For Convenience Stores, Energy Retrofit Is Convenient Solution
Texas convenience stores save a bundle with upgrades to lighting and refrigeration equipment. They learned that energy retrofit is convenient solution to rising electric bills.
Author:George EvansSep 02, 202411.1K Shares227.9K Views
A popular type of business discovers that energy retrofit is convenient solutionto its energy consumption concerns.
For convenience stores in Texas, a penny saved is a penny earned.
The state sees summer temperatures that exceed 100 degrees Fahrenheit, which drive up energy costs and can be crippling for convenience stores that often battle long hours of operation (many are open 24 hrs.) and house quick-serve restaurants, as well as multiple refrigeration units.
To make matters worse, the stores continue to see slowing growth of in-store food and merchandise sales, along with declining motor-fuel sales.
An industry report by Convenience Store Newsreveals that convenience stores across the U.S. experienced a rough year in 2013, with:
- total sales down - 1.1%
- motor-fuel sales down - 0.2%
These numbers mark a troubling trend for the convenience-store industry, and increasing numbers of operators are looking for ways to boost their bottom line-one of which is reducing their permanent operating expenses.
Sugarland Petroleum
Sugarland Petroleum, a large convenience-store jobber in Southeast Texas that owns more than 30 stores throughout the state, turned to Energy Efficiency & Sustainability (EES) Consulting in Houston, to assess the energy efficiency of two of its stores.
A Shell store in Houston and a Valero store in Humble, Texas, were thoroughly inspected and evaluated to determine the efficiency of their:
- HVAC (heating, ventilation, and air conditioning)
- windows
- refrigeration
- lighting systems
To help Sugarland Petroleum realize the biggest bang for its buck, EES used its three-step “EESy Method” of:
- assessment
- implementation
- financing
Here’s what EES did:
1. First, it assessed the stores’ energy-efficiency needs and recommended solutions.
2. Second, it implemented the solutions Sugarland Petroleum chose for the two stores.
3. Third, it helped Sugarland Petroleum pay for the retrofit using rebates and tax incentives.
EES consultants developed a customized solution based upon Sugarland Petroleum’s specific needs, including:
- energy-efficient lighting
- beverage-cooler motors with variable-speed controls
- efficient cooler door heaters
Sugarland Petroleum implemented solutions that take a two-pronged approach to reducing energy usage: efficient lighting and refrigeration products that use fewer kilowatt hours to operate, while also decreasing the heat load on the store’s HVAC units.
When the amount of heat that is generated inside the building through equipment heat output is reduced, that directly translates into less work that the HVAC unit must do to cool the building.
In the Shell store, the interior and exterior lighting retrofit included:
- LED (light-emitting diode) canopy fixtures
- pole lights
- ceiling-grid lay-in fixtures
- wall packs
It resulted in a reduction of 102,990 kilowatt-hour (kWh) per year.
EES also retrofitted the refrigeration in the Shell store with:
- door-heater cooler units
- electronically commutated motors for walk-in coolers
- evaporator-fan controllers
It resulted in an annual reduction of 8,828 kWh.
The Valero interior and exterior lighting retrofit used:
- LED roadway streetlights
- PAR30 lamps
- A19 lamps
- ceiling grid lay-in fixtures
- wall packs
It resulted in an even more impressive annual reduction of 129,258 kWh.
By implementing the same refrigeration solutions at this larger store, usage was reduced by 29,742 kWh/year.
Energy And Financial Savings
Prior to the EES lighting and refrigeration retrofit, the Shell store was using an average 16,407 kWh/mo. After the implementation, the store’s average kWh usage decreased 30% to 11,404 kWh.
For the Valero store, the results were similar.
This larger store once averaged 41,425 kWh/mo. but saw a 33% reduction to 32,480 kWh post-EES implementation.
Sugarland Petroleum director of operations Hasan Zakaria was extremely pleased and appreciated the accuracy of the initial assessment.
He said:
“„They’re honest, hardworking, and just a good company to work with. That was the good thing. Everything was very accurate and that basically did the job going forward.- Hasan Zakaria
For the Valero convenience store in Humble, EES projected that the store would:
- realize $15,420 per year in energy savings
- see a 143% return on investment (ROI) over 10 years (ROI calculated with a 10-year NPV, or net present value, of annual savings with a 7.5% discount rate)
This estimate was modest, and the convenience store realized a $15,780 annual savings after the implementation process.
The two stores accounted for 6,700 sq. ft. of space and used between 57,000 and 68,000 kWh/mo.
After the implementation process, the kWh consumption plummeted. In March 2014, the Shell and Valero stores used only 34,720 kWh, combined.
This is a significant achievement because the Valero store also contains a Church’s Chicken quick-serve restaurant, which increases utility and operating costs.
This means both stores realized a combined annual energy savings of $26,660.
On top of the decreased maintenance costs and a decreased run time for the walk-in coolers, EES was also able to reduce the combined utility costs by 32%.
EES projects that both projects will pay for themselves in three years.
Payback Beyond The Bills
While Sugarland Petroleum was looking to cut operating expenses, the need for energy-efficient products was not strictly financial.
The company was also looking for a way to improve the experience for customers inside and outside the stores, as well as differentiating themselves and influencing potential customers to choose one of its stores.
Zakaria said:
“„Curbside appeal is everything. Customers need a reason to come to our stores, as opposed to the competition.- Hasan Zakaria
For both stores the outside lighting quality was improved, making them safer at night. Inside the store, products are well lit, giving new life to the stores and the brands that line the shelves and stock the coolers.
Zakaria commented:
“„The stores now look like they are brand new. The lighting is better and it’s a better customer experience.- Hasan Zakaria
Marketability is a crucial factor for convenience stores working to differentiate themselves from the thousands of stores across the United States that often look the same inside and out.
Now, Sugarland Petroleum has that “X factor” that could cause a potential customer to visit one of its convenience stores, as opposed to another right across the street.
Furthermore, the lighting inside the store makes items more appealing, so that after people are drawn to the store, they also spend money on in-store food and merchandise.
Zakaria said:
“„Before, we had new items that looked like old items sitting on the shelf. Since the upgrade, we’ve seen more of these products sell.- Hasan Zakaria
By consulting with EES, Sugarland Petroleum was able to:
- improve its bottom line
- reduce operating costs
- increase the marketability of two stores
- improve the customer experience
- become good stewards of the environment
The best part is that the project will go beyond payback for Sugarland Petroleum.
Zakaria said:
“„In 10 years, we expect to see a 136% net return on investment. This will help us not only recoup our investment but contain operating costs going forward.- Hasan Zakaria
Final Thoughts
After seeing the results from the two stores, Zakaria is ready for more.
He signed up five more of his sites for the “EESy” assessment and is looking forward to saving even more money once those projects are completed.
He experienced, himself, how energy retrofit is convenient solution to a convenient store’s energy-saving worries.
George Evans
Author
George Anderson, an exceptional architectural designer, envisions and brings to life structures that transcend the realm of imagination. With an unwavering passion for design and an innate eye for detail, George seamlessly blends form and function, creating immersive spaces that inspire awe.
Driven by a deep appreciation for the interplay of space, light, and materials, George's innovative approach redefines the possibilities of architectural design. His visionary compositions leave an indelible mark, evoking a sense of wonder and transforming the built environment.
George Anderson's transformative designs and unwavering dedication continue to shape the architectural landscape, pushing the boundaries of what is possible and inspiring generations to come.
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