Built Environment Decarbonization

Consulting + Research + Software + Training

The Company

Philosophy

NeuMod Labs (NML) was founded to develop and deploy data infrastructure for the design, analysis, compliance, and operation of the built environment. NML was founded with the goal of taking a fresh look at the Architecture-Engineering-Construction (AEC) industry and to provide cutting-edge data, automation, and analytics solutions for the sector-wide decarbonization of buildings.

NML’s leadership is applying its 25+ years of combined experience in developing pragmatic solutions to achieving targeted decarbonization goals, by strategically prototyping and deploying the next generation of sophisticated calculation methods and novel technology solutions that foster industrywide collaboration, with a focus on market differentiation. The team has spent years researching and developing innovative data science pipelines and workflows to design foundational technologies for data preparation, model training and tuning, and the deployment of targeted data-driven technologies.

NML leadership is a firm believer in the philosophy of first principles so our typical approach involves deconstructing the problem into its constituent elements, and re-engineering a solution ground-up with simplicity and modern technology at its core. Taking lessons learned from a combined 25+ years of industry experience, reputable thought leadership, and the application of rigorous analytical methods acquired in academia and research, NML is developing cutting-edge data and analytics solutions for the AEC industry.

Mission

Our mission is to facilitate an equitable, pragmatic, and cost-effective decarbonization of the buildings sector to help mitigate the worst effects of climate change.

Certification

NML is a certified small business for federal awards and is registered with SAM.gov.

Our Services

Low Carbon Buildings

Decarbonization is a major focus of the buildings industry and is gaining momentum daily in a variety of aspects from energy use, refrigerant and methane leaks, and embodied carbon to name a few. We conduct deep dive decarbonization studies focused on leveraging interval data from building management system to inform detailed analyses. NML leverages its background in building physics, sustainability, engineering design, and data analysis to determine realistic targets and pathways for decarbonization. The team specializes in projects with complex systems, indoor environmental quality requirements, and/or façade challenges, and often the goal is to achieve maximum benefit while minimizing disruption to ongoing operations.

Buildings Research

NML is closely collaborating with its vast network of industry partners in leading innovative buildings research to advance the goal of cross-sector decarbonization to build and foster resilient communities that are, or will be most affected by climate change. NML and its partners continually identify high-importance R&D areas to work with government, code jurisdictions, trade associations, professional organizations, private businesses, and others to solve this problem with the alacrity that it deserves.

Software & Products

The buildings sector is a highly fragmented market so project delivery workflows are extremely siloed, thus reducing process efficiency, stymieing innovation, and impeding the adoption of advanced technologies. The NML team can help AEC firms gain a competitive edge over their peers by re-engineering their workflows for cost-effective data-driven design, consulting, and automated reporting. It can help turn large data lakes into structed data warehouses for firms to derive automated intelligent insights using completely tool-agnostics data exchange. Standardized data ingestion, transformation, and validation can greatly reduce production costs by encouraging internal and external collaboration and cutting down duplicated effort.

NML’s experience includes typical delivery software such as Autodesk REVIT, Autodesk CAD, SketchUp, Trane TRACE 700, eQUEST, EnergyPlus, OpenStudio, TRNSYS, HAP, ComCheck, and others.

Training & Expert Reviews

NML provides training services to a variety of audiences in buildings and related areas for – Decarbonization, Building Performance Modeling, Data Engineering and Data Modeling, Building Codes and Standards, Programming for Automation, and others. In addition, NML is routinely invited to lend its expertise to review draft standards, funding proposals, and engineering design documents. NML also provides quality assurance and expert legal reviews.

Founders

Sagar Rao
Sagar Rao

Sagar is a renowned expert in the field of Computational Analysis for the Built Environment. His unique background covers building physics, data engineering, and software development. As a Building Performance Consultant, he has successfully delivered over 50 high performance buildings for a clientele that includes federal agencies, state authorities, prominent healthcare systems, renowned universities, financial institutions, and national laboratories. Sagar provides leadership to several ASHRAE, International Building Performance Simulation Association (IBPSA), and Illuminating Engineering Society (IES) committees. He has directly contributed to the development of several building codes, standards, and government regulations, including the US Code of Federal Regulations.

Expertise

Building Codes and Standards Building Performance Modeling Research Climate Modeling for the Built Environment Project Delivery Automation Data Engineering Analytics and Insights Generation

Fred Betz

Fred is a sought-after expert in complex facilities decarbonization and electrification. Fred is a mechanical engineer by training with a PhD in Building Performance and Diagnostics from Carnegie Mellon University. He has 14 years of experience in mechanical engineering and building performance consulting focused on climate responsive design in facilities such as hospitals, laboratories, data centers, and corporate spaces. Fred has published more than twenty peer reviewed articles on topics including: decarbonization, water efficiency and reuse, climate-precipitation, HVAC technologies, and infection prevention related to healthcare facility HVAC. Fred also serves on several industry and trade association committees within ASHRAE, ASHE, and the U.S. EPA.

Expertise

Building Performance Consulting Decarbonization Studies Quality Assurance Review Ventilation and Infection Prevention Building Technology Research, Training

Fred Betz

Key Contributors

Satish Pethkar
Satish Pethkar
Full-stack Web Developer

Satish has over 11 years of experience developing desktop and web application for a variety of industries that include – banking, workplace productivity, healthcare, and media streaming. His past projects include working on technologies such as ReactJS, NodeJS, Angular, MySQL, MongoDB, Django, as well as a variety of web visualization packages. He specializes in deploying software platforms using popular cloud services such as AWS and Azure. He has most recently been developing Electron-based desktop applications. Satish has made significant contributions to web deploying NML’s Project Jarvis.

