How to Optimize Energy Consumption for Greater Efficiency: A Guide for Property Managers

As a property manager in New York City, you have to manage rising operational costs, ambitious sustainability targets, and a growing maze of regulations such as Local Law 97. The pressure is relentless, and the stakes for your portfolio have never been higher.

Achieving meaningful energy efficiency requires a strategic, long-term approach that delivers measurable returns on investment (ROI) while safeguarding your building’s future.

In this guide, we offer a roadmap on how to optimize energy consumption in your facility. From in-depth analysis and impactful upgrades to developing a sustainable, forward-thinking strategy, we highlight the key considerations that support long-term success and regulatory compliance.

Why energy optimization is a top priority today

The following are reasons why energy optimization should be a key part of your strategy:

Financial benefits

The primary reason to optimize energy is its impact on your bottom line, especially considering energy is one of the biggest operational expenses for commercial buildings. In the United States specifically, systems such as space heating, cooling systems, ventilation, and lighting account for the majority of energy costs. 

When you reduce energy usage, you improve your net operating income and increase the overall value of your asset. Energy optimization is a highly cost-effective way to manage resources and drive profitability.

Regulatory pressures

Governments across the country are implementing stricter regulations to curb carbon emissions from buildings. This explains why energy efficiency is no longer optional but a matter of compliance.

To illustrate, laws such as Local Law 97 impose steep financial penalties on buildings that fail to meet progressively stricter caps on carbon emissions. Fines can reach hundreds of thousands of dollars annually for noncompliant buildings. Proactively optimizing energy usage is the only way to avoid these risks while staying ahead of regulatory demands.

Market expectations

Many tenants nowadays are actively seeking out properties that demonstrate a commitment to environmental responsibility. This is why an energy-efficient building is not just cheaper to operate, but also a more valuable and marketable asset that helps you reduce vacancies and command premium rents.

Promoting your building’s green credentials and Energy Star certifications can attract and retain high-value tenants. It shows you care about climate change and are actively trying to reduce carbon emissions. 

The foundational first step: A professional energy audit

Before you can move toward greater energy efficiency, you need to understand where you currently stand. You can do this by getting a professional energy audit. An energy audit can serve as your detailed roadmap that comes with data-driven insights to guide energy efficiency improvements. This roadmap will pinpoint specific areas of high energy consumption to help you prioritize upgrades that deliver the highest ROI. An energy audit also analyzes your historical energy usage to uncover where you are wasting power.

The American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) outlines three levels of energy audits, each offering varying degrees of depth and analysis:

• ASHRAE Level I: A preliminary walk-through analysis that identifies low-cost and no-cost opportunities for saving energy such as fixing air leaks or adjusting schedules
• ASHRAE Level II: A more detailed survey that thoroughly evaluates building systems and energy consumption data, with specific recommendations for energy-efficiency measures
• ASHRAE Level III: An advanced, in-depth analysis focused on capital-intensive projects, complete with rigorous engineering studies to support decision-making

For property managers serious about long-term performance, a comprehensive ASHRAE Level II or III audit is the gold standard. It reveals where your energy consumption is highest and helps you cut costs effectively.

High-impact strategies for reducing energy consumption

Once you’ve identified key areas for improvement, you can focus your efforts on the areas that make a big difference. For most office buildings, this means targeting heating, ventilation, and air conditioning (HVAC) systems, lighting, and the building envelope.

Optimize your HVAC systems

HVAC systems are often the single largest energy consumer in a building, making their optimization a top priority. Consider the following: 

• Conduct regular maintenance: Start with a robust preventative maintenance schedule. Verify that all equipment runs at peak efficiency by routinely cleaning filters, monitoring refrigerant levels, and inspecting ductwork for any issues.
• Use variable speed drives: Unlike standard motors that run at full speed regardless of demand, variable speed drives allow motors on fans and pumps to adjust their speed, which helps reduce power consumption.
• Leverage smart controls: Implementing smart controls enables better management of your cooling systems, which means spaces are only air conditioned when occupied, helping you save electricity. An optimized HVAC system maintains thermal comfort for occupants without using more energy than necessary.

