Energy Performance Contracting Case Study

This case study outlines the collaboration between ABM Industries and Heller Machine Tools L.P. to implement energy performance contracting at Heller's headquarters in Troy, Michigan. In June 2016, Heller Machine Tools became the first manufacturing company in Michigan to utilize PACE financing aimed at energy efficiency upgrades. The project involved replacing over 30 aging HVAC units and installing a web-based building automation system, along with interior and exterior LED lighting. The upgrades aimed to reduce energy waste and improve the indoor environment. The project is guaranteed to save over $1.6 million in energy and operating costs over a 15-year period. The PACE financing program allows for cost spreading over 10 to 20 years, ensuring that energy savings exceed annual loan repayments, leading to immediate positive cash flow. Additionally, the facility is positioned to achieve ENERGY STAR certification, reflecting the enhanced quality of the indoor environment and operational efficiencies.