Energy Efficiency Measures Combat Rising Energy
Costs
Most North American business leaders,
fully 79%, expect energy prices to continue increasing – and
are investing in energy efficiency measures to fight these rising
costs. They anticipate an increase of 13.25%. Despite the trend
toward sustainability, decrease energy expenditures is actually
the greater motivator over environmental responsibility, according
to a study by Johnson Controls and the International Facility Management
Association (IFMA).
More than half (52%) of the survey respondents say costs savings
is either entirely or somewhat the driver for their decision to
invest in energy efficiency measures. About a third (35%)
say cost savings and environmental responsibility are equal motivators,
while only 13% cite environmental concern as the greater motivator.
And
they’re paying more attention. About two-thirds of business
leaders polled are paying more attention to energy efficiency today
than five years ago. And almost as many expect to make energy efficiency
improvements using their capital budgets, spending an average of
8% of those budgets. In addition, 64% anticipate using their operating
budgets, allocating 6% to energy efficiency improvements, focusing
on conservative energy management solution. Of respondents who
have already made energy efficiency investments:
- 70% educated staff and other facility users on how to be more
efficient;
- 67% switched to energy efficient lighting;
- 60% have adjusted HVAC controls; and
- 46% have installed lighting sensors.
Commercial buildings consume about 40% of natural gas and 60%
of the electricity generated in the United States. So, it’s
not surprising that three quarters of executives with companies
that are building or planning to build new facilities, or are launching
retrofits in the next year, say that energy efficiency will be
a priority in the design of those projects.
When it comes to energy supply-related matters, 36% have negotiated
energy contracts with suppliers. Only 14% are putting energy price
hedging strategies in place. In addition, 11% currently
have a stated carbon reduction goal.
Companies have by and large not relaxed their payback requirements
for such measures. About two thirds of companies (64%) have a maximum
payback period of two and five years. Overall, only 18% of those
surveyed say their companies would allow a longer payback period
today than five years ago. About 45% say the required payback period
has not changed compared with five years ago.
Executives responsible for larger facilities (500,000 square feet
or more) are an exception. They spend a bigger part of their budgets
on energy, are planning to invest more of their budgets on energy
efficiency measures, and will tolerate a longer payback period.
For more information, see www.ifma.org.
Johnson Controls’ Energy Efficiency Indicator
Results At-A-Glance
Here are some specific results of the Energy Efficiency Indicator
research.
In response to organizations’ motivation for investing
in energy efficiency:
- 6 percent say their motivation was entirely costs savings
- 46 percent say it is mostly related or somewhat related
to costs savings
- 35 percent say the two factors are equal motivators
- 12 percent say environmental responsibility was somewhat
more or mostly the motivator
- 1 percent say the motivation was 100 percent environmental
responsibility
Larger facilities (500,000 square feet or more):
- Spend an average of 12 percent of their budget on energy,
compared to an average of 7 percent for those with less
than 100,000 square feet
- More plan to invest in energy efficiency measures – around
80 percent out of capital budgets and 80 percent out of
operating budgets – compared to the survey’s
average of about 60 percent
- 26 percent say they are also tolerating a longer payback
period on those investments compared to five years ago
compared to 16 percent of organizations with between 100,000
and 500,000 square feet
Overall:
- About 50 percent of the executives said they plan to
tap both operating and capital budgets for energy efficiency
improvements
- 23 percent of the executives said they were paying “a
lot more” attention to energy efficiency today versus
a year ago
- 39 percent said they were paying “a little more” attention
to energy efficiency than a year ago
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