Top 3 Energy Myths

Insights by Ryan Lewton, Certified Energy Manager | Sr. Business Consultant | Key2Act

Energy Expert Smashes Energy Myths

You are probably wondering why in 2020, confusion still paralyzes action to achieve building energy savings. The dilemma is confounded by bold energy savings claims that are often unfounded and in the real-world lead to subpar results. The facts are that:

- 23% of energy conservation measures fail three to four years after implementation*

- Energy savings from retro-commissioning reduced by 25% after four years**

The most sighted hurdles to sustainability initiatives are access to capital, fear of lost productivity and intimidation of the perceived complexity to implement an energy management strategy.

So, let’s dive into sharing a few stories to understand the top three energy myths and stop falling short of expected energy savings.

Energy Myth #1: It Takes Green to Go Green

Many business leaders feel that only capital improvement projects or large cash out-lays can achieve notable energy savings. The good news is that you do not need a bucket full of cash to begin.

Procurement, OpEx and Cap-Ex Savings Opportunities

The good news is there is a massive variety of low cost or no cost energy management plays such as setting standards in procurement and coordinating with materials management. To illustrate the savings, an independent school district in Texas was able to achieve an energy star level of performance in the majority of their facilities by just controlling the procurement of their appliances and by setting retrofit and efficiency standards. The result was extremely efficient buildings with lower life cycle costs.

Another energy savings opportunity is by avoiding capital costs through design services. One commercial office building client saved $200K in capital costs by reworking the design to a single rooftop unit that was more energy efficient.

From an Op-Ex savings standpoint, there has been a massive increase in after-hours plug loads that are attributed to IT equipment, which leads to an opportunity to implement IT power management standards. Also, how many times have you driven by a building at night and seen all the lights on? This is an opportunity to both re-evaluate night setbacks that have been disabled/overwritten and potentially evaluate day shifting custodial staff. And most importantly, restoring the building back to its original design intent with retro/continuous commissioning, according to numerous research organizations, can realize an 18 to 24-month payback with an average avoid cost annually of 17%.

There are tremendous Cap-Ex savings opportunities in the market by way of creative financing via power purchase agreements, on-bill financing, property assessed clean energy financing (also referred to as PACE), equipment leasing and energy as a service agreement. It takes thinking outside of the box with creative financing to drive the needle to maximize energy savings.

Energy Myth #2: It is Disruptive to Operations

Many people think they will have to sacrifice quality or comfort to save energy. The stereotype of buildings with poor lighting and uncomfortable (hot or cold) office spaces to achieve energy savings due to a poor design does not have to be the case.

However, poor design nets poor results and unfortunately, energy savings from retro-commissioning is reduced by a substantial 25% after four years. One humorous example of poor operations at a Navy base that was too hot is occupants bringing in hair dryers to trigger the thermostat to cool down the office space.

The fact is energy conservation measures do not have to impact operations negatively. In most cases in surveys by the Department of Energy, EPA Energy Star, Texas A&M University and Berkeley energy systems laboratory, the indoor air quality and comfort improved after an effective retro-commissioning program. Ironically, this means that folks are paying a premium to be uncomfortable in a building that has not undergone a recent retro-commissioning to save energy.

Energy Myth #3: Fear of Complexity – It’s Rocket Science

There are several misconceptions that only complex solutions like renewables can drive sustainability. Net-Zero might be your goal, but you also have other, less complex solutions that can achieve practical savings.

Design, Operations and Maintenance

While it is not rocket science, sometimes, it does feel that way. What’s key is good design, proper operations, and good maintenance programs to achieve energy efficiency?

From a design perspective that are many great programs such as ASHRAE, EPA Energy Star, and LEED. In one example, a school district in the mid-Atlantic region set the precedence that all buildings going forward must be LEED-certified and over the course of 15 years, while they saw a premium of 6% on upfront building costs, they experienced an average of 15% per year avoided costs. However, LEED isn’t a silver bullet. In many cases, LEED buildings that are two to three years old turn out to be energy hogs not because of poor design but because people were not properly trained to operate and maintain the equipment and the facility.

Operations can be one of the most effective energy conservation measures when coupled with changing the behavior of both the building operator and occupants. For example, understanding of how actions can have a negative impact on energy can change behavior over time. But it does take time and persistence in communications to change human behavior, but it is worth the investment. One effective communication method is to share metrics that show the incremental energy savings improvements based on behavioral changes. This reinforcement that their actions are resulting in positive changes for them and for energy savings cement long term change that makes a measurable difference.

Leverage Technology to Find Simple Solutions to Complex Problems

Never fall short of expected energy savings with continuous commissioning by leveraging data metrics. For example, when a building parameter is out of tolerance, data can trigger prioritized fault rules for both equipment and systems to keep your systems in spec to avoid energy drift. And when troubleshooting or evidence-based facts are required to identify the root problem(s), time-series trend charts will help you visualize what you cannot see. The key is to stop treating the symptoms and address the root cause with data diagnostics to realize energy savings.