Buildings are no longer simply comfortable, functional shelters to live and work in. Empowered by technology and in response to climate change, buildings are increasingly becoming highly adaptable intermediaries between our interior space and the environment at large. A building is much like a human body. It breathes, has plumbing (blood vessels), structure (bones), needs energy to function and requires more attention as it ages.
Buildings also get sick. "Sick building syndrome" is associated with poor indoor air quality but can also be caused by poor light or noise distribution or contaminants like mold and asbestos that might affect the well-being of human occupants. Just as there are physicians to support health and wellness, there are also professionals to keep buildings healthy by offering preventive care, diagnoses and treatment. Once a building becomes sick, it is often difficult to restore its health. Ongoing health maintenance is as important for buildings as it is for our bodies.
The internal organs of a building are fueled by electricity and sometimes natural gas. In Hawaii the high cost of electricity — over three times the national average — makes the care and feeding of buildings especially expensive. Examples of health maintenance for the structures we inhabit now include the use of high-efficiency technologies to replace aging systems such as chillers, lighting, boilers and pumps. In addition to refreshing aging capital equipment, the ongoing savings on electricity will often more than pay for the new equipment. These initiatives for buildings improve not only their physical health, but also their financial condition over time.
Solar financial returns offer a 20 percent to 30 percent internal rate of return. Energy-efficiency financial rewards can be 30 percent to 60 percent or greater. These investment outcomes are significantly higher than many other market-based investment returns. The smart money knows this.
"Rates of return are actually dropping but still outstrip many other investments, and the risk component of these investments are dropping even faster as the technology and development processes mature," says Ted Peck, former Hawaii state energy administrator and energy developer.
Energy Industries Corp. is an example of a company that assesses air-conditioning, lighting, and pumping systems. Using logged data to develop energy usage profiles, they first identify how much energy is wasted. By projecting how much energy can be saved with new equipment, Energy Industries tries to develop financial strategies that can be utilized to acquire the equipment at no net cost. Energy Industries’ upgrades were implemented at Kuakini Medical Center. The hospital received $5 million in building improvements — chillers, boilers, cooling-towers, lights, drives, pumps and controls — without significant upfront costs. Under the program, future energy savings were used to pay for capital improvements. I met with Miles Kubo, chief operations officer at Energy Industries, and he has got me thinking about utilizing their services.
"Electricity is like oxygen. Businesses need it to survive. But, unlike oxygen, it is not free — it is very expensive. However, if you get your electricity from the sun, it is locally sourced, limitless and inexpensive. Businesses must understand the high cost of wasting energy and the high returns derived from engaging in energy-efficiency and solar projects," said Kubo.
During the peak in the local solar business two to three years ago, this column warned of an impending industry consolidation accelerated by multiple factors including government tax credits and escalating challenges associated with HECO’s permitting policies. The column advocated for solar companies to direct their profits toward diversification into a broader range of environmentally sensitive products and services.
Solar companies in Hawaii have just had another tough year dealing with the permitting bottleneck imposed by HECO. In response, the better managed among them have determined to go back to their customer base to create additional value.
Eric Carlson, marketing director at RevoluSun, one of Hawaii’s largest solar companies, said he has had a positive response to offers to add power for existing customers. The company has also expanded programs for diagnostics, cleaning and maintenance of existing systems. "Upgrades and redesign are a rapidly growing part of the RevoluSun business," Carlson said. My own home has a RevoluSun PV system, and the family was pleased to learn of new maintenance options.
As with medical technologies, building system technologies continue to advance. Today, solar photovoltaic electricity is a clean, indigenous and unlimited source of energy for Hawaii. Mag-lev technologies, first used in bullet trains, are now available in large air-conditioning systems. LED lights provide high-quality, infrared-free illumination. Sensors and monitoring programs now provide better oversight of a building’s health.
While the similarities to the human body are many, unfortunately buildings cannot yet reproduce. Then again, if they could, it would present fierce competition for the construction industry.
Ira “Kawika” Zunin, M.D., M.P.H., M.B.A., is a practicing physician. He is medical director of Manakai o Malama Integrative Healthcare Group and Rehabilitation Center and CEO of Global Advisory Services Inc. Please submit your questions to info@manakaiomalama.com.
