The Energy Star program is “the most successful voluntary energy conservation movement in history.”
But, realistically, commercial building owners and facility managers need to consider:
- Is it really of any business value to seek out an Energy Star rating for commercial buildings?
- Is there a business case for doing so?
- Or, is it just about feeling good and doing “the right thing?”
Reading on, you’ll see that obtaining an Energy Star rating definitely feels good, but there’s also a solid business case for doing so. For more details about pursuing an Energy Star rating, contact us today.
Following are four solid reasons why your commercial facility needs an Energy Star rating sooner rather than later.
1. Energy efficiency boosts profits
When you consider that up to one-third of the energy used by an average unrated building in the United States is wasted because of energy inefficiencies, putting a dollar figure on improving the energy rating of your commercial building becomes easier.
This figure is different for every building, but it can mean savings in the millions of dollars annually for many large companies.
It’s also important to note that many of the most effective changes and upgrades you’ll need to perform to improve energy efficiency are relatively inexpensive and quick, so the potential savings becomes even more impressive.
Obtaining an Energy Star rating can make thousands, if not millions of dollars appear on your company’s bottom line where it didn’t show up before — and that’s a powerful business case. Learn more in our Facility Manager’s Guide To Energy Efficiency For Your Commercial Building.
2. The Energy Star program provides valuable education
The Environmental Protection Agency (EPA) has maintained Energy Star as a volunteer program designed to make energy conservation simple and intuitive.
As part of that effort, they invest heavily in educating consumers and companies to apply energy saving principles. The materials they provide include case studies, statistics, benchmarks for most industries, and access to experts who have successfully implemented energy savings in real-world commercial situations.
One example is the Energy Star Guidelines for Energy Management, which you can download, free of charge.
This translates to a lower initial investment on your part: less time and money spent figuring out how to save, and more strategic investment put toward making it happen.
3. Energy Star rated buildings command higher rents and occupancy
Independent academic research has shown that commercial buildings with an Energy Star certification command higher rental rates, greater valuation, increased occupancy rates, and greater marketability than comparable commercial buildings that have not been certified.
Various studies have placed the differences as high as:
- 16 percent for rental rate premium
- 6 percent for occupancy rate premium
- 31 percent for sale price premium
Once again, putting a monetary value on these improvements should be easy, and these benefits last years into the future.
4. Doing the right thing brings real world ROI
Especially in recent years, publicizing commercial efforts to help the environment has proven to be an excellent marketing strategy.
As environmental issues have become more widely known and understood among the public, consumers’ buying habits increasingly reflect their commitment to ecological responsibility. For example, according to a Nielsen survey involving the purchasing decisions of millennials, sustainability was one of the key deciding factors in which companies they support. Another survey by BBMG reported that 36.4 percent of customers consider themselves “conscious consumers” who factor environmental responsibility heavily in their buying decisions.
By offering ongoing profit, increased property value, and a powerful marketing opportunity, placing the Energy Star seal on your commercial buildings can improve operations and budgeting, and even win you customers.
Ultimately, there is a real-world financial value in obtaining an Energy Star certification for your commercial building. It makes good business sense, and it’s the right thing to do.
