Reducing energy costs during the summer swelter

August 6, 2015

With sizzling summer temperatures often come boosted energy costs. The U.S. Environmental Protection Agency noted that commercial and industrial buildings are responsible for $200 billion worth of energy consumption on a yearly basis. HVAC systems account for the largest proportion of energy used in buildings, consuming nearly 30% of all energy used in buildings, according to the U.S. Department of Energy. During the summer, when air conditioners are at full blast, air-conditioning may also make up the largest portion of the utility bill. Austin Energy, explains that air-conditioning can be 60-70% of the summer electric bill. Additionally, some companies end up paying for their excessive cooling use all year long. For example, Texas utilities like Oncor and Center Point have "ratchets" which occur when the peaks in summer electric use are carried all year long. Demand charges in PJM territory are also ratcheted. 

The great air-conditioning debate
One option to reduce the exorbitant cost of cooling is lowering the thermostat. However, this option has been hotly debated between some folks who dislike the ice cold temperatures and those who love it. Across America workers are split between those who thrive in the cold and others that are shivering. Many Europeans visiting America complain of the cold temperatures inside hotels and busses. To compound the debate, there's also the misconception that being cold makes people more productive when in fact studies show quite the opposite-- that people work less and make more mistakes when air temps are 68-72 vs 74-76. Cold air can even make people more untrusting, unfriendly and uncommunicative.

Still, many companies in America, Australia, the Middle East and Asia are addicted to air-conditioning. "Being able to make people feel cold in the summer is a sign of power and prestige," said Richard de Dear, director of the Indoor Environmental Quality Laboratory. Not surprisingly, more energy is used for air-conditioning in the United States than is used in the entire continent of Africa despite the high costs of electricity and the energy wasted. The Economist calls this addiction the "most pervasive and least-noticed epidemic." If everyone were to adopt the U.S.'s air-conditioning lifestyle, energy use could rise tenfold by 2050", said researcher Stan Cox.

Global demand for cooling rising
Love it or hate, air-conditioning is here to stay. Around the world, despite rising energy costs and complaints of cold temperatures, sales of cooling equipment keeps rising. "People are getting richer all around the world, and they're buying air conditioners," explains Lucas Davis of the Haas School of Business at the University of California, Berkeley. Countries with the most "air conditioning potential," include Brazil, Indonesia and Brazil. Fortunately, air-conditioning has become more energy efficient, buildings are designed more sustainably and cooling technologies like thermal energy storage can reduce daytime energy use without affecting comfort.

Best practices for lowering your energy bill
Some best practices for reducing energy costs in building include better insulation, smart thermostat apps, more energy efficient equipment, use of fans and monitoring plug loads. Architects may incorporate shading techniques, solar photovoltaic, use materials that do not absorb heat or utilize geothermal technologies that pump cooling from underground.

Other strategies, according to Area Development Online, to minimize rising energy costs during the summer include extensive maintenance, advanced technology, retro-commissioning, integration of energy management controls and HVAC system optimization including heat recovery options and thermal energy storage which all play an important role in keeping utility bills under control without affecting comfort.

Thermal energy storage dramatically reduces cooling costs
Thermal energy storage presents a unique opportunity to any company or organization looking to permanently reduce its annual cooling costs. Technology like CALMAC'S IceBank® energy storage tanks make it possible to transfer a portion or all of a facility's cooling load to nighttime hours when electricity is considerably less expensive. The tanks allow for the storage of energy consumed after sundown in the form of ice. This ice is then used to cool the building which in turn limits the need for running more energy consuming equipment during peak hours when electricity is most expensive.