energy efficiency

Energy Efficiency From the Financial Point of View

June 18, 2024

Watching financials is an important part of your role in your organization. The numbers must be scrutinized, so the organization can run properly and efficiently. One of the areas that can’t be overlooked is facilities and energy consumption. You must understand energy efficiency from the financial point of view. Here are some items for you to uncover that are related to energy consumption.

Cost Savings and ROI

Reduced Operating Expenses: Energy-efficient practices directly impact the bottom line. By optimizing energy usage, organizations can significantly lower utility bills, maintenance costs, and operational expenses.

Quick Payback Period: Many energy-saving initiatives have a short payback period. For instance, upgrading to LED lighting or improving HVAC systems can yield substantial savings within a few years.

Long-Term ROI: Energy efficiency investments often provide long-term returns. CFOs should consider the cumulative impact over several years when evaluating projects.

Risk Mitigation

Energy Price Volatility: Energy prices can fluctuate due to geopolitical events, supply disruptions, or market dynamics. Implementing energy-efficient measures acts as a hedge against these price fluctuations.

Financing Options

Energy Performance Contracts (EPCs): EPCs allow organizations to implement energy-saving projects with no upfront capital. The cost savings generated over time repay the investment. (Learn more about Energy Performance Contracts Addressing Aging Infrastructure.)

Tax Incentives and Grants: CFOs should explore available tax incentives, rebates, and grants for energy efficiency initiatives. These financial incentives can significantly reduce project costs.

Financial Reporting and Metrics

Key Performance Indicators (KPIs): Track energy consumption metrics such as energy intensity, energy cost per square foot, and carbon emissions per unit of production. These KPIs provide insights into operational efficiency. Learn more about Data Analytics in one of our YouTube videos.

Integrated Reporting: Consider integrating energy-related data into financial reports. Demonstrating the financial impact of energy efficiency initiatives enhances transparency and stakeholder trust. Learn more about What Data Analytics from an Energy Services Company looks like on YouTube.

Risk-Adjusted Decision Making

CFOs evaluate capital projects based on risk-adjusted returns. Energy efficiency projects should be assessed similarly. Consider factors like project lifespan, maintenance costs, and environmental impact.

Energy efficiency isn’t just an environmental concern; it’s a strategic financial opportunity. From a financial point, championing energy-saving initiatives aligns with your fiduciary responsibility to enhance stakeholder value and ensure sustainable growth.

Navitas helps clients with their energy performance contracts, data analysis, and energy efficiency projects. Our approach is to work collaboratively with our clients to ensure we have an agreed upon understanding of the challenges. We develop an approach that includes all your staff, at every level of your organization, necessary to solve the challenges.

Inspiring the Future: A Guide to Building Energy-Efficient and Sustainable K-12 Schools

April 15, 2024

In an era where environmental consciousness is more critical than ever, K-12 school districts have a unique opportunity to shape the future by fostering energy-efficient and sustainable practices within their buildings. Not only does this contribute to a healthier planet, but it also sets an exemplary standard for students and the community. Here’s a comprehensive guide on how your school district can embark on the journey towards a greener, more sustainable future.

Energy Audits and Benchmarking

Begin by conducting a thorough energy audit to identify areas of improvement. Understanding your school’s energy consumption patterns helps in developing targeted strategies. Benchmarking against similar institutions provides valuable insights and sets realistic goals for energy efficiency.

Smart Building Technologies

Implement smart building technologies to optimize energy consumption. Automated lighting, heating, and cooling systems can adjust based on occupancy and environmental conditions, ensuring that energy is used only when and where it’s needed. Paying close attention to these systems can save school districts thousands of dollars in operating costs.

Continuous Monitoring and Improvement

Regularly monitor energy consumption, gather feedback, and assess the effectiveness of implemented measures. Use this data to refine and improve your sustainability initiatives continually.

Energy-Efficient Lighting

Switch to LED lighting, which not only consumes less energy but also has a longer lifespan. Incorporate natural lighting wherever possible to reduce the reliance on artificial sources during daylight hours.

