Commercial and residential buildings consume around 40% of the nation’s energy and account for around 35% of carbon emissions, according to the U.S. Department of Energy. While energy providers are working to meet high demand, greener products are being produced, and local, state and federal regulators are implementing measures to address energy efficiency and decarbonization.
These and other factors are putting pressure on commercial real estate owners to pursue sustainability. However, there’s another reason for landlords to decarbonize: the bottom line. According to the American Institute of Architects’ “ROI: Increasing Asset Values,” sustainable buildings increase occupancy, rents and property values — and decarbonization is a big part of green initiatives.
For building owners, adding modern controls and automation systems can help their equipment run more efficiently, as well as increase energy savings — reducing emissions and costs and providing impressive returns on investment.
Start with a Plan
The decarbonization journey is unique for every building. This journey may include retro-commissioning, modernized controls and/ or upgraded equipment, even the adoption of newly emerging smart technologies, like artificial intelligence.
Decarbonization begins with the organization’s goals and a plan to support them. Here are a few potential areas to address:
- Reducing energy consumption.
- Minimizing on-site greenhouse gas emissions.
- Producing clean energy on-site.
- Offsetting hard-to-abate emissions.
Throughout this process, each owner will want to consider their organization’s operational needs and leverage available financing, funding and incentives to upgrade the building. By sequencing their investments properly, they can generate the highest impact at the lowest cost.
Energy experts can help companies evaluate buildings and design solutions that match reduction targets and budgets. For example, Trane Energy Services helps companies develop energy plans, pursue financing and measure results.
Trane recently helped create a decarbonization roadmap for a 94-year-old building in Manhattan. Initial assessments determined the potential options for the building, which were weighed against key performance indicators, to develop a cost-effective plan. The new equipment and controls are expected to eliminate 642 metric tons of carbon and save more than $60,000 annually. In addition, the building now complies with New York City’s Local Law 97, one of the most ambitious emission-reduction plans in the nation.
The Essential Role of Data
According to Energy Star, around 30% of the energy consumed by commercial buildings is wasted. To begin solving this problem, owners must collect detailed facility information to establish current energy usage and emission levels and compare those to similar buildings and regulatory requirements. Controls play an essential role in this process. Connected controls integrate and manage data from HVAC and other systems, creating a cohesive management system that informs building teams where every kilowatt is going.
Commercial buildings often rely on multiple, independent systems to keep tenants safe, productive and comfortable: heating, ventilation, air conditioning, lighting and many others.
Integrating these systems can offer incredible opportunities to collect and analyze energy data, identify inefficient equipment and deliver sustainable automation. One great example is HVAC and lighting, which constitute about two-thirds of energy use, according to reports. Controls can schedule and coordinate these systems to save energy and reduce costs.
According to the Commercial Real Estate Development Association, approximately 75% of facilities in the U.S. were built before 2000. These facilities often contain older equipment, controls and systems, and are significantly less energy-efficient than their modern peers.
Trane Tracer SC+ is a modern building automation system that can integrate with past, present and future equipment, regardless of who made it. With this integration flexibility, Tracer SC+ can help modernize a facility without ripping and replacing the entire existing system. This flexibility puts owners and facility managers back in control to iteratively improve their existing facility without starting from scratch.
Modern, connected, smart building systems are central to increasing and maintaining efficiency. By controlling HVAC, lighting, electricity and other functions, software coordinates these systems to help them perform optimally. Occupancy sensors can turn off lights when nobody is in the room. System schedules can integrate optimal start/stop times to balance comfort and energy use. These systems can even identify anomalies and alert the maintenance staff well before they become comfort complaints. Connected systems support operators by providing actionable data and analytics, helping them identify problems even before tenants. Intuitive interfaces, combined with training and support, help operators keep these systems automated.
Stair-Stepping to Decarbonization
Ideally, a building could be upgraded all at once, achieving maximum efficiency immediately. That’s not always feasible, but teams can successfully embrace phased approaches. Adding or upgrading controls is a smart starting point because they collect data that inform other decisions. They can also introduce new efficiencies while extending the life of existing equipment
One strategy is to create a green revolving fund, using energy savings to pay for additional carbon reduction and efficiency improvements. In recent years, switching from incandescent bulbs to LEDs has generated significant savings, which have been funneled into building improvement funds to pay for future measures. Each refinement increases energy and financial savings, driving decarbonization and optimizing budgets.
Grants and tax considerations can also help upgrade old structures. Federal, state and local government incentives and energy-focused nonprofit and utility programs can fund a wide array of improvements. Incentives are often state and locally dependent, and a good consultant can help identify them.
The Payoffs of Modern Controls
According to Forbes, commercial occupancy in New York City is about 50% of pre-COVID-19 levels. Sustainable systems can help differentiate properties and attract tenants.
Also, a smart building is easier to manage. A unified approach that provides advanced data gathering, monitoring, and analysis means facility managers need only interact with one system. Giv- en the ratios of tenants and square footage to building managers, this automation is essential.
Controls also drive more proactive operations. Intelligent analytics identify problems before tenants even feel them. Consider a stuck outdoor air damper in a cold environment. Advanced controls scan the system three or four times an hour to flag these problems. As a result, building engineers can fix the damper before anyone feels discomfort, and energy waste is minimized.
Decarbonization may seem challenging, but building owners have many tools to achieve it. Modernizing buildings to meet environmental goals can reduce utility and maintenance costs, automate troubleshooting, attract tenants and contribute to a long-term climate solution — that’s a lot of wins.
Brian Meyers is the system controls portfolio leader for Trane, where he has product responsibility for Tracer SC/SC+/Synchro- ny and Legacy Tracer Communications Bridges. Additionally, he drives and supports products and offerings that span across control product lines in areas that include cloud connectivity, cybersecurity and others.