Upgrade your lighting

Lighting technology has advanced, and the ROI for modern upgrades is often both swift and substantial. To that end, it’s vital to implement these high-impact changes:

• Transition to LED bulbs: Replace outdated fluorescent tubes with LED bulbs. LEDs use far less electricity and last longer, reducing lighting-related electricity consumption by 50–75%.
• Optimize natural light: Use natural light to illuminate your space. This reduces the need for artificial lighting during daytime hours and lowers your energy bills.
• Install motion sensors: Equip low-traffic areas such as restrooms and storage closets with motion sensors to avoid wasting power to light unoccupied spaces

Fortify the building envelope

The building envelope — comprising the roof, walls, windows, and foundation — protects climate-controlled indoor spaces from the elements. Any compromise in this barrier leads to significant energy loss.

A professional energy audit, using tools such as infrared thermography, can pinpoint air leaks and heat losses. Addressing these issues by sealing cracks, enhancing insulation, and installing high-performance windows is essential. These measures prevent conditioned air from escaping, so HVAC systems use less electricity to maintain the desired temperature.

Advanced strategies for energy savings

Once you’ve tackled the basics, you can implement more advanced energy-efficiency measures to further cut down energy consumption.

Electrical appliances and standby power

Many electrical appliances and office equipment consume power even when turned off but plugged in. This is known as standby mode or vampire power.

To combat this, use smart power strips and energy-efficient appliances. Educate tenants about saving energy and encourage them to unplug appliances when not in use. And when purchasing new equipment, look for the Energy Star label. These practices can reduce power consumption and promote efficient energy use.

Data centers and server rooms

Data centers are among the most energy-hungry areas in a building, largely because of their cooling requirements. Implementing strategies such as hot/cold aisle containment and optimizing airflow can reduce costs. Additionally, upgrading to energy-efficient servers can lower both electricity usage and your carbon footprint.

Industrial systems: Compressed air and steam

For facilities with industrial components, compressed air systems are often a major source of energy waste. Leaks in these systems are common and can lead to energy waste. Similarly, steam traps — valves used to discharge condensate without losing steam — can fail over time. This can also result in substantial energy loss. 

Fortunately, routine maintenance and timely repairs help prevent these problems. These cost-effective measures improve energy efficiency and prevent excessive fuel consumption.

Combined heat and power systems

For larger facilities, combined heat and power (CHP) systems represent a transformative approach to utility management. These systems generate electricity and usable thermal energy simultaneously. By capturing and repurposing heat that would typically be wasted, CHP systems achieve superior efficiency levels.

Leveraging technology for automated savings

High-impact upgrades are crucial, but modern building technologies provide the tools for automatically and continuously improving energy efficiency.

Building automation systems

A building automation system (BAS) centralizes control of critical infrastructure, including HVAC and lighting systems. For example, BAS can be programmed to scale back operations during off-peak hours, so you don’t use up resources to climate-control an empty building. It’s a smart way to reduce energy consumption without compromising occupant comfort.

IoT sensors and real-time monitoring

Integrating a BAS with a network of smart thermostats and IoT sensors elevates facility management. These devices gather granular, real-time data on occupancy and ambient temperature, enabling continuous commissioning. You can fine-tune building systems to operate at peak efficiency and identify performance issues before they result in costly repairs. 

The role of renewable energy and incentives

To truly optimize energy consumption and minimize your carbon footprint, you must look beyond just saving energy. You should also consider generating it. Here a few ways to do that:

Renewable energy sources

Installing solar panels is an effective way to tap into renewable energy sources, generate electricity on site and reduce your reliance on the grid and fossil fuels. While the upfront investment may seem substantial, your energy costs will be substantially reduced over time. Additionally, generating your own power shields you from market rate fluctuations and highlights your commitment to environmental responsibility.

Tax incentives and financial advantages

Investing in energy-efficiency improvements often qualifies you for tax incentives and rebates. Federal and state governments frequently offer financial support to businesses that reduce carbon emissions. These incentives make energy-efficiency measures even more cost-effective. When you cut costs through efficiency, you strengthen your bottom line and reallocate money into your core business operations.

From tactics to strategy: Ensuring long-term success

Although individual upgrades are beneficial, they often lead to diminishing returns. And without a cohesive plan, the initial energy savings fade over time. True optimization requires a holistic analysis, encompassing building science, regulatory insights, and technology evaluation. You must understand how your HVAC systems, building envelope, and lighting controls interact. This knowledge allows you to develop a comprehensive strategy for long-term energy management and achieve maximum savings.

Greenwich Energy Solutions helps building owners navigate this landscape. Get in touch with us, and we’ll help you identify and implement the right energy-efficiency measures that save you money.