Energy benchmarking is a method for determining how much energy a building uses and comparing it to similar buildings, as well as its own energy consumption in the past. This article will explain how the process works, the benefits of energy benchmarking, and go over some frequently asked questions. 

What Is Energy Benchmarking? 

Benchmarking involves gathering data and then contextualizing it. Raw data about energy consumption is rarely useful. However, comparing that data to other data sets allows for more meaningful insights. 

Energy benchmarking utilizes two data sets: internal and external. These consist of the building’s own information and energy usage statistics of other similar buildings. 

How Does Energy Benchmarking Work? 

Here are some valuable steps to follow to start an energy benchmarking process: 

• Conduct an energy audit: The process begins with energy data collection. By auditing a building’s current energy performance, you have an internal benchmark. Looking at the energy use data of similar buildings provides a valuable external benchmark. 

• Input data and compare energy use: Establishing a baseline energy consumption level for your building and similar ones allows you to understand your building’s energy performance in context.  

• Identify areas for improvement: Once you have your comparison, you can see where you can make energy efficiency improvements. 

• Set energy-saving measures: Implement methods and technology to reduce energy waste and increase sustainability. 

• Track energy usage: Monitor the results of the changes you made and maintain continuous energy management to make further improvements as needed. Doing this effectively requires a great tracking tool. For example, ECX Marketplace: Analyze is an excellent solution that can automatically collect, manage, and store data and invoices from suppliers and create electronic invoice feeds. 

Why Is Energy Benchmarking Important? 

Energy benchmarking can help produce the following benefits: 

Improved Energy Efficiency 

By understanding a building’s performance relating to energy consumption, stakeholders have the motivation and clarity to implement strategies that can help to reduce energy use and greenhouse gas emissions.  

Reduced Operational Costs 

By implementing energy efficiency improvements, building managers may see a reduction in overall energy costs. 

Enhanced Regulatory Compliance 

Various jurisdictions have regulations requiring energy benchmarking and disclosure for commercial buildings.  

Achievable Eco-Friendly Goals 

Reducing energy consumption is often part of sustainability objectives. By becoming more energy efficient and/or securing contracts with renewable energy suppliers, buildings and organizations may meet internal sustainability goals. This also gives organizations another quality they can use for marketing and may enable them to access green financing. 

Increased Property Value 

By implementing long-term energy efficiency solutions, such as installing heat pumps or more effective HVAC systems, an organization can increase the value of a building and its property. 

Energy Benchmarking Regulations and Compliance 

Several laws and regulations affect energy benchmarking in the U.S., including: 

• Local Law 84: A New York City law, part of the Greener, Greater Buildings Plan, that applies to non-residential and multifamily public buildings larger than 10,000 ft² and private buildings larger than 50,000 ft². 

• Local Law 97: Local Law 97 (LL97) is a NYC law that caps and limits greenhouse gas emissions for large buildings. 

• BERDO: BERDO is an ordinance that aims to reduce air pollution and greenhouse gas emissions generated by large buildings in Boston. 

• NJ Clean Energy Act: This is a New Jersey law that applies to owners and operators of commercial buildings that are 25,000 ft² or larger. 

• Los Angeles EBEWE Program: LA’s Existing Buildings Energy and Water Efficiency program. 

• Washington, D.C.: The Clean and Affordable Energy Act requires public and private buildings of a certain size to disclose the ENERGY STAR energy performance score annually.   

Energy Benchmarking FAQs 

Here are some FAQs about energy benchmarking: 

What Is an Energy Benchmarking Report? 

Comprehensive benchmarking reports should include the following: 

• Energy usage data. 

• Comparison metrics. 

• Performance ratings. 

• Recommendations for improvement. 

• Financial analysis. 

What Are Some Common Challenges in Energy Benchmarking, and How Can You Overcome Them? 

While there are many benefits, the energy benchmarking process isn’t always easy. Some common issues include: 

• Data collection difficulties: Gathering utility data and establishing reliable information on energy consumption isn’t always easy. It’s difficult to know what data is relevant, and how to get and understand information such as submetering data. Working with a third-party advisory firm can help you understand what you need to know and how to get that information. 

• Applying benchmarking results: Once you know the total energy consumption of your building, you have to figure out what numbers to compare that to. Just because another building is a similar size doesn’t mean it’s a perfect comparison point. Gathering data from multiple similar buildings can help. 

• Compliance complexity: Understanding government regulations and determining which ones apply to your building is rarely easy. Here again, working with an outside expert can help save time and spare you from headaches. 

• Resistance to change: Sometimes stakeholders don’t see the value of doing all this research or even investing in efficiency improvements for underperforming buildings. It may be necessary to plainly demonstrate the energy savings — and therefore, the reduced costs — you can achieve with energy benchmarking and the subsequent changes. 

Future Trends in Energy Benchmarking 

Artificial intelligence (AI) and smart tools are showing great promise for gathering benchmarking data and delivering actionable insights.  

• AI and automation: AI-powered benchmarking tools can execute real-time monitoring and provide immediate feedback on energy-saving measures, evaluating their effectiveness. 

• Smart meters: A smart meter is a valuable benchmarking tool because it can record information regarding energy consumption, voltage levels, and electrical current — and then sends that data to a central platform. 

What Is an Energy Scorecard? 

An ENERGY STAR scorecard offers a snapshot of a building’s energy performance. Depending on the type of building, the scorecard displays the building’s 1-100 ENERGY STAR certification or its site energy use intensity. 

How EnerConnex Supports Energy Benchmarking 

EnerConnex can help you achieve your energy benchmarking objectives. We help buildings, businesses, and organizations meet their energy efficiency and reliability goals. We can help with energy procurement and offer advanced tools and solutions to take your energy efficiency to the next level. 

You can read how we’ve helped our clients here, or you can learn more about EnerConnex’s energy procurement services here.