Green Building Design

If you are considering construction of new buildings, prioritize eco-friendly construction and renovation practices. Utilize energy-efficient materials, proper insulation, and efficient equipment selection to minimize the need for artificial heating and cooling.

Waste Reduction and Recycling Programs

Implement comprehensive waste reduction and recycling programs within the school district. Educate students, faculty, and staff about the importance of proper waste disposal, and provide easily accessible recycling bins throughout the campus.

Curriculum Integration

Integrate sustainability and energy efficiency into the curriculum. Develop lessons that emphasize the importance of environmental responsibility, creating a generation of students who are aware of the impact of their choices on the planet.

Community Engagement

Involve the local community in your school’s sustainability efforts. Organize workshops, seminars, and events to raise awareness and garner support for energy-efficient initiatives and projects. Establish partnerships with local businesses to promote green practices.

By adopting these strategies, K-12 school districts can transform their buildings into examples of energy efficiency and sustainability, not only benefiting the environment but also inspiring the next generation to become stewards of the planet. As we strive for a better tomorrow, our schools can lead the way, shaping a future where sustainability is at the core of education and community values.

Navitas specializes in energy efficiency programs and infrastructure improvements to help optimize facilities, realize cost savings, achieve performance goals, and address deferred maintenance—all at the same time. Our educational clients know that we are committed to green, environmentally friendly energy solutions, and they trust our experienced and knowledgeable team to find them. Contact us today for more information on how we can help your school district.

Empowering Education: The Importance of Energy Feasibility Studies in School Districts

March 25, 2024

Today educational organizations are constantly striving to enhance their learning environments and reduce operational costs. The significance of energy efficiency cannot be overstated. School districts, being large consumers of energy, can benefit immensely from conducting energy feasibility studies. These studies are comprehensive assessments that evaluate the current energy usage, identify inefficiencies, and propose sustainable solutions. Here’s why every school district should consider investing in an energy feasibility study.

Financial Savings

School districts often operate on tight budgets, and energy costs constitute a substantial portion of their expenses. An energy feasibility study can pinpoint areas where energy is being wasted and recommend cost-effective upgrades. Implementing energy-efficient technologies, such as LED lighting, smart HVAC systems, and improved insulation, can lead to significant long-term savings, allowing schools to allocate resources more efficiently.

Environmental Impact

With the increasing focus on environmental sustainability, school districts have a responsibility to reduce their carbon footprint. An energy feasibility study can identify opportunities to replace dated equipment or upgrade lighting. By transitioning to cleaner energy solutions, school districts not only contribute to environmental conservation but also set an example for students, fostering a culture of eco-consciousness.

Infrastructure Improvement

Many school buildings are aging and outdated. An energy feasibility study evaluates the condition of existing systems, identifying opportunities for upgrades that enhance overall efficiency. This can include improvements to heating and cooling systems, insulation, and the integration of energy-efficient appliances and technologies. The State of Schools Report talks about essential maintenance and capital improvements are chronically underfunded in our school buildings across the United States. You can read more about the report here. (link HERE to https://navitas.us.com/2021/11/state-of-our-schools/)

Educational Opportunities

Engaging students in the process of energy efficiency initiatives can provide valuable educational experiences. Incorporating the findings of an energy feasibility study into the curriculum allows students to learn about sustainability, technology, and environmental stewardship firsthand. This not only enriches their academic experience but also prepares them for a future where energy efficiency is increasingly important.

In conclusion, investing in an energy feasibility study is an investment in the future of education. By identifying and implementing energy-efficient solutions, school districts can create a more sustainable, cost-effective, and environmentally conscious learning environment for students and staff alike.

The Bottom Line: Why Energy Efficiency in Buildings Matters More Than You Think

March 5, 2024

In an era where sustainability is not just a buzzword but a crucial component of responsible business practices, energy efficiency in buildings has taken center stage. For businesses and institutions, the impact of energy-efficient structures goes beyond just reducing the carbon footprint. It directly affects the bottom line, making it an essential consideration for any client invested in long-term success.

