Commercial Buildings and the Need for Energy-Efficient HVAC Systems

[Julio Gonzalez]

If you own a commercial property, I would bet that you have been trying to find ways to reduce your expenses to improve your bottom line and you’ve been experiencing high energy costs. 40% of a building’s total energy consumption can be related to the HVAC system according to the U.S. Small Business Administration. Switching out your HVAC system to an energy-efficient system could be your solution.

Switching to an energy-efficient HVAC system could help you meet your goals in two ways. First, with rising energy prices, old and inefficient HVAC systems can be a drain on your cash flow. With the upgrade, many commercial property owners see a significant decrease on their utility bills. Second, many companies now have sustainability goals in which an energy-efficient HVAC aligns with. By reducing the energy consumption of the HVAC system, greenhouse gas emissions can be substantially decreased which helps show your company’s corporate commitment to being environmentally responsible.

When you are searching for the best energy-efficient HVAC system, here are some technologies and design principles that enhance performance:

• Heat Recovery Ventilation: Specialized units like energy recovery ventilators (ERVs) capture heat from indoor air that would normally be lost. This “free” heat is then used to warm incoming fresh air in winter, thus saving energy.
• High-Efficiency Components: Upgrading compressors, coils, fans and other components to ENERGY-STAR-certified equipment ensures optimal efficiency across the entire system.
• Smart Controls: Programmable thermostats, zoning and automation systems tailor HVAC operation precisely to a building's occupancy and needs. This optimization reduces over-cooling/over-heating and improves comfort.
• Variable Capacity Equipment: HVAC systems that can adjust their output to match a building's needs use far less energy than conventional units. Variable refrigerant flow (VRF) systems are an excellent example of this, providing precise cooling and heating when and where it is needed.

I’m sure you are wondering how to decide if replacing your current HVAC system is the right move for you. Here are the next steps that I would recommend:

1. Perform an HVAC Audit
   1. Hire an HVAC professional to determine your current system’s performance.
2. Consider Costs and Savings
   1. Research the cost and energy savings for new equipment. Be sure to take into account tax incentives and rebates to fully understand the true costs.
3. Consult a Professional
   1. I recommend bringing in experts at this stage. HVAC engineers and tax professionals who specialize in energy-efficiency incentives can help you select the optimal HVAC system for your needs and assist you with the process of maximizing your tax benefits.
4. Establish a Budget
   1. Build a budget that includes both the initial costs of the HVAC system along with the projected long-term savings. Determine if financing is required and if so, be sure to secure it in this stage.
5. Create a Timeline
   1. Determine what your installation timeline will look like. You’ll want to select a time period that would cause the least amount of disruptions to your operations. You will also need to give yourself time to get your tax documentation for your tax incentives in order.

What questions do you have about upgrading your HVAC system?