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179D Federal Tax Deduction - Free Webinar

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Author: Robert Fassbender
Posted on: October 24, 2024

Rebates and tax deductions deductions are two pillars of energy modeling.

Everyone should know about the 179D tax deduction. It's basically like a LEED model without the LEED review, and you get paid if the results are promising.

With the help of eSai LLC experts, we will teach you how to receive as much as $5/square foot in federal tax deductions for your energy efficiency projects from 2006 to 2024. The session includes a Q & A discussion from an expert

Bob Fassbender and guest expert Nandini Mouli, PhD will work together to bring you up to speed. You can choose one of the following time slots:

  • October 28, 2-3 p.m. EST
  • November 4, 3-4 p.m. EST
  • Option to request an online copy


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The webinar will answer the basic questions like:

  • What is the E179D tax deduction and who can claim it?
  • How did the E179D deduction increase to a maximum of $5.00 per square foot?
  • When can a designer or architect claim the deduction?
  • What new building categories allow for the designer deduction?

Like all tax incentives, there is fine print that you must know. We’ll cover the nuances to ensure you can maximize your deduction. Items such as:

  • Prevailing wage and apprenticeship requirements
  • Data requirements to review and qualify under the 2024 guidelines
  • Qualifying ASHRAE standard updates

5 BIG Energy Modeling trends for 2025

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Author: Robert Fassbender
Posted on: October 8, 2024

Top 5 Current Trends in Energy Modeling

Top 5 Current Trends in Energy Modeling (With Case Studies)

Energy modeling is undergoing significant changes, driven by technological innovations, evolving codes, and a push for greener buildings. As we adapt, understanding these key trends can help us refine our practices and stay competitive. Below, we explore the top five current trends in energy modeling, each backed by a real-world case study for context.

1. Artificial Intelligence and Machine Learning Integration

Trend Overview: AI and machine learning are now key players in energy modeling, offering faster and more accurate energy consumption predictions. These tools analyze vast datasets and automate complex simulations, reducing manual iterations and accelerating the modeling process. The integration of AI allows for more predictive analytics, especially useful in large projects or urban planning.

Case Study 1: AI Integration/Calibration with EnergyPlus and TensorFlow:

AI Integration with EnergyPlus and TensorFlow in modern office building energy modeling

Energy Modeling to Secure Larger Loans with Lower Interest Rates

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Author: Robert Fassbender
Posted on: August 20, 2024

In the quest for energy efficiency, many property owners and developers are turning to energy modeling to optimize building performance and reduce operating costs. However, the benefits of energy modeling extend beyond just energy savings. Did you know that incorporating energy modeling into your building project can also help you secure lower interest rates on loans? Financial institutions increasingly recognize the value of energy-efficient buildings, and they are offering better loan terms to projects that demonstrate significant energy savings through energy modeling. Here’s how energy modeling can help you save on loan costs, along with a list of specific programs that offer these financial benefits.

The Role of Energy Modeling in Securing Lower Interest Rates

Energy modeling is a powerful tool that allows you to simulate a building's energy performance before it is built or renovated. By using sophisticated software, you can predict how different design choices, materials, and systems will impact energy consumption. This detailed analysis provides a clear picture of potential energy savings, which is not only beneficial for reducing utility bills but also attractive to lenders.

Banks and financial institutions are increasingly offering favorable loan terms—such as lower interest rates, longer repayment periods, or higher loan amounts—to projects that include energy efficiency measures verified by energy modeling. This is because energy-efficient buildings are less risky for lenders; they have lower operating costs and are often more attractive to tenants or buyers, leading to higher occupancy rates and property values.

