In the past, utilities were viewed as a black hole. They were a monopoly—a monthly bill that you had to pay—and that was it, but now that’s all changed. In many areas of the country, you have the choice of who your provider is for electricity, natural gas, and other services. If you play your cards right, you could realize significant savings.

Additionally, with the rise of environmental, social, and corporate governance (ESG) programs there are opportunities to not only score some PR points but also significantly reduce energy costs along the way. Throughout this blog post, we’ll highlight some of the programs you can incorporate into your utilities management strategy that will pay the biggest dividends from an energy efficiency standpoint.

Evaluate energy usage

EnergyStar and other state and federal programs are available to help you evaluate and benchmark your energy usage, so you have a baseline to go off of. From there, you can set goals and identify areas of how and where you want/need to improve.

Replace energy efficient light bulbs

The easiest place to start becoming more energy efficient is just replacing old light bulbs with energy efficient, LED light bulbs. According to Multifamily Insiders, LED bulbs use as much as 75% less energy than traditional light bulbs and last 25x longer, which not only saves money both long- and short-term, but also saves time in the future as you will have to replace bulbs less frequently.

Install solar panels

A larger scale project that could pay off big time is installing solar panels. While there may be a large capital expenditure at the beginning, the savings you will realize will be worth it. Solar panels will reduce energy bills by 5-15%. Beyond that, they will also make your property more attractive to environmentally and cost conscious residents.

Energy efficient insulation

Whether you’re starting with a new build or looking to upgrade an older building, installing energy efficient insulation is a good way to both reduce long-term energy costs, while also receiving incentives in the form of tax credits or rebates from the government. EnergyStar estimates that doing this will reduce residents’ energy costs by as much as 15%.

Smart thermostats and efficient HVAC

Implementing smart home technologies, including smart thermostats, have a dual benefit. First, they make your properties more attractive to potential renters because they are utilizing the latest technology that are built to deliver the best resident experience. And second, they will reduce costs for your residents, while helping you to better manage energy costs on common areas and vacant units.

Replace traditional landscape with xeriscaping

While xeriscaping might not be the best fit for every geography, it’s important to be thoughtful when landscaping your properties and incorporate plants indigenous to the area that will thrive with minimal watering. When you xeriscape, not only are you helping to reduce water consumption, you’re also decreasing maintenance costs associated with services like lawn mowing. Additionally, it can help increase your property values and is much less expensive to install than traditional landscaping.

Identify tax rebates and tax credits

Finally, each of the programs above have tax credits and rebates associated with them that can help reduce your tax burden or reduce costs associated with implementing these energy efficiency programs. Make sure your accounting team is aware of these and helps you take advantage of all the incentives the government is offering.

Learn more

Learn more about improving utilities management in our latest guide, Making the most out of your properties’ utilities, or request a demo today!