Last month I wrote an article highlighting the growing proof that making a building more “green” and energy efficient has many financial benefits, beyond just saving utility costs. Scientific research has shown “green” buildings lead to greater asset value, larger revenue, and fewer sick days and greater productivity and attention span of workers.
If this has convinced you to look into “greening” your building, here’s how to get started. Here are crucial items to consider as you move forward, usually overlooked:
1. You know what “green” is, but you need to explain fully what it is to the building owner or corporate manager. Develop realistic expectations for all stakeholders. What does the group want to achieve? Are they achievable? Any limitations? I once performed a preliminary “green” evaluation of a company’s headquarters building, including a complex analysis of potential energy efficiency strategies. A high-level contact was surprised; he literally thought that the project’s goal was to recommend where to plant trees! (He hadn’t read the Scope of Work!) Make sure all involved have unified goals, and understand the project is a complex process.
2. Determine your ultimate “green” goals. There are many types of “green” projects. Determine what is right for your building or company based on needs, budget, etc. You may wish to have your work officially certified under the LEED or WELL program. Or you may wish to bypass any official certification, and perform small, focused upgrades. That’s fine, too. What does management want most to achieve: reduced costs, reduced greenhouse gas emissions, better work environment? Do you want to be a leader in your field or “just a player”? There is nothing wrong with reduced goals if you have budgetary constraints. There is something to be said about watching others and learning from their mistakes. These approaches need to be thought through and decided early on.
3. Make sure the contact understands that there is no formula to become green. No shortcuts. No “magic wand.” It takes an understanding of the specific building, its physical structure, the equipment within, the people and productivity inside. Anyone promising you a quick fix will not produce the fix for you, and it’s likely not quick either. Therefore, hire an experienced pro, preferably an engineer.
4. Be prepared to work a little. After you hire the experienced pro, don’t just sit back and expect him/her to do everything. Work with that person to ensure that the work is done to meet your needs. First, begin by providing the pro with the data needed to perform the analysis. Nearly all “green” projects will require the engineer to evaluate current and historic data: concerning the physical building, its history, size, uses and 24 months of recent energy, water, and sewer bills. You should begin to prepare this information as you are reviewing proposals or performing the administrative work to bring the engineer in. Be prepared to field questions from the engineer because while the building may be second nature to you, it is new to the engineer. Time can be saved by anticipating such questions and providing the engineer with information you think is important.
5. Site visits. It is likely that the engineer will need to make multiple visits to the facility to perform counts of equipment and to assess how equipment is operating in order to determine which items things could improve or be more efficient. Ensure that a person knowledgeable about the building and its equipment and operations is with the engineer at all times to answer questions or fill in on procedures. The site visit may involve testing of all major equipment. For a robust energy evaluation, it is important to test both the heating equipment (boilers) and cooling equipment (AC) for a building. For one energy audit, I was asked by building management to “get it over with”: to test both on the same visit. So on a 95°F day, we tested the building’s boiler! (We did it during lunch hour when many employees were out of the building!). But it is crucial for you to work with your “green” engineer to enable all goals to be met and data to be gathered.
6. Ask for and review interim reports. Sometimes building managers then step back and wait for the “green” professional to perform the analysis and develop the strategies and conclusions. But there is nothing wrong with asking the engineer for an early, interim report to make sure the professional has not strayed from the agreed-upon goals. When reviewing an early draft report, remember there may be gaps in it or certain calculations or conclusions you are interested in that are missing. But do review it and speak up if the direction it is going, you feel, is not what you want. Having such a discussion ultimately saves the engineer time and aggravation to be steered in the right direction early.
OK, OK, A Word About Costs
It is probable that as a “green” evaluation is being implemented, you are thinking about money. Good projects are not free and you may have had to put yourself on the limb to get the upfront cost for this project, not knowing what the exact results will be. Yes, it costs money to study your building before the design, procurement, and installation of smart strategies which, at that point, you have a better idea of the financial benefits. Remember, there is growing evidence that all green projects done right will pay back initial costs in a reasonable timeframe. I have seen numerous such projects pay back initial investment in terms of utility cost savings alone (not including the secondary benefits) by 15, 20, 30, and even more percent per year. Yes, the equivalent of putting that money in the bank and making this much interest. No bank nor Wall Street investment pays like a good energy project, without risk (a 20-watt bulb replacing a 60-watt one will save you two-thirds the energy; nothing magic; it’s the numbers!). So be confident working with your engineer to implement smart upgrades.
Also, a growing number of utilities and governments offer financial incentives or tax breaks to install and operate energy efficiency technology. IRS Section 179D (tax deductions for energy upgrades) has expired, but a new version was recently co-sponsored by 30 US Senators from both parties. 179D should return and be retroactive. Also, lenders see that there is a reduced risk on lending for an energy or green project because the financial benefits will be there and the borrower should be able to pay the loan back. This results in more competition to loan money, and lower interest rates.
CCES has the experience and expertise to help your building become more energy efficient and “green” and will work with you to meet your goals, however humble or extravagant. Work with us to get the maximum financial benefits from going green. Contact us today at karell@CCESworld.com or at 914-584-6720.