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Financing Options for Onsite Generation, Energy Storage, and Energy Efficiency Projects

Across sectors, commercial and industrial facilities are benefiting from the implementation of renewable energy generation, storage, and energy efficiency projects. Despite the potential for these projects to reduce onsite energy consumption, build resiliency, and lower operational costs in the long term, the initial expenses are often high. However, there are a growing number of financing mechanisms that can be leveraged. When deployed strategically, these mechanisms can give organizations the financial tools to install projects that accomplish their energy goals. In 6 steps, this resource introduces organizations to a general process to contextualize the many different financing options, ultimately facilitating an informed selection of financing mechanisms. Step 1 discusses the importance of establishing clear organizational preferences. Step 2 briefly introduces common financing options and Steps 3 and 4 provide guidance for selecting mechanisms based on locational availability and organizational preferences. Finally, Steps 5 and 6 show how mechanisms can be combined with incentives and provide preliminary guidance for selecting and engaging with external partners. While this document provides a general approach to selecting a financing mechanism for renewable energy generation, storage, and/or energy efficiency, it does not contain tax and/or legal advice. A tax advisor should be consulted before taking any action.

25 ENERGY STORAGE

Data Center Energy Efficiency

Fact sheet describes how the Federal Energy Management Program helps federal agencies implement data center energy efficiency projects.

Kam, Kendall [US Department of Energy (USDOE) Fede

Unlocking Manufacturing Sustainability: Energy Efficiency Opportunities through the US Department of Energy’s Better Plants Program Energy Treasure Hunts (2023–2024)

The US manufacturing sector faces critical challenges: improving sustainability, reducing energy consumption, and reducing greenhouse gas emissions. Energy Treasure Hunt (ETH) training, a service provided by the US Department of Energy’s Better Plants program, offers a compelling solution. Although ETHs have traditionally focused on energy and cost savings, data indicate that ETHs can be used to identify opportunities to reduce emissions and water use and to support a sustainable and circular operation. These 3-day on-site events engage employees in a collaborative search for operational and maintenance efficiency improvement opportunities. The success of ETHs lies in a comprehensive methodology. Each phase in an ETH uses various tools and resources to empower employees to identify practical solutions. This study presents data from 13 ETHs conducted between 2023 and 2024 across diverse manufacturing subsectors in the United States and demonstrates that the events can help create a pragmatic decarbonization pathway. Through the events, a total of 234 energy and emissions reduction opportunities were identified, and the potential impact is significant. Implementing the recommendations could translate to annual savings of 497,299 MMBtu of energy, 64,374 kgal of water, and 4.85 million tCO 2 e of emissions. The fiscal savings from the proposed recommendations translate into nearly $\$$5 million annually. This study identifies the opportunities by energy system type and by the specific actions recommended, while also analyzing the identified opportunities, presenting the most established sustainability recommendations. Case studies from participating partners are presented to further demonstrate that ETHs provide a practical and impactful approach to reducing energy consumption, emissions, and operating costs and promote a more sustainable future for the industrial sector.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI

Integrated Spatial, Spectral, & Temporal Optical Reflectance System for Precision Occupancy & Location Sensing to Improve Building Energy Efficiency

Buildings consume approximately 35% of the electricity used in the U.S. and building owners can significantly reduce this energy use by providing services like heating, electrical power and lighting only when people are present. The ARPAe funded program titled “INTEGRATED SPATIAL, SPECTRAL, & TEMPORAL OPTICAL REFLECTANCE SYSTEM FOR PRECISION OCCUPANCY & LOCATION SENSING TO IMPROVE BUILDING ENERGY EFFICIENCY” demonstrates how a low cost sensor technology developed for measuring distances can be used to count and locate occupants with a high degree of precision with a very low error rates. This platform tells a building control system where occupants are located (but not who they are) so that energy consuming services can be provided only when the services are needed by building occupants. The original proof of concept involved using low cost, commercially available time-of-flight (TOF) sensors that measure distance, but the performance of these existing sensors was lacking, as they could not operate properly in the presence of sunlight, which blinded the simple TOF sensors and limited their utility in buildings. This project proposed a powerful new class of TOF sensors that used state-of-the-art integrated circuit (IC) fabrication processes that combined advanced photonics with conventional silicon chip circuitry for improved sensor performance. An equally important part of this project was to find ways to maximize occupant count and location accuracy while using the fewest number of sensors possible, in order to keep costs low. By using building blueprints to create digital twins of commercial building spaces, the team developed new algorithms to maximize occupant count and tracking accuracy by properly locating the minimum number of sensors at just the right spots in the building. This capability not only minimizes system costs but also simplified sensor installation and system commissioning. Our simulations of our sensor networks for a range of commercial floorplan designs demonstrated that our installed cost target of $0.08/sqft was attainable, though not fully demonstrated during the project. Finally, we noted that the TOF sensor concept could provide a valuable role in health and eldercare by tracking patients without the need for worn sensors and would be useful for fall detection and other patient safety metrics, including tracking healthcare/patient interactions. We feel that, when fully developed, this new class of sophisticated TOF sensors and support software will be a powerful new approach to improving building energy efficiency based on occupant centric control platforms and will also open new levels of patient safety in healthcare operations. To realize this potential, the team formed the Troy Sensor Company LLC to oversee licensing of the programs patents and continue to seek commercialization of this program’s activity sensing technologies.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI

