Control Costs with Energy-saving Measures

With nearly 67 billion sq. feet of commercial floor space in the United States, commercial buildings account for approximately 17 percent of the total energy consumed in the country, and at an average cost of $1.21 per sq. foot, according to the American Council for an Energy-Efficient Economy (ACEEE).

And on a global scale, buildings, in general, account for as much as 40 percent of energy consumption, according to a recent report from the United Nations Environment Program (UNEP) Sustainable Building and Construction Initiative (SBCI). That’s quite a bit, and it’s not too far-fetched to say buildings may contribute significantly to the climate change.

You can become a part of the effort to decrease these amounts by implementing energy-efficient practices. And you may get a tax break to boot. Doing so takes some work and a lot of commitment, but that is far outweighed by the benefits to your bottom line and the environment.

Evaluate
“You need to check your energy consumption,” says Harvey Sachs, buildings program director for ACEEE. “It’s about learning how to pay attention to your bills and understanding how much you are spending and on what. Start treating the energy consumption like it is a leak in your budget.”

Sachs recommends talking to your various utilities account representatives; ask them how you can cut your costs. “Start thinking of the building as a system; figure out how to use energy,” he says. “The most obvious use is lighting. There have been tremendous advancements in lighting in the past couple of decades; there have been outstanding advancements in the past decade.”

Once you know where you are overspending, you can take steps to address the consumption and hopefully decrease costs.

Replace
Simply cutting down on energy consumption may not do it. It’s possible your HVAC, lighting and plumbing systems are out of date. A boiler installed 15 years ago, while maybe in great shape, most likely does not use energy as efficiently as a new state-of-the-art boiler.

Also consider purchasing Energy Star-rated appliances and equipment—from lights and windows to water heaters and low-flow plumbing fixtures. The ACEEE provides an Online Guide to Energy-Efficient Commercial Equipment to help get you started.

Upfront Cost
Some of the energy-saving measures and upgrades could cost you more—initially. In the long run, though, you could save more. “I don’t mind spending the same amount if I know it’s going to be used efficiently,” Sachs says.

But savings are not only in utility costs, but also in taxes.

According to Energy Star, through the Energy Policy Act of 2005 (EPACT), “A tax deduction of up to $1.80 per sq. foot is available to owners or designers of new or existing commercial buildings that save at least 50 percent of the heating and cooling energy of a building that meets ASHRAE (American Society of Heating, Refrigerating and Air-conditioning Engineers) Standard 90.1-2001.

“Partial deductions of up to 60 cents per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting or heating and cooling systems. The credits are available for systems ‘placed in service’ from Jan. 1, 2006, through Dec. 31, 2008.”

ASHRAE also offers an Advanced Energy Design Guide for Small Office Buildings, which provides guidelines on how to save up to 30 percent on energy costs (over ANSI/ASHRAE/IESNA Standard 90.1-1999), how to implement the changes, and even breaks it down by climate zones.

Stick to It
Don’t assume that because you have implemented some changes energy efficiency will increase. Employing all possible energy-efficient business practices won’t do any good if you don’t have a staff that is committed to upholding them.

“It comes down to behavior,” Sachs says. “But also consider that it’s not about big sweeping changes. You have to fit into the general philosophy of energy efficiency.”