There are many opportunities to save energy and money in commercial buildings. Many businesses can save 30% by greening their facilities. High-performance design and energy-efficient equipment reduces energy costs in new buildings by 50%
FAQs
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Success_Stories
For information on how your business may reduce its operating cost through pricing optimization, contact Preferred Energy Services.
What are the biggest energy uses?
Why is energy efficiency important for business?
Is an energy efficient product a good financial investment?
Are there incentives for energy efficiency investments?
Is an energy audit worth it?
What are my biggest energy uses?
The biggest energy uses in commercial buildings are space heating, cooling, ventilation, and lighting. For an office building, lighting alone consumes almost a quarter of total electricity. For different types of businesses, water heating, cooking, computers, or office equipment also use large amounts of energy. Commercial kitchens are one of the highest energy consumers, using approximately 2.5 times more energy per square foot than other commercial buildings.
Why is energy efficiency a good idea?
Energy may represent 30%, or more, of a building’s operating costs. Since energy is expensive, cutting consumption directly affects the bottom line. For instance, a 30% increase in energy efficiency can lower costs by an estimated $25,000 for every 50,000 square feet. As savings grow, pay back meets initial cost in a relatively short time. Smart energy management has other, less tangible benefits, such as enhancing the building’s comfort and function. Lighting retrofits not only reduce energy use, but also improve visual acuity and, therefore, worker performance. Reducing energy use improves the bottom line, improves worker performance, and increases the value of your building and company.
Is an energy efficiency a good financial investment?
Yes, energy efficient products are almost always a good investment. If you calculate the product price along with the hidden cost of energy bills, you will find that energy-efficient products save money most of the time. The typical payback time for investments in efficient technologies is one to eight years. However, a business should consider payback from a return on investment (ROI) perspective. ROI is expressed as a percentage of the real amount invested (purchase price minus avoided capital costs). In other words, net savings divided by net investment. Compare the return to the cost of capital, or the gain from potential alternative investments. For example, investing funds in banks might return four percent annually. Yet investing that same capital in an efficient technology could yield 50%. More sophisticated ROI calculations should include factors for depreciation of equipment, inflation, maintenance, and life cycle costing, (including whether the old equipment needed replacement at some time anyway). The U.S. Department of Energy calculated the ROI for a range of efficiency investments and found that all yielded a higher ROI than typical bank accounts. Furthermore, savings are tax free, unlike most investment income.
Are there incentives for energy efficiency investments?
Yes, in many cases, rebates and other incentives, like reduced-rate loans, decrease initial costs . It’s a good idea to check on rebate opportunities before making a major purchase. The first place to look for rebate programs is local utilities and water agencies. In the U.S., another place to look for rebate opportunities is the Energy Star program, which has a zip code searchable database.
Is an energy audit worth it?
Yes, a professional energy audit may be worth the time and financial investment. An Audit demonstrates potential efficiency projects for your business at the investment level you determine. Some utilities offer free audits for businesses. The benefits of hiring an energy auditor include:
- Identifying viable efficiency projects
- Getting the latest technical and cost information
- Freeing up your staff?
- Identifying technical problems before installation
If you must develop a project bid additional expenses may include:
- Preparing requests for proposals
- Managing the consultant
- Reviewing the audit results
Search for an energy auditor in your area on this web site.
A business can improve efficiency for little or no up-front cost. It’s a matter of being smart about energy-related behaviors, properly using and maintaining the equipment and energy management systems already in place, and making very low-cost investments with payback times of less than a year.
Lighting
One place to start is lights. Simply training employees to turn off lights in unoccupied rooms translates to significant savings.
Replace incandescent bulbs with compact fluorescent lamps (CFLs). CFLs use ¾ less energy for the same amount of light, provide excellent ambient
light, and now come in a variety of colors. The payback time of replacing incandescent lamps with screw-in CFLs (14-26 watts) is less than a few months, based on 2,000+ hrs/year.
A few cautions:
- CFLs are not suitable for fixtures such as recessed canisters, which don’t have adequate air circulation.
- Fluorescent lamps are not dimmable.
- For cold locations like walk-in refrigerators, special low-temperature, incandescent bulbs are needed.
- Properly dispose of burned out lamps, since fluorescents contain a small amount of mercury, a harmful metal. See 
Recycling.
