Little Neck co-op installs cogeneration plant, saves a ton in energy costs

Image source: squirrel83 on Flickr

Habitat Magazine published a very interesting article recently about the Little Neck Americana co-op that installed a cogeneration plant, after searching for a non-oil-based fuel solution to heat the water and building, and provide enough power for central air conditioning. The impetus toward this decision was the discovery in 2008 that their 25,000 gallon heating oil storage tank was leaking oil into the ground. The co-op took appropriate measures to stop the oil from going into Little Neck Bay (cleanup of the co-op property cost about $400K), because if it had, the fines for that mess would have been “crippling.”

So, the co-op board figured they had to make some changes in this aspect of the co-op. Enter Carl Caridi of Metro Management, who suggested installing a cogeneration plant (AKA CHP for “combined heat and power”). This is where a single power source produces both heat and electricity simultaneously. This way the co-op would be producing much of its own power, and rely less on outside sources for it; not to mention the risk of a cracked oil tank would no longer be a concern.

To fund this project, the co-op qualified for New York State Energy Research and Development Authority (NYSERDA) financing, since their energy usage would decline by at least 20%. They also got funding from federal programs, shareholders could write off some of the boilers and air conditioners on their taxes, and they refinanced their mortgage, among other things.

The cogeneration system started operating in 2011, and in the end, the co-op has reduced its energy costs by 85%. That is quite a savings. According to the article, since the readings were low, Con Ed originally rejected them, assuming something was off (the billing issue was later resolved). This massive savings is reminiscent of Astorian Frank Adamick who put solar panels on his roof – he produces so much energy with this alternative power source, that ConEd is required to buy back the extra power. And of course, earlier this week we wrote about green buildings in LIC. It is fascinating to see what people in Queens are doing about their relationship with energy and energy sources.

A Queens Co-op Slashes Its Electric Bill by 85%. How? With Cogeneration. [Habitat]