5 Practical Tips to Lower Energy Costs in Commercial Properties

As energy costs continue to rise, making a few strategic upgrades to your property can significantly reduce expenses while enhancing building efficiency. From upgrading lighting to optimizing HVAC systems, even small changes can lead to substantial energy savings and improve tenant satisfaction.

As part of our Owner Strategy Series, GM Properties consulted with Marika Erdely, CEO of Green Econome, to provide building owners with guidance on navigating energy regulations and optimizing property performance.

1) UPGRADE TO LED LIGHTING

Switching to LED lighting is one of the most effective ways to reduce energy costs immediately. LED bulbs offer several benefits:

• Energy Savings: LEDs reduce both kilowatt-hour (kWh) usage and peak demand (kW) on your electric bill. They provide consistent energy savings over time and help manage peak energy costs when multiple systems are running simultaneously.
• Lower Maintenance Costs: While fluorescent bulbs last around 8,000-10,000 hours, LED bulbs can last up to 50,000 hours. Their extended lifespan means fewer replacements and reduced labor costs associated with maintenance.
• Reduced HVAC Load: Unlike traditional fluorescent lighting, LEDs emit less heat, which can help reduce the workload on air conditioning systems in climate-controlled environments.
• Compliance with State of California AB 802 (California’s Benchmarking Law): As of January 1, 2025, the sale and distribution of linear fluorescent lamps (LFLs) is prohibited statewide. This follows the earlier ban on compact fluorescent lamps (CFLs), including screw and bayonet base types, which took effect on January 1, (dtsc.ca.gov)

Installing occupancy sensors can further enhance savings by automatically turning off lights in unoccupied spaces, potentially cutting lighting costs by up to 30%. These sensors are a cost-effective solution, often as simple as replacing a light switch.

2) OPTIMIZE THERMOSTAT USE

A programmable thermostat can significantly reduce wasted energy by ensuring heating and cooling systems only run when needed. For larger buildings, property owners can control HVAC usage across multiple units, setting defined “comfort ranges” for tenants and limiting excessive heating or cooling.

By maintaining a schedule (for example cooling only during business hours) and offering after-hours climate control as a paid service, property owners can manage energy use more effectively and even create additional revenue streams.

3) MAINTAIN AND UPGRADE HVAC SYSTEMS

Regular HVAC maintenance, including quarterly or semi-annual filter changes, is critical to maintaining system efficiency. Dirty filters force HVAC systems to work harder, increasing energy consumption and reducing equipment lifespan.

Beyond maintenance, property owners should monitor the useful life of HVAC equipment. Older systems are less efficient and may contribute to higher energy bills. In some regions, including Los Angeles Department of Water and Power (LADWP) territories, incentives may be available for upgrading HVAC systems.

4) IMPROVE ROOF EFFICIENCY

Roofs play a significant role in a building’s energy efficiency. Older roofs may allow excess heat to enter the building, increasing cooling costs. Installing a cool roof, which is designed with reflective materials to reduce heat absorption, can significantly decrease indoor temperatures, particularly in warehouses. High Solar Reflective Index (SRI) materials can further enhance this effect by reflecting more sunlight and absorbing less heat.

Regularly assessing the useful life of the roof and addressing repairs or replacements proactively can prevent water damage and improve energy performance.

5) CONSIDER WINDOW UPGRADES AND FILMS

While window replacements can be costly, they can also provide long-term energy savings. Older single-pane windows offer minimal insulation and may allow heat to penetrate easily, driving up cooling costs.

For a more budget-friendly option, window films can enhance insulation by reducing heat transfer. High-quality window films can create energy savings of up to 31%, but they require professional installation and proper maintenance to ensure effectiveness.