Energy Use in Multifamily
We get it. The perception is that Energy use is driven predominately by our residents, out of our control. Hence, utility expense frequently is deemed an uncontrollable expense, and moved below the line in our financial statements unto the uncontrollable category. But is it really uncontrollable?
Why does energy use matter? Why do we talk about it so much?
The Commercial and Residential sector accounted for 30% of total U.S. greenhouse gas (GHG) emissions in 2021, and 38% of total U.S. energy consumption in 2022. GHG emissions related to energy consumption are a result of resource extraction, energy production, transportation, and more. Nonrenewable sources of energy such as natural gas and coal require the source to be extracted, transported to the plant, and then burned. Natural gas and coal are made from organic material (which contains carbon) like dinosaurs and prehistoric plants and are then burned to produce energy. The shift towards renewable energy such as solar, wind, and geothermal do not release carbon emissions when producing energy. Renewable sources of energy are used in the form of electricity, often found on the grid or onsite (like solar panels on your roof).
Choosing the type of systems and appliances you use is important because an appliance run on natural gas can only reduce emissions by making it run more efficiently, but an appliance that runs on electricity can reduce emissions by being more efficient and by using an energy source that doesn’t produce GHG emissions. In order to use renewable energy, you don’t have to have it onsite. The grid (where we get our electricity from) already contains energy produced by renewable sources and as the government invests in more renewable energy projects, it will become even cleaner.
What uses the most energy in a multifamily building?
Heating and cooling are some of the highest energy users in a building. This includes space heating and cooling like air conditioning in the summer and heating in the winter and water heating. Space heating and cooling inefficiencies can be due to the systems themselves if they are old, require maintenance, need repair or are not the proper size for the space. Inefficiencies can also be a direct result of poor wall, attic, door, and window insulation. Some of these inefficiencies can be difficult to fix, such as wall or window insulation which heavily disrupts residents. However, there are smaller fixes that can be faster, cost effective, and still have an impact. This can include sealing exterior windows and door openings and window shades that help insulate spaces and keep sunlight from coming in during warmer weather.
Space heating and cooling and water heating system upgrades can also be advantageous and help increase energy efficiency. Heat pumps are a popular system, though not compatible with every building. Choosing a system that is optimized to your specific needs will be the most efficient choice and making sure that the equipment is maintained regularly can help prolong the life and quality of the system.
Lighting is also a culprit of energy use in buildings. Switching from incandescents or another type of lighting to LED bulbs can save a lot of energy. LEDs use up to 90% less energy and last up to 25 times longer which saves time and money spent on replacing bulbs. Additionally, occupancy or vacancy sensors like motion detectors can reduce the amount of energy consumed by lighting unoccupied spaces. These can typically be found in communal areas with high traffic frequency such as corridors and underground parking garages, which see many people in and out, but not always occupied.
What are other ways I can reduce energy usage?
A lot of energy use in multifamily buildings is a result of the residents. While space heating and cooling, water heating, and lighting are often the highest energy users, other appliances such as refrigerators, laundry machines, cooktops, and ovens also use energy. Replacing these appliances to ENERGY STAR rated appliances or efficiently rated appliances can help improve energy consumption. Additionally low cost solutions like wrapping pipes on hot water systems, ensuring your ducts are properly attached and have no leaks can substantially improve energy consumption and occupant satisfaction as well as reduce wear on this equipment, reducing maintenance and replacement costs.
Additionally, resident education is important. While you may be able to fix some of the insulation and systems of the building, residents play a part in how much energy they are using. Helping residents understand the importance of turning off lights, and heating and cooling systems when the space is unoccupied can help reduce energy usage.
Why should I care about saving energy?
Implementing energy efficiency measures saves you money! Reducing the amount of energy you use reduces your utility bills and operating costs, improving the financial position of the property. Additionally having fixtures like EnergyStar Appliances, insulated windows and LED Lighting in unit can help attract new residents and retain old ones who will not only have lower utility bills, but also value energy efficiency and sustainability measures in the places they live. Furthermore, energy efficiency can increase your building’s resilience to climate or environmental disasters such as floods which can help your insurance rates. Saving energy and upgrading your building is good for the environment and your wallet.
How can I pay for these upgrades?
There are many opportunities to fund building energy efficiency upgrades with incentives coming from many different levels of government and organizations. Grants, loans, rebates, and tax incentives are just some of the ways that you help finance these upgrades. These can come from the federal, state, or local governments, as well as utility companies or other non governmental organizations.