Month: April 2017

Do you dread checking your building’s utility bills month after month? Well, you aren’t alone. According to Building Owners and Managers Association (BOMA), building owners spend approximately 22% of their total operating costs on utilities, or about $2.25 per square foot of space each year. For corporate facilities, this number increases to $2.70.

But power, gas and water are essential for all facilities, so you can’t necessarily turn them off. You can, however, implement some smart budgeting tips to better plan for utility expenses.

Analyze Past Utility Bills

Being that utilities are metered, you won’t know exactly how much your building’s power and water will cost until you receive a bill the following month — and that’s okay. By looking at utility bills from previous months, you can predict your building’s upcoming utility costs.

If you don’t have your old utility bills, contact the utility providers to request a copy. They should gladly send you an extra to assist with your budgeting efforts. It’s recommended that you analyze between 12-24 months of past utility bills, as this reveals seasonal changes and subsequent fluctuations in utility usage. Using this information, you can predict upcoming utility expenses for your building.

If you save your bill stubs, you can get an idea how much you spend in a typical month. Your utility company can provide you with a record of your utility bills if you don’t save your stubs, or you can look back over bank statements to find how much you’ve been paying. Keep an eye out for anomalies like record heat waves or cold snaps. Note the trends in your utility bills so you’ll have an idea which months make the highest demands on your utility budget. Being prepared can help you fine tune your monthly budget based on typical utility costs.

Ask About Projected Rate Increases

In addition to reviewing historical utility expenses, you should also inquire about possible rate increases in the near future. Utility rates constantly change due to factors such as natural disasters, inflation, weather, and legal reform. So even if you’ve paid the same rate for your building’s power over the last 12 months, your power company could increase your rate.

If your utility rates are expected to increase, you should set aside additional funds to cover the increase in your budget.

Invest in a Low-cost Utility Bill Management Service

If you have multiple buildings and with several utility bills/meters consider investing in a utility bill management service. There are several on the market today that provide solutions that forges utility invoice and data reception, auditing, accounts payable exporting, and aggregated energy usage analysis.  The solutions are an Internet and cloud-based systems, that are fully customizable and can provide a hierarchy of data from the meter to any organization-wide level for reporting. Your utility expenditures and consumption will be viewable across their entire organization to improve management interaction and engagement.  The systems can track costs, usage, and demand for the utility types such as electricity and natural gas, as well as water, waste, etc. Essentially, anything with an invoice can be tracked in the systems.  The solutions are capable of tracking limitless facilities and accounts and provides both weather normalization and benchmarking capabilities saving you time and energy sorting through all the bills and data.

Look for Ways to Reduce Your Building’s Energy and Water Usage

Of course, you can also seek ways to lower your building’s utility bills. When used in conjunction with a proper budgeting strategy, this can ease the burden of otherwise costly power, gas and water bills.

• Replace incandescent bulbs with energy-efficient alternatives such as compact fluorescent lighting (CFL) or light-emitting diode (LED) bulbs.
• Considering installing high-efficiency toilets. Also known as a low-flow toilet, they use 4.8 liters of water or less per flush, whereas a traditional toilet uses 6 liters or more.
• Monitor your building’s power usage to determine where it’s being used the most.
• Hire a heating, ventilation and cooling (HVAC) company to routinely inspect your building’s central air conditioning and heating.
• Install insulation around water heaters and hot water pipes.
• Choose energy-efficient appliances and equipment.
• Train staff to implement these tips.

Budgeting for utilities is an important step in operating a building. Turning a blind eye often results in “sticker shock” when you see the final bill. By following the tips outlined above, however, you’ll have a better understanding of what to expect with your monthly utility bills.

For more utility budgeting tips, contact us today. Performance Solutions is the industry’s leading provider of facility improvement projects. With our expertise, you can drive down the cost of utilities and associated expenses.

Is HVAC preventative maintenance on your to-do list? If not, it should be. While your heating and air system may not be something you spend much time thinking about, it’s a good idea to schedule in regular maintenance. Mark it in your calendar and schedule twice a year, and you’ll save money in both the short and long term.

How Does HVAC Maintenance Save You Money?

There are several money-saving reasons to get your system checked twice a year. You’ll want to schedule maintenance in the Fall and then again in the Spring.

A technician will come out and check to make sure your unit is in good working order. They will run tests and check the exterior and interior of your unit to check for wear and tear. They’ll clean and if necessary replace filters. The inspection will include your thermostat which will be cleaned and calibrated.

Why Go Through the Trouble?

Scheduling maintenance in the spring, before the summer heat hits can help you avoid problems in the warm months. Don’t wait till your building feels like an oven before you find a problem. Especially since it will be much harder to get an appointment during the busy summer season.