14 Common Programs that Require Energy Models

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Author: Robert Fassbender
Posted on: August 20, 2024
  1. LEED (Leadership in Energy and Environmental Design)
    Administered by: U.S. Green Building Council (USGBC)
    Purpose: LEED certification is one of the most widely recognized green building certification systems worldwide. Energy modeling is required to demonstrate that a building meets energy performance criteria, particularly for the Energy and Atmosphere (EA) credit category.
  2. 179D Energy Efficient Commercial Buildings Deduction
    Administered by: U.S. Internal Revenue Service (IRS)
    Purpose: This tax deduction encourages the design and construction of energy-efficient buildings in the U.S. To qualify, energy models must show that a building's energy systems achieve certain efficiency thresholds relative to a baseline.
  3. ASHRAE Standard 90.1 Performance Rating Method
    Administered by: American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)
    Purpose: ASHRAE 90.1 is a widely adopted standard for energy efficiency in buildings. The Performance Rating Method, which involves energy modeling, is used to demonstrate compliance with energy code requirements and to achieve additional LEED credits.
    State and Municipal Compliance: ASHRAE 90.1 is often used as the basis for state and municipal energy codes in the U.S., making energy modeling essential for compliance with local regulations.
  4. ENERGY STAR for Buildings
    Administered by: U.S. Environmental Protection Agency (EPA)

5 Times When an Energy Audit Needs an Energy Model

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Author: Robert Fassbender
Posted on: August 19, 2024

Energy audits are essential for identifying inefficiencies in buildings and recommending ways to reduce energy consumption and costs. However, certain situations require a deeper analysis, where a standard energy audit may not be enough. In these cases, energy modeling becomes a crucial tool for providing accurate, data-driven insights. Here are five scenarios when an energy audit truly needs the support of an energy model.

1. When Upgrading HVAC Systems

Heating, ventilation, and air conditioning (HVAC) systems are among the largest energy consumers in most buildings. When an energy audit identifies the need for an HVAC upgrade, it’s important to assess how different system options will perform in the specific building environment. This is where energy modeling comes into play.

Energy modeling allows auditors to simulate various HVAC systems and configurations, comparing their energy consumption, costs, and potential savings under real-world conditions. This level of analysis ensures that the recommended HVAC system not only meets the building’s current needs but also optimizes energy efficiency, reducing long-term operational costs.

2. When Pursuing Green Building Certifications

Achieving certifications like LEED (Leadership in Energy and Environmental Design), ENERGY STAR, or other green building standards often requires a detailed analysis of a building’s energy performance. A standard energy audit may highlight areas for improvement, but it may not provide the detailed performance projections necessary for certification.

Understanding the 179D Tax Deduction and the Importance of Energy Modeling

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Author: Robert Fassbender
Posted on: August 16, 2024

As the push for energy efficiency continues to shape the future of building design and construction, incentives like the 179D tax deduction have become increasingly important for building owners, designers, and engineers. But what exactly is the 179D deduction, and why is energy modeling so critical in this context? Let’s break it down.

What is the 179D Tax Deduction?

The 179D tax deduction, also known as the Energy Efficient Commercial Buildings Deduction, is a federal incentive designed to encourage energy-efficient construction and retrofits in commercial buildings. Initially introduced as part of the Energy Policy Act of 2005, this deduction allows building owners or designers to deduct a portion of the costs associated with energy-efficient improvements from their taxable income.

For buildings placed in service in 2024, the deduction can be as high as $5.00 per square foot for qualifying energy-efficient measures. This can translate into significant tax savings, especially for large commercial projects. To qualify, the building must demonstrate substantial reductions in energy use intensity (EUI) compared to a baseline established by the ASHRAE 90.1 standard.

The Role of Energy Modeling in 179D

Energy modeling is at the heart of the 179D deduction process. It’s a sophisticated simulation process that allows designers and engineers to predict a building’s energy consumption based on its design, systems, and operational characteristics. Here’s why energy modeling is essential:

Baseline Comparison

What is Energy Model Calibration? Pt 1

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Author: Robert Fassbender
Posted on: January 14, 2021

It seems to me that the whole building energy simulation community has become fixated on the topic of "How to calibrate an energy model." Calibration ensures long term growth of the energy modeling industry because a calibrated model commands respect across multiple disciplines. Calibration is nearly always useful, albeit unnecessary, in many circumstances. First things first:

What does it mean to calibrate an energy model?

