The old fluorescent lighting system at the Japanese Cultural Center of Hawai'i wasted so much valuable power last year that the cultural center's officials decided to invest $60,000 to replace the bulbs and ballasts in their office building, fifth-floor ballroom, gallery and museum.

Not even a year later, the money that the center saves each month on its energy bill pays for the entire cost of the loan for the upgrade. And the cultural center has become part of a growing effort by businesses and organizations to cut energy costs and indirectly ease the burden on O'ahu's power grid.

"A lot of people are getting on board," said Brad Hironaka, the cultural center's property manager. "The cost of energy is skyrocketing, and there's no end in sight."

Now the cultural center is considering an even more expensive upgrade to its air-conditioning system — with Hawaiian Electric Co. paying half of the cost for the feasibility study.

"The structure of our power system here is based on oil, and when oil prices go up, electrical costs go up," said Darren Kimura, president and CEO of Energy Industries, a Honolulu energy management and conservation company that's booming with customers and inquiries this summer. "There's absolutely more interest now than in previous years. Everyone's bill has gone up, so it gets people to think, 'What else can I be doing?' "

HECO REBATES POPULAR

Commercial electricity use actually fell 0.9 percent through June 30 compared to last year, HECO said.

Since last year, applications and inquires for HECO rebates on energy-efficient equipment have jumped 16 percent. In May, HECO doubled its rebates on so-called T8, energy-efficient lighting, and air-conditioning systems, said Dean Oshiro, program engineer with HECO's energy solutions for business program.

"We hope this will provide the incentive for other businesses to participate in our programs," Oshiro said via e-mail. "So far in 2006, we're seeing a 6 percent increase in energy savings for projects completed over this time last year. But we want to see even more energy conservation."

PARKAS IN HAWAI'I?

One obvious indicator of energy inefficiency would be a business with workers who are too warm while others are bundled up in coats, Kimura said.

"If you see people walking around their offices with parkas and gloves in Hawai'i, something's wrong," Kimura said. "You're wasting way too much energy."

In many ways, the upgrades are easier for the Japanese Cultural Center of Hawai'i, whose two buildings are only 12 and 14 years old. But with oil prices soaring this summer, even businesses and organizations in antiquated buildings throughout Hawai'i that used to be considered too clunky to upgrade are now considering both cheap and expensive ways to cut energy costs.

AIA Honolulu, the umbrella organization of Honolulu architects, moved into the historic Stangenwald Building on Merchant Street in 2002 and made simple improvements like prying open the office's windows that had been painted shut decades ago, allowing air in during cooler days.

"Opening up the windows — what a concept," joked Amy Blagriff, AIA Honolulu's executive vice president. "You can do very simple things and still get energy savings."

The organization also installed solar screens on its windows to let in sunlight and keep out heat — reducing the demand for artificial lighting and air conditioning.

AIA Honolulu also removed its false ceiling, which allows its large windows to bring in even more natural light, and installed motion sensors in its new, energy-efficient lighting systems that shut off the power when no one is moving underneath.

FROM OLD TO GOLD

The renovations were recognized as the first Leadership in Energy and Environmental Design accredited project in Hawai'i and received a "gold" rating from the United States Green Building Council.

"Sixty to 65 percent of Ho-nolulu's buildings are energy inefficient, and a good majority of them are old buildings," Kimura said. "But lots of things can be done even to historic, very old buildings."

Individual workers in all businesses can switch off conference-room lights when rooms are vacant and shut down work-station power strips at the end of each day, eliminating the "phantom loads" that continue to draw power even when no one is around. Or work stations can be equipped with motion sensors that cost about $75 each and shut off power automatically when no one's around.

The real savings, though, come from permanent, officewide upgrades that — as the Japanese Cultural Center of Hawai'i discovered — can pay for themselves through rebates and other incentives.

"People in offices don't take ownership of saving energy because they don't own the business," Kimura said.

Hawaiian Host hired Energy Industries to overhaul the lights in its 6,000-square-foot Iwilei factory in November. On top of an 8 percent reduction in energy costs, Hawaiian Host got an $8,000 rebate from HECO.

IS UPGRADE NEEDED?

The general rule of thumb is that a company should consider an upgrade if it can save 20 percent on its energy bill and recoup the cost of upgrades through energy savings within seven years, said Bill Brooks, vice president of Ferraro Choi And Associates Ltd., which is considered an industry leader in sustainable design.

But at Hawaiian Host, "our payback came in less than two years," said Bill Maeda, the company's executive vice president. "That's why we're so excited."

Last year, Energy Industries began financing its projects so businesses can make up the cost of renovations through the monthly savings on their energy bills, Kimura said.

An air-conditioning and lighting renovation at the Ohana Waikiki Malia Hotel last year cost the hotel no money up front and reduced energy costs by 30 percent, Kimura said.

"This customer is actually getting cash back," Kimura said.

Now Hawaiian Host has Energy Industries looking at whether it's economically feasible for the company to install energy-efficient electrical motors and computerized sensing equipment that would shut off power when areas aren't in use, Maeda said.

Even if Hawaiian Host decides against the other upgrades, the energy-efficient mindset has taken hold, Maeda said.

"Anytime we don't use the conference room," he said, "we turn off the lights."

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com.