An increasing number of companies are realizing the social, environmental and cost benefits of retrofitting their buildings.
In August 2012, accounting giant Ernst & Young (ERSNP) announced the completion of an energy-efficient lighting system at its New York headquarters. The project was one of the city’s largest light retrofits and will cut the building’s annual energy use by nearly 2.9 million kilowatt-hours and reduce its CO2 emissions by around 2 million pounds.
A Pike Research report states “The U.S. energy management market offers significant prospects for both software and service vendors. There is a strong and growing need for assistance in putting programs in place to understand and manage an industrial facility’s energy consumption patterns. Pike Research projects demand for these products and services will increase rapidly in thecoming years. Energy management software and services spending in the industrial sector is forecast to reach $960 million in 2011 and over $5.5 billion in 2020. We estimate that the compound annual growth rate (CAGR) from 2011 to 2020 will be over 21%, with growth in the early years of the forecast period being significantly higher.”
Investments in energy efficiency retrofits for buildings could yield more than three times their value, amounting to about $1 trillion in energy savings in a decade, says new research from Deutsche Bank and The Rockefeller Foundation. The study released August 2012 said that yield would be just one of the returns if $279 billion were spent for retrofits of residential, commercial and institutional buildings in the United States.
In addition to saving about 30 percent of the United States’ entire energy spend during the course of a year; completion of the energy efficiency retrofits could reduce greenhouse gas emissions in the U.S. by 10%.
The trillion dollar question is how do I know which parts of my building need to be retrofitted?
An energy monitoring system is a vital tool required to understand WHEN, WHERE, and WHY resources are consumed, and the first action in making buildings and facilities sustainable. Very few facility managers possess real-time information to effectively manage their electricity, gas, and water expenses. eGauge and eDriver are a cost effective solution to gather this data.
Nearly five million commercial and industrial facilities in the United States account for nearly half of all domestic energy consumption, at a cost of over $200 billion each year. But according to Chris Pacitti, general partner at Austin Ventures, only five percent of that market has adopted sophisticated energy management tools.