The same goes for scheduling maintenance in the fall. There is nothing worse than turning on your furnace after the temperatures drop only to find out there is no heat!

While catching problems early on is one compelling reason to schedule preventative maintenance, another reason is saving money. Regular maintenance helps your HVAC system operate more efficiently. This saves you money on heating and cooling each and every month.

And, maintenance extends the life of your system. This means you’ll avoid spending thousands of dollars on a new furnace or air conditioner before it’s time.

Those are three reasons that HVAC preventative maintenance can help save you money and avoid stress. Two times a year, every year. By maintaining your system you’ll:

1. Avoid system outages that cause major headaches and discomfort.
2. Decrease monthly energy costs significantly.
3. Avoid costly repairs and replacements, your system will last longer when properly maintained.

Budget-savvy companies are constantly on the lookout for ways to make better use of space. In many cases, space-saving strategies allow a company to do more with existing space, or even downsize into a more affordable building. It is a different way of looking at work space, but it can be effective and help with long-term goals. Instead of staying stuck in a traditional mindset, consider creative ways that facility organization can save money.

For buildings with offices or shared work spaces, “hot-desking” is a popular trend among companies looking to use space more efficiently. Instead of assigning a desk or workspace to each employee, the office functions as more of shared space rather than assigning people to certain places or desks. Flexible work schedules help this strategy function more efficiently. As a bonus, employees do not grow weary of working in the same area day after day.

Another thing to keep in mind is the design of your facility. Environment has a direct effect on mood as well as productivity. Spending the time to make your building an open workspace with ergonomic furniture may sound like a big investment of time and money, but the end results of a more productive workspace are totally worth that initial investment.

Creative thinking when it comes to using available space helps a company save money and makes for a better, more fruitful work environment. Public areas that are seldom used do double-duty as work areas for a mobile workforce. For example, if a company has a cafeteria or dining area, the space likely sits empty for most of the day. Instead, designate certain areas as workspace for salesmen, technicians and other employees who do not work in the building regularly.

These space-saving strategies, while simple, represent a paradigm shift for companies accustomed to more traditional space usage strategies.

This can be a tricky time when it comes to tax breaks related to green energy. There is much speculation as to where the tax code is going, and what breaks will remain at the end of 2017. However, there are still one or two items that you can capitalize on now, and a few to keep an eye on for the future.

A good place to start is the Energy Investment Tax Credit. Also called the “Solar Tax Credit,” this credit is one of the more straightforward ways to go solar, and decreases the tax burden on your business. This credit is equal to 30 percent of the expenditures required to install a solar energy system–with no cap on maximum credit. This means that you can opt for top of the line solar energy systems without fear that the tax credit will leave you high and dry.

This tax credit applies to all systems that begin construction before December 31st 2023. However, it is important to note that the value of this credit decreases the closer you get to 2023. For instance: on January 1st 2020, the highest tax credit receivable is 26 percent. To get the 30 percent rate, construction has to begin before the end of 2019.

For a more comprehensive break, businesses have been relying on the infamous 179D tax break for years. 179D is lauded as the holy grail of green building tax deductions. This program provides $1.80 in tax breaks per foot of a commercial building that save at least 50 percent of the heating and cooling energy of a system, according to the Department of Energy. Additionally, you can save 60 cents per square foot for systems affecting the building envelope, as well as lighting.

This bill was extended in 2016 to apply retroactively to systems beginning construction in 2015 and earlier. However, there has been little news on the future of the break as we move into 2017. Many are hopeful that 179D will be extended (and even increased) soon, but this is largely speculation. This has traditionally been used as a huge tax break for sustainable commercial buildings, so it will be important to keep an eye on this policy this year.

This year, it may be best to focus on systems-specific tax breaks. For instance, installing a biomass stove can earn you a $300 federal tax credit, provided it has an energy efficiency rating of 75 percent or better. Certain central air conditioning systems also qualify for a $300 tax credit. Even some non-solar water heaters that have efficiency ratings of over 90 percent qualify for a $300 tax break. If you maximize your usage of all these individual incentives, that’s already a total of $900 saved come tax day…no matter what happens in terms of large-scale energy policy.

The takeaway here is to be specific. Understanding how to maximize the efficiency of your existing building–or install the right systems if you’re due for an upgrade–will make a world of a difference. Creating an environmentally sustainable building is a reward in itself, but that doesn’t mean that you can’t be compensated for it. Inevitably, your building will require maintenance, why not let the tax code inform those decisions to help increase efficiency and put some cash back in your pocket?

For more information on how to use the green tax code to your advantage, visit our website. To get a personalized opinion on how you can maximize your savings and efficiency, contact us.