#1. Energy Efficiency is the Same as Energy Conservation
Energy efficiency and energy conservation go hand-in-hand, but they are not one in the same. Energy conservation is the concept of using less energy. For instance, turning off lights when not in use will save energy and money, but it is not energy efficiency. Energy efficiency is the concept of using less energy to produce the same service. A perfect example of energy efficiency is the light bulb comparison. In this example, we will compare two identical rooms lit with different light bulbs. One room is lit by an old incandescent bulb. It lights the room for one hour and is then turned off. The other room is lit with an LED for one hour. Each bulb does the same thing: lights the room for one hour with the same light output. However, the LED consumes 10 times less energy to light the room than the incandescent. This is what is meant by energy efficiency.
A big misconception about energy efficiency is that you will be losing something, such as quality of service, quality of living, or comfort, by switching to something more efficient. This is one of a few common energy efficiency misconceptions. Energy efficient products produce the same quality but can cut energy costs up to 60% in some applications.
#2. Energy Efficiency Is Expensive
This is not completely accurate. Try to think of energy efficiency as an investment, not an expense. You invest money now, like you would with a stock or a bond, to reap rewards down the road. Investing in your business will cost you money up front, and that is the misconception that energy efficiency is expensive. However, that investment will produce a return on investment, usually in less than two years. The amount of money you will save on electric and gas bills is often far greater than the initial capital investment in the long-term.
Preventative Maintenance and Replacement
A commonly overlooked benefit is preventative maintenance. As equipment ages, it requires upkeep. Replacing your air conditioning filters regularly, for example, could prevent your HVAC system from needing a large, costly repair. More energy efficient systems often reduce the stress on whole building management, preventing expensive maintenance or repair costs down the road.
What may be less noticeable is savings from less frequent replacement costs. Let us refer to the light bulb example again. An incandescent has a short life span. A typical 60 watt incandescent bulb, for example, only has a lifespan of about 1,000 hours. You’re more than likely to replace that bulb 2-3 times per year. An LED, however, has a lifespan of 25,000 hours. You won’t need to replace it for 8-12 years. While LEDs have a higher upfront cost than incandescents, you save much more money in the long-term.
#3. Green Buildings Are Expensive
Green building designs becoming increasingly popular. According to a new article by the USGBC: “Increasing consumer demand has pushed the world’s green building market to $260 billion in 2013, and this industry surge has led to a corresponding increase in the scope and size of the green building materials market, which is expected to reach 234 billion by 2019.”
Despite its growing popularity, a common misconception is that green building designs are too expensive because materials cost more, or these designs are more costly to construct. Not every building that is classified as “green” has a futuristic appearance or style, which makes it look “expensive.” A green building simply means that its hardware, such as lighting, HVAC, insulation, boiler systems, and more are all working efficiently. Businesses with green buildings simply have made the choice to upgrade their systems to save energy and money in the long-term by making smart capital investments. New buildings that are constructed with green designs take energy efficiency to the next level by incorporating the same internal system upgrades but with more solar-friendly designs in mind (solar panels, lots of windows, etc.). New construction, however, is generally not much more expensive than standard building designs. According to the Environmental Protection Agency (EPA), “. . . when buildings are carefully designed to be energy efficient, heating/ventilation/air conditioning (HVAC) equipment can be downsized for significant savings. There are also many green products and materials that cost the same or even less than conventional ones.”
Tax Breaks/Credits & Utility Incentives
One of the best reasons to take advantage of energy efficiency upgrades and green building designs is that governments and utilities offer various tax breaks and incentives for going green. To support an energy efficient economy, the Office of Energy Efficiency and Renewable Energy (EERE) offers financial assistance for all businesses, large and small. Plus, your utility company offers incentives up to 70% on energy efficiency upgrades. Massachusetts business owners should refer to our website or Mass Save’s website for more information on utility incentives. Non-Massachusetts customers can find information regarding energy efficiency utility incentives on your utility homepage.
#4. Energy Audits Always Help You Find Ways to Save
This is almost always true. Prism Energy Services is in the business of conducting energy audits. Why would we tell you they might not be worth your time? Unless you have a clear goal of what your energy efficiency needs are, they may not be.
More and more businesses seek new ways to cut costs and become more energy efficient, but they don’t always know how to approach that. Getting an energy audit is a great way to narrow down your energy needs. However, if you don’t know what you’re looking for—whether it’s new exterior or interior lighting, HVAC controls, building management systems, or even LED cooler lighting—the more confusing the process will be.
Consider this scenario. You are organizing a meeting. You call everyone into the conference room, but you don’t have an agenda. You might get your point across, but without a proper game plan, you’re going to make it a lot more confusing and difficult for everyone else to follow along. A lot of time was wasted and nothing got accomplished. If you had an agenda, you would have been able to get everyone on the same page and make solid decisions to move your business forward.
Keep this in mind when scheduling an energy audit. If you have a strategy, an energy audit is one of the best ways to help you learn what steps you can take to reduce your energy costs. Without a game plan, you might get a lot of information that may not be relevant for you, which could cause confusion and stop you from moving forward—a serious mistake.
Final Thoughts
It is important to look at energy efficiency as a long-term investment. Energy efficiency is not expensive if you consider all of the factors and benefits of upgrading. Any business, large or small, has the capability to develop an energy savings strategy, schedule an energy audit, and see a return on investment from more efficient systems, reduced maintenance costs, federal tax breaks, and utility incentives.