Energy Management: What It Is and Why It’s Worth It

Learn how energy management systems help reduce waste, cut costs, and improve efficiency in commercial buildings through smart automation and strategic control.
SavingEnergyForYourBusiness
Industries
Involved Solutions
May 10, 2022

Did you know that roughly 67% of all energy produced in the United States is wasted? From poor insulation and inefficient appliances to errant climate control and lighting practices, energy loss is a massive and costly issue—especially for commercial buildings.

For businesses, this waste directly impacts operating budgets. But with the right energy management strategy, you can drastically reduce unnecessary consumption, lower utility bills, and improve building efficiency.

Understanding Energy Management

Energy management refers to the monitoring, controlling, and conserving of energy in a building or organization. Through smart scheduling, automation, and advanced technologies, businesses can minimize waste while maintaining comfort and productivity for occupants.

Avoiding Demand Charges

One common yet overlooked issue is peak demand charges. These are extra costs utilities charge when your business draws a large amount of energy in a short time.

For example, powering on all mission-critical equipment at once—especially during opening hours—can cause a demand spike. Instead, staggering equipment startups in 15-minute intervals can help avoid these charges and reduce total consumption.

Learn more about how to maximize your energy management solution to avoid such costly mistakes.

Wasting Energy Through Idle Appliances

Climate control systems are essential in commercial spaces, but they can also be one of the biggest energy drains—especially when operating in unoccupied rooms.

Smart energy practices include:

  • Increasing thermostat temperatures on hot days when buildings are empty.
  • Reducing heating overnight or on weekends.
  • Using programmable or smart thermostats to automate these adjustments.

With a smart energy management system, climate control becomes efficient and effortless, allowing for remote temperature regulation and automated schedules based on occupancy.

Controlling Unnecessary Lighting

Lighting is another area where small inefficiencies can add up to big bills. One light left on for an extra hour may seem minor, but multiplied across hundreds of fixtures in a hotel or hospital, the cost becomes significant.

To combat this:

  • Install motion sensors in less-trafficked areas.
  • Use timed lighting schedules in hallways, lobbies, or breakrooms.
  • Employ remote lighting controls to turn off unneeded lights in real time.

These strategies are especially effective in large facilities where full illumination is rarely needed at all hours.

Explore more practical tips in our guide: 25 Tips to Make Your Business More Energy Efficient

Leveraging Energy-Saving Technologies

Technology is key to reducing waste. Many office devices—like computers and printers—consume power even when turned off. Smart plugs and connected systems can help by cutting off power to idle equipment or allowing manual and automated control from a smartphone or dashboard.

The integration of these technologies into an overall energy strategy not only saves money but also contributes to sustainability goals.

How Energy Management Systems Reduce Waste

Commercial buildings—especially hotels, hospitals, and grocery stores—are among the largest consumers of energy in the U.S. Yet, much of this energy can be saved through smart scheduling, occupancy-based automation, and connected systems.

For example:

  • A hospital may need constant power for medical devices but can dim or automate lighting in low-traffic areas.
  • A hotel doesn’t need to maintain a guest room’s climate when it’s unoccupied.

The Internet of Things (IoT) has revolutionized building operations. With sensors and smart devices communicating in real time, it’s easier than ever to reduce energy use without sacrificing performance.

If you’re exploring whether energy management is worth the investment, start by considering these 7 benefits you might not know about.

Final Thoughts

Energy management isn’t just a trend—it’s a strategic necessity for businesses that want to lower costs, improve operational efficiency, and reduce their environmental impact.

Whether you’re just starting to evaluate your current setup or ready to implement smart solutions, an energy-conscious approach puts you on the path to a more sustainable and cost-effective future.

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