Energy Conservation Initiatives in Commercial Buildings: How to Measure ROI

power monitoring

According to the US Dept. of Energy, traditional commercial buildings waste as much as thirty percent of the energy they consume. The waste implies a significant potential for cost savings through energy conservation initiatives. When your organization is pursuing a structured energy conservation program, measuring the outcome is critical to success.

Power Monitoring for Energy Cost Reduction Projects

Power monitoring is a vital component of energy cost reduction initiatives because it facilitates measurement and verification. Continuous power monitoring helps you understand the conditions before and after the initiative takes effect. Every change that reduces waste and increases efficiency has an impact on your company’s bottom line, either directly or indirectly. Accurate power monitoring is key to energy sustainability measurement and verification for commercial buildings.

A dedicated power monitoring system is the most efficient solution to do the hard work of measurement and verification for your commercial building. It takes the pulse of the building by connecting to power supplies at critical points and recording consumption patterns over time. The ultimate gain is financial. It is the measurable improvements in energy efficiency that improve your return on investment.

Accurate Power Monitoring Across Time and Space

To get the best results from power monitoring, your devices for data collection, storage, and processing must be continuous, consistent, and reliable in the long-term. Your initial data establishes the baseline conditions, against which you can measure changes and understand the impact after you have implemented it.

The data you gather in real time, to process analytically and store for the historical record, gives a dynamic picture of system states as they change. The monitoring and analysis must be continuous and consistent to achieve verification over time to be accurate. This process of measurement and verification over an extended period will help you find the subtlest opportunities to make real savings.

Sustainability for the Long Term

As renewable energy plays a more significant role in business operations, it can be a tool to increase efficiency and environmentalism. The principle of sustainability is the reliance on renewable energy sources and savings through efficiency.

Sustainability has to prove itself over a period of many years. One goal of conservation is to protect resources for the future. The principle of sustainability extends the supply of energy indefinitely. Accurate power monitoring can help you discover long-term trends over time frames of five to ten years, or perhaps even longer.

Finding Compounded Savings for Future Investment

The acquisition of a power monitoring system appeals to senior executives because it is a relatively low-risk investment. The capital cost of dedicated power-monitoring systems fades to insignificance when compared to the possible long-term energy-related cost savings. Additionally, it diminishes the risk associated with the uncertainty of future energy market conditions.

You can funnel the savings in a virtuous circle of investment that compounds the benefits for the long term. The initial rewards appear quickly, and the equipment speaks for itself by delivering the measurement and verification data, once it is operational. The savings you gain as a return on investment from permanently install power monitoring system can help fund your investment projects.


You make smarter building management choices when you possess accurate data and analyses. A permanently installed power monitoring system gives you unique data management capabilities for your commercial buildings.

A permanently installed power monitoring system provides historical data, reveals usage patterns, and informs your energy conservation initiatives. It is critical in evaluating and clarifying how well your plan has succeeded and gives you the best chance of achieving the optimum results.

Socomec is a leading global manufacturer of power control and energy management systems. A Socomec Power Monitoring System gives you the ability to measure and verify energy conservation initiative outcomes. To learn how Socomec can help you deliver measurable improvements to your return on investment, download our white paper, Energy Efficiency & Power Monitoring: The Need of the Day.