Are you interested in learning how and why buildings in Australia can save energy to benefit people and the planet? If you’re a property owner, developer, investor, or operator of commercial buildings, read our practical guide on the core principles of energy saving in Australia.
Introduction
In a geographically dispersed, ecologically diverse country like Australia, energy saving matters for environmental conservation – and building owners can make a difference while reducing energy costs.
Building owners can play an active role in driving energy efficiency gains while contributing positively to sustainability outcomes, preserving our rich biodiversity in the face of climate change. At the same time, owners will benefit from reduced overheads and more reliable, stable energy sources in the long-term.
Below, we provide the best energy saving tips and principles to help you get ahead with your sustainability goals. Learn the core energy saving principles for commercial buildings, from measuring and reducing demand to implementing smart controls, storage, and verification.
The principles behind saving energy in buildings
Australia’s approach to energy efficiency in commercial buildings has shifted in recent years, with the rising cost of living disrupting traditional energy production. We still rely heavily on non-renewables like oil, gas, coal, and uranium, but there is an increasing push towards a low-carbon future with smarter solutions such as solar, wind, hydro, and more effective energy storage being widely adopted. For example, battery storage can be tapped into during times of peak demand, improving energy security.
In addition, many commercial buildings across the region now use the National Australian Built Environment Rating System (NABERS) Energy rating scale, which can help anyone interested in boosting energy efficiency and sustainability while reducing costly energy overheads. The NABERS system is a New South Wales Government initiative that measures buildings on a scale of 1 to 6. In fact, it has been proven to unlock average energy savings of 42%, with greenhouse gas emissions reduced by 53%.
The NABERS system is one of the fastest growing widescale building transformations and decarbonisation projects globally. And with increasing pressure on property owners to make a building’s energy performance public, NABERS can provide the transparency Australian citizens are looking for.
What are the core principles of energy saving?
Energy efficiency principles and protocols for commercial buildings are outlined in the Building Code of Australia. The key objective of the code and its requirements is to reduce greenhouse gas emissions in all new buildings in Australia, driving increased energy efficiency and a shift to renewables over time.
The core principles of energy saving include reducing energy consumption by optimising heating and cooling systems; utilising energy-efficient lighting and smart technologies; and implementing more sustainable usage of appliances. Implementing these strategies can significantly reduce energy bills and environmental impacts by as much as 50%, indicating that the long-term gains are well worth the effort.
Why energy efficiency in commercial buildings matters
Energy efficiency in commercial buildings matters because it lowers greenhouse gas emissions and operational costs, benefiting people and the planet. It boosts environmental sustainability goals and secures economic savings for Australian property owners, developers, investors, and operators alike.
With reliance on the conventional electricity grid reduced and renewables adopted, energy resilience and security is bolstered. Strategies that contribute to these positive outcomes include better electrification; sustainable building design and management; and smart technologies and automation.
Improved thermal performance with low-cost, clean energy insulation can help property owners save up to 45% on heating and cooling costs. By the same token, better thermal performance and temperature regulation inside buildings enhances comfort, wellbeing, and health outcomes for the occupants.
How much energy commercial buildings use
To save energy within commercial buildings, we must firstly understand how much energy these buildings actually use. Research from the U.S. Energy Information Administration shows that almost 20% of total energy consumed in America is from commercial buildings, and that heating, ventilation, and air conditioning (HVAC) systems account for 40% of energy use within commercial buildings.
In Australia, with our much smaller population, commercial buildings are responsible for around 25% of our overall electricity use and about 10% of carbon emissions. Reducing energy consumption in these buildings is crucial for meeting greenhouse gas emission targets for Australia and globally. Conducting a building energy audit is a great first step in maximising energy savings and efficiency for the future.
The cost of wasted energy for owners and tenants
In New South Wales alone, building owners, occupants, and tenants are spending up to $400 per property in avoidable energy costs year-on-year. This is approximately $1.2 billion statewide spent annually on unnecessary household or workplace energy use. And the link between energy wastage and climate change risks is clear, with inefficient energy use in Australia contributing to the global temperature rise of 1.1°C above pre-industrial levels. This is already having devastating environmental and ecological impacts, with hugely negative costs to the wellbeing and future of human communities.
Why order matters: the Energy Hierarchy
We must consider the concept of the Energy Hierarchy to effectively reduce energy consumption. This is especially true during periods of peak demand where load shifting may be beneficial to lowering costs and consumption. Along the way, it’s important to keep in mind that reducing demand should come before efficient energy supply – and both come need to come before electrification and generation.
Taking steps in this order means smaller, cheaper energy systems that maximise cost savings alongside better environmental and sustainability outcomes.
To break the Energy Hierarchy down into more detailed steps, let’s also consider the 7 principles behind energy savings in Australia.
Principle 1: Measure before you manage
Principle 1 of best-practice energy efficiency and implementation is to conduct a building energy audit. This involves metering, submetering, and baselining existing energy metrics to identify gaps and areas of improvement. More effective energy measurement and tracking will help building owners to better manage their energy efficiency for the future. For example, during the audit, owners can access ways to reduce energy consumption and cost across key areas such as heating, cooling, and lighting.
