Rise of the Smart Building Manager

The release of Tesla’s “infinitely scalable” Powerpack was another reminder that commercial and industrial buildings’ energy functioning are changing. A recent article on MarketWatch in fact listed the multitude of Tesla Energy competitors, already in the energy storage market. Energy storage roll-out means that the final element of smart micro-grids is in, and property managers and owners need to take notice.

Commercial property managers still talk about solar, efficiency and renewables as the “fun stuff”. Many property managers and owners are busy securing the next triple-net lease or sitting on their nests, ignoring giant potential returns on renewables investments. Here is a breakdown of the potential returns on smart micro-grids for commercial, industrial and multi-tenant buildings.

Returns: Production Revenue and Demand Reduction

Property owners can generate income from the energy produced on their buildings, without running afoul of the CPUC or any other state authority. A slight modification of the standard triple-net lease is all that is needed for property owners to appropriate most, if not all, of what their tenants currently pay to the electric utility. Renewables provide sufficient profit margins to motivate both the owner and the tenant to be to modify the lease. Who wouldn't want to save 10% on their current electricity bill and be assured of equal monthly payments? 

On the cost savings side, the promise of smart micro-grids is formidable. With smart software, peak energy charges, very often 40% of an electricity utility bill, will be flattened, something which Elon Musk failed to return to during his launch. Efficient and connected appliances, lighting and HVAC systems will further reduce costs, thereby increasing returns for property owners to a point where the micro-grid covers 100% of the buildings energy needs.Shared spaces and untenanted areas would become a zero energy cost for property owners. Property managers increase their value proposition by using integrated reporting tools to increase energy revenue and decrease cost, getting on the forefront of the data collected. 

Enhanced Marketability

Just as many of the top Silicon Valley companies prefer occupying a building with LEED certification, any building which is powered by renewable energy and efficiency measures can be marketed as such. Further to this, as shown on the Tesla Storage launch, micro-grids are able to switch from grid to battery power, thereby allowing business to continue in the face of power outages or natural disasters – now that’s a selling point!

Conclusion

The elements and pieces involved in the smart micro-grid are all there and integrated solutions are reaching price parity. It is incumbent on property owners and manager to do their energy research due diligence. Introduce data gathering measures like those offered by Gridium and others and most importantly, open up this conversation with tenants and see what their capacity and desire is for energy solutions.