Though competition is substantial in the construction marketplace, capitalizing on emerging trends, such as energy management, can help electrical contractors build experience for future growth. Contractors should anticipate more questions about their expertise in various energy management areas, including low-consumption devices and renewable energy sources.
There is a difference between energy efficiency, which is the desired end result, and energy management, which is the strategic action plan designed to achieve that result. Contractors are perfectly positioned to explain this distinction to customers. Not only do they possess vast knowledge of solutions, but because they aren’t affiliated with a utility, they also can advocate for the best interest of customers and their energy management goals.
Key Drivers
While knowing state and local energy codes and regulations is expected of electrical contractors, those that want to offer strategic energy management services must have a strong understanding of the various energy efficiency drivers for residential and commercial customers.
In addition to the prominence of green building certification programs, such as LEED, a major driver for energy efficiency upgrades is rising utility costs. According to the U.S. Department of Energy’s Energy Information Administration, from 2004 to 2008, the per-kilowatt hour cost of electricity increased by 28.8 percent, from 7.6 cents to 9.8 cents. That is expected to increase in 2010 by another 9.2 percent, pushing the cost of electricity up more than 40 percent from 2004 to 2010.
Market-specific regulations are also key drivers for energy efficiency upgrades. For example, the Energy Independence and Security Act of 2007 requires all federal government facilities to reduce energy consumption by 3 percent per year through 2015, for a total 30 percent reduction. In addition, the Energy Policy Act of 2005 requires facility managers to develop metering plans for their buildings and install advanced electric meters by 2012.
Strategic Plan
Continuous energy improvement should be the primary goal of both commercial and residential energy management. A strategic energy management plan incorporates the customer’s energy efficiency goals and takes into consideration budget parameters, return on investment tolerance and appropriate solutions. Electrical contractors should implement a four-step process to facilitate continuous improvement.
- Measure energy usage. Installing power metering and monitoring in a commercial building is vital to establishing an energy usage baseline.
- Fix the basics. Significant savings can be realized by installing low-consumption devices or improving the power factor. However, these tactics are a passive approach to energy management, as the greatest savings is typically realized upon initial installation.
- Automate. Automate and regulate building or residential systems, such as lighting or HVAC controls. This is an active approach because both can be adjusted based on new energy efficiency opportunities that arise in the future.
- Monitor and control. Energy efficiency analysis, monitoring services, energy bill verification and an enterprise energy management system will help ensure energy and cost savings continue.
Be Prepared Some electrical contractors may feel they are too busy to investigate energy management opportunities, but it’s important to keep abreast of marketplace trends through industry associations, online and supplier sources, and networking. Even if a company isn’t trying to generate business in this area, marketplace changes will likely prompt customer questions, creating immense opportunities.