Louisville Communities LEAP Engagement: Improving Energy Efficiency in Affordable Housing

This report is a comprehensive summary of the related workstreams pursued through the Communities Local Energy Action Program (Communities LEAP) pilot Technical Assistance (TA) program in Louisville, Kentucky. It begins with an analysis around energy efficiency technologies, focused on building envelope improvements, that explores the impact to individual residents as well as the impact to the community at-large if the upgrades were adopted city-wide. Community benchmarking ordinances and complementary policies are considered next, including comparisons of programs with peer communities. A workforce development section then covers the state of Louisville's workforce today and identifies programs in peer communities that Louisville could consider emulating to achieve a "right-sized" workforce. The document closes out with an overview of policies around energy efficiency in peer communities that Louisville could explore, with considerations for the City's unique policy context.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Prioritizing Transformative Energy Efficiency Technologies in the Pulp and Paper Sector Through Levelized Cost of Conserved Energy

This presentation explores how the U.S. pulp and paper sector can prioritize energy efficiency (EE) technologies using the Levelized Cost of Conserved Energy (LCCE) metric. As mills face market shifts and rising costs, technologies such as advanced drying, membrane concentration, waste heat recovery, and recovery boiler replacements offer potential savings but face economic barriers. LCCE enables consistent comparison of technologies by calculating cost per unit of energy saved, including capital, operating, and potentially non-energy benefits like productivity, maintenance, and safety improvements. Preliminary findings show economies of scale significantly influence recovery boiler replacement feasibility, with larger systems achieving lower LCCE values. Ongoing work incorporates non-energy benefits to provide a more comprehensive cost-effectiveness assessment and guide research, development, and deployment priorities for underutilized and emerging technologies.

Kamath, Dipti [ORNL] (ORCID:0000000278739994)

Aniak Energy Efficiency Retrofit Project

The Native Village of Aniak (NVA) is a remote Yup’ik community in western Alaska. NVA is proposing to install energy efficiency measures in the Tribal Office, Community Center, Association of Village Council Presidents (AVCP) Office, and Duplex. The goal of the project is to reduce the overall energy use of the NVA by implementing energy efficiency measures in four high-use tribal buildings. This project expects to have the following outcomes: projected annual energy savings of approximately $24,238; projected annual reduction in fuel oil of roughly 1,802 gallons and electricity of around 24,537 kWh; and annual reduction in carbon dioxide emissions of approximately 84,594 pounds/year.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI

Countrywide LED Lighting Retrofit for Safety, Visibility, and Energy Efficiency (Final Technical Report)

The project supported national clean energy goals by reducing electricity demand and improving energy efficiency in public infrastructure. Tasks defined in the Statement of Project Objectives included site assessments, retrofit planning, lighting design optimization, installation, monitoring, and reporting. All milestones and go/no-go decision points were successfully met.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI

Technology for aircraft energy efficiency

Six technology programs for reducing fuel use in U.S. commercial aviation are discussed. The six NASA programs are divided into three groups: Propulsion - engine component improvement, energy efficient engine, advanced turboprops; Aerodynamics - energy efficient transport, laminar flow control; and Structures - composite primary structures. Schedules, phases, and applications of these programs are considered, and it is suggested that program results will be applied to current transport derivatives in the early 1980s and to all-new aircraft of the late 1980s and early 1990s.

