Why Developers Should Invest in Energy EfficiencyBy Michael Tobias
Energy bills are among the highest expenses for tenants, especially if the local climate demands plenty of air conditioning or space heating. Energy efficiency measures provide a marketing advantage in the real estate industry, since the prospect of paying less for electricity and gas can attract tenants. Also, developers who invest in energy conservation are also more likely to be regarded as corporate citizens.
Before investing in energy efficiency measures, it's important to understand that every property is unique. The optimal combination of measures to save energy will depend on the design and needs of each building. Ideally, developers should get an energy audit before making any investment decisions. This provides a detailed list of energy efficiency measures, with a cost and benefit analysis in each case. Since space heating and air conditioning tend to have the highest energy consumption, energy efficiency measures that improve these systems can achieve the highest savings. This applies for both residential and commercial properties. Reducing the Cost of Space Heating and Air Conditioning There are three main strategies to reduce heating and cooling costs in buildings. Each approach can yield decent savings, but the best results are achieved when they are deployed together:
Using LED Lighting to Save Energy LED lighting normally achieves energy savings from 30-90 percent, depending on what type of lighting was used before the upgrade.
LED upgrades tend to achieve the highest savings in commercial buildings and the common areas of residential buildings. All these spaces use lighting for many hours each day, and, in some cases, the lights are left on 24/7. When inefficient lamps with long operating schedules are upgraded to LEDs, the payback period can be less than one year. Efficient Water Heating Systems Water heating is a significant energy expense in residential buildings and some commercial applications such as restaurants. Old water heaters with storage tanks often have an efficiency below 60 percent, and plenty of energy is wasted just to keep the water in the tank warm. Typically, the lowest operating cost can be achieved with the following options:
Conclusion Energy efficiency measures that target heating and cooling systems normally achieve the highest savings. Lighting and water heating upgrades are also cost-effective in many buildings. To make the best investment decisions, the recommendation is getting an energy audit. A trial-and-error approach is not advised, since property owners may end up investing in measures that have a low impact on their building energy consumption. If a building offers lower electricity and gas expenses than competing properties, tenants are more likely to rent. In the real estate sector, energy efficiency provides a marketing advantage in addition to reducing power and gas bills. This was originally published on RISMedia's Housecall. Michael Tobias is the founder and principal of Chicago Engineers, an Inc. 5000 Fastest Growing Company in America. He leads a team of 30-plus mechanical, electrical, plumbing and fire protection engineers from the company headquarters in New York City, and has led over 1,000 projects in Chicago, New York, New Jersey, Pennsylvania, Connecticut, Florida, Maryland and California, as well as Singapore and Malaysia. |
Today's Top Stories |