Colleges and universities throughout the country are taking a hard look at their facilities. Most of these institutions have buildings that are at least 30 years old and they need to be updated. Today’s Gen-Z students also demand certain amenities that schools struggle to provide. Couple these problems with utility costs that continue to rise and shrinking operational & maintenance budgets, many of our colleges feel like they are stuck between a rock and a hard place. They know what needs to be done and work hard to stretch every dollar to get things done, but the money only goes so far.
College leaders and governing board members struggle to develop a financial model that generates adequate funding for needs. And so, buildings continue to be neglected because tight budgets have forced the administration to take a deferred maintenance approach to maintaining their facilities. After all, “deferred maintenance” is sounds much better than “neglected maintenance.” This takes a heavy toll on campus facilities and does not help with the enrollment struggle of trying to attract and retain Gen-Z students. After all strong enrollment is essential for the financial health of a college or university.
Energy Conservation as a Solution
There is a nontraditional solution that can redirect monies already in your budget to pay for facility improvements and upgrades. Many campuses are full of building equipment and systems that are outdated and energy thirsty. Deferred maintenance and other budget issues often make it hard to upgrade these systems. But replacing energy-thirsty equipment with newer energy efficient systems can save money in utility costs. Done properly, upgrading these outdated systems can actually pay for themselves and fund other improvements. Most importantly, this approach complies with both state and federal statutes related to energy services and performance-based contracting.
Here is how to make it work:
- Find a professional energy service company (ESCO) that can help you develop a strategy for improving your institution’s financial health.
- With the ESCO’s help and expertise, conduct and energy audit. A comprehensive energy audit of your college facilities will help you identify inefficient systems and equipment that is costly to operate.
- The ESCO will develop a turn-key solution that may develop into a project that is completely “paid from energy savings.” The key to making this work is to find an ESCO consultant that you can trust. One who is focused on addressing your unique needs rather than using a “one-size fits all” approach.
- The improvements often include upgrades to the mechanical systems, lighting, water fixtures, windows, and other building envelope upgrades. These can be paid for over time with the savings generated in your monthly utility bills.
Benefits from an Energy Conservation Project
Below are some of the benefits that have been expressed by higher ed leaders who have utilized a “paid from energy savings” approach:
Become Better Stewards of Resources
- By addressing needs and improving living conditions on campus, the college is becoming a better steward of resources.
- Using sustainability and “green” initiatives to generate a new revenue stream can get donors excited and more willing to contribute.
- It creates practical “asks” for donor funding of tasks, which can be marketed as “the gift that keeps on giving” back to the university through utility savings. This method speaks to a college’s commitment for the long run!
Attracting & Retaining Students, Faculty, and Staff
- Improving the quality and comfort of the learning environment goes a long way to attract Gen-Z students. In addition, upgraded facilities make it easier to attract and retain quality faculty and staff.
- Implementing an energy conservation program shows that your institution is being a good steward of the environment. This helps promote a culture of social responsibility on your campus. It is a testimony to a forward-looking college or university.
No Donor Gifts or Operational Funds Required
- Saving energy means saving money. An energy conservation program can be implemented in a budget-neutral manner. The improvements are paid for from the utility savings associated with the program.
- Since the turn-key solution offered through our program does not have up-front costs, the project demonstrates fiduciary responsibility of donor gifts and operational funds.
Facility Maintenance Benefits
- Implementing an energy conservation program allows you to update your aging or failing building systems using existing utility dollars.
- Upgraded building systems reduces the need for outsourced maintenance, which reduces maintenance costs. It also frees your facilities team to focus on preventive maintenance.
Environmental Benefits
- By conserving energy, you reduce your campus carbon footprint, which contributes to a better environment, both locally and globally.
About the author – Kent Clow is a business development manager with Navitas. His background includes working as a customer advocate in business and contract management with 30 years of experience in the aerospace industry. This helps him bring a practical approach to developing strategies for higher education clients who want guidance in how to initiate an energy conservation program in their campus operations. He also serves as a trustee with Culver-Stockton College and can be reached at kclow@navitas.us.com.