In laymen's terms, calibrating an energy simulation means "Gathering the actual energy used by the REAL building, after the building has been fully operational for some time - usually about a year - and then adjusting energy model inputs so that the simulation output more closely approximates the energy consumed by the real building"

When can a simulator calibrate a model?

The simulator requires a completed initial model AND the actual building energy consumption after it has been in full operation for some time (ideally, a full year).  At that point, one can compare the model results to actual data determined by the unique condition called "reality". The simulator may subsequently adjust the model's inputs so that the modeled outputs align best with the building's energy consumption in real-world operation.

Do all models require calibration?

Not all models require calibration. Many simulators do not intend to predict the actual results. Instead, many simulators create models to yield a comparative product. For example, if a simulator calculates electric resistance heating compared to a gas boiler, the simulator expresses the energy cost in terms of a percent difference. In most cases, a calibrated model produces a similar percent difference, especially if the model has reasonable assumptions.

How to add a 2nd meter in eQUEST

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Author: Robert Fassbender
Posted on: October 21, 2020

From the mailbag:

An energy-models.com trainee asked a great question: Can I determine the individual energy consumption of an individual room or zone?

There are multiple options, from creating custom hourly reports and load tracking, but that gets complicated in a hurry. The answer is not perfect but the main thing to do would be create a submeter. 

If a user wants to truly isolate the energy of an individual room, it depends if the room has a room level fan and room level cooling. Otherwise, you can't necessarily determine the exact impact of a room. You could potentially estimate that if a room at 600 cfm of a 6000 cfm fan, that it would be 10% of the fan energy but really only works in the case of a constant volume fan. The cooling and heating would be tricky because it depends on values specific to the zone, including geometry and other schedules. In the case of shared equipment, the KW/ton changes depending on the block load. A secondary meter is your best bet.

To create a 2nd meter:

  • Go to the Utilities and Economics module on the far right (assuming detailed mode).
  • Find the first meter, usually called, "EM1"
  • Right click to create a new meter
  • It will use the default name, "Electric Meter 2" but you can and should name it an appropriate unique name that will act as a descriptor, such as the zone name if you are going to create many of these.
  • Select "Copy Existing Component" in the dropdown. eQUEST should automatically pick EM1 (because it is currently the only choice!) and click okay.

There are many options that will pop up for you to change, but once you create EM2, the defaults will do the job of creating a 2nd meter that is ready to use.

Self-learning is a necessity. I'm living proof

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Author: Robert Fassbender
Posted on: October 21, 2020

I have spent a great deal of my career teaching. Would it surprise you to learn that I am a terrible student? (or not be surprising at all?). I can't seem to pay attention in a classroom. I get too chatty, distracted, or I get too bored. I'm sociable, but learn best by self-study, which I learned in my freshman year of college. I even set a goal of staying awake through an entire lecture hall presentation. I met that goal only once or twice.

It even came to the point where one of my professors singled me out in a lecture hall of about 250 students, I still couldn't stay awake. The professor complained about his dislike of those sleeping in class, and I didn't hear him because I was asleep. Then, he shouted, "Like that guy right there!". I awoke, and he demanded that I come up to the front of the classroom. I was like, "Um, no" because he didn't know my name, and I knew I would say, "I'm sorry, Professor Enchanting" if he let me near the microphone. Too bad he didn't know my name, he would have found it amusing when he saw that I received the 1st or 2nd highest score on the his midterm.

Despite the good grade, it was still a significant flaw, and I'm not proud of it, but that story was pretty funny. I frequently heard it retold, as someone said, "Hey some kid got called out for sleeping in class in a huge lecture hall" and then I would laugh and say, "That was me!" (okay, I was a little proud of that one)

Visual Aid Contest - Project StaSIO

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Author: Robert Fassbender
Posted on: April 9, 2019
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