Cost Savings

Energy-efficient buildings translate into significant cost savings over time. Reduced energy consumption means lower utility bills, contributing directly to the financial health of a business or institution. As energy prices continue to rise, investing in energy efficiency is akin to a financial safeguard against unpredictable utility costs.

Regulatory Compliance and Incentives

Governments and municipalities are tightening regulations on energy consumption and emissions. Energy-efficient buildings are often in compliance with these regulations, avoiding potential fines and legal complications. Moreover, many jurisdictions offer incentives and tax breaks for businesses that adopt green building practices, providing an additional financial incentive.

Improved Productivity and Well-Being

Energy-efficient buildings create healthier and more comfortable environments. Better lighting, air quality, and temperature control have been linked to increased productivity and employee and occupant satisfaction. A comfortable workplace leads to fewer sick days and higher employee retention rates.

Future-Proofing Against Energy Price Volatility

Energy prices are notoriously volatile, influenced by geopolitical events and market fluctuations. By investing in energy efficiency, businesses and institutions insulate themselves from the impact of these fluctuations, ensuring operational stability and predictability.

Technological Innovation and Smart Buildings

Embracing energy efficiency often involves integrating smart technologies into buildings. These innovations not only contribute to reduced energy consumption but also position businesses and institutions at the forefront of technological advancement, fostering an environment of innovation and adaptability.

In conclusion, energy efficiency in buildings is not just a matter of environmental responsibility; it is a strategic business decision. The financial benefits, combined with regulatory compliance, enhanced property value, and positive brand perception, make it a crucial consideration for any client looking to build a sustainable and prosperous future. It’s not just about being green; it’s about building a resilient and economically sound foundation for years to come. Navitas excels in energy efficiency initiatives and enhancements to optimize facilities, unlock cost savings, attain performance objectives, and tackle deferred maintenance—all concurrently. Our clients recognizes our dedication to environmentally sustainable energy solutions, relying on our seasoned and knowledgeable team to deliver results. Reach out to us today for further details on how we can enhance your business or institution.

Maximizing Bond Dollars for Your General Fund: A Strategic Approach

February 5, 2024

The following article appeared on the Missouri Association of School Business Officials (moasbo.org) blog in February 2024.

In Missouri, non-tax increase bond issues present fantastic opportunities for districts. These endeavors, though requiring a vote, often pass with resounding support, allowing for building projects every few years. However, the real challenge lies in maintaining funds within the general fund, managing operating fund levy increases, and ensuring essential services while directing as many funds as possible toward classrooms.

Typically, bond dollars are earmarked for new ventures like security upgrades, sports facility enhancements, or even construction of new buildings. The perpetual challenge faced by districts is addressing existing infrastructure needs. As a district, it is advisable to explore options when contemplating the next bond project, giving due attention to existing facilities infrastructure. While it may seem counterintuitive to use all bond dollars or a portion of bond dollars, updating existing infrastructure in an energy-efficient manner can indirectly contribute savings into the General fund, more specifically, helping to reduce the cost of your support services, therefore leaving more dollars to be utilized directly toward the classroom.

If uncertain about your upcoming bond project, consider consulting with an energy savings company specializing in such projects. Many offer a no-cost preliminary analysis, providing insights into potential savings and viable projects. Approached correctly, this strategy can influence communities to vote on bonds geared not only toward new facilities but also infrastructure upgrades, backed by a guarantee of generating savings in the general fund.

Navitas’ experience indicates that most clients save between 20-40% off their energy budgets after completing these projects. Data from ASBR reports of past clients corroborates this trend, showcasing tangible and positive effects on the districts we’ve collaborated with.

For those curious about the steps involved in obtaining a preliminary assessment, feel free to reach out. We’re here to guide you through the process.

You can visit the MOASBO blog to see the original post.

About the Author: Luke Lindesmith serves as the Business Development Manager at Navitas, with a primary emphasis on the K-12 markets. Leveraging his background as a former design engineer, he adeptly assists clients in navigating unique approaches to facility and financial challenges. Luke can be contacted at 620.515.4313 or via email at llindesmith@navitas.us.com.