The New Paradigm: Energy Efficiency for Multifamily Properties

Perhaps no other building has as diverse an energy infrastructure as a multi-family property.  To meet the needs of tenants, each of whom have a very wide variety of energy-consumption requirements, property owners must operate their properties like ‘mini cities’:  A multifamily property may have an office center, recreational complex, gym, pool, sports facilities, and more.

With such a high level of diversity, the maintenance staff responsible for a property’s energy infrastructure must consider not just existing energy factors, but also those that may arise in the future.

This means an effective multifamily property energy strategy must always include elements that are ‘future-proof’ – flexible to adapt and grow as the building’s energy demands require.

Yet, all too often, property owners/operators tend to maintain various isolated energy systems that are incapable of meeting this demand.  These systems have become more and more costly to operate and maintain because they are rapidly aging and become more and more obsolete, requiring facility managers to more frequently outsource service and maintenance (a costly but necessary choice).

And, as more people are working from home than ever before, energy consumption levels across your property portfolio have skyrocketed, putting even more unwanted strain on that aging energy infrastructure.

So, why not just upgrade to more modern and energy-efficient equipment?

Short answer:  The cost.

These are extraordinary times.  Market uncertainty is at an all-time high, and social health and distancing concerns are having a serious impact on nearly every business model, causing ripple effects across the global economy. So most multifamily property owners are either out of money or are diverting resources to other initiatives,  their aging energy infrastructure seriously under-funded.

And let’s not forget one of the most common barriers to investing in energy efficiency upgrades or retrofits, particularly for multifamily property owners/operators:  The low trust factor in the energy-savings concept.

Property owners take one look at the high transaction costs to upgrading their energy infrastructure, review a ‘fuzzy’ ROI projection presented to them that may or may not be rooted in reality, and decide to push ‘energy efficiency’ far down their list of priority action items.

So, despite the profound financial benefits of upgrading or even retrofitting existing energy systems to state-of-the-art energy-efficiency systems, owners/operators lack the encouragement to make the decision to upgrade.

Do you own your own power plant?

Take a look at how your multifamily property consumes energy right now.

Did you build your own power plant to generate the electricity for your property?

Did you build your own natural gas pipeline?

No?  So then how does your property get electricity and gas?

Because your utility built those things.  They invested in building and operating the plant, the cables, the pipelines – all of it – in order to deliver to you what you really want:  The electricity and gas.

And you take them as-a-service, paying no upfront capital costs to get all that electricity and gas generated and delivered right to your property.

What if your utility contacted you and said:

“We can come out next week and replace all your lighting, upgrade your aging HVAC system, put in a power management system – all of it – and you don’t have to pay anything out of pocket … whatever money you save from the lower electric and gas costs will pay for the upgrades.”

What sane property owner would say no?!?

Sadly, your utility isn’t going to do anything like that for you.

But what if someone else could?

Here’s how multifamily property owners are upgrading their portfolios right now, even in today’s crazy economy:

It’s called: Energy Savings as a Service (or ESaaS).

ESaaS removes the capital expenditure requirement typically needed to launch and fund an energy efficiency upgrade project.   It’s a turnkey upgrade solution that covers all the equipment, installation, maintenance, repair, and servicing – and lets you take advantage of buying heating and cooling BTUs and lumens for lighting for less than you currently spend.

Your budget therefore becomes a moot issue, as you don’t need any out-of-pocket expenditure.  You keep your capital, and just get lower energy costs – right from day one (no ‘fuzzy ROI’ projections or confusing charts to decipher).

And it won’t impact debt ratios, lines of credit or conflict with core purchases, because it’s not a loan.

You get an energy-efficiency upgrade that instantly lowers your energy costs, and you get it the exact same way you currently get your electricity and gas from your utility:  Zero capital, zero debt.

Saving money is always a smart move.  Saving money in today’s economy is even more crucial.  Energy Savings as a Service (ESaaS) makes it all possible for you right now, without any risk.

Prove it to yourself – talk with an energy specialist who can determine if ESaaS is the right solution for your multifamily property.  Call Mike Erickson today at 844-768-7227.

Written by OUS

July 17, 2020

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