M id A tlantic Real Estate Journal — Fall Preview — September 23 - October, 20, 2022 — 1D
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R enewable E nergy
By Joe Holman, Withum Renewable Energy vs. Energy Efficiency for Building Owners
B
uilding owners are learning how they can cut emissions or even
rooftop solar, or the owner can convert to renewable power from the local utility or pur- chase renewable energy cred- its (RECs). By converting to renewable energy, an owner will significantly reduce the building’s CO2e footprint and may even realize a small per kWh saving. Which renew- able option is best suited for a particular building depends on many factors, including the possibility of receiving govern- ment subsidies or favorable renewable energy pricing. The primary goal of converting to renewable energy is to reduce emissions associated with elec-
Near term reduction strategies: • Install updated lighting fixtures, LED bulbs and oc - cupation sensors • Upgrade to ENERGY STAR-rated appliances like refrigerators, dishwashers and laundry machines • Install solar shade window treatments to reduce cooling energy usage • Paint roof white or another solar reflecting color Near-term energy reduction strategies are characterized by their low cost and short payback period. The energy cost saving from these initi- ates can also be used to fund
longer-term investments that require more up-front capital and have more extended pay - back periods. Long-term investments in - clude: • Window replacement and overall weatherization of buildings • Upgraded HVAC systems, including installing indoor controls • Updated heating systems, including water heaters • Convert 100% of building utilities to electric • Install a “Cool Roof” to reduce solar radiation continued on page 7D
tricity as it does not change the amount of energy used by a building. Energy Reduction Strategies Energy reduction strategies are designed to reduce energy usage, which translates into reducing energy costs and emissions. Energy reduction is the optimal way for a building to reduce its costs and environ- mental footprint. Additionally, the reduction in energy costs typically finances the required investment, and the benefit (ROI) is measured in its pay- back period. These strategies are broken out into near-term and long-term strategies.
go net-zero while at the same time reducing en- ergy costs. Electricity generated from fossil fuels and natural gas
Joe Holman
poses a significant environ- mental threat. And though there is a lot of talk about converting to renewable en- ergy, there isn’t enough time spent considering the benefits of investing in energy-efficient business operations. Yes, con- verting to renewable sources reduces emissions, but only by investing in energy efficiency can you reduce emissions and energy costs. The current rate of Green- house Gas (GHG) energy us- age in commercial buildings is startling, with 16% of 2020 greenhouse gas emissions (CO2e) attributed to electric- ity and natural gas usage. Furthermore, the Commercial Buildings Energy Consump- tion Survey (CBECS) estimat- ed that commercial buildings consumed 1.28 trillion kWh of electricity, representing 35% of the electricity consumed in the United States at $0.11per kWh. This translates into a staggering $141 billion spent on electricity while generating over 600 million tons of CO2e. The primary sources of CO2e emissions from buildings are 1) computers and office equip - ment, 2) office lighting and 3) heating and cooling. For build- ings with onsite refrigeration, HFC refrigerant R-410a and electricity are the primary sources of CO2e. By understanding the sourc- es of CO2e, building owners can take action to decarbonize while stimulatingly reducing costs. Building owners can accomplish decarbonization in two ways: 1. Buildings can convert to renewable energy, or 2. They can invest in energy- efficient strategies. Converting to Renewable Energy The U.S. renewable energy market is comprised of three renewable energy options. Abuilding can be converted to renewable electricity with the installation of a renew- able energy system such as
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