Strategies to Optimize Energy Efficiency in Commercial Buildings

Utility costs are one of the major operating expenses in most commercial buildings. These costs typically include water, gas, electricity, communications etc. The most significant contributors to electrical costs are HVAC, lighting and other major mechanical equipment (elevators, security and fire alarm systems). These costs add up quickly, and with many buildings having aging systems, this contributes to continued annual increasing costs. Recently, there has been a push for using clean energy and optimizing energy efficiency in commercial buildings. By reducing energy usage, owners and investors can cut costs by carrying out more efficient ways to maintain a property. Here are some notable options to access clean energy for your commercial building.


Commercial Property-Assessed Clean Energy (CPACE)

Commercial property-assessed clean energy (CPACE) is a financing structure in which building owners or investors can borrow money for energy efficiency projects such as renewable energy. Owners can then make payments on their property tax bills. Private investors of government programs may fund CPACE projects. However, CPACE is only available in states or municipalities with active programs that now total 15; however, many others are expected to start participating. CPACE would be a viable option if you own or occupy property within a state or jurisdiction with a functional program, want long-term financing with lower monthly payments, or prefer to invest in long-term improvements to property reliability or resiliency.


Solar Plus Storage

Investments in solar energy will benefit from the solar ITC (investment tax credit) and MACRS accelerated depreciation. The concept of energy storage simply means storing energy on-site (on or near the property) for later use. Solar Plus Storage is the integration of a battery with solar energy; this can be lithium-ion or flow battery systems. Throughout the year, peaks in demand contribute to a high electricity bill. To resolve this, energy can be stored and then discharged when needed during those peaks. Solar storage is better for the environment, but it can also help save money by reducing peak demand and is a unique option when considering energy efficiency in commercial buildings.



If you are building new, consider Structural Concrete Insulated Panels (SCIPS), which are steel-reinforced inner layers of insulation betwixt exterior layers of concrete. This can contribute to lower construction costs, energy efficiency, reduced waste, and reduced risk of fire, wind and earthquake damages while speeding up construction time. SCIPS is a sustainable option for boosting energy efficiency in commercial buildings.


These alternative energy solutions are great ways to manage costs and boost efficiency. With the real estate industry experiencing a strong emphasis on clean and renewable energy, these are all viable options. Contact Tyler Duncan Realty Partners to discuss your efficient energy needs!