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November 15, 2013 By Tom Sherman

KPI’s That Make A Difference In Energy Efficiency

Energy efficiency programs save organizations huge sums of money.  However, we often get asked what are the Key Performance Indicators or KPI’s that companies should focus on to ensure their programs maintain traction.  So here are 5 useful KPI’s to consider when looking to track energy efficiency courtesy of Noesis, a leader in energy measurement and tracking platforms.

KPI #1: Clean Data

The first step to measuring results is inputting clean and accurate data.  To accurately input data, every line item on the bill – such as rate, units of measure, charges, start date, end date, taxes, consumption start, total consumption – must be included to compare previous years, months and amounts. This data has to be correct or the rest of the effort will produce diminished returns, if capable of many returns at all. Be highly conscious of the relevance, completeness, consistency, transparency and accuracy of the information – as well as tight integration – when considering an energy management system.

KPI #2: Energy Costs

Cost is the one KPI that should be at the top of everyone’s list. Measuring site against site (for multi-site organizations) can produce some benefit, and it is fun to categorize things and judge them against each other. But, by lining up energy spend by cost, energy management becomes clearer, and saving money comes closer within in reach. The best way to find the most money in energy management is to look first at where it’s being spent, then reducing that spend by percentages.

Keep in mind that there are other areas that deserve attention as well. Issues like finding leaks and billing discrepancies are high priorities, but cost should always be a top consideration as you benchmark and manage your energy.

KPI #3: Measuring Usage

Here is where the battle for savings takes place. By focusing on reducing use, the ultimate result of lowering costs comes into view. Simply, use equals cost. Thus, as use is measured, managed and reduced – whether by kWh, Kgal, CCF or DTherms – cost is reduced. Insuring that the meter at the other end spins more slowly (or backwards, in the case of solar systems) is key to success, and success is measured in dollars, made from reducing use.

KPI #4: Energy Rates

Rate is one item that properties have upfront control over in some situations. By reviewing current rates and investigating potential rates, savings can be realized before making any effort to reduce cost through use.

Knowing rates is important, and comparisons are essential. For example, if five sites in the same city are compared and it’s realized that four are paying one price while the fifth is at another rate, something may be amiss. Upon further investigation, a change may need to be made in order to lower cost for one or four of those sites. Additionally, energy procurement is a great way to control rates. Many states allow for deregulation of one or more commodity, electric or gas. The outcome is sometimes a lower rate structure that can save a little or a whole bunch, for years to come. There are many many service providers in this area, in Multifamily and outside of it, so insure that the provider is very knowledgeable, understands Multifamily and has a strong history of performing these services.

KPI #5: Greenhouse Gas Emissions

While data, cost, use and rates are paramount, a fifth KPI – GHG or greenhouse gas – is a factor. This villain can be easily measured with high accuracy through the KPIs mentioned above. For those companies that wish to take their sustainability or energy management program to the corporate stewardship level, GHG is the KPI for you.

Measured, accurately and transparently, GHGs open the door to big green marketing opportunities and some of the larger investment groups from the stock market. One word of warning: For companies wishing to enter this very public arena, take a professional, or two, with you. Big mistakes or “green-washing” are not tolerated, so accuracy and transparency is critical but easy with the right M&V system behind you.

M&V, bench-marking and KPIs are essential to garnering the huge benefits of energy management and sustainability and highly reliable when working with the right systems and partner.

Filed Under: Featured

What Our Clients Are Saying

“It has been a pleasure working with Laura and Tom Sherman and Sustainable Energy Services over the past three years on our energy procurement.  They have saved our company many thousands of dollars on our energy spend year over year and I have appreciated the regular and timely insights on our electric and gas accounts. Tom completed an energy audit of our facility and uncovered many opportunities to reduce energy consumption.  He also made us aware of a tariff opportunity that will save us … Read more
Wayne Pedlar, Chromaflo Technologies
Tom did a complete audit of our facility and then mapped out a strategy that we have followed for the last 4 years.  To date we have saved 47%.  We were so delighted with our results, we asked him to help us with our 3 other plants.  Tom is very professional and a joy to work with.  I would not hesitate to recommend Tom and his firm if you are looking for a high integrity expert who gets results.  
Jeff Weekley, CFO, Mantua Mfg. Co.
In today’s retail environment, margins tend to be diminishing all over the place; retailers need to get creative in order to stop the bleeding, find ways to increase sales, and move the needle on the trend to stay alive and relevant.  One expense area that I noticed was significant was our electric bill, and I decided to delve into how to potentially reduce it.  After researching solar alternatives, it was suggested to me that I first conduct an overall energy audit to identify where and how o… Read more
Charlie Bassett, CEO, Bassett's IGA
Tom did a complete facility energy audit, which got us started on reducing our energy consumption. From his report, we were able to improve our lighting, replaced our old boilers with infrared heat and tackled our compressed air system.  Since 2010, these and other projects help us achieve a 41% reduction in natural gas usage and an 18% reduction in our electricity usage.  Tom has always been available for special projects or advice whenever we needed it.   It has been a pleasure to work with… Read more
Chris Schwartz, President, G&S Metal
Sustainable Energy Services performed a complete facility energy audit, showing us how we could save 30+% on our energy usage.  From the final report it was clear we needed to move first on upgrading our lighting. Looking at the math, it was a no-brainer. Based on the unbiased financial analysis provided in the report, we saw a clear way to upgrade to all LED lighting with less than a 2 year payback so we implemented it.  SES also helped us with utility rebates, get competitive bids and secure… Read more
Terry Schordock, Property & Systems Director, Bay Presbyterian Church

News and Updates

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Tom is honored to be selected as a speaker at the 2019 AEE Energy Conference East

The 2019 AEE Energy Conference East will be held at the Hynes Convention Center in Boston on March … [Read More...]

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