3 Reasons It’s a Good Time to Invest in an Energy Management System
As the technology within the energy industry in the United States continues to evolve, we can confidently ask ourselves questions as to when the right time for business or building owners to jump on board is. Often times this can be a difficult question for facility or building managers to answer because the material set forth is either A) difficult to understand or B) conveyed inaccurately as every building or application can be different.
However, as a general rule of thumb when it comes to energy consumption within a commercial building, 30% of energy consumption is used for lighting while the other 70% is used for everything else. The much larger usage (70%) is where energy management systems are utilized because the systems help reduce that number.
Why Building Owners Should Invest
In an effort to educate and answer some of the energy system questions, below are 3 good reasons why it is a good time to invest in an energy management system right now.
- Power rates are going up. The United States Energy Information Administration released an official report on June 9th, 2015, stating: “Electricity prices in all areas of the United States except for the Middle Atlantic and the East South Central are expected to be higher this summer than last summer. Residential customers in New England are expected to see the largest increase in electricity bills because of a 15.4% projected increase in summer retail prices.” Because rates are projected to substantially increase by the United States government it would be more advantageous for building owners to purchase an energy management system now than ever before.
- Energy management systems are specifically built to reduce power consumption. Part of the problem with the struggle to manage kilowatt consumption of power within a building is understanding that a major part of the energy bill is “demand” power. Demand power cost is nearly 35% of any energy bill, and is essentially the peak kilowatts that we consume or that is required for a building to operate in its peak usage hours during a day. Energy management systems can greatly reduce demand power by 68% through proper power management and zero power waste. That’s a big deal, and as a result overall energy cost per month will be substantially lowered.
- Energy management systems are cheap right now. New companies are bringing never before seen technology to the energy market at extremely low cost. And, because demand is so high some energy management systems can cost as a low as $9,000 whereas older, existing technologies that have the same capabilities can cost in the upwards of seventy-five to one-hundred thousand dollars. Never has it ever been more affordable for building owners to invest in an energy management system and reap the benefits of lower utility bills.
Experience energy management and monitor, monitor, monitor!
Before investing, I would encourage building owners to ensure that the manufacturer offer at least a 2 year warranty and a monitoring program or software. If an energy management system does not come with a monitoring program or software it will be difficult to gauge an approximate energy savings once installed.
I hope this article helps in your energy savings efforts!