Penna Electric Is Creating Free Money For Building Owners In The Los Angeles Area Through Energy Conservation Options And Strategic Money-Saving Steps
Penna Electric is leading the way to increased cash flow and a reduced environmental impact for building owners throughout the Los Angeles area with strategic LED lighting conversions and expanded solar power services.
Manhattan Beach, CA (I-Newswire) September 23, 2012 - With Eco-friendly lighting modifications for nine Chase Bank locations, Hertz Sales Equipment, House of Spices and a Jiffy Lube, the recent LED lighting conversion on the second floor of the Masterson Building located at 11401 Valley Blvd. in El Monte on August 31, 2012 was not new for Penna Electric, but being one of the first of its kind in the area, it was a great contribution to the start of significant savings for office buildings in El Monte and the Los Angeles area.
The 14,000 square feet, two-story, multi-tenant office building had an electrical bill of $3,000 per month using traditional recessed lights and fluorescent ballasted lights. Penna Electric converted 265 bulbs to LED lights, which will save more than 7,500 watts.
“It will probably make at least a 50% reduction in our electrical bill,” said staff writer and photographer of Mid Valley News, Andrew Bettridge. It was Bettridge who presented the idea of an LED lighting conversion to the building owner after learning about the advancements of LED lights in cars. “In November of this year it will be the Centennial for the city. We want to be role models for El Monte, and we couldn’t think of a better time to do so.” LED lights last 10 times longer than incandescent bulbs. They are four times more efficient and use about 80 percent less energy, resulting in a significantly reduced carbon footprint.
The owner of the Masterson building plans to re-finance in two years. The savings on the electric bill can now go into net operating income, which makes the valuation of the building higher. The higher the valuation, the more financing opportunities available. Besides the notable potential savings on future electrical bills and an increased net operating income, Penna Electric is opening up more opportunities for exponential value through solar power.
If all goes well, the owner of the building intends to install solar power. Without undergoing an LED conversion, a solar power system for the building would cost about $250,000, but by doing a conversion that roughly costs $20,000 first, the solar demand is lowered, reducing the cost of a solar system by more than $100,000.
If there is a drastic reduction in their electrical bill by November, the building will convert the first floor to LED lighting and proceed with a solar system installation.
By doing an LED conversion, the owner of the building is conserving cash up front. After the solar installation, the value of the building will go up by about $240,000 based on the net operating income and a 10% capitalization rate.
Once the solar system goes up, it will essentially eliminate the electrical bill altogether, which will drive the NOI and the resulting valuation up even higher, and because the LED conversion was done first, it will be at a drastically reduced cost of roughly $120,000.
“With the economy the way it is, office buildings are taking a big hit, particularly when it comes to vacancies. A lot of people have started working at home. If you’re a building owner who is looking for help from the bank, you should consider converting to LED lights and then installing solar power. It has the potential to change your numbers by 30% to the black,” said Penna Electric’s Vice President of Operations Travis Brandt, who has an extensive background in commercial banking and finance.
It is because of this potential for free money that Penna Electric is substantially expanding their solar power installation services to residents, businesses and building owners by teaming up with two of the best companies in the country. Solar World, a company that has been helping homeowners and businesses put the sun to work for over 35 years, is investing over $500 million to expand U.S. manufacturing of solar systems. SolarEdge Technologies, a leading global provider of end-to-end solar power optimization systems and monitoring solutions, won the prestigious 2012 Intersolar Award for Innovation in the Photovoltaic category.
“By providing cutting-edge solar power installations, we’re enabling businesses to be free of increased energy costs and improve our at-risk eco-system. Solar systems lower energy draw considerably, and the lower the energy draw, the lower the carbon footprint. If we can contribute to an accession in solar power installations for our local community, it will have a prodigious environmental impact on our state and country,” said Brandt.
For more information on Penna Electric, go to www.pennaelectric.com.
About Penna Electric
Penna Electric is a residential and commercial electric service company serving West Los Angeles and More.. the 310 area code. South Bay cities include Torrance, Manhattan Beach, Hermosa Beach, Redondo Beach, Rancho Palos Verdes, Palos Verdes Estates, and everything in between.
Penna Electric is experienced in electric service panel upgrades, all electrical troubleshooting, and all phases of residential and commercial electrical contracting. From installing solar panels to replacing recessed lights to indoor and outdoor dedicated circuits, Penna Electric pursues excellence on every job. The company is always striving to be a truly on time, on demand and on Budget electrical service. The reviews speak for themselves!Less..
112 Seaview St. Manhattan Beach, California
Phone : (800) 259-9070
Tags:solar panels Electrician saving money los angeles solar power Building Owners commercial buildings led lighting conversions electrical service
Published in:Small Business
Published On:September 23, 2012
Print Release:Print Release
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