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Calculating Energy Savings Exactly


Facility technology has improved by leaps and bounds over the last few years. It is now possible to dramatically improve a property with relatively little investment. The improvements are done in one of two overall categories.

Firstly, the actual physical components such as the windows, siding, lighting, heating or cooling can be upgraded.

Secondly, these may be turned into “smart” gadgets that optimize for the time of day, season and capacity through an internet connection. In either case, these improvements can be rapid and immediate. For that reason, more and more locations are investing in these upgrades.

In particular, many schools and government facilities are upgrading. They see the benefits of the property in reducing costs, upgrading the classroom experience as well as the environmental benefits. Engineers can tell you exactly how much savings you will receive for the upgrades.


In fact, engineers can now produce extremely precise forecasts of the amount of savings that will be produced through the upgrades. They can model the estimated temperatures day and night, as well as the heat from the humans filling the school. They can then produce a fairly exact forecast or calculation of the energy savings. Once that calculation is complete, the payback period for the investment is also easy to determine. The calculation is done a little differently for each item.


For LED bulbs, the calculation is fairly simple. Engineers have a calculator with a few inputs. Firstly, you examine the cost of your existing incandescent lamp wattage, then add the cost of those bulbs.  Assume the life is about 8,000 hours for a single bulb. Take the same costs for an LED bulb and multiply by the number of total bulbs that are being replaced. In general, LED bulbs last about three times longer than incandescent bulbs but only cost 10% to 15% more. Finally, plug in the number of dollars per kilowatt hour the local energy utility charges. This will produce a net number that demonstrates the savings over time.

However, that does not even account for making the lighting “smart”.  Investing in a smart lighting system means that the lighting can be controlled remotely and automatically shuts down during periods when it is not needed such as the evenings, early mornings, break times and the summer. These additional efficiencies can result in another 10% to 20% reduction in lighting costs.

Air-Source Heat Pumps

Another big source of energy savings is the air-source heat pump. In fact, heating and energy combined usually account for half of the energy consumption of a building. Engineers have a sophisticated calculator for these savings.

The first thing you need is a Heating Seasonal Performance Factor Rating. This will differ in different parts of the state. Weather conditions near Lake Erie are quite different from those in the Southwest part of the state for example.

Next, you need a Seasonal Energy Efficiency Ratio rating that determines how much energy is needed to convert the temperature one degree in a building.

Next, you need the need old and new heat pump capacity expressed in BTU/HR. Additionally, a programmatic thermostat will most likely be used in the upgraded system which will save 10% to 20% of the power just based on the timing of the energy use. The system will know to keep power use low during the evenings and early mornings.

Finally, you must insert the expected life cycle of the old system and the new one. This will produce an annual savings number and savings over the lifecycle of the upgrade.

Energy Optimizers USA is a leading company helping facilities improve their infrastructure while at the same time reducing energy costs over the long term. The company’s projects all have a rapid payback and improve the overall facilities. For more information, please contact us.

Are you interested in exploring your savings possibilities?
Call us today to learn more.

(937) 877-1919