Calculating Energy ROI for Residential vs. Commercial

Integrators can greatly affect the energy usage of both their residential and commercial clients. By looking at the typical energy usage in commercial facilities vs. residences, integrators can better hone their sales pitches specifically for lighting control, shade control and networking thermostats by calculating ROI.

Residential ROI Calculations
Taking a look at these pie charts from the U.S. Department of Energy, the biggest chunk of electrical consumption in the average U.S. home is devoted to heating and cooling systems at 43 percent. That figure represents a strong opportunity for dealers to effect change for their customers’ bills with smart thermostats. Moreover, shade control is effective at directly cutting heating and cooling bills.

Eleven percent of all electrical consumption is devoted to lighting. Obviously, lighting control can cut those bills. Finally, 7.4 percent of usage comes from electronics, so use of Energy Star components with low phantom power draws is another way to help clients.

Dealers should consider creating an ROI chart for clients using this information. For example, take a monthly energy bill of $400 showing them how you can cut 15 percent in lighting ($6.66/month), 10 percent in electronics ($2.96/month) and 15 percent in HVAC ($25.80/month). Then add up the savings and calculate an ROI. In this scenario, it adds up to $35.42/month in real savings (in addition to the improved aesthetic qualities and convenience, of course.)

Commercial ROI Calculations
Similar ROI calculations can be done in the commercial arena, but the energy usage averages are different.

In commercial locations, lighting control can be even more dramatic for reducing costs because it accounts for 25.5 percent of commercial energy usage.

HVAC accounts for 33.3 percent of bills while electronics represent 6.3 percent of consumption.