Economic Impact of Wind & Solar Energy on Buildings
Ernst Diener, Economist
For Hospitals:
Each dollar saved in energy costs is equivalent to generating new revenues of $20 for hospitals, or $10 for medical offices and nursing homes. So if you produce $250,000 per year with a wind turbine it is equal to generating $5,000,000 in new annual revenues for hospitals or $2,500,000 for medical offices and nursing homes.
For Hotels:
A 10% reduction in energy costs for the average full service hotel is equivalent to increasing Average Daily Rate by 2.6% and increasing Occupancy Rate by 4.3%. For the average limited service hotel, a 10% reduction in energy costs is equivalent to increasing Average Daily Rate by 1% and increasing Occupancy Rate by 2.4%. Now consider, what this means to your hotel if you can produce$250,000 per year of electricity per year with a wind turbine.
For Office and Industrial Buildings:
Each dollar invested in energy performance improvements in commercial real estate at a 20 to 30% savings rate, is equivalent to increasing Net Operating Income by 3 to 4% and increasing Asset Value. So consider the impact if you produce $250,000 in power with a wind turbine, you increase the NOI of the building, and capitalized at 10%, your building value increases $2,500,000.
For Supermarkets:
A 10% reduction in energy costs for the average supermarket is equivalent to increasing net profit margins by 15%, increasing Earnings Per Share by $.06, and increasing sales per square foot by $71. Consider what it means if you produce $250,000 per year for your super-market in power savings.
For Churches:
If your church can create $48,000 in electricity savings through wind power or renewable energy it is equal to increasing your church membership by almost 50 members. If your church can create $250,000 in renewable energy it is equal to increasing your membership by 228 members.
For Convenience Stores:
A 10% reduction in energy costs for your store, is equal to your increasing your net profits by at least 15%, plus the wind turbine will drive in additional traffic, and increase your gross sales within a range of 11% to 19%.
For Schools and Universities:
2 80 kwh wind turbines that can produce a total of $120,000 per year in energy savings can allow you to hire additional teachers, buy books, increase educational potential.
