It is August, and things may be slow in your office or company, as many people are taking well-deserved time off. But that also means that September – the start of school, fall is around the corner – which means everyone is back at work. For many companies, September is also the start of budgeting season. Departments and Operations envision and plan for projects in 2017, and request budget for them. I think energy efficiency should be on the top of your wish list for your company, as this is the lowest-hanging fruit for reducing operating costs and also provide other financial benefits. Of course, you need to communicate that energy efficiency provides great return for minimal risk to your Finance Dept in language they understand to get approval for initial upfront funding. Actual case studies demonstrate that smart energy efficiency projects help businesses be more competitive.

Briefly, here are some facts about energy efficiency to present to your bosses and CFO:

• Great financial returns. The rates of return for energy efficiency projects vary, of course, based on technology, the building, and design. But in many cases, they are superior to most financial investments, often over 25%/year. What bank or Wall St. investment pays that?

• Low risk, high reliability. New energy efficiency strategies are not experimental and are proven in the field. While some vendors offer better quality products than others, they will work, bring about energy reductions, and should be warrantied.

In financial investing, we are constantly faced with high risk to get high yields. Or if we are afraid of losing our investment, we sacrifice yield. With energy efficiency, we have low risk (reliable product) and get fine cost savings! See chart comparing energy efficiency with other financial investments found below:

http://www.roienergyservices.com/wp-content/uploads/2014/10/Risk-reward.png

• Long lasting savings. Energy efficiency results in continual savings for many years, actually growing in time with no additional effort, based on energy rates you pay, which will only go up in the future. If you saved $1,000 in one year from an energy efficiency project, that savings will be $1,050 the next year if rates increase 5%. And that is with no additional effort on your part!

• Reduced O&M costs. Most technologies last longer than the ones replaced. This means less time for maintenance staff, for example, changing light bulbs. This frees them up for other, more important projects to benefit employees and customers (tenants). Fewer light bulb changes also means fewer trips up and down the ladder, reducing the risk of a costly accident. Longer lasting items mean fewer need to be procured in reserve and stored, freeing up space for other uses or allowing you to downsize the space you rent.

• Raise the desirability and value of your property. Perhaps I’ve saved the best for last. Studies have shown that buildings and offices that are energy efficient are ones that employees will work more productively in, which may be more valuable than the cost savings. Employees will be happier, too, reducing turnover and reducing HR and productivity costs of finding replacement workers and hoping he/she is as good as the one that left. With solid energy efficiency technologies to show, companies or families will have a greater desire to rent your property, raising rental income, or desire to buy your building, raising its resale value.

Bottom line: the right, smart energy efficiency projects will produce many financial benefits, more than compensating for the cost to implement them, and an overall positive cash flow.

I hope this primer will help you approach your bosses for some smart energy efficiency ideas and projects for 2017! CCES has the experts to help you design and implement energy efficiency projects to maximize the financial benefits and to ensure they are implemented properly and work well. We want you to succeed and get the benefits and credit! Contact us for an initial discussion at karell@ccesworld.com or at 914-584-6720.