Skyway Community Center Gut Rehab

Seattle Housing Authority & Local Development Partners

FSG Role

  • Consulting Engineer

Organization Type

  • Community Non-Profit

Timing

  • Redevelopments bids 2023

Building Type

  • Commercial

  • Community Support Center

Size

  • 2-floor building

  • 4,998 square feet

Existing Conditions

  • Natural gas furnace

  • Packaged rooftop AC

  • Electric resistance DHW heater

Overview

As part of its mission to provide equitable, sustainable community spaces, the King County Housing Authority (KCHA) sought to elevate the energy performance of the Skyway Resource Center. Facility Strategies Group (FSG) was engaged to identify and evaluate available funding and incentive pathways that would enable KCHA to integrate high-efficiency systems while minimizing upfront capital costs.

The Skyway Resource Center presented a unique opportunity to integrate advanced electrification technologies—such as ground-source heat pumps, solar photovoltaics (PV), and battery energy storage systems—into a single design framework. Facility Strategies Group (FSG)’s role was to assess the financial and technical feasibility of these systems, quantify their impact on energy performance, and map them to available local and federal incentive programs. The Inflation Reduction Act (IRA), including direct-pay options for public agencies and tax-exempt entities, created a powerful set of funding mechanisms that could be strategically leveraged for maximum value.

FSG delivered a comprehensive analysis focusing on HVAC upgrades, solar photovoltaics (PV), and energy storage systems. Our goal was to maximize incentive capture through local utility programs and federal tax benefits. By aligning technical upgrades with incentive frameworks, FSG positioned KCHA to make cost-effective decisions that enhance energy performance, reduce long-term operational costs, and support climate goals.

Analysis

FSG’s approach began with a technical and financial assessment of energy efficiency measures (EEMs) and renewable energy systems that could be applied to the Skyway Resource Center. The analysis was centered on three core areas of opportunity:

  • Space heating and domestic hot water (DHW) systems, with a particular emphasis on high-efficiency VRF and geothermal solutions

  • Solar PV integration, including structural, electrical, and generation potential evaluations

  • Battery Energy Storage Systems (BESS), assessing physical capacity and cost-benefit of energy storage options

To support federal tax credit claims, FSG developed a baseline energy model using eQuest, simulating the Skyway Resource Center’s current and proposed designs in compliance with ASHRAE 90.1-2019 Appendix G. This model established a quantifiable baseline for capturing the 179D Commercial Buildings Energy-Efficiency Tax Deduction and evaluated performance thresholds for VRF system rebates offered by Puget Sound Energy.

FSG evaluated both the Investment Tax Credit (ITC) and 179D deduction incentives in depth—identifying applicable tiers, determining eligibility under prevailing wage requirements, and modeling potential savings for various system configurations. Additionally, FSG reviewed solar readiness of the facility’s electrical systems and rooftop structure, and outlined integration opportunities for distributed energy resources (DERs) including scalable PV and battery systems.

Deliverables

FSG’s analysis unlocked a robust suite of financial incentives and technical recommendations that will support KCHA’s path to high-efficiency electrification at the Skyway Resource Center.

  • Federal Tax Incentive Pathways: FSG identified up to 50% ITC eligibility for solar PV systems and 40% for geothermal systems, based on prevailing wage compliance and project characteristics. Modeling showed the building would qualify for the maximum $5.00/sqft 179D tax deduction, amounting to $25,000 in potential savings.

  • Local Utility Rebates: Based on proposed system design and building size, FSG confirmed potential eligibility for $10,000 in VRF retrofit incentives from Puget Sound Energy, pending system sizing refinements and envelope compliance adjustments.

  • System Cost-Benefit Evaluations: FSG compared lifecycle and incentive-adjusted costs between VRF and geothermal systems. FSG’s findings showed that geothermal installation, after incentives, would cost $58,000 less than the baseline VRF design, while delivering greater energy efficiency.

  • Solar + Battery Integration Planning: The facility was confirmed as solar-ready, with electrical panel capacity and rooftop area suitable for a 22.5kW PV array. FSG projected 47% of daily energy usage offset and identified sufficient space in the MEP room to install a battery system capable of storing up to 3.2 days of building energy demand. After ITC incentives, the combined solar + storage system cost was projected at $27,506, creating a cost parity opportunity for greater resilience.

Through this work, FSG delivered actionable financial modeling, engineering insight, and incentive alignment—providing KCHA with a clear roadmap for a sustainable, cost-effective building strategy. This analysis positions the Skyway Resource Center to become a model for energy-efficient, incentive-backed community infrastructure in Washington State.