Principle 2: Reduce demand at the source
Principle 2 involves reducing energy demand at the source by assessing the building envelope, design, structure, and thermal performance. Information gathered in the audit can assist with this, helping building owners to identify areas where better insulation, glazing, and sealing will contribute to greater energy efficiency. For example, better insulation in a building reduces internal heat loss in winter and heat gain in summer, lowering the need for costly heating and cooling systems and cutting energy bills.
Principle 3: Use energy efficiently
Principle 3 is about getting into the practicalities of energy efficiency and electrification. This involves looking at more sustainable HVAC systems, lighting, and hot water options that not only cost less, but also reduce carbon emissions. For example, heat pumps are very efficient at transferring heat instead of generating it. Further, basic tips and tricks like maximising natural light in the building design; regularly cleaning air-conditioners; and avoiding overheating or overcooling can reduce energy bills by 10%.
Principle 4: Control and optimise
Principle 4 involves reassessing building management. It’s about tuning into existing systems to see what’s working and what isn’t. Robust energy management systems (EMSs) can then be implemented to monitor and adjust energy use in real-time. This is done via the integration of smart technologies like IoT sensors and automated controls with the EMS. For example, energy-efficient thermostats that automatically adjust heating / cooling settings based on user habits and real-time weather conditions.
Principle 5: Shift and store
Principle 5 is a practical step towards shifting and storing energy more efficiently and better managing when energy is used; not just how much. Peak demand and load shifting are key components of this step. For example, the highest levels of electricity consumption often occur during periods like mid-winter and high summer, leading to higher energy bills. Property owners can integrate load shifting – moving energy use from peak periods to off-peak times – to reduce costs and stabilise the grid.
Principle 6: Generate on site
Principle 6 is about generating commercial solar and battery storage on site to ensure cost-effectiveness with smarter solutions. For example, reliable, safe, and sustainable energy can be unlocked with options such as solar panels; a back-up battery for energy storage; and virtual power plants that decentralise the network with solar, smart thermostats, and commercial systems. Energy scheme aggregation is a key part of this step, incorporating certificate creation, evidence validation, and multi-site reporting.
Principle 7: Verify and maintain
Principle 7 refers to the verification and maintenance of newly integrated smart energy systems and infrastructure for the building. In the move towards renewables and clean energy, data-driven measurement is key to the ongoing assessment of the system’s effectiveness, outcomes, and cost savings. A NABERS Energy rating can provide transparency of this information while reducing energy bills and maximising decarbonisation and environmental sustainability aspirations.
How 4EVA Energy applies these principles in practice
If you’re a property owner looking to get started with better energy saving and efficiency for your commercial building, a range of low-cost, clean, and green options are available with 4EVA Energy.
As the trusted electrification, verification, and aggregration partner for diverse Australian businesses and building owners, 4EVA Energy brings 20+ years of industry experience to the table. The expert team will guide you from the initial energy assessment through to the planning, implementation, and measuring of smart solutions, unlocking enterprise-grade capabilities and ensuring long-term success.
4EVA’s integrated, collaborative, and tiered approach to electrification puts the key principles of energy saving into practice for your benefit. 4EVA Energy offers tailored local, sustainable, and affordable electrification solutions that reduce your carbon footprint and build a brighter future for everyone.
Book a consultation for an energy assessment with 4EVA Energy today.
Frequently Asked Questions
What are the principles of energy saving?
The core principles of energy saving include striking a balance between energy efficiency, conservation, and consumption. Energy efficiency means achieving the same level / quality of service or output with less energy consumption. Energy conservation means reducing consumption to a more sustainable level or replacing the existing energy service with a renewable alternative. It’s about ‘doing more with less’ via smart technologies, automation, and other smart solutions that actively reduce carbon emissions.
What is the energy hierarchy?
The energy hierarchy is a framework for the three stages of renewable energy implementation. It’s a pyramid: at the bottom is the need to reduce and conserve energy use. In the middle of the pyramid is maximising energy efficiency; especially via low-cost options. At the top of the pyramid is renewable energy unlocked. This strategic approach ensures renewables are introduced at the right time for optimum energy security, sustainability, resilience, and benefit, with financial viability also considered.
What uses the most energy in a commercial building?
Data from the Australian Government Department of Climate Change, Energy, the Environment, and Water shows that heating, ventilation, and air conditioning (HVAC) systems use the most electricity in a commercial building, accounting for 50% of energy use and dominating peak electricity demand in winter and summer. Lighting and electronic devices account for up to 15% of total energy consumption. High energy consumption and costs can be easily reduced with more efficient and sustainable options.
Is it better to reduce energy use or install solar first?
It’s generally better to reduce your energy use first and conduct an audit of your energy consumption before deciding on solar installation. Do your research; select a solar energy option that suits the needs of your building and sustainability goals. By assessing and reviewing your baseline energy consumption in the first instance, you will ensure you don’t end up investing in the wrong-fit solar panel system. This will help you capitalise on low-cost energy efficiency gains and unlock better environmental outcomes.
What is a NABERS Energy rating?
A NABERS Energy rating is a standardised NSW Government scale to reduce energy consumption and negative environmental impacts. NABERS research shows that buildings use 40% of the world’s energy. By using a star rating scale from 1 to 6, a NABERS Energy rating measures the energy efficiency and environmental performance of buildings in Australia. The scale looks at a building’s energy consumption and greenhouse gas emissions over a 12-month period and re
