As energy prices steadily increase, prioritizing energy efficiency becomes essential, not just for its environmental impact but as a strategic move to enhance profitability and business stability.

The cost of energy plays a significant role, impacting everything from routine operational expenses to the success of larger projects.

For businesses committed to sustainability, energy efficiency is crucial for achieving green certifications and meeting ESG criteria. It's clear that stakeholders—from consumers to investors—expect visible and impactful progress in sustainability efforts.

Transitioning from plans to actionable steps is key. By actively implementing energy efficiency measures, businesses can create substantial value that benefits their bottom line while positively affecting the planet.

Navigating the Current Energy Landscape

Understanding shifts in the energy market is important for informed long-term planning.

• Rising Energy Costs: Electricity prices for commercial users have escalated by about 22% since 2020, while natural gas prices are projected to jump 44% by 2025.
• Grid Infrastructure Risk: Dependence on regional power grids ties business operations to uncontrollable external factors. The 2003 blackout, affecting 50 million people, underscores the potential risks and emphasizes the importance of proactive energy management.
• Impact of Capacity Auctions: These auctions, which ensure there is enough future power supply, have significantly influenced energy pricing.

Get Started—Step 1: Energy Audit

Given the evolving dynamics of the U.S. energy market, enhancing energy efficiency is pivotal for boosting business sustainability and reducing operational costs. The initial step in this process is conducting an energy audit.

But what exactly is an energy audit? It's a comprehensive assessment of a company's energy usage that establishes a baseline for current consumption, pinpoints inefficiencies, and uncovers opportunities for enhancement. This systematic, data-driven approach yields crucial insights into your energy consumption patterns.

For instance, the audit might calculate the Energy Utilization Intensity (EUI) of a building, which measures the average energy use per square foot. Comparing this metric with industry standards helps identify potential areas for substantial energy savings. Armed with this data, businesses can devise targeted improvement plans focusing on these high-impact areas.

Step 2: Setting Measurable Goals and Tracking Progress

After establishing your baseline energy data, it's time to set specific energy reduction targets. Setting clear goals is crucial for fostering continuous improvement and enhancing public trust. This typically involves defining key performance indicators (KPIs) to monitor changes over time. Common KPIs for tracking energy efficiency might include variations in Energy Utilization Intensity (EUI) or percentage reductions in energy use over a specified period.

Step 3: Implementing Energy Efficiency Strategies

After completing your energy audit and setting clear goals, implement the following strategies to enhance energy efficiency:

• Upgrade to Energy-Efficient Systems: Modernize key systems such as HVAC and lighting to significantly reduce energy usage. For example, switching to LED lighting or more efficient HVAC units can cut energy consumption by up to 75%. Despite higher initial costs, these investments typically pay off within a few years through reduced energy bills.
• Adopt Renewable Energy Solutions: Install onsite renewable energy sources like solar panels to decrease grid reliance. The federal Energy Investment Tax Credit, providing a 30% rebate for solar installations, along with other incentives, makes this option financially viable. Commercial solar installations usually offer a return on investment of 10% to 20% over their lifetime.
• Integrate Energy Management Systems: Use energy management systems to monitor and optimize energy use. These systems enable smarter operational adjustments during high-cost energy periods and are essential for tracking energy data for sustainability reporting and certification.

Step 4: Leveraging Resources and Partnerships

As you execute your energy improvement plan and monitor your KPIs, consider refining your strategy and keep abreast of best practices in energy efficiency. This proactive approach helps prevent your improvements from losing momentum over time.

• Utilize Data from Utility Providers: Analyze utility data to make informed decisions, such as shifting energy-intensive operations to off-peak hours to reduce costs.
• Participate in Sustainability Programs: Engage with initiatives like the 2030 District to gain access to networking opportunities, shared resources, and collective bargaining advantages.
• Collaborate with Energy Experts: Partner with energy experts to integrate cutting-edge, practical, and cost-effective strategies into your operations.

Turning Goals into Action

Energy efficiency delivers substantial benefits, including cost savings and increased property values, essential for broader sustainability efforts. The urgency to begin is clear as energy challenges intensify, requiring ongoing commitment and proactive steps.

Laura Steinbrink and Emerald Built Environments, a Crete United Company, help teams identify whole system visions for sustainability that create practical success for stakeholders. They use keen facilitation skills to move clients and project teams through difficult decisions by pinpointing what matters and exploring team knowledge for innovative solutions. Laura has directly participated in over 50 LEED projects nationwide, including BD+C, ID+C, O+M, C+C, ND, and Homes. She is the firm’s founder and managing member and continues to work with clients, helping them set and achieve sustainability goals and strategies. Recently, she's been busy leading the firm's E in ESG practice area, which supports sustainability strategy development, stakeholder engagement, GHG emissions reporting, and compliance frameworks, including TCFD and GRESB for large privately held companies.