4 Key Facility Energy Issues and Challenges

The Association of Energy Engineers recently surveyed more than 1,000 facility energy professionals in the U.S. and around the world. This survey provides important insights into energy trends and the challenges facing facilities today. Here, we highlight some key takeaways and what they mean for your organization.

Energy Reduction is a Top Strategic Priority

Energy use reduction was the top strategic priority for 81% of respondents, far outpacing other priorities, such as increasing renewable energy (61%) and achieving net zero (38%). Making energy efficiency a strategic priority at your organization requires careful assessment and long-term planning. Start by using ENERGY STAR® Portfolio Manager® to benchmark your energy performance and identify the most promising upgrade opportunities. Next, develop a comprehensive energy management program that includes measurable goals, a way to evaluate progress and an emphasis on continuous improvement.

Cost is the Biggest Hurdle to Increasing Energy Efficiency

Budget restraints (73%) and high upfront costs (67%) were by far the biggest challenges to increasing energy efficiency and sustainability, according to survey respondents. Low or uncertain rate of return was also rated as a significant challenge by 41% of those surveyed. To get buy-in for efficiency upgrades, focus not just on energy savings but also on the additional benefits they can bring, such as increased productivity and safety. Improved lighting, for example, can help decrease the risk of costly accidents. HVAC upgrades can improve indoor air quality, reducing absenteeism and creating a more productive work environment.

Decarbonization Remains a Key Goal

Decarbonization goals drive facility operations, according to 56% of respondents, although that number has declined from 64% in 2023. Also, 52% of companies maintain decarbonization strategies. Building decarbonization is the process of reducing or eliminating carbon emissions from buildings by improving energy efficiency, transitioning to renewable energy sources and adopting low-carbon technologies. For more information about developing your own building decarbonization strategy, see Guide to Strategic Decarbonization Planning from the U.S. Green Building Council.

AI is Growing in Importance

Artificial intelligence (AI) continues to gain traction among energy professionals, with 51% of survey respondents rating AI as “extremely” or “very” important in enhancing energy efficiency. AI systems use machine learning to proactively optimize energy consumption through predictive energy management, smart building control and fault detection and diagnostics. AI technology is advancing rapidly, and AI-driven building systems are available on the market. Work with a system vendor to find the right solution to help optimize your building operations.

By staying up to date on the leading issues facing facility energy professionals today, you’ll be better prepared to take your organization to the next level of energy performance.