Electrification: A Cost-Saving Solution for Commercial Buildings

The shift towards electrification in commercial buildings is rapidly gaining traction, and for good reason. For building owners and facility managers, electrification offers important benefits such as reduced energy consumption, lower utility bills, decreased operating costs, increased property values and happier, longer-term tenants.

In fact, according to the U.S. Department of Energy (DOE), energy efficiency in commercial buildings upped sales price premiums by 11 – 26%. Additionally, operating costs decreased 12 – 17% when older systems were replaced with high-efficiency heat pumps says the World Green Building Trends report. And that’s just for starters.

So, what does building electrification involve? Essentially, it entails replacing fossil fuel-powered systems with electric alternatives. This can include heating and cooling systems, water heaters and laundry and cooking appliances. The aim is to utilize clean and renewable electricity instead of relying on gas, oil, or propane.

Cost-Efficiency and Electrification

Electrification future-proofs assets from financial uncertainty. By transitioning to electric systems, building owners can insulate themselves from the unpredictable and often escalating costs associated with fossil fuels that can strain building operations.

“The best way to pursue electrification? Take a holistic approach and evaluate other energy efficiency opportunities, like improving the building envelope,” says Vanguard Senior Director of Energy and Utility Programs Matt Lima. “Adding insulation and fixing air leaks are great ways to lower energy demand, so you may need a smaller heat pump, which cuts the upfront costs of going electric. 

“It is also crucial to understand programs offered at the local and federal level to ensure no monies are left on the table.”

More Benefits of Electrification

According to global real estate leader CBRE, commercial tenants prefer leasing spaces in energy-efficient and low or zero-carbon buildings. And the DOE found that energy-efficient buildings commanded rental premiums of 2 to 17% and occupancy premiums of 3 to 18%. Commercial tenants are also more likely to stay because occupant satisfaction in green buildings is up 27 – 76% compared with other facilities.

It’s no wonder. Electric heating and cooling yields better air quality for a healthier, safer and more comfortable environment. That’s key to keeping tenants happy and their employees productive.

Embracing Electrification for Short and Long-Term Gains

Transitioning to electrified, energy-efficient buildings is a smart move for any financially savvy and forward-thinking property owner or facility manager. The current financial incentives from utilities and governments, increased property values, longer-term tenants, and less costly energy bills make electrification an attractive proposition.

Of course, transitioning from fossil-fuel-powered equipment to efficient, all-electric alternatives is crucial for battling climate change.

Those who prioritize electrification will benefit financially and contribute to something we all need: a more sustainable and healthier planet. There’s never been a better time for action than right now.

Interested in learning more about how electrification can help you save money while reducing your carbon footprint? Contact the experts at Vanguard Building Solutions today.