Energy costs are among your fastest growing expenses, and will only grow more in upcoming years. Making your building portfolio more energy efficient will not only save you significant money, but has other significant, direct economic benefits. This is not hypothetical, but proven in actual buildings. Here are five purely business reasons to invest in energy efficiency in 2015.
1. The monetary case: Given its high cost, energy use reductions will result in significant cost savings. There is no risk (what if?). A lower wattage light uses less energy than a higher one. Period. A good energy audit will reveal many cost saving opportunities. One of the beauties of energy reduction is once you have implemented actions you need not repeat them (unlike sales). Plus, the government wants you to reduce energy and will pay you incentives for some of the upfront costs.
2. Attract tenants or buyers to your offerings: More companies and people are interested in energy efficiency to cut down their costs and as something to claim to their stakeholders. They want and will compare such info. More effective ventilation and properly-focused lighting improve worker productivity and the shopper's experience, leading to greater sales and reduced employee sick days for the tenant. There is growing experience that energy efficient buildings attract more potential tenants, giving those managers a competitive edge, particularly in a tight market. In NYC, Local Law 84 requires submittal of energy data for large buildings. Thus energy data is available for prospective tenants to review and compare.
3. Reduced O&M costs and reliability: One of the many gains in the recent energy technology revolution is equipment that lasts longer and need less maintenance. One example: LED lights are commonly warranteed for 10 years. They need much less frequent replacement than common fluorescent fixtures, freeing up your maintenance staff to complete other jobs that tenants are demanding. Also, fewer bulb replacements means fewer trips up the ladder, reducing the risk of an accident and lost worker time.
4. Secondary cost savings: Speaking of LEDs and reduced O&M costs, LEDs do not "burn." Therefore, their use reduces the heat load to your HVAC system, reducing your peak summer electricity usage - a cost savings!
5. Regulatory benefits: NYC has promulgated a number of laws in the last few years to reduce energy use or to use cleaner sources. By performing a proper energy audit and upgrading properly, you will be "ahead of the curve," as more regulations are likely in the future.
CCES has the technical knowledge and real life experience to evaluate your building to provide multiple feasible, cost-saving options for you and to gain the maximum financial benefits possible. Contact us at 914-584-6720 or [email protected].
Marc Karell, P.E., CEM, EBCP, is the president of Climate Change & Environmental Services, LLC, Mamaroneck, N.Y. Tags: