Mercedes Homes, an owner/operator of upscale apartments in prime Toronto neighbourhoods, has proven that premium grade mechanical renewal in mid-sized buildings can be great investments, even without incentives.  In 2007, Mercedes Homes replaced hot water heating plants in three mid-sized buildings (34 suites, 79 suites, 71 suites), exceeding their savings and financial targets.  Click here for financial details.

 

The plants were monitored for gas use through 2008, demonstrating weather-adjusted savings of 26.4%.  A capital investment of k$260 has increased property values by about k$685, while replacing systems that were beyond the end of their useful lives.  According to Mike Thomas, an engineer who worked on the project, "Mercedes Homes could have done a lesser job for half the cost.  But they would have had less reliable equipment and no reduction in gas consumption.  At the end of the day, a low-cost project would have been pure expenditure, with no return on the investment at all."

 

The Mercedes Homes projects included European cast iron sectional boilers with modulating burners, full direct digital controls with web interface, and repiping and venting for highest efficiency.  The new plants are complete replacements, using components that are more efficient and much more durable than the original equipment.

 

A number of key lessons were learned on the project:

Mr. Thomas was pleased that the results exceeded the target savings of 20%.  "Especially noteworthy is that Mercedes Homes didn't go for a partial job or cheap equipment.  They took the long view with a custom-engineered, high quality solution, and now everyone is happy with the results."