For property managers or building owners, managing operational costs is a constant challenge, with monthly energy bills being a major expense. New regulations such as New York City’s Local Law 97 add further pressure by making energy efficiency a critical compliance issue, not just a desirable goal. The problem is straightforward: commercial buildings are big energy consumers, yet the path to reducing energy consumption is often obscured by conflicting advice.
In this guide, we discuss actionable strategies that get your energy consumption under control, leading to cost savings.
Key takeaways
- Start with data: Establish your baseline energy usage through utility bill analysis and professional inspections.
- Prioritize immediate savings: Operational adjustments can reduce energy costs quickly.
- Target capital improvements: Investing in high-efficiency equipment and sealing the building envelope permanently lessen the strain on your heating, ventilation, and air conditioning (HVAC) systems.
- Use smart technology: Automation systems and energy-efficient technologies unlock more savings over the long term.
Why should building owners reduce their commercial buildings’ energy consumption?
For many commercial properties, energy represents one of the highest operating costs. The Environmental Protection Agency estimates that commercial buildings waste a significant portion of the energy they consume, meaning building owners pay more than necessary to their utility company.
By reducing energy use, building owners can achieve the following benefits:
- Lower electricity bills, cutting unnecessary expenses
- Reduced greenhouse gas emissions, supporting environmental sustainability
- Improved regulatory compliance, minimizing the risk of fines or penalties
Additionally, prioritizing energy efficiency enhances building performance and value and results in improved indoor air quality and thermal comfort for tenants.
Find out where your energy goes
Before adopting any energy-efficiency measure, you need a clear view of how your building uses energy. You cannot manage what you do not measure.
Energy self-assessment
Start by reviewing your electricity bills and natural gas statements from the last 12–24 months. This will help you establish a baseline and spot patterns such as unusual spikes or high off-peak usage, which could signal malfunctioning building systems or operational inefficiencies.
Next, do a quick walkthrough of your property to uncover “energy ghosts” — problems that are easy to overlook in day-to-day operations. Look for leaky windows and door seals, outdated (hence inefficient) artificial lighting, computers and monitors left on overnight, or HVAC vents that are blocked by furniture or equipment.
Professional energy audits
While the initial steps mentioned are helpful, a professional energy audit is essential for a comprehensive energy-saving strategy. An energy audit is a detailed assessment of your facility’s current energy consumption. Professional energy managers or consultants inspect your insulation, HVAC system, and usage patterns to identify specific inefficiencies, such as:
- Inefficient or oversized cooling systems or heating systems
- Overuse of traditional lighting technologies
- Air leakage and poor insulation causing unwanted heat transfer
- Misconfigured building automation systems
A formal energy audit gives you targeted, data-based recommendations for creating an energy-efficient building.
How to reduce energy consumption in commercial buildings
Let’s explore different ways to reduce energy consumption.
Category 1: Low-cost and no-cost fixes
It’s possible to save money without spending any. You can minimize energy waste through operational adjustments and regular maintenance.
Optimize HVAC schedules
Many commercial buildings run their HVAC systems on a fixed schedule, regardless of whether the building is full or empty. To reduce waste, align your HVAC schedules with actual occupancy hours. For example, shifting the startup time by just 30 minutes or implementing setback temperatures for nights and weekends can yield meaningful commercial energy savings over time.
Prioritize regular maintenance
Dirty filters, blocked coils, and leaky ducts force air conditioning units to work harder, consuming more energy to produce the same result. Routine maintenance keeps system performance high while also reducing energy costs.
Encourage behavioral changes
Promote a “turn it off” policy that encourages building occupants to shut down lights, monitors, and unused equipment at the end of the day. When everyone works to reduce energy, the collective impact on energy bills is substantial.
Category 2: High-ROI capital upgrades
Once immediate savings are captured, move toward major upgrades that permanently reduce your building’s energy consumption.
