While renewable energy systems often get all the attention, building efficiency is one of the most cost-effective ways to cut operational energy costs. It reduces household expenses, infrastructure costs, and carbon emissions.
It also creates jobs, boosts the economy, and increases property value. What’s more, it costs less than adding new generation.
Estimating the Cost of Energy Efficiency
In a time of rising energy costs, every kilowatt counts. Business owners are pressed to reduce carbon usage while maintaining profitability. Optimizing energy usage can lower operating costs, as well as extend the lifespan of equipment and other assets. But figuring out how to maximize efficiency in your building requires a thorough understanding of its current performance.
The first step is calculating your building’s energy use intensity (EUI), or its rate of energy consumption per square foot. The EUI is calculated by dividing a building’s total annual energy use, including both electricity and natural gas, by its floor area. It is similar to a car’s fuel economy rating in that it provides a benchmark for comparing energy efficiency among buildings of the same type and size.
A more detailed analysis of a building’s energy use can be performed with DOE’s EnergyPlus software, which has been used to simulate the energy demand for 16 prototype buildings with various occupancy types. This data can be used to estimate a building’s expected energy costs and compare the cost of various efficiency measures.
NREL’s technical solutions aim to overcome two barriers that hinder the adoption of energy efficiency in small commercial buildings: high transaction costs and unacceptably high levels of risk. Working with partners like Michigan Saves and Energi Insurance Services, NREL developed tools to facilitate a simple and quick process for financing efficiency upgrades that lower energy costs and mitigate risk for lenders. These include an energy-savings calculator, a streamlined loan application, and innovative technical solutions to measure and verify savings.
Measuring the Energy Efficiency of Existing Buildings
Energy efficiency or power-saving measures are one of the most effective ways to save energy and minimize operational costs for buildings. It also preserves nonrenewable resources, such as natural gas, and ensures that renewable energy can be stretched out as far as possible to avoid needing to build new energy generating stations.
The best way to find out how much of your building’s energy is being wasted or lost is to perform an energy audit. This will give you a professional assessment of your building’s energy usage and provide recommendations for improving efficiency. This can include upgrading your lighting to LEDs, zoning your building with multiple thermostats to control energy usage in different areas of the facility, and installing smart technology like occupancy sensors.
A common metric used to measure building energy efficiency is known as energy use intensity (EUI). EUI is a measurement of the amount of electricity and/or gas your building consumes per unit area of floor space. This varies considerably based on building program, climate, and building size. A great place to start is with the EPA’s Target Finder website.
Commercial real estate companies are increasingly interested in investing in energy efficiency, as it offers many benefits to their investors. Not only does it increase property value, but it lowers operating and maintenance costs to improve profit margins. In addition, reducing needless energy and fuel consumption can extend the lifespan of appliances and equipment, further saving on repair and replacement costs.
Maximizing the Energy Efficiency of Existing Buildings
The building industry accounts for a significant portion of the world’s energy consumption. Energy-efficient buildings are a critical component of reducing greenhouse gas emissions, saving water and energy, and creating a healthier indoor environment. However, many existing structures are not as energy efficient as they could be. Building owners can reduce their energy consumption by improving insulation, installing high-performance windows, incorporating renewable energy, and utilizing smart technology.
Investing in energy efficiency upgrades can save money for building owners and tenants. Efficient insulation, high-performance windows, and advanced HVAC systems significantly reduce the demand for electricity, heating, and cooling. In addition, the use of smart technologies can enable real-time occupancy data to optimize lighting and HVAC system operation.
These investments may also improve occupant comfort and increase property value. For example, replacing traditional incandescent light bulbs with LEDs might cost more upfront, but they will last longer and use less electricity. They can also provide financial benefits for low income urban residents, who typically pay a higher percentage of their income to energy costs.
Investing in energy efficiency is a cost-effective way to cut greenhouse gas emissions and help stabilize the energy supply. Traditional energy sources, such as oil and gas, are often imported, making them vulnerable to dramatic price increases and supply disruptions. On the other hand, investing in energy efficiency measures can lower overall demand and reduce reliance on fossil fuels.
Implementing Energy Efficiency
Taking action on energy efficiency isn’t just good for the planet – it’s good for your building’s bottom line, too. Energy efficient buildings enjoy lower electricity and heating costs, and many are eligible for tax incentives that can help offset some of the initial investment.
Using energy-efficient building methods and technologies is a great way to decrease your building’s overall energy consumption without compromising the operation of the building or its comfort level for its occupants. This can include simple changes like replacing incandescent light bulbs with LEDs and sealing air leaks, to more involved projects such as installing new insulation or a smart HVAC system.
It’s also important to take the time to identify areas of opportunity in your building. The variance between a building’s actual and modeled energy usage data can reveal significant opportunities for improvement and savings. This can be done by analyzing a building’s annual electricity and gas usage (as measured by an EUI) against its design specifications.
Finally, don’t forget to consider the value that comes from the ENERGY STAR label on green buildings. Several studies have found that ENERGY STAR-labelled buildings enjoy a lower default risk on commercial mortgages, which can help them secure better loan terms and more favorable interest rates than non-labeled buildings. This can result in significant savings on energy and operating costs in the long run.