Developing Your Energy Plan for 2012

Key Points

An energy management plan can substantially reduce your operating costs in 2012 and beyond.

·         Successfully implementing a plan involves a multi-step process for continuous improvement.

·         A variety of financing options and incentives are available to help fund energy-saving upgrades.  

Energy is a critical resource and more than just a cost of doing business. The beginning of a new year is the perfect time to assess your energy performance and implement a plan for improvement. A successful energy management program can substantially reduce your operating costs in 2012 and become a key part of your business strategy in the years ahead. In addition to lowering utility costs, energy management can help reduce your environmental impact, improve your workplace environment and enhance your public image. To ensure success, take a multi-step approach to continuous improvement that involves the cooperation of top management and everyone in your organization.

Keys to successful energy management

The following guidelines will help you implement a structured process for continuously improving your energy performance.

Make a commitment. Form a cross-functional energy management team and set an energy policy that includes goals. Goals should include both short-term and long-term objectives and a measurable standard for tracking progress. Examples of energy policy goals could include: annual 20 percent reduction in energy use per square foot and a 10 percent reduction in monthly electricity demand.

Assess performance. Evaluate mechanical and building systems and examine your energy bills over the last three years. Establish metrics and selection criteria and benchmark your energy performance against similar facilities. See the Commercial and Industrial benchmark tools for industry- and climate-specific data.

Another approach is to perform an energy analysis on a simple system that you may know you need to improve, even for non-energy reasons. For example, upcoming changes to federal fluorescent lighting standards may accelerate your plans to upgrade. If improvements are needed, you can keep the scope of your project limited to what you can afford to implement within the year. Contact your account manager or visit Rocky Mountain Power's website for details on energy efficiency programs that can help.

Put your plan into action. With goals in place, develop a detailed action plan for implementing energy-saving measures. Unlike the energy policy, the action plan is regularly updated to reflect performance changes and shifting priorities. Get approval from executive management to implement the program; remember to talk cost savings, not energy savings. Encourage staff to participate in the program by providing incentives.

Evaluate progress. Compare energy use data and the activities carried out as part of the action plan to achieve your performance goals. Use evaluation results and information gathered during the review process to create new action plans, identify best practices and set new performance goals.

Recognize achievements. Publicizing energy-saving improvements will motivate staff and sustain momentum for your program. Reward staff or departments that have achieved individual goals. Recognition from outside sources validates your program and provides positive publicity for your organization. Consider incorporating certifications such as LEED (Leadership in Energy and Environmental Design) or ENERGY STAR^® into your program.

For more information, see the U.S. Environmental Protection Agency's Guidelines for Energy Management. 

Should you hire an energy manager?

An energy manager can help facilitate your energy-management program, but is hiring a full-time energy manager necessary? The answer depends partly on the extent of your program and the size of your organization. An energy manager serves as a single point of accountability within an organization to develop goals, oversee the implementation of energy projects and act as a liaison between senior management and facility maintenance. An energy manager should have an engineering or related technical degree and experience in energy issues. The Association of Energy Engineers maintains a Certified Energy Manager program.

Larger organizations can benefit significantly from a full-time energy manager to help reduce costs and improve overall efficiency.

Smaller organizations can appoint an energy champion from within to take the lead on energy issues or hire an outside consultant.

Financing efficiency upgrades

While energy efficiency upgrades often require a substantial upfront investment, a variety of options are available to help cover costs. Before you begin a project, ask your account manager or go to Rocky Mountain Power’s website to learn more about incentives available for energy upgrades.

A bank loan is a common approach for financing energy projects. The goal is to recover the financing costs through energy savings. Evaluate the type and complexity of various loan options against the size and risk of the project. Lease-purchase agreements are typically offered by commercial leasing companies and can help defray the upfront costs of energy efficiency upgrades. The lease is structured so that project energy savings will pay for the financing costs. The time period of a lease agreement is generally between 5 and 10 years. Energy performance contracts are offered by Energy Service Companies (ESCOs). The ESCO evaluates energy-saving opportunities and provides financing and installation services for an agreed upon set of improvements; these contracts typically last 7 to 10 years.

Tax incentives can also help reduce the cost of energy efficiency projects. A federal tax deduction of $1.80 per square foot is available for commercial buildings that save at least 50 percent of the energy costs of a building that meets ASHRAE 90.1 Energy Standard for Buildings Except Low-Rise Residential Buildings. Partial deductions of 60 cents per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. For information about local and state incentives, search the Database of State Incentives for Renewable Energy (DSIRE).

Additional resources

Our Commercial and Industrial Energy-Efficiency Tools can provide you with industry-specific advice on how to save energy and reduce costs. Spend a few minutes with the Facility Assessment Wizard. After completing a short interview process, you will receive a personalized report on how to address your facility's energy needs. The Lighting Calculator and Motor Calculator can help you estimate cost savings for specific upgrades.

Armed with these resources and a plan for continuous improvement, you can improve your energy performance in 2012 and beyond.