Real estate owners and managers are often spooked by energy and water investment projects for a variety of reasons. Maybe they’re haunted by unsuccessful past projects or maybe the results are just ghosting them. Whatever the reason may be, success lies in the approach. Below are some of our top tricks that will help you reap the treats of an intelligence-driven approach to energy and water management.
Don’t be Caught by Surprise
There’s nothing like an unsuspected scream or menacing shadow to scare the bejeezus out of you. However, scary situations are often avoidable with careful planning and awareness of your surroundings. For example, locking into a fixed-rate energy procurement contract is a proactive way to manage the cost of energy supply against volatile (and sometimes terrifying) market prices. This is a particularly useful strategy to consider in a mild autumn when prices are stable. If you’d like to learn more about this winter’s energy market predictions, check out our blogs on the state of the energy markets here.
Survey the Whole Scene (or don’t just grab the first pumpkin that you see)
When you hit the pumpkin patch, you need to survey your options before landing on the perfectly shaped, sized, and inspirational gourd. That’s how we recommend implementing energy projects too, especially across a large portfolio.
Don’t be on the Losing End of Dramatic Irony
If only you could explain to the horror movie lead that answering the door is a poor choice because you know what is lurking on the other side. Alas, they can’t see the whole picture. Buildings are complicated environments with sprawling, interrelated systems and you want someone who can think holistically across all of them in order to effectively manage energy and water. Just because there is a heating problem doesn’t mean that the solution is in the boiler room. In fact, sometimes the source of the problem isn’t related to the equipment at all. In multifamily buildings, residents are as important a factor as any to consider when diagnosing any problem. This is why we recommend whole-building audits and continuous energy management services. Having our engineers go inside a building, speak with residents, and examine all of the systems’ functionality is crucial in diagnosing the root of an issue and presenting an informed solution. Providing continuous expertise and energy management lets us help you anticipate problems and recommend how to avoid them. Otherwise, you’re liable to be frightened purely because you’re operating with incomplete information.
Don’t Jump to (Scary) Conclusions
As any parent can attest, some of the scariest things are the things that we don’t understand. And the only way to combat that is to probe a bit deeper and to figure out what is actually going on. It’s like in the Wizard of Oz when they finally peek behind the curtain…or those big, spooky Halloween displays that make your five-year-old scream and cry until you show him that it is just a toy (with an on-off switch), not a real skeleton coming to life.
For example, one of our clients always found water on the floor of their boiler room. Noticing that it appeared to be leaking from the bottom of their water-tube steam boiler, they called the manufacturer’s representative to come out, drain, and inspect the boiler. When he opened it up and saw corrosion on the tubes, the rep said: “it’s all gotta go.” Our client was looking at frightening repair costs, to the tune of hundreds of thousands of dollars.
Before rushing into anything, we helped our client select a nondestructive testing (NDT) company and supervised a more thorough ultrasonic testing of the boiler tubes. When the results came back, they were surprising. The corrosion had looked bad, but there was actually minimal loss of tube wall thickness. When we leak-tested the boiler, there were just two pinhole leaks and a leaking joint. The root cause was likely that this boiler had run much more than the standby boiler, and therefore experienced many more heat up and cool down cycles. The rep replaced the two leaking tubes, we fixed the control logic so that the lead boiler would rotate weekly, and together we filled, started, and tested the boiler – just in time for heating season.
There is so much to gain from strategic energy and water management. From avoided capital costs to utility bill savings and resident retention, the list of benefits is hard to pass up. But in order to get the treats, it’s important to bear in mind these tricks.
This blog was originally posted October 31, 2016. It was updated October 30, 2018, to highlight different incentive programs.