In the “old days,” energy management was only for institutions that could afford to do it, but nowadays, who can afford not to?
Rising global demand for energy is pushing fuel commodity prices higher. As energy costs continue to rise, the value of energy management also rises.
Here are three reasons why businesses that are not currently devoting resources to energy management should consider doing so, and why businesses that are should consider how to do it better.
Energy management provides data that can enhance business decision-making processes. Management can produce more accurate and timely budgets when granular (meter-by-meter) energy data is accessible.
Owner/investor reporting can be made more transparent and understandable. Reporting can be automated and personalized, resulting in gains in efficiency. Energy management staff can be freed up from tedious and repetitive tasks to focus on enhanced analytics.
Capital investment ROI can be anticipated and assessed with greater confidence and accuracy. And, energy benchmarking mandates (legal and otherwise) can be met more easily with energy management tools designed specifically for that purpose.
Energy management leads naturally to energy-saving projects. Going green is paying dividends in property management, and building owners are paying attention.
CoStar Vice President of Analytics Norm Miller found that LEED-certified office buildings command a $2.05 per square foot rental premium over all multi-tenant office buildings built since 1995. Common sense suggests that a proven history of low energy costs will translate to higher property resale values as well.
If you’re not currently analyzing your utility bill expenses, you’re probably leaving a lot of money on the table. Miami-Dade County moved to a centralized system for tracking electricity use, and estimated a two percent annual savings ($2 million) just from being able to see the utility bills.
Bill auditing can help eliminate billing errors, and software products can automate the auditing procedure, saving labor costs in the process.
Rate comparisons and benchmarking can help spot opportunities for rate optimization. Energy management enables you to look at unit costs for multiple meters side by side to spot monthly trends, variations, and outliers. You can drill down into specific issues that offer the largest financial returns (the low-hanging fruit) and then refine your processes to save still more.
Identifying and eliminating excess energy use becomes possible with energy management. Lower consumption translates to lower utility bills month after month, as well as reduced supply costs and extended equipment life.
The value of energy management will continue to rise with energy prices. The question is not really if you can afford to do it—the question is: can you afford not to?