Klineberg, J. M.

Evaluation of fluxon synapse device based on superconducting loops for energy efficient neuromorphic computing

With Moore’s law nearing its end due to the physical scaling limitations of CMOS technology, alternative computing approaches have gained considerable attention as ways to improve computing performance. Here, we evaluate performance prospects of a new approach based on disordered superconducting loops with Josephson-junctions for energy efficient neuromorphic computing. Synaptic weights can be stored as internal trapped fluxon states of three superconducting loops connected with multiple Josephson-junctions (JJ) and modulated by input signals applied in the form of discrete fluxons (quantized flux) in a controlled manner. The stable trapped fluxon state directs the incoming flux through different pathways with the flow statistics representing different synaptic weights. We explore implementation of matrix–vector-multiplication (MVM) operations using arrays of these fluxon synapse devices. We investigate the energy efficiency of online-learning of MNIST dataset. Our results suggest that the fluxon synapse array can provide ~100× reduction in energy consumption compared to other state-of-the-art synaptic devices. This work presents a proof-of-concept that will pave the way for development of high-speed and highly energy efficient neuromorphic computing systems based on superconducting materials.

42 ENGINEERING

The NASA Aircraft Energy Efficiency program

A review is provided of the goals, objectives, and recent progress in each of six aircraft energy efficiency programs aimed at improved propulsive, aerodynamic and structural efficiency for future transport aircraft. Attention is given to engine component improvement, an energy efficient turbofan engine, advanced turboprops, revolutionary gains in aerodynamic efficiency for aircraft of the late 1990s, laminar flow control, and composite primary aircraft structures.

Klineberg, J. M.

Energy efficient aircraft engines

The three engine programs that constitute the propulsion portion of NASA's Aircraft Energy Efficiency Program are described, their status indicated, and anticipated improvements in SFC discussed. The three engine programs are (1) Engine Component Improvement--directed at current engines, (2) Energy Efficiency Engine directed at new turbofan engines, and (3) Advanced Turboprops--directed at technology for advanced turboprop--powered aircraft with cruise speeds to Mach 0.8. Unique propulsion system interactive ties to the airframe resulting from engine design features to reduce fuel consumption are discussed. Emphasis is placed on the advanced turboprop since it offers the largest potential fuel savings of the three propulsion programs and also has the strongest interactive ties to the airframe.

Chamberlin, R.

Energy efficient aircraft engines

The three engine programs that constitute the propulsion portion of NASA's Aircraft Energy Efficiency Program are described, their status indicated, and anticipated improvements in SFC discussed. The three engine programs are: (1) engine component improvement, directed at current engines, (2) energy efficient engine, directed at new turbofan engines, and (3) advanced turboprops, directed at technology for advanced turboprop-powered aircraft with cruise speeds to Mach 0.8. Unique propulsion system interactive ties to the airframe resulting from engine design features to reduce fuel consumption are discussed. Emphasis is placed on the advanced turboprop since it offers the largest potential fuel savings of the three propulsion programs and also has the strongest interactive ties to the airframe.

Chamberlin, R.

Energy-Efficient, Continuous-Flow Ash Lockhopper

Pressure balance in control gas prevents loss of reactor gas. Energy efficiency of continuous-flow ash lockhopper increased by preventing hot gases from flowing out of reactor vessel through ash-hopper outlet and carrying away heat energy. Stopping loss of reactor gases also important for reasons other than energy efficiency; desired reaction product toxic or contained to prevent pollution. In improved continuous-flow ash lockhopper, pressure-driven loss of hot gas from reactor vessel through ash-hopper outlet prevented by using control gas in fluidic flow-control device to equalize pressure in reactor vessel. Also enables reactor to attain highest possible product yield with continuous processing while permitting controllable, continuous flow of ash.

Collins, Earl R., Jr.