Modernize lighting systems
In many older buildings, lighting costs account for a massive share of the total electricity bill. Traditional lighting technologies, specifically incandescent lighting, are incredibly inefficient. Incandescent bulbs generate light by heating a filament, meaning they turn most of the electricity it consumes into heat rather than light. This waste drives up your energy bill and forces your cooling systems to work harder to remove that excess heat.
It’s best to switch to light-emitting diode (LED) lighting. LED lighting uses up to 90% less energy than traditional options and lasts longer. On top of energy savings, LEDs give off superior light quality.
Instead of leaving lights on in empty rooms, install occupancy sensors and timers to automatically turn off lights when rooms are not in use. Task lighting and overhead lights are active only when someone is in a room.
Optimize HVAC systems
For older, inefficient HVAC systems, replacing them with Energy Star-certified equipment offers massive long-term savings. Modern heat pumps and high-efficiency equipment are designed to provide maximum comfort with minimal electricity.
However, a full replacement isn’t always necessary. For newer systems, consider installing variable frequency drives (VFDs) on fans and pumps. VFDs allow motors to adjust their speed to match the exact load required rather than running at full power all the time, often cutting motor energy use by more than half.
Seal the building envelope
Your building envelope — its roof, walls, windows, and insulation — is your first line of defense against energy loss. Upgrading your insulation and choosing high-performance windows that reduce solar heat gain can make a big difference. Also, apply a reflective roof coating to deflect sunlight, thereby reducing the cooling load. A tighter envelope allows HVAC systems to work less, helping you save energy and improve indoor comfort.
Category 3: Smart energy management technology
Capital upgrades make a huge impact, but energy management technology makes your energy strategy more precise and proactive.
Building automation system (BAS)
A BAS centralizes the monitoring, control, and automation of HVAC, lighting, and other systems. It enables coordinated scheduling, demand-response capabilities, and real-time adjustments that reduce unnecessary energy consumption.
Smart data
Advanced sensors and submetering provide granular, real-time data on energy usage in different areas and by different systems. You can then use this information to pinpoint exactly where and when energy waste is happening and make precise adjustments to optimize energy flow and implement proactive energy-efficient measures
Category 4: Renewable energy and long-term strategies
For property managers aiming for great performance and long-term resilience, advanced energy strategies offer great value.
Solar power
Installing solar panels enables you to generate electricity on site. Solar panels minimize your dependence on the grid while also protecting you from volatile market rates. Moreover, using solar power strengthens your commitment to green initiatives and reduces greenhouse gas emissions.
Cogeneration
For facilities with large and steady heating and electrical needs such as hotels and hospitals, a combined heat and power (CHP) system, also known as cogeneration, can be a game-changer.
CHP systems generate electricity on site and capture the heat that would otherwise go to waste during the process. Rather than being released into the atmosphere, this captured heat can be used for space heating or hot water, increasing overall energy efficiency to as high as 80%. This slashes energy costs and makes your building more resilient against grid outages.
Why do commercial property owners trust Greenwich Energy Solutions for energy-efficiency services?
Implementing these energy-efficient measures can be complex. To truly optimize energy and maximize cost savings, you need a partner who understands the science of buildings and the complexities of the energy market.
Greenwich Energy Solutions is that partner, trusted by building owners in the Northeast. We help clients achieve energy-efficient buildings through detailed energy audits and seamless integration of smart energy management technologies.
But we don’t stop there; our experts leverage deep industry knowledge to secure the most favorable electricity and natural gas rates for your business. We also analyze trends and negotiate contracts to help you reduce costs and gain budget certainty.
Our other energy services include:
- Regulatory compliance and consulting: We ensure your building remains compliant with local and federal regulations, helping you avoid penalties while boosting building efficiency.
- Retrocommissioning: We optimize your existing HVAC systems and lighting systems for peak performance.
- Measurement and verification: We provide clear data to track your energy savings.
- Demand response: We enable you to earn revenue by reducing energy consumption during peak grid hours.
Don’t let high energy costs diminish your profits any longer. With us as your partner, you can achieve cost savings, improve system performance, and advance your environmental sustainability goals. Contact us today to get started.