Upgrade fluorescent tube lamps and ballasts. Replacing magnetic ballasts with electronic ballasts reduces energy consumption by at least 12%. The typical payback time for replacing T-12 fluorescent tubes with high performance T-8 lamps, and magnetic ballasts with electronic ballasts, is much less than one year. T-8s also last longer than T-12s and provide better quality light, which reduces the amount of fixtures needed. Payback time of switching from incandescent lamps to High Intensity Discharge (HID) lighting is also typically less than a year. (176-250 watts interior, 101-175 watts exterior)
Use daylight instead of artificial light. Open blinds or shades to let the sun shine in. Compared to artificial lights, daylight is brighter, more appealing, and better for rendering color. Recent studies show that daylighting improves student math and memory skills in school, and increases sales in stores.
Heating & Cooling
Adjust thermostat settings. In the winter, lower thermostats to 68°F during work hours and no higher than 63°F off-hours. Remember, people and machines give off heat, so less is required of your heating system. In the summer, save on cooling costs by setting thermostats to 75°F during work hours. Program thermostats to turn on before people arrive and off after they leave. If possible, make use of cool, outside air by ventilating your workplace at night or in the early morning.
Maintain systems. Businesses often set central heating, ventilation, and air conditioning (HVAC) systems for comfort rather than optimal efficiency. A professional tune-up and control set points can save up to 50% of energy consumption. Change filters regularly.
Office
Lighting accounts for over 20% of electricity use in commercial office buildings. Therefore, lighting system retrofits yield high returns. Here’s a checklist of first steps:
- Replace T-12 fluorescent lamps with T-8 (or in Europe, T-5)
- Replace magnetic ballasts with electronic ballasts
- Use daylight instead of artificial light whenever possible
- Turn off lights when leaving the area or room
- Activate existing timers or sensors
- Maintain the HVAC system; clean filters and vents
Food Service
Commercial kitchens use a great amount of energy. These free or low-cost actions have the potential for big savings:
- Turn on the lighting and refrigeration control system
- Turn off ventilation hoods when not in use
- Push cooking appliances all the way to the wall under ventilation hoods
- Add side panels to hoods to capture more heat
- Fix water leaks and replace high-flow or broken nozzles
- Clean refrigerator coils
- Prepare a purchasing list of efficient appliances so you can quickly chose the best replacement
Grocery
Refrigeration accounts for nearly 2/3 of a grocer’s utility bills. Use this check-list of free or low-cost actions:
- Load refrigerator cases properly, to ensure proper air flows;
- Install occupancy sensors on beverage case lights;
- Cover open refrigerated cases when the store is closed;
- Install gaskets or automatic closers on refrigerator doors;
- Use energy-saver mode for door heaters (glass door fogging is not a problem for local climate);
- Reduce defrost cycles and times.
Exact payback time depends on energy costs and other factors. For example, payback time for heating and cooling systems depend on local climate. However, payback time for the following energy-saving actions are approximately 1-3 years.
Lighting
Occupancy sensors are more reliable than expecting employees to turn off lights. Sensors in restrooms and closets save up to 60% of energy used with a manual switch. Timers or photo-sensors help employees to use more daylight. Photo-sensors also adjust for natural light with dimming.
Delamping, (taking out bulbs that are not needed), saves more energy and money in the long term than replacing fixtures. Many older office buildings have too many lights due to outdated codes and the new trend of widespread computer use. Excess lighting glares on computer screens and wastes energy. Payback time for removing two to eight-foot fluorescent lamps, lamp holders, and ballasts is less than a year.
Install CFL pendants and wall sconces for hallway and corridors. These areas don’t need as much lighting as a computer workspace to be safe and attractive.
LIGHTING: Quick Facts
- Compact fluorescents are 75% more efficient than incandescent and last ten times longer
- T-8 fluorescents are more efficient than T-12s,
- Super T8s are more efficient than standard T8s
- T-5 fluorescents (used in Europe) are more efficient than T-8s
- Electronic ballasts (for fluorescent and HID lamps) are more efficient than magnetic ballasts
- Electronic ballasts don’t contain toxic PCB’s
- Occupancy sensors save up to 60% of energy used with a manual switch
- LEDs used in an exit sign can save $50 per year
Change to LED exit signs. Save $50 per year by changing exit sign lights to LEDs (light emitting diode). LEDs also last longer than incandescent or fluorescent bulbs (50,000 – 100,000 hrs).
