Q&A: Expert Insights on Maximizing Energy Savings and ROI

The Q&A below summarizes the insights shared by Melanie Stewart, Sustainability Manager at Optimized Systems and Mike Hoffman, Director of Utilities at University of Arizona, on our webinar Energy Savings Unlocked: A Panel Discussion on Energy Management, Best Practices, and ROI.

Q1: Why is utility data so important for energy management?

Melanie Stewart:
It’s a frequent saying that you can’t manage what you don’t measure. Looking at that data and knowing what you have and where you have it is super important. You don’t know where to spend money on your energy projects or whether you’ve saved after implementing them.

Michael Hoffman:
I think of utility data on campus as facility biometrics. Just like a doctor monitors vital signs to spot potential problems, utility data serves as an early warning system for energy issues. It’s critical for planning, prioritizing projects, and measuring ROI.

Q2: How do real-time data and interval meters benefit organizations?

Melanie Stewart:
The best use of real-time information is finding problems before they become really big problems. For example, one client had a chilled water leak that went unnoticed because it drained into a basement floor drain. By the time they realized, they’d already spent tens of thousands of dollars unnecessarily. Real-time data could have prevented that. If they had real-time meter information, they would have seen that spike almost instantaneously.

Michael Hoffman:
In Arizona, managing demand charges is crucial. During peak periods, we rely on real-time data to shift from chillers to thermal energy storage, avoiding setting new demand peaks. This practice saves us between $500,000 and $1 million annually.

Q3: What’s the value of benchmarking in energy management?

Melanie Stewart:
Benchmarking helps identify drift—those small inefficiencies that build up over time. For instance, a single damper not closing properly might not cause immediate alarm, but tracking trends can signal when it’s time to retro-commission.

Michael Hoffman:
We benchmark internally and against peer institutions. Benchmarking against peer institutions is an important thing for us because as a university, we are in competition with our peers. And we’re finding more and more with our potential clients, prospective students, is that this generation of college students has a different set of priorities; sustainability and resiliency and climate are all on that list. It’s important for us to be able to effectively benchmark ourselves against other institutions and against the higher education industry because it serves as a talking point for our admissions and enrollment departments.

Internally, it’s helped us catch issues like a backflow valve stuck open at our Student Rec Center, which was wasting millions of gallons of water annually. Externally, benchmarking supports our commitment to sustainability, which is increasingly important to prospective students.

Q4: What role does ROI play in energy projects, and how do you measure it?

Melanie Stewart:
We try to measure ROI all the time because it’s essential for showing accountability and justifying future projects. For example, we worked with a university that reduced campus-wide energy by 25% over five years. They achieved this by strategically reinvesting savings into new projects. They started with straightforward LED retrofits and optimization projects that paid for themselves quickly, then reinvested those savings into larger initiatives. This domino effect demonstrates how tracking ROI can lead to sustained improvements over time.  ROI helps show accountability and ensures you’re meeting projections. I love using EnergyCAP for [measurement and reporting] because it’s so easy to go in and look, run a report, and see how use has gone down.

Michael Hoffman:
ROI is crucial for prioritizing energy projects and securing buy-in from decision-makers. It allows us to demonstrate the tangible value of an investment, whether it’s financial savings, energy reductions, or carbon avoidance. At the University of Arizona, we emphasize ROI to show how each dollar spent contributes to our overall efficiency goals. For example, when we implemented changes to our thermal energy storage system, the savings in demand charges alone provided a clear return.  

When presenting to decision-makers, you have to tailor ROI metrics. For financial stakeholders, it’s about dollars and cents. For sustainability-focused audiences, it might be metric tons of CO₂ avoided. Having robust data in EnergyCAP allows us to adapt our messaging to the audience. 

ROI isn’t just about numbers—it’s about telling a compelling story that aligns with organizational goals, whether that’s reducing costs, meeting sustainability targets, or improving operational resilience.

Q5: Why choose a tool like EnergyCAP over free options like ENERGY STAR Portfolio Manager?

Melanie Stewart:
ENERGY STAR® Portfolio Manager® is good for meeting reporting requirements, but it doesn’t provide the granularity needed for real-time decisions. With EnergyCAP, you can actively work with your data rather than just storing it. 

Michael Hoffman:
While ENERGY STAR Portfolio Manager is a great tool, it’s largely manual and benchmarks against outdated datasets. EnergyCAP, on the other hand, automates data collection, cleaning, and analysis, delivering real-time insights. It’s a force multiplier. 

EnergyCAP supports more advanced reporting, which is essential for managing a campus with over 200 buildings and diverse facilities. It transforms our data from static reports into a dynamic tool we can use to make smarter energy management decisions.

Q6: How can energy managers align their goals with organizational priorities like educational outcomes? 

Melanie Stewart:
Studies have shown that comfort in classrooms directly impacts learning. Data shows that poorly heated or cooled environments affect educational outcomes. By improving energy efficiency, you’re also enhancing the learning experience and student performance.

Michael Hoffman:
If you can demonstrate that avoided utility costs can be redirected to classroom improvements, you’ve got a strong case. For example, using tools like EnergyCAP to identify inefficiencies can free up funds for educational programs.

Takeaway for Energy Managers

Energy management is no longer just about keeping the lights on. It’s about leveraging data to make strategic investments that align with organizational priorities. As Michael aptly put it, facilities management can either be viewed as a cost center or an asset center. Once leadership sees it as the latter, the conversation shifts to strategic investments. 

To watch the webinar recording and hear further insights from Melanie and Mike, check out our recording, Energy Savings Unlocked: A Panel Discussion on Energy Management Best Practices & ROI