3 min. read
Our Expert Insights series brings you real-world perspectives from our Commercial Markets experts on navigating energy upgrade and transition decisions.
In this video, Andrew Brzezinski, Vice President of Business Development, Commercial Markets, talks about how energy upgrade project goals have shifted in recent years, but why they’re more important than ever to invest in with rising utility costs.
Watch the full video or read the transcript below.
Q: How has the outlook on energy efficiency projects changed?
AB: I’m Andrew Brzezinski with SitelogIQ.
The ways in which energy efficiency projects and adoption of those projects have changed in the last few years are interesting.
One of the ways is there has been a shift away from mission-driven goals towards energy efficiency projects and now the focus really needs to be on the financial benefits. Some would argue that those financial benefits should have been the leading cause to do energy efficiency projects before, but that has certainly shifted with rising utility rates.
Q: What are the financial benefits of energy upgrade measures?
AB: The financial benefits of energy conservation measures, let’s take LED lighting as an example where it could reduce, and it does reduce, your carbon footprint. The financial side of that is LED lighting is 60 to 80% more efficient than fluorescent lighting.
And so that right there you’re reducing your energy consumption, therefore reducing your energy costs.
Q: What options do businesses have for energy conservation?
AB: Businesses may want to prioritize your energy conservation projects in a number of different ways.
The two easiest ways to think about it is do we do quick payback projects first to realize those savings and stabilize those costs? Or do we approach it with a bundled model where we wrap maybe heavy capital projects, HVAC infrastructure projects with quick payback items to really blend those models and have a good payback while still addressing some major infrastructure projects.
Q: How can organizations acquire funding for energy projects?
AB: There’s a number of different ways for organizations that have limited CapEx or really strict budget processes.
You can go to financial markets and get different loans or energy as a service models.
Or once again, you could focus on those low cost, high payback items to show and prove your savings component and then work with your finance department to get the funding for other infrastructure and energy upgrades.
Q: Why is it so important to address rising energy costs right now?
AB: It is so important to reduce your energy costs today because energy costs are rising and every commercial business public entity needs to stabilize their operational spend to improve their financial performance as an organization.
Even as the conversation around ESG and sustainability has gone away and become less important, the financial impact is still crucial.
SitelogIQ is your one-stop partner for energy efficiency, renewable, and electrification solutions. We handle all project steps, from design and installation, through incentive management. Let’s see what opportunities you have to reduce your energy costs and usage.