Last week, I gave a talk to an engineering society about sustainability, with the emphasis on energy conservation and greenhouse gas emission reductions. I discussed “The 9 Purely Business Reasons to Reduce Energy” (published earlier in this blog) to demonstrate the many purely common sense, financial reasons to invest in energy efficiency. Give credit to us engineers. A few people in the audience questioned the viability of these reasons and gave me a hard time. Although I emphasized the business value of reducing energy usage, these people were quick to point out that improving energy efficiency was no guarantee of cost savings; a strategy may be so expensive or not feasible such that it will not pay back the initial investment. This is true, and that’s why one needs to look individually at every building and situation and devise a host of potential strategies. Some will have a better ROI than others. And that’s a good reminder that “just going to Home Depot” to pick up some LEDs, does not guarantee savings (or proper lighting). We experienced engineers are needed.

My favorite example is a small business called Colonial Needle, a light industrial / warehouse / office 2-building complex in White Plains, NY. The buildings were built in the 1950’s and underwent essentially no changes since then, including having their original windows and boiler. Not only were their energy costs sky high, their workers were still uncomfortable; some were wearing parkas at their desks in the winter! Colonial Needle finally realized they had to upgrade and did so comprehensively. For example, they knew that there were cracks in many of the single-pane windows. While a window upgrade to double pane generally does not have a fast payback, it was critical for worker productivity and morale for wind not to blow onto people at their desks! Each building and situation is unique. It is important to bring in the right energy professional to lay out options and to look deeper into what the long-term costs and benefits are.

Another factor is to take advantage of incentives that exist for many energy efficiency projects. Governments – even in red states – are beginning to understand that incentives for private companies to implement energy efficiency projects is a productive way for a government to spend money. Some examples:

• Improved energy efficiency, by reducing a company’s expenses represents a boost for tax revenue and for creating new jobs, beneficial to any government.

• One or many buildings using less energy (more efficiently) also has health benefits. Less fuel combustion means reduced air pollution buildup and, therefore, reduced asthma and other respiratory diseases, meaning a happier and healthier population, using less government services.

• Using less energy in peak times reduces the stress on the energy delivery system. One apartment complex that switched from oil to natural gas (oil backup) noticed that the number of annual oil truck deliveries dropped from nearly 300 to two, through the narrow, complex streets of the neighborhood. Besides causing traffic jams, truck deliveries took workers away from other jobs, not to mention. So this change benefitted many.

• Reducing the amount of electricity used allows utilities to avoid or scale back the building of new or expanded power plants, transmission lines, and other necessary equipment and use existing infrastructure more effectively. This not only saves the utility much money and risk of potential failure, but also saves the consumers, too, as we all ultimately pay the bill.

This last point is a major reason why more and more utilities offer incentives to customers to use less energy. Yes, that sounds ironic – paying a bonus to customers to use less of the product they sell. But such incentives make sound sense given the alternative, multi-million or multi-billion dollar capital upgrade projects, which may or may not be fully funded and may or may not lead to unbridled success.

But back to you, our readers, who primarily work for companies and building owners and deal with a finite number of buildings and facilities. Why should your company invest in energy efficiency and how can you get others to push for this?

 The payback period for energy efficiency fell by over half when productivity and operational gains are estimated and brought into the calculations.

 Energy efficiency strategies can make buildings more comfortable, yielding healthier conditions for workers and residents. According to the International Energy Agency (IEA), for every $1 invested, energy efficiency provides up to $4 in benefits when the cost of medical care, lost work time and child care costs are considered.

 Energy efficiency strategies can attract new business, tourists, and investment dollars to the company or building. This is especially true in real estate, as energy efficiency can attract more potential renters (giving the owner the upper hand), the entertainment and health care industries, and for universities.

Companies, building owners and managers, governments, utilities, and yes, even engineers should stop thinking about energy efficiency as just another expense, and instead think of it as an investment to be studied and benefits maximized. No, not every energy efficiency project will pay back well. An experienced professional is needed to determine the most cost-effective projects. But so many opportunities in energy efficiency exist (growth in better systems/technology) to benefit nearly any company.

CCES has the experts to perform an energy audit to determine specific energy efficiency projects for your building or facility. We have the experience to quantify potential costs and long-term benefits, not only direct cost savings, but other business benefits, as well. Join the growing number of businesses who understand energy efficiency is a positive business investment with many short- and long-term benefits. Contact us today at 914-584-6720 or at karell@CCESworld.com.