Three Steps to More Energy-Efficient and Cost-Effective Buildings
One of the biggest challenges building owners and managers face is energy and resource management. Every building, from the smallest school to the tallest skyscraper, uses energy most often generated by the burning of fossil fuels.
On average, 30 percent of the energy consumed in commercial buildings is wasted at a cost of about $90 billion annually [i]. Energy efficiency is the single largest way to eliminate this waste and save money.
Energy efficiency also is often called the “lowest-hanging fruit” of decarbonization. It’s a lot cheaper to use less energy than to make more clean energy. According to the U.N. Environment Programme, buildings worldwide are responsible for about 37% of carbon dioxide emissions[ii].
The way forward is to retrofit structures that not only use dramatically less energy but also contribute to a greener, more resilient future. This three-step guide offers practical, impactful strategies that are the foundation of tomorrow’s high-performance, sustainable buildings.
Assess building needs
Buildings, even those owned or leased by a single organization, vary widely in function, size, occupancy, location and more. A tailored approach is essential to meet each building’s unique energy needs, maximize sustainability efforts and build resilience.
A bespoke solution starts with assessing building needs. Understanding how a building consumes energy is central to the assessment phase. The largest sources of energy demand in a typical commercial building include heating, ventilation, lighting and cooling[iii]. An energy audit also analyzes peak usage times and potential sources of energy waste, in addition to reviewing key areas affecting thermal efficiency, such as lighting, HVAC systems, insulation and windows.
The next part of a comprehensive evaluation is a sustainability audit that assesses the building’s carbon footprint, water usage, and waste management practices. The audit involves evaluating water fixtures, plumbing systems and waste disposal methods to identify opportunities for conservation and efficiency improvements. It should review any existing renewable energy sources, such as solar panels, and analyze the feasibility of additional installations to reduce reliance on the grid.
A building assessment should also include indoor environmental quality factors, like air quality, lighting levels and ventilation, that affect the occupant experience and worker productivity.
Finally, the assessment should conclude with a roadmap of recommended upgrades and a cost-benefit analysis. The detailed plan will help owners and facility managers prioritize investments that will reduce operational costs, enhance sustainability and improve the building’s ability to withstand power outages and other types of disruption caused by natural disasters. The plan should also include key performance indicators (“KPIs”) such as energy use intensity or carbon reduction and a strategy to gather and analyze data to track progress toward goals.
Optimize the building
Optimizing buildings for energy efficiency involves strategic upgrades and smart management practices to reduce consumption and minimize environmental impact. There are hundreds of potential energy conservation measures within a building portfolio, but building owners can align to global standards like ISO 50001[iv], which provides a practical way to improve energy use.
Upgrading lighting systems is another impactful measure, as switching to LED lighting and installing occupancy sensors can cut energy consumption. HVAC improvement and maintenance are also keys to optimizing consumption via regular maintenance, programmable thermostats and using demand-controlled ventilation to adjust airflow based on occupancy.
Advanced building management systems (BMS) can oversee and automate HVAC, lighting and other systems to enhance operational efficiency. They also provide a single point of control to manage various building systems, simplifying operations and allowing for remote monitoring.
Optimizing also means leveraging the latest technologies, including artificial intelligence, machine learning, and the Internet of Things, to enhance a BMS's capabilities. Using advanced software controls with a BMS can enable adjustments before energy use escalates and provide a clear analysis of consumption and carbon emissions.
Support sustainability and resilience goals
The final step is to make investments that reduce the built environment’s carbon footprint and boost its energy resilience. The focus of these efforts is to move to a more decentralized and distributed energy infrastructure known as microgrids.
Early adopters of microgrids included hospitals, universities and military bases where reliability and emergency power are essential. Today, organizations of all kinds are turning to microgrids to gain control over energy costs, advance sustainability and increase resiliency.
Integrating solar panels, geothermal systems and other renewable energy sources into microgrids can reduce emissions. Microgrids can also incorporate battery systems to store electricity and deploy it during outages or when grid demand spikes. And as buildings continue to become more electrified, microgrids can help generate power for additional loads, such as electric vehicle chargers and heat pumps.
Cloud-based energy management systems and onsite microgrid controls are essential to operating microgrids effectively. They dynamically manage loads to extend supply during extreme weather events, keeping critical systems running and recovering faster from outages. Smart building systems can also optimize energy usage by turning off non-essential lighting or HVAC systems during peak periods when utility prices are highest.
Envision an energy-efficient future
Reducing energy consumption offers significant benefits for building owners and managers, spanning financial, environmental and market-related benefits. Energy-efficient buildings have lower utility bills and reduced exposure to fluctuating energy prices. Tenants also increasingly prefer buildings with lower energy costs and environmentally friendly features. These advantages can lead to increased asset values and enhanced market competitiveness.
[i] Energy Star, About ENERGY STAR for Commercial Buildings: ENERGY USE IN BUILDINGS AND PLANTS, [Accessed December 9, 2024]
[ii] UN Environment Programme, Global Status Report for Buildings and Construction, March 7, 2024 [Accessed December 9, 2024]
[iii] EIA, Use of Energy Explained; Energy Use in Commercial Buildings, June 29, 2023 [Accessed October 31, 2024]
[iv] ISO, ISO 50001: Energy management [Accessed October 31, 2024]
