What Is Easiest Path to Energy Efficiency?

Lighting is the first step on the path toward a greener future, or at least it is the biggest step that property owners are taking. According to research from JLL, 46% of property owners spend capital on new lighting when working to create more energy efficient buildings. It makes sense that most green dollars are spent here. Lighting accounts for 17% of all electricity consumption. We sat down with Carrie Gillis, senior project manager at JLL, to talk about the capital investment into green buildings and why lighting is topping the list.

GlobeSt.com: Why is so much capital for green improvements spent on lighting?

Carrie Gillis: Lighting consumes approximately 50 percent of a building’s electrical load, which translates to high electricity costs year over year. Many building owners and tenants are opting to install energy efficient LED lighting, and in most cases this is now required by code. Here in California, any new building projects and retrofits are subject to Title 24 (aka California Building Code), and while it may cost slightly more upfront to comply, in the long run, studies have shown generally reasonable payback periods of two to three years. Surveys have shown that green improvements on a scale of “not at all important” to “very important” leans heavily towards “very important” for building owners. Owners want to protect their asset and green improvements such as lighting retrofit projects, provide that added “boost” of value as opposed to not making the investment.

GlobeSt.com: How much does lighting impact a building’s energy efficiency?

Gillis: Lighting affects a building’s energy efficiency in three key areas: (1) energy usage, (2) indoor quality and (3) utility costs.  Lighting connected loads have been significantly reduced due to both code requirements and smart design. LEDs, task lighting, occupancy sensors and photo sensors are a few lighting improvement strategies that contribute to a building’s energy performance. Adjusting light levels to synch with occupant tasks can contribute to greater occupant comfort and cost savings. Reduced lighting loads result in lower electrical costs and higher performing buildings. Lower utility expenses leads to greater asset value.

GlobeSt.com: In your opinion, is this where companies should be spending their green dollars?  

Gillis: Lighting is one of the largest drivers of building energy consumption next to space heating and cooling. If companies are looking to reduce utility costs, then yes, this is a good investment. Building owners are more incentivized given the offsets and rewards of spending green dollars upfront. It’s important for building owners however to run financial analyses. It’s easy to say, yes, you will benefit by spending green dollars, but we know that this type of investment needs to be measured, adjusted, and updated over periods of time. It’s important to maintain continuous benchmarking data and keep pace with the changes taking place in the energy efficiency market. We are still going through somewhat of trial and error period. The ultimate goal is that owners “asset investment goals” are being met and maintained.

GlobeSt.com: Are you seeing more Orange County owners looking for ways to make their building’s more efficient?

Gillis: We are seeing this not only in Orange County but in most markets throughout Southern California. Owners are faced with Title 24 requirements and energy efficiency design and construction are becoming standard practice in our industry. According to recent surveys, a greater number of building owners are motivated to implement energy efficient measures due to greater tenant interest and retention. This has a direct impact on a building owner’s rental income bottom line.

GlobeSt.com: What is your advice to those owners?

Gillis: Start with the basics. Empower your asset team to assess your high performing buildings (large energy savings) vs. your low performing buildings (no to low energy savings). Benchmarking energy consumption using Energy Star Portfolio Manager (free) is a simple way to measure a building’s energy loads relative to cost, over time. Investing in energy efficient equipment, improving operations and maintenance strategies, and upgrading systems is good building management practice and will give building owners and tenants a big picture of how best to reduce energy consumption where needed and/or required.