Archive for July 2010
The Case for Commercial vs. Residential
If you have been following the energy efficiency space, you would know that federal home weatherization programs and localized residential subsidies are keeping the residential market afloat. Point and case is with the PACE (Property Assessed Clean Energy) program out in San Francisco and Sonoma Counties. At the beginning of June, Fannie Mae and Freddie Mac wouldn’t accept loans that included PACE liens. As a result, a large number residential audits and renewable programs have stalled.
Let’s now consider the commercial space. The Rocky Mountain Institute set out in the 1970s to prove that with a thorough assessment of a buildings operation and facility, they could find 50% energy reduction potential. As it turns out, they were right. Why do commercial and industrial buildings undergo energy audits on a regular basis? Well if energy costs are the #1 operating cost in a facility or small business (after labor), then any movement in energy prices makes a meaningful impact to the bottom line. To have a better understanding of the potential ECMs (energy conservation measures) that are applicable to a facility, an audit is conducted.
Whereas for homeowners and the individual consumer, your energy bill is a fraction of your operating costs. Let’s take me for instance. My costs are as follows (I acknowledge that I live in an apartment, not a 2500sqft home):
1. Student loans
2. Groceries
3. Clothing
4. Cable
5. Gym
6. Insurance (medical, renters, etc.)
7. Travel (T-Pass, Car, Gas, etc)
8. Energy
9. Entertainment
As you can see, the commercial and industrial space is an area for ripe opportunity and recurring needs for assessing energy behavior. We sure we can help where help is needed.