SPARK

Discoveries, innovations, and insights that illuminate the future of the built environment

Why simple incentives are the key to dynamic energy efficiency

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Photo by Mark Turnauckas, via Flickr.

Photo by Mark Turnauckas, via Flickr.

What do you think about when you consider extreme energy efficiency? Perhaps you think about gigantic solar arrays, intricate water reclamation technology, or slick computerized building controls.

While all those measures are well and good, you don’t have to buy fancy equipment or use luxury materials to achieve superior energy savings.

When it comes to lowering energy consumption, I believe that simple utility incentives—which are often just a few lines of text—may very well be our most powerful tool.

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What is “Total Cost of Ownership,” and why does it matter?

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Blueprints

“Blueprints” is a new Spark series exploring McKinstry’s core business philosophies from our leaders’ perspective. This is the first story in the series, from McKinstry’s CEO: Dean Allen.

Whether you’re shopping for a car or building a skyscraper, your goal is the same: making decisions that maximize value and minimize cost over the long-term.

Constructing a multi-story building is obviously a bit more complex than buying a minivan, but the principle remains the same in both cases: educated decision-makers with comprehensive information in hand will make superior choices.

When it comes to being fully informed, there’s no better strategy than conducting a Total Cost of Ownership (TCO) analysis. TCO may sound like an intimidating and technical concept, but it’s much like the process of buying a car.

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Policy innovations propel energy efficiency

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NEEC report cover

Cover photos taken from report commissioned by NEEC. Photo at center courtesy of Diana Rothery; right cover photo courtesy of Nate Watters.

Policymakers take note: energy efficiency may be your best economic development strategy.

A recent report commissioned by the Northwest Energy Efficiency Council (NEEC) found that energy efficiency investments boosted the economies of Washington and Oregon by hundreds of millions of dollars more than if that money had been invested elsewhere. Not only does spending on energy efficiency generally remain localized, it also frees up capital that can be redirected towards other projects. Places that encourage investment in energy efficiency can then reap the long-term benefits of a stronger local economy, higher wages and lower unemployment.

We need a mix of market based tools to promote investments in energy efficiency. Here are three innovations that encourage broader adoption of efficiency and stimulate deeper, more persistent energy savings.

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Moving beyond design—and toward performance

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Stone34 building in Fremont

McKinstry provided design-build mechanical and plumbing services for Stone34, a high-performance building in Seattle seen here. McKinstry has also measured and verified energy and water use ever since the building opened in August 2014. Stone34 is fully embracing performance-based outcome thinking, as project partners are still working to adhere to strict building performance guarantees. Photo by Doug Scott.

Today—more than ever before—building owners are pushing the construction industry to meet increasingly aggressive, socio-economic-driven energy performance targets.

Whether that push is motivated by a desire to save money or driven by more indirect benefits of lower energy use, owners are nonetheless demanding that building performance (in the form of energy efficiency) drive how their buildings are designed, built and operated.

Currently, the industry has two main strategies when it comes to constructing a building. The traditional approach is design-focused, siloed and—importantly—quite inadequate when it comes to guaranteeing building performance. As a result, the construction industry should be shifting and adapting to a new, performance-based approach across the board in order to meet the energy efficiency goals of building owners.

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