Four Ways to Boost Value by Reducing Energy Usage

Energy costs often top the list of expenses for homeowners and community or condo associations. While we acknowledge the necessity of energy for lighting, heating, cooling, cooking, and water heating, there is room to alter both the cost and the quantity of energy we use.

There are practical strategies to cut down on these expenses, offering savings that might have seemed out of reach. Let's explore four effective methods to achieve this:

Procurement

Did you know that energy costs can be negotiated? If your association has significant buying power, it's possible to secure better rates for essential utilities such as electricity and natural gas. Some management companies possess the influence to help lower your association's energy expenses.

Demand Management

Typically, electricity bills have two primary components: 'Usage' and 'Demand' charges. Demand charges can make up a significant portion of costs, sometimes as much as 40% of a common area's bill. By reducing the peak electrical demand, bills can be significantly reduced. Options to manage this include installing systems to limit demand or shifting major energy loads to non-peak hours when rates are lower. Some utilities offer ‘Load Shedding’ incentives for large customers. However, these programs can be complex and require strict adherence to rules to avoid fines. Management companies can guide you through these strategies.

Bill Audits

Energy bills should never be overlooked. Issues like metering problems, miscalculations, inappropriate fees, or errors in contract implementation can lead to financial losses. Carefully reviewing each bill ensures it matches the actual rates, promised pricing, and reflects usage accurately. Regular audits help maintain the lowest rates and prevent overcharges.

Tech and Training

Investing in technology can lead to substantial energy savings. Evaluate your lighting, HVAC, and boiler systems thoroughly, and if financially viable, upgrade or retrofit them with more efficient solutions. Often, efficiently controlling these systems is more cost-effective than replacement. Ensure existing systems are adjusted for optimal savings without affecting comfort. Install motion sensors in seldom-used rooms to prevent unnecessary energy use. Train maintenance staff to maintain equipment at peak efficiency and educate them on energy conservation practices. Consider setting energy saving targets and reward the staff if they achieve these goals in a specific timeframe.

These strategies not only enhance value but also contribute to a more sustainable and cost-effective energy usage plan for your community.