Energy costs are rising, consumers are looking for sustainability, and regulations are growing and becoming more comprehensive. All of these make effective energy management important for organizations, from tracking usage to reducing waste. Businesses that focus on smarter energy use position themselves for long-term success, driving efficiency without compromising on operational goals.
In this practical guide, we’ll explore how energy management works, along with best practices that you can apply in your organization.
What is energy management?
Energy management is the process of tracking, controlling, and improving energy usage. At its core, it involves assessing energy consumption patterns and identifying inefficiencies so you can implement strategies to reduce waste–while still keeping operations running smoothly. Some examples of these strategies include:
- Replacing old equipment with new ones that use less energy
- Implementing smart automation systems with sensors
- Using renewable energy sources, such as through solar panels
These ensure that you’re using resources responsibly and sustainably. In fact, regular audits for proper energy management have been mandatory since December 5th, 2015. Businesses need to carry them out every four years, to check whether they’ve successfully reduced energy consumption over time. In the EU, energy audits are regulated according to the DIN EN 16247-1 standard. Commercial energy audits can be an alternative or supplement to certified energy or environmental management systems.
Why is energy management important for businesses?
As energy prices rise and sustainability becomes a concern for consumers, organizations must take control of how they consume energy. Here’s why energy management matters:
- Cost savings – Energy is one of the largest operational expenses for many businesses. Companies can significantly lower their energy bills by optimizing usage and reducing waste.
- Compliance with regulations – Governments around the world already have stricter energy and environmental regulations, and non-compliance can result in fines or legal issues.
- Improved reputation – Both consumers and stakeholders increasingly favor companies that prioritize environmental responsibility.
- Boosts efficiency – Energy management involves identifying inefficiencies, with results like equipment running better and reducing maintenance costs.
Even for non-energy-intensive industries, energy management is already a necessity in today’s business environment.
Best practices for energy management
While the situation of each organization varies, there are some best practices that are consistent across industries. Here’s how you can improve your organization’s energy management:
1. Conduct regular energy audits
Commercial energy audits are the foundation of energy management. These examine the amount of energy a building is consuming, and identify anything that’s causing unnecessary consumption. In fact, auditors often use checklists during these inspections to make sure they don’t miss anything. Over the course of a commercial energy audit, inspectors will use gathered information to recommend energy and cost-saving measures.
2. Set realistic energy-saving goals
It’s important to have clear, achievable goals to provide direction for energy management initiatives. You can use the SMART framework–specific, measurable, achievable, relevant, and time-bound—to define your objectives:
- Correct: “Our business aims to reduce heating costs by 10% over six months by optimizing thermostat settings across stores.”
- Too vague: “Reduce energy usage at our facilities.”
While energy management is a key priority, goals should be realistic, with interim milestones to track progress. Setting overly ambitious goals can demotivate your team, but if they’re overly vague, your team will lack actionable steps too.
3. Optimize equipment and schedules
You can get fast energy savings by identifying the machines or systems that consume the most energy then upgrading them to be more efficient. For example, you might replace old motors with high-efficiency models, or even add timers or sensors to reduce idle energy use. Another option is to analyze usage patterns to identify ways to shift energy-intensive tasks to off-peak hours, when electricity rates might be lower.
4. Engage employees in energy-saving efforts
Energy management is at its most successful when everyone in the organization contributes, especially since small, everyday actions can lead to meaningful savings. Host workshops to teach staff about energy-efficient practices and share practical examples, such as turning off unused equipment. Afterwards, you can show them tangible results–like cost savings or energy contributions–so they’re aware of the impact.
5. Incorporate renewable energy where possible
Renewable energy sources reduce environmental impact while lowering energy costs over time. These include solar panels, wind turbines, or geothermal systems. You don’t have to transition to renewables all at once, though–you can start small, such as purchasing renewable energy credits or installing solar water heaters for certain operations. This also aligns with corporate social responsibility (CSR) goals, enhancing your organization’s reputation with customers and stakeholders.
What to inspect with an energy management audit
Thorough commercial energy audits help control energy consumption and costs. They’re also an important means of documenting essential energy flows and determining potential energy reductions. In order to meet sustainability goals, energy audits are legal requirements in many countries.
In the UK, for example, they’re called EPCs and are mandatory in most types of buildings. If a building’s energy usage is found inefficient during an inspection, appropriate energy efficiency measures must be implemented. When conducting a commercial energy audit, you should check:
Energy consumption habits
When you’re evaluating consumption habits, make sure to note whether:
- Appliances are switched off after use
- The lights stay off during the day
- The thermostat is only adjusted up or down by 8 degrees, depending on the outside temperature
Building structure
Check the insulation on walls, floors and ceilings to make sure heat or cold can’t escape. Check the gaps in doors, windows and vents, as well as openings between the interior and exterior of the building, to verify that they are draught-proof
Equipment & devices
Lighting – Energy-efficient options such as halogen bulbs, compact fluorescent lamps (CFLs) as well as light-emitting diodes (LEDs) can significantly reduce energy costs. Inspect lighting systems and test whether they can be switched off in daylight.
Heating, ventilation and air conditioning (HVAC) – Check whether an automatic thermostat is installed and working. Such thermostats can adjust the temperature for different times of the day and maximize efficiency. Check the air filters to see if they need cleaning.
Electrical appliances – Check that computers and monitors are energy-efficient considering their model. Check the energy factor of the water heater (EF), and decide if it should be replaced. Check that the refrigerator seals are in good condition, the temperature is set correctly, and the coils are kept clean.
More effective commercial energy management with workflow automation
Considering the long list of factors to consider for energy management, paper-based inspections can become impractical quickly. They’re time-consuming and often redundant when you’re performing the same audit regularly.
Using Lumiform’s workflow automation platform, it’s easy to perform commercial energy audits no matter where you are. Thanks to the mobile app, you’re able to inspect buildings with a tablet or smartphone, whether online or offline.
Simply use the custom form builder or a pre-made energy audit form to generate your checklist and download it. During an inspection, the Lumiform app guides you through each item on your checklist and ensures results are accurate.
Other ways Lumiform transforms the commercial energy management process are:
- By securely storing inspection data in the cloud, so your compliance and energy efficiency is documented
- Saving you up to 4x the time when conducting inspections thanks to the mobile app’s intuitive UI
- Helping you report and address issues faster thanks to automatic or in-app issue reporting
- Sending regular audit reports so that you can easily summarize and identify patterns in collected data