Energy Efficient Engine: High-pressure compressor test hardware detailed design report

The objective of the NASA Energy Efficient Engine program is to identify and verify the technology required to achieve significant reductions in fuel consumption and operating cost for future commercial gas turbine engines. The design and analysis is documented of the high pressure compressor which was tested as part of the Pratt and Whitney effort under the Energy Efficient Engine program. This compressor was designed to produce a 14:1 pressure ratio in ten stages with an adiabatic efficiency of 88.2 percent in the flight propulsion system. The corresponding expected efficiency for the compressor component test rig is 86.5 percent. Other performance goals are a surge margin of 20 percent, a corrected flow rate of 35.2 kg/sec (77.5 lb/sec), and a life of 20,000 missions and 30,000 hours. Low loss, highly loaded airfoils are used to increase efficiency while reducing the parts count. Active clearance control and case trenches in abradable strips over the blade tips are included in the compressor component design to further increase the efficiency potential. The test rig incorporates variable geometry stator vanes in all stages to permit maximum flexibility in developing stage-to-stage matching. This provision precluded active clearance control on the rear case of the test rig. Both the component and rig designs meet or exceed design requirements with the exception of life goals, which will be achievable with planned advances in materials technology.

Howe, David C.

A Comparison Between Industrial Energy Efficiency Measures in Guatemala and the United States

Energy auditing has been cited as a key tool in closing the gap between the actual energy consumption in industrial facilities and what should be at an environmentally sustainable level. Several factors affect the likelihood that energy audits will be effective in closing that gap, and more analysis is needed to understand these factors, especially for developing nations. This study compares three energy efficiency measures (EEMs) frequently recommended in both the United States and Guatemala, namely, installing solar panels to generate electricity, installing higher-efficiency lighting, and upgrading to premium efficiency motors. The implementation of each of these EEMs contributes to more sustainable energy consumption, and each of these EEM’s payback periods is affected by capital costs, energy costs, and other local factors analyzed in this study. Projected payback periods for each EEM based on Guatemalan and U.S. capital cost and energy cost ranges are assessed via EEM-specific payback period calculations and compared to the energy audit data from each country. While lower capital costs incentivize EEM implementation and reduce payback periods, there is an interplay between energy cost and capital cost that impacts the trends in the U.S. and Guatemala. As in the case of the solar panel installation EEM, though Guatemalan companies pay ~110% more for electricity than U.S. companies, when Guatemalan capital costs are lower, payback periods are lower than in the U.S. Conversely, in cases where Guatemalan capital costs are higher—as for higher-efficiency lighting and motor installation—Guatemalan payback periods are roughly the same as those in the U.S. because of the higher Guatemalan energy costs.

Khosla, Radhika

Aniak Energy Efficiency Retrofit Project

The Native Village of Aniak (NVA), a federally recognized Yup'ik Tribe, undertook this energy efficiency initiative to enhance energy performance in key community buildings, including the Tribal Office, Community Center, Duplex, and Association of Village Council Presidents (AVCP) Office. Through energy audits and upgrades, the project focused on high-impact improvements like air sealing, LED lighting, and programmable thermostats, primarily in the Tribal Office due to funding constraints. The initiative aimed to reduce energy waste, lower heating and electricity costs, and improve facility comfort and longevity while achieving long-term savings for further improvements by decreasing reliance on imported fuel oil. Despite scope limitations exacerbated by budget constraints, this project achieved an approximately 52% reduction in EUI. Reducing operational costs emphasizes economic and environmental benefits, aligning closely with Aniak's broader energy sustainability objectives. This initiative aligned with the Tribe's vision for responsible energy use, addressing the challenges of high fuel prices in a remote community; it could serve as a model for similar efforts in Aniak and other Alaska Native villages pursuing energy self-reliance.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI

Energy Efficient Engine high pressure turbine component test performance report

The high pressure turbine for the General Electric Energy Efficient Engine is a two stage design of moderate loading. Results of detailed system studies led to selection of this configuration as the most appropriate in meeting the efficiency goals of the component development program. To verify the design features of the high pressure turbine, a full scale warm air turbine test rig with cooling flows simulated was run. Prior to this testing, an annular cascade test was run to select vane unguided turn for the first stage nozzle. Results of this test showed that the base configuration exceeded the lower unguided turning configuration by 0.48 percent in vane kinetic energy efficiency. The air turbine test program, consisting of extensive mapping and cooling flow variation as well as design point evaluation, demonstrated a design point efficiency level of 90.0 percent based on the thermodynamic definition. In terms of General Electric cycle definition, this efficiency was 92.5 percent. Based on this test, it is concluded that efficiency goals for the Flight Propulsion System were met.

Timko, L. P.