whose work appears in many of the industry's top magazines and newsletters. Her blog on energy efficiency appears on more than 100 sites and has been picked up by the New York Times and Reuters. She...