Parag Rastogi
Climate Change Modeling Expert

Parag did his PhD with the LIPID group in the School of Architecture, Civil, and Environmental Engineering at the Ecole Polytechnique Federale de Lausanne (EPFL) in Lausanne, Switzerland. His research was on the assessment of, and methods to address, uncertainty in building performance simulation arising from weather data and the thermo-physical properties of materials. He is passionate about healthy buildings, infrastructure, and climate. When not working on challenging trans-disciplinary problems in indoor environmental quality and building physics, he is to be found reading or writing about air quality, energy, development, the environment, and policy. Parag is a close collaborator in NML’s research to develop high-quality stochastic predictive climate files for the built environment.

Parag Rastogi

Blogs

Hear Us Out

Economic Analysis for Building Performance Modeling

2021-04-25

Contributor

NML

A very common tool for making decisions informed by energy analysis is the payback analysis. The payback analysis can take on several shapes and levels of complexity, but unfortunately many people use inappropriate terminology or mix and match terms that can’t be mixed and matched. I could send you to this 41 page paper from the U.S. Department of Energy, https://www1.eere.energy.gov/buildings/appliance_standards/pdfs/ashrae_final_rule_tsd_06_lcc_pbp_2012_05_01.pdf, but I thought I’d boil it down to approximately one page.

The reason I raise this is to help clarify expectations between modelers and users of the results data. One of my readers recently pointed a co-worker to a blog I wrote to explain the difference between energy code compliance paths. I’m ecstatic that these blogs are a) being read, and b) being shared with others to provide people insight into the often-opaque world of building performance modeling.

I can’t recall how many times someone has asked me for a life cycle cost analysis (LCCA) and ended up wanting a simple payback analysis. The primary differences are cost and accuracy for calculating an answer. Simple payback may take an hour to calculate whereas an LCCA could take days to collect and enter the necessary information.

More often than not; people want simple payback analysis. That is the incremental cost add of an enhancement divided by the reduced annual operating cost. The simple payback analysis is a perfectly valid approach for many instances, but it has limitations. For example; a good application of simple payback analysis is a standard water-cooled chiller vs. a more efficient water-cooled chiller. Both products have essentially the same components, life expectancy, and maintenance requirements. Therefore; the differences are only the first cost and the operating cost (energy and water via the cooling tower). The results are often expressed in years as the operating cost differences are often measured in annual savings.

Life cycle cost analysis builds upon simple payback and includes additional factors that quantify differences between two options. Finally, it includes the time value of money and is calculated as net present value. For more on net present value please go here: https://hbr.org/2014/11/a-refresher-on-net-present-value

The real value of LCCA is when multiple cost differences exist between two or more options. The differences could be in utilities, maintenance, equipment life, etc. Let’s return the chiller example, but in this case compare an air-cooled chiller vs. a water-cooled chiller. Key differences include:

-lower first cost for the air-cooled chiller,

-higher annual electricity cost for the air-cooled chiller [this is not always the case, but is often true],

-lower annual water cost for the air-cooled chiller

-lower annual maintenance cost for the air-cooled chiller [chemical treatment and cooling tower maintenance]

-shorter life span for the air-cooled chiller causing more frequent replacement costs [see ASHRAE Equipment Life Expectancy Chart, https://www.excelcoservices.com/wp-content/uploads/2017/06/ASHRAE-EOL-Chart.pdf]

The key differences that are being quantified here are the varying escalation rates between electricity and water as well as the time value of money between having to replace the air-cooled chiller sooner and more frequently than the water-cooled chiller.

The time frame of the analysis can be variable, but generally should be set to a multiple of the equipment life or to the building life. For example; in a 50-year building the water-cooled chiller plant may be replaced once whereas the air-cooled chiller will be replaced twice.

One last example is the hybrid approach of simple payback and LCCA. Sometimes additional factors such as annual maintenance are added to a simple payback if there’s a substantial difference. Again, this can be done, but use caution as it’s not necessarily a complete picture. For example; if there’s a substantial difference in labor, and labor escalation rates are significant; then the time value of money can change the results.

Some helpful hints:

-BLCC 5 is a tool developed by the National Institutes of Standards and Technology (https://www.nist.gov/services-resources/software/building-life-cycle-cost-programs) to complete these analyses, but many folks create their own. If you create your own tool that is likely more user-friendly make sure you get the same results and use the same escalation rates. The generally accepted accounting principles for LCCA are not arbitrary.

-For those LCCA’s that exceed the 30 years within the EIA/FEMP energy escalation tables. The 30th year escalation rate is just repeated for each year so that’s why you often see flat lines 30+ years out on an LCCA.

-Inflation is not included in an LCCA because it’s not different between the options. If it’s not different, then it just cancels out. Discount rates and escalation rates are not inflation.

Hope this explanation is clear and brief enough to be helpful so we can move forward together.

Keywords

Simple payback, Life cycle cost analysis, LCCA, Economics

References

Harvard Business Review: Net Present Value

BLCC 5

National Institutes of Standards and Technology

U.S. Department of Energy

U.S. Department of Energy, Energy Information Agency (EIA)

U.S. Department of Energy, Federal Energy Management Program (FEMP)

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