Why Energy Efficiency Is Important for Nonprofits | Article

The nonprofit sector consists of a diverse group of organizations, including schools, colleges, libraries, worship facilities, community centers, animal shelters, hospitals, and more. Nonprofits carry out a wide range of services that we all depend on. Improving energy efficiency is a way that nonprofits can reduce operating costs, free up resources to advance their core missions, set a good example of environmental stewardship and sustainability in their communities, and improve the health and wellness of their employees, volunteers, and those who use their services.

More than 500,000 facilities in the United States are operated by nonprofits, most of which are commercial buildings. Commercial building energy consumption accounts for 18 percent of the total energy used in the United States. Improvements in building energy efficiency are cost-effective investments that deliver comfort and productivity gains, generate energy savings, and reduce greenhouse gas emissions.

Energy efficiency retrofits lower energy costs and advance the core mission

Energy costs are the second-highest operational expense for many nonprofits, behind only salaries. According to the Environmental Protection Agency (EPA), as much as 30 percent of the energy consumed in hospitals, worship facilities, and other commercial buildings is wasted, leading to enormous opportunities for energy efficiency improvements and energy savings. These savings can be reinvested by nonprofits in core mission advancement and work to better serve their communities.

There is a wide range of energy efficiency improvements available to nonprofits. Some are easy to do and deliver energy savings from day one. For example, a programmable thermostat can help keep employees and volunteers comfortable during working hours while letting the temperature rise or fall by a few degrees when the facility is empty. Replacing incandescent and fluorescent bulbs with high-efficiency light-emitting diode (LED) options can generate bill savings of up to 20 percent and provide better quality, controllable illumination in offices, warehouses, and outdoor areas. Installing LED exit signs can save up to $10 per year per sign. In larger buildings like schools, hospitals, colleges with an abundance of exit signs, these quick projects can lead to hundreds of dollars of savings annually. Repairing damaged insulation and plugging air leaks around windows and doors with weather stripping and caulking can create easy and immediate returns on investment.

Whole-building retrofit projects, where an integrated design approach is employed, can generate more significant energy savings by improving all systems as a whole rather than taking a piecemeal approach. These projects often require advice from a consultant or energy efficiency professional to identify necessary improvements and estimate energy savings. Cost-effective energy efficiency measures like sealing ducts and adding attic and basement insulation will reduce leaks to the outdoors and help limit temperature swings in indoor spaces.

Combined with whole-building measures, nonprofits should consider tuning up, upgrading, or rightsizing their heating, ventilation, and air conditioning (HVAC) equipment. Space heating and cooling accounts for up to 50 percent of all energy use in nonprofit facilities. High-efficiency HVAC systems can be optimized for specific operations, are quieter, and require less maintenance than outdated models.

Energy efficiency retrofits make buildings more sustainable and help address climate change

In the basements of many schools, worship facilities, community centers, and hospitals sit dirty, old furnaces and boilers that consume natural gas, fuel oil, or propane. Burning these fossil fuels indoors releases pollutants such as particulate matter, carbon monoxide, and many others that can lead to asthma and other respiratory problems for employees, volunteers, and those who visit nonprofit facilities to use their services. Susceptible populations, such as children, the elderly, and people with chronic conditions are particularly vulnerable to the health impacts of fossil fuel combustion. Even facilities that do not directly burn fossil fuels contribute to greenhouse emissions because, overall, about 60 percent of electricity is generated in natural gas- and coal-fired power plants. Polluted air from burning fossil fuels in power plants and from road vehicles causes the premature deaths of up to 200,000 Americans every year, significantly impacting those who are more vulnerable and with fewer resources. Communities of color and indigenous populations are disproportionately affected by pollution from fossil fuel power plants, as well as from refineries and production operations, and vehicles on nearby highways.

Replacing old furnaces or boilers with energy-efficient models that also run off fossil fuels results in lower energy costs due to less consumption and waste. But there is a limit to this increased energy efficiency—even the best furnace or boiler never converts 100 percent of the energy it consumes into heat. Dramatic improvements in electric air-source heat pumps in recent years have made electrification an attractive alternative that nonprofits should consider. Shifting from an old and inefficient furnace or boiler to an air-source heat pump generates significant energy-cost savings because the electric option is up to 400 percent more efficient than its fossil-fuel counterpart. In addition to lowering energy costs, switching out a furnace or boiler that burns fossil fuels in favor of an electric alternative helps improve indoor air quality and reduces greenhouse gas emissions. This accrual of multiple benefits is called “beneficial electrification” and can be a perfect match for whole-building retrofit projects.

Energy efficiency improves community health and wellness

Indoor air quality problems can have negative health impacts on employees and volunteers who work in a facility as well as those who visit it. Other factors such as poor ventilation, stagnant air, uncomfortable temperatures, inadequate illumination, mold, and noise can lead to poor health conditions. In schools, for example, these conditions affect students, resulting in lower attendance. Several studies have found that inadequate building ventilation is associated with the increased risk of transmission of respiratory infections, leading to declined student performance. In hospitals, patient wellness is paramount to avoid further health complications and reduce the risk that respiratory infections could spread to other patients or visitors.

Energy efficiency measures like air sealing and insulation also improve indoor air quality. New HVAC equipment can help filter exhaust gases and reduce the impact from bad outdoor air quality conditions from wildfires and natural disasters exacerbated by climate change. The core mission of many nonprofits is directly related to community wellness, which can be enhanced by energy efficiency upgrades to advance energy equity and climate justice. Food banks, health clinics, and worship facilities offer much-needed services in their communities—they are at the center of the lives of those who meet there. Energy efficiency can help these facilities remain available and accessible year-round, even in severe weather.

Energy efficiency is also the best place to start for nonprofits that want to install renewable energy systems and battery storage to ensure that they have long-term energy affordability and community resilience. An energy-efficient facility requires less electricity and therefore smaller renewable energy and battery storage installations, which are more affordable.

The distribution of renewable energy systems has historically been inequitable. While holding for income, predominantly Black neighborhoods have installed 69 percent fewer solar panels on average than no-majority census tracts. Meanwhile, white-majority neighborhoods have installed 21 percent more solar panels than no-majority tracts. Nonprofits have the opportunity to help redress such inequities and help disadvantaged and underserved communities. Solar panel installations on schools and worship facilities within communities of color can promote renewable energy adoption throughout neighborhoods. The combination of cost-effective energy efficiency, renewable energy, and battery storage can turn schools and community centers into refuges when these areas are impacted by extreme weather, helping communities recover.

Read all of our resources on energy efficiency for nonprofits.

Author: Miguel Yañez-Barnuevo