A1 Energy - Blog #benchmarking

Benefits of Energy Benchmarking: A Beginner's Guide

Mon, 15 Jun 2020 13:08:46 -0400

Energy Benchmarking Is A Foundational Element of Developing An Energy Optimization Strategy, Because You Can Not Manage What You Don't Measure.

Energy Benchmarking is a method used to determine whether a building is using more or less energy than its peer facilities with similar occupancies and size. Across many commercial building markets, energy benchmarking has become a standard procedure as energy costs and associated environmental and sustainability issues have raised awareness around the importance of energy optimization management.

For example, major urban areas such as Washington D.C., New York City, Boulder Co, San Francisco CA all have enacted benchmarking and/or disclosure legislation. The hope is that by making it mandatory for building owners and operators to track their energy consumption there will be an increase in awareness of energy usage. This practice is on the rise and changing the way people think about their property's energy use. One of the primary goals of the new regulation is to expand the benefits of energy benchmarking by making buildings’ energy ratings information available to the public as well as potential buyers and tenants.

So, what are the major benefits of energy benchmarking? Let’s break them all down together.

Benefits of Energy Benchmarking

Establishes a Baseline:

Information collected by measuring a buildings energy performance for a minimum of 12 months (through the analysis of utility loads) will establish a baseline. The baseline allows the building personnel to assess the performance, compare to buildings of like size and use and will serve as a starting point for setting energy efficiency performance goals. It will also establish a basis for trending future performance.

Cost Savings:

A recent study by the United States’ Environmental Protection Agency points to the fact that, on average, buildings that are taking advantage of energy benchmarking consistently use approximately 2.4% less energy than those that are not. Research (1) shows that commercial buildings waste 30% of their energy. Owners who have benchmarked their buildings are more focused on energy consumption and cost. With the baseline established business owners/operators can take advantage of cost-reduction strategies ie: reducing load during peak hours and reducing set points on Air-handlers, chillers and boilers. Supply side savings are also available in optimizing the supply contract structure to optimize the cost based on the load profiles.

Environmental Benefits:

It is a known fact the producing and using electricity more efficiently reduces both the amount of fuel needed to generate electricity and the amount of greenhouse gases and other air pollution emitted as a result. By developing strategies to optimize energy consumption in a facility the added result will be a lower carbon footprint. Implementing the use of the ENERGY STAR database allows facilities to track changes in greenhouse gas emissions compared to the benchmarking base year. Therefore, continuing the benchmarking effort documents the environmental impact of your energy management efforts.

Benchmarking Can Impact Your Bottom Line

When it comes to improvement, performance data can be one of the most powerful and important motivators. Once you know where you are in terms of usage, you can identify what you can improve.

Consider the fact that a recent Department of Energy study indicates “energy performance benchmarking prompted energy efficiency investment in over 60 percent of participants through improved energy management processes, building upgrades and behavioral efficiency projects.”

In today’s day and age, energy benchmarking has actually been seen to create a bit of competition amongst builders. The truth is that the growing popularity of energy benchmarking has made builders more inclined to find the greenest way to construct and maintain a building possible. Overall, this is good for the planet and good for building owners who are looking to save as much money as possible on their monthly energy bills.

In the end, the ultimate goal and benefits of energy benchmarking is to focus on improving performance and find what ways you can start working towards those goals!

Resources

(1) http://news.mit.edu/2013/reducing-wasted-energy-in-commercial-buildings

Year End Energy Benchmarking Update

Tue, 20 Nov 2018 09:45:22 -0500

It doesn't matter if the economy is boom or bust. It doesn't matter if you are renting, selling or buying and it doesn't matter if your area of interest is commercial, residential or both. The harsh truth is that the real estate game is unforgiving and you need to leverage every advantage that you can find.

As energy costs have risen steadily across all markets, one area of particular interest is in energy efficiency. For savvy business people, energy efficiency not only equates to immediate financial savings but it is also a sign of quality construction with proper fit and finish and of older buildings being properly maintained.

Proving Energy Efficiency

The national standard for establishing your property or properties as being energy efficient structures is with EPA ENERGY STAR certifications. The EPA ENERGY STAR Portfolio Manager allows you to track the energy consumption, water use and the emission of greenhouse gases in your entire portfolio and is relatively simple to use.

Getting Started with Energy Star

The first thing you will need to do is to create EPA Energy Star account. You will be asked for some basic information; nothing too intrusive and then asked to input the water and energy data for your property(s). If you don't have the information at hand, no worries, it is simply to gather either from your files or your utility companies.

As soon as the data is entered you will see your score. Your building(s) will be rated on a scale of 1-100 with the higher scores being the best. You will need to score a 75 or better to receive an Energy Star certificate. This tells any potential investors, tenants or buyers that the property is in the top 25 percent of buildings in North America in terms of energy efficiency.

The system is designed to compensate for factors such as operating conditions, regional weather data, and other important considerations like local energy costs. So, it places your buildings on a level playing field regardless of its location.

Falling short at first is not unusual. Part of the beauty of the program is that it shows you the areas that need improving in order to meet the 75 percent goal. This allows you to develop a plan that focuses your time and efforts on the key areas that need improvement without the risk of wasting valuable resources.

Why Bother

You may ask yourself, why getting an EPA Energy Star certificate for your property is worth the effort. Consider these facts.

Studies have shown that Energy Star rated properties have an average operating cost that is of 35 percent less than those without a rating. Whether this entirely due to the nature of the buildings or heightened energy awareness hasn't been determined but even if you are just maintaining the property for your own use it is a financial boom.

If you are looking to rent out or lease your property it being Energy Star certified means you can demand higher rates due the monthly saving your building offers over other options. It also offers the potential for higher occupancy rates.

If you are selling your property an Energy Star rating increases its attractiveness to potential buyers and gives you a strong negotiation point when writing the contracts.

When Buying Property

When buying a property, it already having an Energy Star rating makes it more valuable and increases its earning potential. If it doesn't have a rating but appears to be one that could be easily raised to standards it can provide instant equity with minimal effort. This can make the property a financial boom and more attractive to potential outside investors.

Why 2018

Beginning in May of 2016 the EPA began looking at overhauling the Energy Star Portfolio program using data that it had gathered from the 2012 CBECS survey. The previous model was based on data from 2003. Needless to say, energy efficiency greatly improved in a 9-year span. It is expected that ratings will be 9-15 points lower under the new system.

While the EPA has no plans to resend certificates that were already issued, for people in the know the value of older certificates could be greatly diminished.