Guide

Avoiding the Hidden Costs of Inefficient Energy Use

January 30, 2024
November 20, 2023
  •  
3 minutes
Brooke Skillan
Team Coordinator

Learn how Asset Managers can reduce operating costs and meet decarbonization goals with practical tips and strategies. Avoid common mistakes and leverage data-driven solutions to optimize building performance and increase profitability.

Common Mistakes and Tips: How to Reduce Operating Costs and Meet Decarbonization Goals

Introduction

As Asset Managers in the Real Estate industry, you face numerous challenges when it comes to reducing operating costs and meeting decarbonization goals. These challenges can hinder your ability to increase profitability and exceed sustainability targets. In this blog post, we will explore common mistakes made by Asset Managers and provide practical tips to help you overcome these challenges and achieve your goals.

Challenge 1: Lack of Visibility into Asset Operations

One common mistake made by Asset Managers is a lack of visibility into the operations of their assets. This lack of visibility can make it difficult to identify areas for improvement and optimize building performance. To avoid this mistake, consider implementing a data-driven solution that provides real-time remote awareness of operations. By leveraging data and technology, you can gain insights into energy consumption patterns, equipment performance, and potential energy-saving opportunities.

Tip 1: Implement a Data Integration System

To improve visibility into asset operations, it is essential to implement a data integration system. This system will allow you to collect and analyze data from various sources, including energy meters, HVAC systems, and occupancy sensors. By integrating these data sources into a centralized platform, you can gain a holistic view of your assets' performance and identify areas for improvement.

Tip 2: Leverage Virtual Submetering

Virtual submetering is another valuable tool for gaining visibility into asset operations. By deploying virtual submetering technology, you can accurately track energy usage at a granular level without the need for additional hardware installation. This data can help you identify energy-intensive areas and implement targeted energy-saving strategies.

Challenge 2: Relying on Capital Projects Alone

Another common mistake made by Asset Managers is relying solely on capital projects to achieve energy efficiency and decarbonization goals. While capital projects can be effective, they often require significant upfront investment and have long payback periods. To avoid this mistake, consider exploring low and no-cost energy efficiency improvements that can deliver immediate savings.

Tip 3: Conduct an ECM Discovery

To identify low and no-cost energy efficiency improvements, consider conducting an ECM (Energy Conservation Measure) discovery. An ECM discovery involves assessing your assets' current energy usage and identifying specific opportunities for improvement. By quantifying the potential energy savings and associated costs, you can prioritize the most cost-effective measures and implement them without significant capital investment.

Tip 4: Maximize Utility Incentives

When implementing energy efficiency measures, it is crucial to maximize utility incentives. Many utility companies offer rebate programs and incentives for implementing energy-saving projects. By leveraging these programs, you can reduce the overall cost of your energy efficiency initiatives and accelerate the payback period.

Challenge 3: Neglecting Ongoing Monitoring and Verification

A common mistake made by Asset Managers is neglecting ongoing monitoring and verification of energy-saving initiatives. Without proper monitoring and verification, it is challenging to ensure that implemented measures are delivering the expected energy savings. To avoid this mistake, establish a process for ongoing monitoring and verification.

Tip 5: Implement Real-time Monitoring

To effectively monitor energy-saving initiatives, consider implementing real-time monitoring systems. These systems provide continuous visibility into energy consumption, equipment performance, and potential issues. By having real-time data, you can quickly identify deviations from expected performance and take corrective actions.

Tip 6: Regularly Verify Energy Savings

In addition to real-time monitoring, it is essential to regularly verify energy savings. Periodic verification ensures that implemented measures are delivering the expected results and allows for adjustments if necessary. Engage an independent third-party to conduct energy savings verification to provide unbiased and reliable results.

Conclusion

By avoiding these common mistakes and following the provided tips, Asset Managers can successfully reduce operating costs and meet decarbonization goals. Implementing a data-driven approach, leveraging virtual submetering, exploring low and no-cost energy efficiency improvements, maximizing utility incentives, and establishing ongoing monitoring and verification processes are key steps towards achieving these goals. With the right strategies and tools in place, you can optimize building performance, increase profitability, and exceed sustainability targets.

Need expert help and guidance to implement these tips? 
Schedule a demo with Datakwip today.

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