Capital planning often requires property teams to make decisions about building systems long before those systems reach the end of their useful lives. Energy performance data can help inform those decisions by showing where a building is using energy, how performance has changed over time, and where an investment may have the potential to improve both building performance and operating costs. 

Establish a Performance Baseline

Before using energy performance data to assess a potential capital project, establish a reliable baseline. It provides a point of comparison for measuring changes in a building’s performance after an improvement. 

Portfolio Manager lets property teams set a baseline year and compare it with current performance. Its Progress & Goals reporting also displays baseline, current, target, and national median performance in one place. 

Choose a baseline period for which the team has reliable information on both energy use and building operations. Check utility data for completeness and accuracy, and document relevant conditions during that period, including occupancy, operating hours, major equipment, and any significant property changes. 

The more context the team has around the baseline, the easier it becomes to determine whether a later change represents an actual improvement. If a building’s energy use declined after an equipment upgrade, for example, the team needs to understand whether the reduction resulted from the project, a change in occupancy, different operating schedules, weather, or another factor. 

A baseline also gives property teams a common reference point when evaluating multiple buildings. Portfolio Manager can be used to compare performance across a portfolio, helping teams identify properties that may warrant additional investigation or investment. 

Determine Whether the Issue Is Operational or Capital

Before recommending an equipment replacement or other major improvement, examine whether the building is operating as intended. Review schedules, temperature setpoints, controls, equipment sequencing, preventive maintenance, ventilation, and after-hours operation. A system that is capable of performing efficiently may consume excessive energy because of a controls issue, an incorrect schedule, or a change in operating practices. 

These issues can sometimes be addressed at relatively low cost compared with replacing major equipment. Capital needs become more apparent when performance issues are tied to the equipment’s condition, age, capacity, or efficiency. An aging HVAC system, inefficient lighting, outdated controls infrastructure, or equipment nearing the end of its useful life may offer an opportunity to combine a planned replacement with an energy performance improvement. 

The distinction matters during capital planning because the solution should match the cause. A building should not receive a major equipment upgrade simply because its energy performance is below a benchmark if the underlying issue can be addressed through operations. 

Use Performance Data to Prioritize Projects

Once a building’s performance has been established and operational issues have been reviewed, energy data can help property teams determine which potential projects deserve further analysis. 

A property that consistently uses more energy than similar buildings may warrant an energy assessment or further investigation. Across a portfolio, teams can identify and evaluate buildings with greater potential for improvement alongside other capital needs.  

That does not mean energy performance should be the only factor in deciding where to spend capital. Property condition, tenant needs, regulatory requirements, equipment reliability, planned renovations, available incentives, project cost, and expected useful life all influence a capital decision. 

Energy data can instead provide another layer of information. If an HVAC system is already approaching replacement age and the building also has consistently high energy use, the energy data may strengthen the case for evaluating higher-efficiency replacement options. If a lighting system is due for replacement and energy use is elevated, the project may provide an opportunity to address both an existing capital need and ongoing operating costs. 

The same approach can be applied across a portfolio. Rather than evaluating each energy project in isolation, property teams can compare buildings using consistent performance metrics and then consider those results alongside the broader capital plan. 

Establish Expectations Before the Project

An energy-related capital project should have a defined performance expectation before work begins. The expected outcome may be expressed as reduced energy use, a change in EUI, lower energy costs, an improved ENERGY STAR score, or another measurable target. The right metric depends on the project and the building. 

Portfolio Manager lets users set targets and track energy projects, including estimated savings. The EPA defines estimated savings as anticipated savings calculated using engineered assumptions or energy modeling and entered at the start of a project so actual performance can be tracked afterward. 

Recording the expected results before construction gives the property team a clear benchmark to assess once the project is complete. It also helps distinguish the project’s performance from other changes at the property. 

For example, if an HVAC replacement is expected to reduce energy use, record the relevant baseline data and the assumptions underlying the projected savings. If the building’s occupancy or operating schedule changes substantially during that period, document those changes as part of the evaluation. 

Evaluate Performance After the Investment

The months after an improvement provide an opportunity to assess whether the building is performing as expected. Compare post-project energy use with the established baseline, considering the same factors used to evaluate the original performance. Review weather, occupancy, operating schedules, and any other significant changes that could affect energy consumption. 

A project that delivers less savings than expected doesn’t necessarily mean the equipment or improvement failed. The building may be operating under different conditions, the original savings estimate may have been too optimistic, or another issue may be affecting performance. Reviewing the full set of operating and energy data can help identify the cause of the difference. 

Ongoing benchmarking also helps property teams determine whether savings are sustained. The EPA recommends continued tracking to verify reductions from energy-saving efforts and monitor performance over time. 

This is especially important for projects that rely on changes to operating practices or controls. An improvement may deliver the expected savings at first, but some of those benefits can fade if schedules, setpoints, or equipment operation gradually revert to their previous conditions. 

Connect Energy Data to the Capital Plan

For each potential project, property teams can weigh the building’s current performance against the established baseline, along with the affected equipment’s condition and expected life, anticipated energy savings, project cost, and other capital priorities. Portfolio Manager’s financial and reporting tools can support this process, helping teams compare savings and track performance across buildings. 

The result is a more complete view of the investment. A project may address an aging system, reduce energy consumption, lower operating costs, improve reliability, and support the property’s broader performance goals at the same time. 

Energy data won’t determine which projects a property should fund. It can, however, provide evidence to help teams identify where further investigation is warranted, set expectations for an investment, and assess whether the completed project delivered the anticipated performance. 

When teams track energy performance before, during, and after a capital improvement, the information becomes useful beyond a single project. Over time, it can help property teams document which investments produced measurable results and use that experience to inform future capital planning. 

Thank you to our ENERGY STAR Month sponsor, Georgia Power

Learn More about Georgia Power’s Commercial Energy Efficiency Program here.

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