Tag Archives: Preservation Green Lab

The next big thing in energy conservation? Small commercial buildings

The following post is by the Preservation Green Lab:

A new report released by the Preservation Green Lab in Seattle says an array of energy savings in small commercial buildings across the United States could profitably yield more than one quadrillion Btu annually, which translates into more than $30 billion in annual cost savings and improved financial performance for small businesses.

Conservation efforts commonly focus on larger structures, but 95 percent of all commercial buildings are less than 50,000 square feet. This is a massive and largely untapped opportunity for new energy savings.

“The energy savings detailed in our report represent the equivalent of 580,000 permanent new American jobs,” said Mark Huppert, Director of the Preservation Green Lab, and a lead author of the report. “Harvesting energy efficiency from small buildings is like striking oil, except it’s domestic, clean and keeps dollars in our local economies. The savings will produce real jobs that can’t be offshored or outsourced.”

Ninety-five percent of all commercial buildings are less than 50,000 square feet — a largely untapped opportunity for energy savings.

The report, “Realizing the Energy Efficiency Potential of Small Buildings,” was produced by the Green Lab in partnership with the New Buildings Institute, a nonprofit that works collaboratively with commercial building interests to remove barriers to energy efficiency. The analysis was funded jointly by The National Renewable Energy Laboratory and the U.S. Department of Energy.

Here are the key findings:

  • Small buildings are responsible for 47 percent of the energy consumed by commercial buildings.
  • Small businesses or firms with fewer than 500 employees own 84 percent (3.7 million of 4.4 million total) of small buildings.
  • Potential energy savings in small buildings range from 27 to 59 percent, depending on the building type. This represents 1.07 quadrillion Btu annually or 17 percent of commercial energy use.
  • Small, neighborhood businesses such as restaurants, grocers and retailers can improve profitability by more than 10 percent through smart investments in energy savings.

The report recommends that utility regulators create incentives for energy efficiency to unlock the potential savings in these smaller buildings. Pilot projects that pay customers for measured energy savings could demonstrate how the private sector can drive down energy costs while utilities continue to earn a profit. These innovative programs also offer utilities the opportunity to burnish their images.

Some utilities are already embracing this approach. “I believe the cleanest power plant that I will build in the future is the one that I don’t build,” said Duke Energy CEO James E. Rogers during a 2012 address to the Urban Land Institute.

Programs that engage small businesses owners represent a big opportunity for the financial sector, as well as for the businesses themselves. “Since 2005, Wells Fargo has financed more than $21 billion for “green” businesses, “green” buildings, and “clean” energy customers, including $900 million in loans and investments benefitting low-income communities or housing projects,” said Andrew Kho, senior vice president with Wells Fargo Commercial Banking. “These investments can help our customers reduce their monthly operating expenses and support a transition to a “greener” global economy.”

The Preservation Green Lab is a sustainability think tank focused on the reuse and retrofit of older and historic buildings. A project of the National Trust for Historic Preservation, the Green Lab was launched in 2009 and is based in Seattle.