Over the past couple of years, there has been an increasing theme of governments pushing for regulation for companies to help combat climate change. While sustainability regulations are expected to increase in 2024, regulated reporting is an enabler but doesn’t help businesses do the work to fight the climate crisis.
For this, businesses need to go the extra step. They need not just report the impact that they are having on the world but also take steps to reduce that impact. Luckily there are various government incentives and grants to aid them in taking this step. Check out our past blog on green incentives for a broader view of what is available!
One key area of focus is on emissions reductions. There are various ways for companies to do this, but one at the forefront of today’s strategies is energy efficiency.
Energy Efficiency Benefits
For any company that owns or operates a property, energy efficiency is a key opportunity. You can not only lessen your impact but also save money and benefit your community.
- Cost Savings: Increasing the energy efficiency of your buildings will in turn decrease your energy costs. This will lower the cost of operations in buildings and even allow you to make products at a lower cost in manufacturing.
- Environmental Benefits: Reducing energy use will result in lowering your emissions. Energy-efficient buildings are also better equipped to transition to renewable energy sources.
- Resilience and Reliability: Improvements in energy efficiency result in less of a load on the electrical grid. This prevents possible disruptions.
- Enhanced Asset Value: Studies have shown that increased energy efficiency can increase the value of properties and their ability to sell.
Energy Efficiency Incentives
As mentioned above, governments are incentivizing businesses to decrease their environmental impact. Since buildings have such a high draw on energy and are responsible for a large portion of annual emissions, the incentives for increasing energy efficiency keep growing.
Although incentivizing energy efficiency isn’t a new practice – in the United States, the historical Inflation Reduction Act opens the door to extra funding. Tax deductions, grants, and loans are given to businesses looking to make switches. Below are a few examples of what is available:
- Energy Efficient Commercial Building Retrofit Property (EEBRP) – final guidance is expected in the coming months.
- Energy Efficient Commercial Building Property (EECBP) – tax deduction based on either the cost of installation or property size and energy savings gained.
- Energy Efficiency Revolving Loan Fund Capitalization Grant Program – provided to states to “provide loans and grants for energy efficiency audits, upgrades, and retrofits to increase energy efficiency and improve the comfort of buildings.”
This is not an all-inclusive list of incentives for energy efficiency. Due to the amount of state-level incentives available, we could not list them all. Check out this directory of policies and incentives by state to see if any apply to you.
Stay on top of new incentives by regularly checking the above as well as the Inflation Reduction Act guidebook. With energy efficiency being a key area of focus by the government, expect more incentives that your business can take advantage of!
Finding Energy Saving Opportunities
There are many opportunities to make buildings more energy efficient including:
- Sealing air leaks
- Adding insulation
- Installing energy efficient windows, doors, appliances, and electronics
- Smart thermostats
- Upgrading heating and cooling systems
- Installing energy efficient water heaters
- Installing energy efficient lighting
Choosing where to begin can be difficult. Starting with an energy audit or assessment can aid you in determining where the most energy is being consumed.
Understanding your current performance and tracking as you make changes is key to determining the ROI. Ensuring you can view and understand the data cannot be understated.
ScriptString can aid you in doing this through our platform, arming you with a full view of your property’s energy landscape down to a granular level. Request a demo today to understand how data-driven decisions can sustainably propel your business!
