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Lessons Learned
The number one reason for businesses to invest in energy efficiency is to cut operating costs and improve bottom line performance. Companies that initiate programs reap significant savings that continue year after year, even after investment costs have been recouped. Energy use and subsequent energy costs are minimized. Optimized operation of building systems reduces maintenance and repairs, while prolonging the useful life of capital-intensive equipment. Upgrades to building systems, such as enhanced automated controls, increases the property value and attractiveness of commercial buildings to prospective tenants and buyers. These benefits quickly add up, typically achieving a high rate of return for energy efficiency investments. Owners of income properties have additional financial incentives available to undertake energy efficiency projects. Reducing operating costs boosts net operating income and is an easy way to achieve internal growth. This is especially useful during periods in the real estate market when external growth - buying and building - may not be profitable or feasible. At the same time, tenants are faced with rising energy costs as well as greater demand for energy to power office equipment and other electronic or mechanical devices. With the State establishing a benchmarking framework for commercial properties, the energy use intensity of buildings will increasingly be a factor in tenant selection of rentable office space. Quantitative financial benefits from energy efficiency projects: - Lower utility bills by as much as 30 percent or more.
- Reduce peak energy use; lower utility rates for peak use.
- Increase net operating income.
Qualitative financial benefits from energy efficiency projects include:
- Increase asset value - for every $1 invested, asset value increases by $3.
- Reduce maintenance and repairs of equipment.
- Prolong the useful life of capital-intensive equipment.
- Boost worker productivity and reduce absenteeism due to health issues.
- Retain existing tenants and attract prospective ones.
- Reduce risk liability associated with indoor air quality.
- Demonstrate the ability of facility staff to contribute to bottom-line performance of a company.
- Report energy use efficiency and water use efficiency to shareholders and other company stakeholders; demonstrate ability of company management to tackle complex problems.
Corollary benefits from energy efficiency-projects include:
- Reduce 6 lbs. of greenhouse gas emissions for every 10 kilowatt hours saved.
- Improve comfort of building occupants; eliminate drafts and temperature fluctuations.
- Increase attractiveness of interior design.
- Minimize visual and audio distractions.
- Improve visual acuity through lighting retrofits.
- Improve reliability of energy for the local community.
- Conserve limited water resources, minimize wastewater, and reduce stormwater runoff.
- Comply with government environmental, health, and safety regulations.
- Garner positive media and public recognition for environmental stewardship.
Companies across the country are investing in energy efficiency to help minimize the impact of volatility in U.S. energy markets. Energy management systems and energy projects provide property owners and managers with powerful tools to take control of energy reliability for their businesses. Reducing operational costs allows businesses to maintain competitiveness in tight international markets. Indeed, improving energy efficiency is fast becoming standard procedure for leading companies. A host of incentive programs and service providers support these efforts, available to those willing to explore their energy options. The time is now. Flex Your Power.
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