BMS-Design-Integration
Automation within building
management systems (BMS) is a significant part of managing and
maintaining a large range of systems which are needed for a building’s
full functionality. A building management system can significantly
increase a building’s energy efficiency, occupant comfort and value.
A building management system is essentially the
interconnection of software, and electronic and mechanical devices to
control various building systems, which include security, lighting,
fire safety, and heating, ventilation, and air conditioning (HVAC)
systems.
Navigant Research conducted a
study which stated that commercial building automation revenue will
increase by approximately $30 billion in 2021. Currently, North America
has the largest building management system market and is expected to
continue having the largest market for the next few years.
Manufacturers, designers, and integrators of BMS systems often engage
in activities eligible for Federal and State R&D Tax Credits.
The Research & Development
Tax Credit
Enacted in 1981, the now permanent Federal Research
and Development (R&D) Tax Credit allows a credit that typically
ranges from 4%-7% of eligible spending for new and improved products
and processes. Qualified research must meet the following four criteria:
Must be technological in nature
Must be a component of the
taxpayers business
Must represent R&D in the
experimental sense and generally includes all such costs related to the
development or improvement of a product or process
Must eliminate uncertainty
through a process of experimentation that considers one or more
alternatives
Eligible costs include U.S.
employee wages, cost of supplies consumed in the R&D process, cost
of pre-production testing, U.S. contract research expenses, and certain
costs associated with developing a patent.
On December 18, 2015, President
Obama signed the PATH Act, making the R&D Tax Credit permanent.
Beginning in 2016, the R&D credit can be used to offset Alternative
Minimum tax for companies with revenue below $50MM and for the first
time, pre-profitable and pre-revenue startup businesses can utilize the
credit against $250,000 per year in payroll taxes.
Building Management Systems
Building management systems normally utilize
sophisticated devices such as sensors, software, and cloud-based data
storage. The incorporation of IoT devices allows building owners
to obtain a better grasp of controlling, monitoring and sensing
systems. The addition of a new BMS normally requires customization for
installing, programming and maintaining the system.
The average cost of integrating a
new building management system is $2.50 per square foot but can cost as
much as $7.00 per square foot. However, this can be offset by the
significant energy and maintenance cost savings that these systems
provide. Additionally, with the use of IoT components, owners can save
30% of the cost of a regular system due to lower costs in wireless
sensors and networks that consume less power. It is estimated that the
cost of IoT components will continue to decrease which will make
installing building management systems more affordable for building
owners.
Many smart buildings utilize
building management controls to collect data analytics from various
building systems. This collected data allows operators to detect if
there are any patterns or activities that shouldn’t be occurring. Big
data is helpful when utilized correctly, such as when management
systems are programmed to prioritize data that contain highly critical
alerts or issues. Operators can use this information to create improved
processes or fix any particular issues within building
systems.
There are three main types of
data analytics, consisting of descriptive, predictive and prescriptive
analytics, which are all important for building management purposes.
Descriptive analytics gathers information for operators to analyze what
actions have already occurred within systems. Predictive analytics
incorporate statistical models and assist in forecasting predictions
for building systems. Prescriptive analysis takes advantage of
optimization and simulation to figure out what actions should be taken
to prevent any potential issues.
Besides using analytics, a BMS
keeps track of several building systems through advanced software
systems and various electronic devices. Some of the components
controlled are lighting units, sensors, variable frequency drives, and
actuators.
Software
A major component of building management systems is
the software , as it acts as the brain of the system. New developments
in software algorithms can significantly improve the accuracy,
reliability and function of BMS equipment. Many BMS companies invest
significantly in software improvements, the development of which is
eligible for significant R&D Tax Credits.
Schneider Electric is one of the
many companies investing in these developments, and they have created
SmartStruxure, which is a software system to assist owners in
monitoring and optimizing their building system needs. The software
features a personalized user interface, easy access to information, as
well as a scalable system based on open protocols. To deliver the best
building efficiency, the software assesses certain factors on an
enterprise, operations and control level. SmartStruxure optimizes
energy, operations, and assets to meet financial, regulatory, and
business standards.
Cyber Security
Cyber security can be a serious threat to
building management systems. Owners have realized how important it is
to prevent hackers from disrupting the system and accessing their
private information. Inadequately designed or maintained building
systems can be easily hacked, costing owners a significant amount of
money, stolen information, as well as, the shutdown of systems.
Establishing certain protocols and standards of maintaining the systems
is important to keep information safe.
Variable Frequency Drives (VFDs)
Variable frequency drives are used in various
building systems, mostly for control over pumps, fans and compressors,
more specifically to increase or reduce the speed of these devices.
This provides controllability of equipment, but also creates large
energy cost savings. Because of what is known as the “Fan/Pump Affinity
Laws”, reducing the speed of a motor generates exponential energy
savings.
There are three main types of
VFDs which include current source inversion (CSI), voltage source
inversion (VSI), and pulse-width modulation (PWM). Each type of VFD
offers its unique advantages, but the most widely used is the PWM VFD
due to its lower cost, high efficiency and power source. As buildings
become more automated, VFDs will become more significant in creating
efficient energy systems.
Actuators
Actuators are the components that carry out the
actions of a control system. Developments of these components have the
ability to increase the scope of BMS.
Schneider Electric created a new
actuator called the SmartX MG35OV which was designed to easily connect
with building management systems. The actuator serves the purpose of
lowering operation costs while increasing energy efficiency. The SmartX
actuator contains LED lights and signals to display valve positioning,
alarms, valve blockage, as well as service and internal issues. The
actuators can be used to support variable air volume units, fan coil
units, air handling units, chillers, boilers and heating or cooling
systems.
Lighting Controls
Lighting controls are a popular application for BMS
systems, since they can significantly reduce energy costs and allow for
advanced color schemes. Honeywell is one example of the many companies
focusing on improvements to accuracy and controllability of lighting
controls.
Honeywell Lighting Controls has developed smart
lighting controls systems to improve energy efficiency, by utilizing
smart scheduling, presence detection and photocells to provide the most
optimal lighting solutions. Smart scheduling allows operators to manage
what time to turn lights on and off as well as how long lights should
be on for. Vacancy detectors are used to turn lights off when there are
no occupants in a room, which saves energy usage. Photo sensors are
also utilized to detect when there is enough natural light so lighting
levels can be lowered. All of these devices assist in controlling
and improving building energy consumption.
Sensors
Sensors play a big role in a building management
system, since they are the eyes and ears of the system. As such, a BMS
is only as good as its ability to read the environment around it, which
motivates companies to develop accurate smart sensors.
Enlighted is a startup from
California which has focused on creating a light that is comprised of
sensors which measure natural light, occupancy status, temperature and
more to provide the most optimal energy efficiency. The company has
been testing new concepts and studying how sensors can be used in
lights to further understand how people can best utilize space.
Companies or building owners can now visualize where lighting is needed
or not needed in order to determine how lighting fixture placement or
usage can be improved.
Conclusion
Due to advancements in the efficiency of building
management controls, building owners are now equipped with the tools to
drastically improve their energy usage. With the deployment of new
software and technology, owners will have better control and management
over buildings. Companies involved in creating and improving new
building management control products, as well as companies who
implement these into their buildings and are eligible to receive the
Federal R&D Tax Credit.