Space Heating and Cooling
HVAC systems tend to be oversized and inefficient. A Package Terminal Air Conditioner (PTAC) heats and cools smalls spaces efficiently. Payback time depends on local factors like climate, but a PTAC pays for itself in approximately three years. Consider other investments like reflective window film or variable speed drive systems for HVAC fans that control speed for energy savings.
Office and Retail
Use task lighting instead of overhead lighting to improve employee comfort and save energy. Buy energy efficient office equipment and HVAC units. Research the most efficient models in advance.
Food Service
- Buy energy efficient cooking, refrigeration and HVAC units
- Research efficient models in advance
- Insulate hot water tanks and lines
- Hire a professional to set recirculation pumps to turn off at night and regulate tank temperatures.
Grocery
- Replace old, open display refrigerators with energy-efficient models with glass doors.
- Add anti-sweat heater controls to refrigerator case doors, or use no-heat doors in warm climates
- Install occupancy sensors on display cases
- Install efficient lighting
- Select efficient HVAC systems - Install LED cooler display case lamps. These 6' lamps use only 26 watts!
If you are planning to be a long term tenant or own your premises, these recommendations will deliver a reasonable rate of return. Large investments include purchasing efficient equipment and improving the design of your building Investing in efficient building design and equipment yields significant returns and cuts energy costs by up to 50%. See New Construction.
Lighting
Use daylighting to save energy and money, and improve productivity and comfort. Retail studies show that use of daylighting increases sales.
Space Heating and Cooling
High Efficiency. Since replacing an HVAC system is expensive, first reduce heating and cooling loads. Engineers can then appropriately size a new HVAC system. For most office buildings, payback time for replacing high capacity A/C units is four to six years. Any HVAC systme that is due for replacing should be replaced with a high efficiency unit with an integrated economizer to take advantage of free, outside cooling when possible.
Cool roof. Reduce heating and cooling load with a cool roof. A cool roof has an insulation coating or surface that reflects heat. Cut costs by doing roof maintenance and installing a cool roof at the same time. Roofs with large surface areas are more cost effective.
Consider these other installations:
- Ceiling insulation
- Awnings
- Variable air volume boxes (for separate temperature zones)
- Solar shade screens
Reduced pollution: 71.5 % of electricity in the U.S. comes from burning nonrenewable resources like oil, gas, and coal. These energy sources produce pollution. Commercial buildings alone account for 17.5% of total carbon dioxide emissions in the U.S. By reducing energy use, you directly reduce health and environmental impacts.
Slowing global warming: Pollution from energy production also affects climate change. Burning fossil fuels is the largest source of greenhouse gas emissions. Because commercial buildings depend on fossil fuels for energy, you can reduce emissions with every kilowatt your business saves. For every 10 kilowatt hours you save, you reduce 7.3 pounds of greenhouse gas emissions. (In the U.S.).
Federal tax deductions: In the U.S., federal tax deductions may apply for energy efficiency improvements in commercial buildings. Credits are currently available for specific energy systems in service through December 31, 2008.
Marketing and recognition: Going green leads to recognition in the community, media exposure, and marketing opportunities. Green business associations help companies save energy, reduce costs, and gain promotion. They offer marketing advantages with certification seals and member activities. See Becoming A Green Business
Porto’s Bakery in Glendale, California bought energy-efficient natural gas-powered griddles, ovens, fryers, and other cooking equipment as part of a major expansion. The investment paid for itself. Even with a sales increase of 40%, natural gas costs didn’t go up.
Irvine Center Towers in Irvine, California, were retrofitted for significant energy savings. Built in 1983, the towers had tenant comfort problems and unreliable HVAC and thermal energy storage systems. Owner Transwestern Commercial Services upgraded the HVAC and lighting systems. They replaced old chillers and installed variable speed and variable frequency drives. They replaced magnetic ballasts with high efficiency electronic ballasts, and T12 fluorescent fixtures with T8’s. Automatic controls and motion sensors decreased lighting use. In the end, they reduced their electricity use by over 2.5 million kWh, all with a payback time of less than three years.
Swinerton, Incorporated, has improved worker productivity with the use of daylighting throughout its corporate headquarters. They also installed direct digital controls to maximize intake of outside air and run the HVAC system. The HVAC meets actual loads rather than anticipated demands, reducing energy costs by over 30%.
