Author: Tim Moegen
May 16, 2024 (originally published on May 13, 2022) - 6 MIN. READ
As energy costs continue to rise and tenants expect energy-efficient solutions, multifamily property managers can greatly benefit by figuring out how to decrease electricity load.
Read on to learn how to identify areas for improvement and the strategies you can implement to reduce energy consumption.
If you’re considering how to manage electricity loads more effectively for your multifamily property, your priority should be improving visibility into your energy consumption.
The best way to establish a detailed baseline for your property’s energy usage is to schedule an energy audit or assessment. You can use the Residential Energy Services Network to search for energy assessors in your area. Alternatively, you can contact a local electrical contractor if your primary concern is to assess your electricity usage with a load calculation.
During this assessment or audit, a professional will consider the following factors:
Once you have this information, you can determine how to decrease your property's electricity load by comparing your energy usage to benchmark performances from similar properties.
Energy auditors can provide you with helpful data to compare your energy usage and identify areas where your multifamily property is underperforming, but you can also reach out to your utility provider for assistance. A growing number of utilities are offering energy audit programs designed to help you assess and improve your energy consumption.
Energy-efficient upgrades come with a cost. It’s possible to take advantage of federal, state, and utility incentives to save on this project.
At the federal level, you can claim the 45L tax credit for major renovation projects. This credit can range from $500 to $5,000 per unit if the upgrades make your property compliant with the Zero-Energy Ready Homes requirements.
Several states offer rebates, tax credits, and other incentives. For instance, in New York, multifamily property owners can receive up to $2,000 per unit under the New York State Affordable Multifamily Energy Efficiency Program. In Michigan, property owners can claim Home Efficiency Rebates if they’re reducing their energy consumption by 20%.
Maximize your savings by stacking these incentives with programs offered via your utility provider. More utilities are pushing for electrification and energy-efficient upgrades, such as Pacific Gas & Electric, which gives a $300 per unit rebate for heat pumps and water heaters. Florida Public Utilities offers a similar program, with savings of up to $200 on energy-efficient ranges or $725 for a new furnace.
Explore options available in your area with the expert who performed your energy assessment. They should be familiar with the different programs you can qualify for.
After completing an energy audit, it's time to explore different strategies for decreasing your electricity load.
Replacing older power-hungry appliances with energy-efficient alternatives is a wise investment. It can enhance tenant experience, and the savings are significant. For instance, some Energy Star ceiling fans reduce energy consumption by as much as 74%, and Energy Star-certified dishwashers cut electricity usage by 27%.
Is it time to upgrade your heating and cooling system? Heat pumps can save $500 per year for each single-family home you manage. By displacing heat rather than generating it, this modern heating and cooling solution will significantly reduce your electrical load.
Upgrading your multifamily properties with smart panels allows you to divert loads as needed. This feature can shut off secondary circuits when usage goes up and maintain your property’s energy consumption under a certain threshold to reduce demand charges.
You can combine a smart panel with additional electrification solutions, such as battery storage or solar panels, to make your multifamily property more independent from the grid and control energy costs.
If you can’t justify replacing your electrical panel, a load-shedding controller might be a good alternative. This device controls which circuits get power and allows you to decrease electricity loads by shutting off secondary circuits.
Space heating represents 39% of energy usage in apartment buildings with two to four units. Exploring modern solutions designed to reduce electricity loads—such as multi-zone mini split systems, smart thermostats, or hybrid HVAC systems—can make a difference.
Managing your electricity load can go a long way toward lowering costs and improving ROI at your multifamily property. An energy audit is a smart first step.
When you need to upgrade your heating and cooling equipment, appliances, or other assets at your property, don’t overpay. Join a purchasing program like Raiven and pay substantially less! Companies like Raiven combine the buying power of all their members and negotiate exclusive discounts, service terms, and supply chain priorities so you pay less for your equipment, parts, and maintenance supplies, and you don’t have to squabble with suppliers.
Gain access to pre-negotiated discounts of 7%-30% from industry-leading manufacturers and distributors, including Ferguson, HD Supply, Home Depot, Lowe’s, Office Depot, FedEx, Grainger, Sherwin-Williams, T-Mobile, and more!
Raiven is the go-to partner for multi-family property managers, providing unbeatable prices on equipment, parts, and maintenance supplies. Our intuitive purchasing platform streamlines procurement for maximum efficiency. Other key benefits:
Supply chain alerts notify you of fluctuations in price and availability
Our private marketplace provides one-stop access to your preferred suppliers
Our AI-powered purchasing tools automatically locate the lowest prices
Raiven is your one-stop destination for saving time and money. Ask our clients Core Realty, Lyon Living, or Oaks Property Management about how we've helped them, or visit Raiven to learn what we can do for you.
If you need an energy assessment for your property, be sure to visit Qmerit, the nationwide leader in energy efficiency and electrification solutions.
Summary
Multifamily property owners can unlock significant savings and enhance tenant satisfaction by focusing on energy management and reducing electricity load. Our latest blog post discusses energy audits and the strategies you can implement to decrease loads.