ENERGY STAR Benchmarking – Improving Building Performance

ENERGY STAR Benchmarking – Improving Building Performance

ENERGY STAR Benchmarking measures a building’s Energy and Water use to establish a baseline from which to measure all future improvements. The metrics of a benchmarked building are compared against similar buildings throughout the United States to produce an ENERGY STAR Benchmarking “rating.”

It is a data driven modern approach that improves the Building Performance and saves Energy Costs for Building Owners.

The Reason to go for ENERGY STAR Benchmarking

Businesses are reducing their energy costs by 10, 20, and 30 percent through effective energy management practices that involve assessing energy performance, setting energy-savings goals, and regularly evaluating progress.

Facility- or building-level energy performance benchmarking is an integral part of it. It provides the reference points necessary for gauging the effectiveness of energy management practices and management for continuous improvement.

Why should I go for Benchmarking?

• Increase Profitability by Being Energy Efficient – Energy Benchmarking tells a building owner about their Energy Usage. It is a key step in identifying opportunities to increase profitability by lowering energy and operating costs.
• Effective Management by Measuring Energy Usage – Through benchmarking, the key metrics for assessing performance are identified, baselines are established, and goals are set. This process helps to identify the key drivers of energy use and provides an important diagnostic tool for improving performance.
• Make Smart Energy Investments – By evaluating trends and variability in energy use, benchmarking can improve management decisions on investments in energy-related projects. Developing a historical perspective on current and past energy use provides a context for those decisions.
• Compliance with Local Laws – Energy Benchmarking is an important aspect of Local Law Compliance in New York City and New York City Local Law 84 of 2009. New York City Local Law 133 of 2016 mandate ENERGY STAR Benchmarking.
• Enhance Tenant Satisfaction— Energy-efficient buildings are often more comfortable and healthier for their occupants. They’re also a great opportunity for property owners to engage their tenants in energy-saving and sustainability initiatives. This can improve tenant satisfaction and retention and attract environmentally conscious tenants.
• Gain Access to Green Finance – Benchmarking energy use not only highlights a building’s sustainability efforts but also offers access to green finance opportunities. More and more financial institutions provide favorable financing conditions, such as green loans or bonds, for projects that demonstrate high environmental performance, including energy efficiency.

• In commercial real estate, decreasing energy costs by 30 percent is equivalent to increasing net operating income by 4 percent.
• In the healthcare industry, each dollar that a hospital saves in energy costs is comparable to generating new revenues of $20.
• In the supermarket retail industry, a 10 percent reduction in energy costs is equivalent to increasing sales per square foot by $70.
• Data taken from ENERGY STAR

Key Steps to a Successful and Effective ENERGY STAR Benchmarking

There are some basic steps and processes involved in energy benchmarking. Here’s a rundown of the steps involved in energy benchmarking:

• Data Collection: The first step of energy benchmarking is to collect relevant data about energy use and other building features. These can include utility bills, submetering data, occupancy, building size, and operating hours.
• Data Normalization: After collecting the data, it needs to be normalized, taking into consideration variations in weather conditions, occupancy, and operational hours. Normalization enables equitable comparison between buildings and considers external factors that can affect energy use.
• Selecting a Benchmarking Tool: There are various benchmarking tools available. But the EPA’s ENERGY STAR Portfolio Manager is the most popular in the United States.
• Data Analysis and Comparison: The benchmarking tool or software is provided with the set of submitted normalized data. It then computes the energy performance indicators and provides a comparison of the energy performance of the building with a cohort of similar buildings or defined benchmarks. This can help pinpoint any aspects of the building that may be underperforming or may potentially improve.
• Reporting and Disclosure: Check the reporting and disclosure rules in the applicable jurisdictions where energy benchmarking is mandated. This can include reporting the data to regulatory bodies, publicly sharing results, and providing reports to relevant stakeholders, including tenants, investors, and building owners.

Performance Tracking and Improvement: Energy benchmarking is not a one-off activity but a continual process. Organizations monitor and periodically benchmark energy performance over time so that they can compare energy efficiency efforts and performance against one another, track impacts, identify trends, and make evidence-based decisions on where to focus future efforts.

Understanding an Energy Benchmarking Reporting

An Energy Benchmarking Report is an in-depth analysis of a building’s energy usage relative to comparable assets, providing critical information about performance and areas for improvement.

An Energy Benchmarking Report usually consists of the following elements:

• Energy Usage Data: Total energy consumption statistics, often segmented by type (electricity, gas, water, etc.), giving a clear look at energy use in the property.
• Comparison Metrics: The report shows how the energy performance of the building compares to a group of benchmarks, which could be the averages for the industry, the building’s historical performance, or the performance of buildings of similar size, use type and geography.
• Performance Ratings: Many of the benchmarking tools provide a rating or score that aggregates the information into a single number representing the energy performance of the building. Such ratings can provide property managers with a quick view of how their building is performing against peers or standards.
• Recommended Improvements: This is likely the most actionable part of the plan. It provides suggestions for energy-saving improvements. These can include everything from minor behavioral modifications to more extensive equipment upgrades or retrofitting projects.
• Financial Analysis: The report could provide financial insights, estimating potential cost savings associated with implementing the recommended energy efficiency measures, including payback periods and return on investment (ROI) calculations.

An Overview of Energy Benchmarking Costs

Tracking energy usage through ENERGY STAR Portfolio Manager and complying with energy benchmarking ordinances is entirely free. So property owners can begin to benchmark their energy use and implement energy efficiency improvements as soon as possible.
On the flip side, gathering energy consumption data for benchmarking may incur costs in terms of establishing energy monitoring systems, meters, or submeters. If the building does not have an automated data collection strategy, it may need to rely on the old-fashioned approach of collecting the necessary data manually through energy bills or by reading on-site meters, which can add labor, time, and costs.

Conclusion

The Cotocon Group holds 10 years of Energy Expertise with a proven track record of Accurate Benchmarking Reports, timely compliance, detailed insights and result oriented approach. We help building owners by Benchmarking their buildings and compliance with Local Laws.

The Energy Usage benchmarking process starts with decisions on the goals, scope, and parameters that will support energy management activities and objectives.

We analyze the key Energy Drivers and their performance against the standard and how we can go beyond that standard.

For Free Consultation, get in touch with us today!