The Hidden Benefits of Energy Conservation

Key Points
• Benefits of energy conservation include longer equipment life and lower maintenance costs.
• Improved indoor air quality increases worker productivity and reduces absenteeism.
• You could win big with a submission in Rocky Mountain Power’s June energy efficiency contest.

While conserving energy is a great way to lower utility costs and reduce environmental impact, the financial decision makers at your company may be wary of the amount of money required to pay for efficiency projects. An investment in energy efficiency may not sound like a good idea to them if the only benefit is energy cost savings, which may take a few years to provide a payback. Energy conservation, however, can bring a number of added benefits to your organization, including longer equipment life, reduced maintenance costs, improved productivity and an enhanced public perception.

Extend the life of equipment. All equipment, whether it is a computer, motor or boiler, has a rated operating life. This rating is based on an average number of operating hours per year. In addition to saving on energy costs, turning things down and turning things off will extend the useful operating life of the equipment. Other conservation measures will have a positive impact on equipment life as well. Lowering the pressure on air compressors, for example, will save energy by reducing the amount of air lost to leakage. It will also extend the life of the compressor by reducing wear and tear on the motor.

Reduce maintenance costs. In many instances, energy efficiency retrofits help to reduce maintenance costs. For example, the latest T8 lamps have a lifetime rating of 30,000 hours compared to 20,000 hours (or less) for T12 fixtures. In a large facility, this can significantly reduce the time that maintenance staff spends changing out lamps or replacing fixtures. In another example, the Rosen Hotel and Resort in Orlando, Fla., was plagued with maintenance calls for noisy and malfunctioning ventilation fans. They replaced the older fans with new ENERGY STAR®-certified models. Not only did the facility save $26,000 per year in energy costs, the quiet, reliable fans saved thousands of dollars in reduced maintenance time and costs, and improved guest satisfaction.

Improve productivity. “Green” buildings that reduce energy consumption also tend to focus on natural lighting and advanced air filtration systems, which improve indoor air quality. These have been shown to increase worker productivity and reduce absenteeism. In a 2009 survey of employers who moved operations into green buildings, more than half reported an increase in productivity while 45 percent saw a decrease in absenteeism. Of those reporting a change, there was an average of three fewer sick days per employee and a 5 percent increase in overall productivity. (Miller, 2009)

For more information about managing an energy program, see Best Practices in Energy Management. For specific energy conservation ideas tailored to your facility, see the Commercial or Industrial Energy Efficiency Recommendations.

Act wattsmart!
Rocky Mountain Power also has programs, services and incentives available to help you achieve your energy efficiency goals.

… And show us how you’re being energy efficient. Capture it on video. Enter by June 30, 2011 and you could win up to $10,000 in energy efficiency upgrades. Learn more at wattsmart.com


References
Mattioli, Dan. "How Going Green Draws Talent, Cuts Costs". Wall Street Journal. November 13, 2007.

Miller, Norm G. "Green Buildings and Productivity". Journal of Sustainable Real Estate. Volume 1 Number 1, 2009