Success Stories / $140,000 in incentives Lowers Cost of a Major Office Building Chiller Replacement

$140,000 in incentives Lowers Cost of a Major Office Building Chiller Replacement

How a building owner, cut costs, secured $445K in incentives, and boosted tenant comfort

Overview

When an office building in Rockville, Maryland needed to replace aging chillers serving a long-term tenant, the owner had a clear goal: upgrade critical cooling equipment without taking on unnecessary project costs.

Spectrum Energy worked with Havtech LLC to identify the incentive opportunity, build the technical case, and secure $140,000 in PEPCO utility incentives. By pairing strong plant data with custom energy modeling, the team helped the owner reduce upfront cost while moving forward with a more efficient chiller plant.

The project also delivered an estimated 510,000 kWh in annual energy savings, equal to roughly $60,000 in annual operating cost savings.

Challenge

The existing chillers were at the end of their useful life, making replacement a practical necessity rather than an optional efficiency project.

That created a familiar problem for owners: how do you move quickly on critical HVAC infrastructure while still capturing every available funding opportunity?

In this case, the scope involved multiple water-cooled centrifugal chillers in a central plant. Projects like this often require more than standard equipment submittals to support an incentive application. To qualify for meaningful utility funding, the team needed credible technical documentation and energy modeling that clearly demonstrated the impact of the new system.

Without that work, the owner risked leaving incentive dollars on the table.

Solution

Spectrum Energy and Havtech took a collaborative approach.

Havtech provided the building and central plant data needed to understand the existing conditions and proposed equipment. Spectrum Energy used that information to develop the custom energy models required to support the incentive application.

The replacement scope included:

Two existing 660-ton water-cooled centrifugal chillers replaced with two 650-ton magnetic bearing chillers
Two existing 320-ton water-cooled centrifugal chillers replaced with one 100-ton magnetic bearing chiller
New chillers featuring:
- Oil-less design
- Variable speed control
- High-efficiency operation

This combination of equipment selection, technical analysis, and incentive support helped make the project eligible for $140,000 in PEPCO utility incentives.

Just as important, the owner was able to apply the incentive as an instant discount on the chillers, reducing upfront project cost at the time of purchase.

Details:

Owner:
Lerner

Equipment Distributor & Rep:

Havtech LLC

Building Type:

Office Building

System Installed:
Magnetic bearing chillers in the central chiller plant

Incentives Captured:
$140,000

Annual Savings:
510,000 kWh estimated annual energy savings

$60,000 estimated annual operating cost savings

Results

$140,000 captured

PEPCO incentives helped reduce project cost.

Lower first cost

The incentive was applied as an instant equipment discount.

510,000 kWh saved

Estimated annual energy savings from the upgrade.

$60,000 saved annually

Projected reduction in annual operating cost.

Conclusion

For owners replacing aging central plant equipment, the equipment decision is only part of the financial picture.

This project shows how Spectrum Energy helps clients capture available utility funding on large HVAC upgrades by combining technical analysis, clear documentation, and practical coordination with project partners. In Rockville, that meant turning a required chiller replacement into a project with $140,000 in incentives, lower upfront cost, and substantial projected annual savings.

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