6 Ways to Reduce Energy Costs in a Commercial Building

If you manage a commercial property, you already know how energy costs can eat into your bottom line. Between heating, cooling, lighting, and day-to-day operations, energy bills can quickly become one of your largest expenses. However, all it takes are a few small changes in design, equipment, and operations, and you can enjoy significant savings without compromising comfort or productivity.

Whether your building is brand new or decades old, improving efficiency starts with strategy. Here are six proven ways to cut energy costs in your commercial building and keep them low for years to come.

1. Upgrade to Smart HVAC Systems

Your HVAC system is probably the single biggest energy consumer in the building, accounting for 40 to 60 percent of total energy use. Older systems often run on fixed schedules or outdated controls, wasting energy when spaces are unoccupied or conditions change.

Upgrading to a smart HVAC system gives you real-time control and automated efficiency. How, you might be wondering? Well, it’s actually pretty interesting. Smart thermostats and building automation systems adjust temperature and airflow based on occupancy, outdoor conditions, and time of day. Over time, these systems “learn” your building’s habits and make subtle adjustments to save energy without anyone noticing a difference in comfort.

Modern HVAC units also integrate variable frequency drives (VFDs) that adjust fan and pump speeds on demand instead of running at full power all the time. The result is much more consistent temperatures and energy savings that pay off quickly.

If your current system is more than 15 years old, replacing it could reduce HVAC-related energy costs by up to 20 percent – a strong return on investment that also improves comfort and reliability.

2. Maintain Proper Airflow and Coil Efficiency

Even the most advanced HVAC system can lose efficiency if it’s not properly maintained. Clogged filters, dirty coils, and restricted airflow make equipment work harder, which increases both energy use and wear.

Regular maintenance should include cleaning evaporator and condenser coils, inspecting belts and fans, and verifying refrigerant levels. Dirty coils, in particular, are a hidden energy drain. When heat exchange surfaces get covered in dust or grime, the system must run longer to achieve the same level of cooling.

In many commercial HVAC systems, direct expansion (DX) evaporators play a key role in efficiency. A DX evaporator is a coil where refrigerant evaporates directly inside the tubes, absorbing heat from air passing over the coil surface. As the refrigerant changes from liquid to vapor, it draws heat out of the air, cooling the building.

Because the refrigerant is in direct contact with the heat transfer surface, DX systems deliver high efficiency and fast response to load changes. However, proper maintenance is crucial. Uneven refrigerant distribution, coil frosting, or oil return issues can all reduce performance.

3. Invest in LED Lighting and Smart Controls

Lighting upgrades offer some of the fastest payback periods of any energy-efficiency investment. Switching from fluorescent or halogen bulbs to LED lighting can reduce lighting energy use by up to 75 percent. LEDs last up to 25 times longer and produce less heat, which also lowers cooling loads in the summer.

But lighting efficiency isn’t just about bulbs. It also comes down to controls. Installing motion sensors, daylight harvesting systems, and programmable timers ensures lights are only on when needed. For example, occupancy sensors can automatically turn off lights in conference rooms or restrooms when empty, while daylight sensors dim fixtures near windows to take advantage of natural sunlight.

In open offices and warehouses, lighting controls can easily reduce total lighting energy use by 20 to 40 percent, all without affecting productivity or visibility.

4. Improve Building Envelope and Insulation

Heating and cooling costs are directly tied to how well your building retains conditioned air. Leaky windows, poor insulation, and gaps in the building envelope force your HVAC system to work harder, driving up energy bills.

• Start by conducting an energy audit or blower door test to identify air leaks.
• Seal cracks around windows and doors with weatherstripping or caulking, and consider upgrading to high-efficiency glazing that reduces heat transfer.
• For older buildings, adding insulation to walls, ceilings, and mechanical spaces is one of the most cost-effective upgrades you can make.
• Reflective roof coatings and cool roofs also reduce heat absorption in the summer, easing strain on your air conditioning system.

Even the smallest improvements in your building’s envelope can deliver big payoffs, especially when combined with other energy-saving measures. So, take the time to invest here.

5. Use Energy Management Systems for Real-Time Insight

You can’t manage what you can’t measure. Energy management systems (EMS) provide real-time insight into how your building consumes energy – from lighting and HVAC to machinery and office equipment.

With an EMS, you can track energy use by zone, identify waste, and compare performance across time or multiple properties. (Advanced platforms use AI and analytics to highlight inefficiencies automatically, helping you target the biggest opportunities for savings.)

Some systems even integrate with utility data, enabling you to shift energy use to off-peak hours when rates are lower. Over time, these small optimizations can lead to significant cost reductions.

6. Prioritize Preventive Maintenance and Staff Training

Even the most efficient equipment will underperform if it’s neglected or misused. But with preventive maintenance, you can ensure your systems stay in top shape at all times.

One of the best things you can do is schedule regular inspections for HVAC, plumbing, and electrical systems. On top of this, you’ll want to replace filters, lubricate moving parts, and calibrate controls at regular intervals to keep your system running efficiently.

At the same time, train building staff to recognize energy waste – like adjusting thermostats manually or running equipment during unoccupied hours. Simple awareness campaigns can drive behavioral changes that reduce consumption without any capital investment.

Adding it All Up

When you take a proactive approach to energy management, you’re building long-term resilience. Your commercial property becomes more competitive, more sustainable, and more profitable – one smart efficiency decision at a time. And that’s a win for everyone!