Electric Co-op Today

Co-ops often focus energy efficiency efforts on residential members or key accounts. But for many co-ops there’s a sector that’s a tough nut to crack, but one that’s worth the effort: commercial property managers.

Getting commercial property managers to buy in to energy efficiency can be a tough sell for co-ops. (Photo By: Michael W. Kahn)

“There’s not much incentive for building managers or owners to do energy efficiency because they generally don’t pay the utility bill,” said Brian Sloboda, senior program manager at NRECA’s Cooperative Research Network. At the same time, the tenants who do pay have little incentive because they don’t own the building.

CRN and its strategic business partner E Source have been looking into ways co-ops can engage commercial property managers. The quickest route turns out to be through their wallets.

“The number one method is to show that they’ll make money,” Sloboda said. “If you can reduce the utility bills of the tenants, that means there’s more money to pay in rent.”

At the same time, tenants are increasingly asking for energy efficient buildings. Many companies want to be able to boast about working in such quarters, and property owners can play up efficiency in their own marketing.

Still, to get through to commercial landlords, Sloboda said, co-ops have to “really need to lead them to the water.”

“They’re not just another commercial customer and they’re not going to respond to traditional messages,” he said. Managers often oversee several properties over a wide area, so co-ops need to make a special effort.

“Develop some online applications so they can just log in to a special website that has information just for them,” Sloboda said.

And don’t underestimate the power of public recognition. When a co-op issues positive press releases on a responsible building owner, or has him speak to local civic groups, not only does it make the landlord feel good, it gives rival owners incentive to act, according to Sloboda.

“You’ve got to really wow them,” he added. “It takes a lot of effort and a lot of time. But if their property is large enough, you could see significant energy savings, and that could benefit your co-op.”

Registered users of cooperative.com may click here for the CRN/E Source report.

Tags: Cooperative Research Network, Efficiency and Conservation, Energy Efficiency