In April 2004, Dave Caldwell moved his business - Caldwell Power & Equipment, a service and repair shop mostly for power tools like lawn mowers and chainsaws, and some automobile work - to a new, 3,000-square foot shop in Hamden. The big difference between the old premises and the new was that the latter had an automobile lift, allowing Caldwell to expand that part of his business.

That was the good news. The not-so-good news was that the shop’s outdated lighting system was inadequate for its purposes. “That’s typical for many service garages,” said Eldon Cody from Stratford-based D&M Manson Electric, a UI-approved vendor who contacted Caldwell shortly after the shop’s relocation. “They try to make do with what lighting they’ve got and find it’s completely unsuited for their needs.”

Cody showed Caldwell how proper illumination could make the shop floor more productive. He also explained the present lighting system was “energy-inefficient,” causing the monthly electric bill to be higher than necessary. Finally, he told Caldwell that UI’s Small Business Energy Advantage Program could defray the costs of redesigning and upgrading the existing system.

Caldwell opted to go with Cody’s recommendation. This decision put money in Caldwell’s pocket - it cut his monthly electric energy use by 50%, and added extra dollars to his bottom-line profits.

“We offer the Small Business Energy Advantage program in collaboration with CL&P,” said UI program administrator Dennis O’Connor. “Under the program, a qualifying customer may receive an incentive of up to 50% of the cost of installing energy-efficient lighting.”

Another advantage of the program is that UI gives qualifying small business customers interest-free financing for up to 30 months to cover the remaining balance of the project’s cost. The repayment installments shown on the monthly bill are offset by lower energy costs and, when the loan is satisfied, the monthly bills are even lower. Sounds like a good deal, doesn’t it?

Why is energy-efficient lighting so important? And how can it help a small business be more profitable? “First, lighting alone can account for 20 – 35% of a small business’s total energy use,” O’Connor said. “Reducing that percentage cuts overhead costs, and a lower overhead means increased profits.”

Caldwell Power & Equipment is a good example of the Small Business Energy Advantage Program in action.

“We redesigned the layout of the fixtures for better work area lighting,” Cody said, “and replaced the old, expensive and inefficient lighting fixtures with energy-efficient fluorescent fixtures.”

“The new lighting has made a big difference for the whole shop,” Caldwell said. “It definitely makes working on cars and power equipment easier because we can better see what we’re doing.”

The lighting retrofit was a $3,100 job, but the UI program incentive cut his out-of-pocket expenses considerably. Caldwell also took advantage of the program’s financing feature to spread payment of the balance into easy-to-handle monthly installments.

It took just two days to make the switchover, but the energy-saving results will last for years to come. “Based on its history of previous consumption, the shop’s energy use dropped by over 57% in 2004,” O’Connor said, adding that the yearly energy savings totaled just over 6,200 kWh annually.

“That means I’ll be saving $860 a year, or a bit over $70 a month,” Caldwell said. “Though it may not seem so very much, when you’re a small business operating on a tight, tight margin, every dollar saved counts.”

What does he think about the Small Business Energy Advantage plan? “If it weren’t offered, I’d have been hard-pressed to undertake this project, even though I knew there’d be a pay-off down the line in reduced energy costs,” he answered. “The incentive and favorable financing made it all possible.”

Contact:
Dennis O’Connor - 203-499-3715.