How to Reduce Your Commercial Electrical System Energy Costs by 30% This Year

Reducing energy costs for commercial electrical systems can seem daunting, but it is achievable with some strategic planning and upgrades. Here are practical tips to cut your business's electrical expenses significantly this year.

Perform an Electrical Audit

The first step is conducting a thorough audit of your existing electrical infrastructure.

Look at Your Monthly Utility Bills

• Gather electric bills from the past year and analyze kWh usage and demand charges. See when peak usage occurs.

• Calculate costs per square foot to benchmark against similar buildings. Higher than average indicates opportunities to lower costs.

Inventory All Electrical Equipment

• Catalog all lighting - bulbs, ballasts, fixtures. Note incandescent, fluorescent, LED.

• Document HVAC - age, efficiency rating. Units over 10 years old are ripe for replacement.

• Audit appliances and plug loads - how much energy do computers, machinery, refrigerators use?

• Review building envelope - are windows, insulation efficient? Issues here raise HVAC costs.

Consider an Energy Management System

An ENERGY STAR® certified EMS provides data to pinpoint waste and optimize electric load management. Advanced systems can automatically adjust lighting, temperature for occupancy and time of day.

Upgrade Lighting

Lighting accounts for 12-35% of electricity consumption in commercial buildings.

• Switch incandescent bulbs to LED - uses 75% less energy.

• Replace T12 fluorescent tubes with T8 or T5 - 30% more efficient.

• Install occupancy sensors, timers, daylight harvesting controls to reduce operating hours.

• Consider group re-lamping to cut labor costs.

• Note utility company rebates for energy efficient lighting.

Examine HVAC System Upgrades

Heating and cooling can consume over 40% of a commercial building's energy.

• Upgrade aging units to ENERGY STAR Most Efficient rated models.

• Adjust thermostat set points to maximize savings - higher in summer, lower in winter.

• Install smart thermostats that auto adjust temperatures for occupancy.

• Tune up units yearly and inspect ductwork for leaks. Seal with mastic.

• Add variable speed drives on motors, pumps, and fans.

• Consider heat recovery ventilation units to reclaim lost heating and cooling.

Evaluate Onsite Generation

Generating some of your own power can hedge against rising utility rates.

• Install solar photovoltaics - 30% Federal ITC available. Net metering to reduce purchases.

• Examine combined heat and power (CHP) if there are consistent thermal loads.

• Size units to offset peak demand charges. Consult utility for incentives.

Involve Tenants in Conservation

Get occupants invested in reducing energy waste.

• Communicate commitment to efficiency and ways they can contribute.

• Offer rewards and recognition for participation.

• Provide tips on saving energy in their space - strategic lighting use, smart plug strips.

• Share results! Seeing progress builds engagement.

Continuously Monitor Usage Data

Ongoing tracking ensures efficiency gains stick.

• Benchmark with ENERGY STAR Portfolio Manager for context on performance.

• Analyze monthly usage to confirm reductions. Investigate spikes or rebounds.

• Keep expanding insights on where and when electrical waste happens.

• Review operations and maintenance process for additional wins.

With careful planning and execution, reducing commercial electrical costs substantially is within reach. A 30% or greater drop in energy use this year is attainable for most organizations. But it requires comprehensively auditing your building's systems, strategically upgrading the highest impact areas, and continuously monitoring progress. The investment will rapidly pay back in ongoing utility savings.