Paying less for electricity is an attractive proposition for building owners, and there are several ways to achieve that result. However, the most effective solutions change depending on building conditions, and the best recommendation is getting a professional assessment as the first step. All the following are viable approaches to reduce electricity expenses in a building:
The first two approaches are easy to implement when a building has wasteful habits, such as leaving certain lamps on all the time, or using air conditioners at full output during the entire summer. However, once the schedule and usage intensity of devices have been optimized, further savings with this approach are only possible at the expense of performance and comfort.
Energy savings should be achieved without a negative impact on other aspects of building performance. In fact, many upgrades that save electricity often enhance building systems, by improving aspects like temperature control and outdoor air supply.
Many suppliers offer products with prescriptive energy savings, such as light bulbs with a specified percentage of energy savings. However, these savings are based on building conditions that are assumed by the manufacturer, which may not match the actual requirements of your property. An energy audit is strongly recommended to get a clear picture of the potential energy savings in your building:
An energy audit can also be used as reference when comparing financing options for building upgrades. If you plan to implement energy efficiency with debt financing, and the resulting savings are higher than the loan payments, the project can pay its own cost.
Although each building is unique, some energy efficiency measures are characterized by being useful in a wide range of projects. The following are some examples:
There are many technologies that can generate electricity, and the power supply from your local utility is most likely from a mix of sources. Some power generation systems are only cost-effective at large scale, which limits their usefulness as a local electricity source for buildings. However, many generation systems are viable at small and medium scale, and can be deployed in buildings to reduce the net consumption billed by the local utility company.
In general, local power generation works when it is a cheaper option that purchasing electricity from the grid.
Like in the case of energy efficiency measures, the best power generation system may change depending on building conditions. However, solar power is the most flexible and versatile option for most buildings: a photovoltaic array only requires a suitable area with sunshine, and its maintenance needs are minimal. Microturbines fired by natural gas are also emerging a viable option for buildings, and they can supply combined heat and power.
Some electricity tariffs allow savings due to how they are structured. There is a wide variety of tariffs in the USA, but there are two main scenarios that allow savings:
In both cases, the basic principle is shaping electricity consumption so that the power bill is minimized. Depending on the tariff applied, the goal is avoiding demand peaks or minimizing the consumption of expensive kilowatt-hours.
There are many ways to reduce electricity expenses, but the best option changes depending on building conditions. For example, demand side management has little application when there are no demand charges and the kWh price is constant throughout the day.
The optimal combination of energy efficiency measures and on-site generation changes depending on the physical characteristics of a building and its intended occupancy. For example, the operating schedules of lighting fixtures and air conditioning are very different between residential and commercial buildings, and the corresponding savings also behave differently.