Building owners are increasingly embracing energy efficiency technologies as a way to improve their bottom line by reducing their energy and operational costs, while simultaneously reducing their carbon footprint.
In a recent analysis by Deloitte, the big four firm indicated that building managers’ views on energy generation have matured and “may be past the point of no return” after seeing firsthand the tremendous benefits that installing energy efficiency equipment can have on bottom lines. Of the sampled businesses, 79% view reducing electricity costs as critical to maintaining a “competitive advantage,” and many have instituted formal energy reduction goals. Additionally, cost cutting was cited as a motivation for 59% of respondents, and more than 55% of businesses now generate energy on-site. According to Deloitte, owners are increasingly controlling their own energy eco-systems through instituting better management controls, demand side efficiencies, batteries, and renewable power and cogeneration.
Energy Savings Performance Upgrades
A management decision to install energy efficient equipment is relatively easy to make compared to whether to invest in more costly on-site generation. Reducing energy and operating expenses through energy efficiency upgrades can provide a relatively quick payback. Retrofitting a commercial building with LED lighting for $400,000, for example, could yield a two year payback and save $200,000 a year in operating expenses. Energy efficiency however encompasses a much wider spectrum of options. These include upgrades and replacements of existing and aging facilities such as boilers and chillers, installing control, automation and building management systems, electrical system upgrades, weatherization, advanced HVAC, air handling systems and/or central plants.
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