Key Takeaway: Building owners and property managers can control energy costs by locking in low rates, performing regular maintenance, and prioritizing value over price when choosing an energy provider.
For building owners and property managers in New York City and the Tri-State Area, managing energy expenses is a significant challenge. The constant fluctuations in prices due to supply and demand make it difficult to maintain control over costs.
Aside from the price spike resulting from the Russia-Ukraine invasion in early 2022, energy costs have remained relatively stable over the past three years. However, recent geopolitical issues and U.S. production restrictions are beginning to cause new price sensitivities.
The impact of spikes in energy prices can significantly impact a building’s annual budget. For instance, a 20-cent-per-gallon increase in heating oil can add an additional $30,000 to the annual costs for a building that consumes 150,000 gallons per year. This is a substantial expense for any business to absorb, especially when it can be mitigated.
Since 1932, Approved has been working with clients across diverse sectors, including property managers and building owners, industrial and transportation companies, and has recently begun supplying marine vessels. Clients like these rely on Approved for creative strategies to help keep energy costs low without sacrificing quality. In this post, I’ll outline a few tactics you can use to start saving money.
Savings Strategy #1: Lock In Your Rates Annually
One of the most effective strategies we offer to avoid price volatility is locking in rates for a specific period. Tailored to suit the needs of our clients, we have the capability to fix rates for any duration for a 1 to 24-month period for all types of volumes. Our team monitors the energy markets daily, advising clients on buying opportunities and helping mitigate risk and market exposure.
The current market has seen a significant pullback in prices, returning to the levels seen this time last year. This decrease comes after a period of high volatility where prices soared, reaching peaks that strained budgets. With the market now stabilizing, it seems to be an opportune time to lock in these lower rates.
Although heating fuels are seasonal, the lock-in strategy is also effective for year-round energy needs, such as conventional and biomass diesels for vehicle fleets. Currently, biodiesel costs are pretty much in line with conventional diesel, but we may see prices rise due to increasing demand and supply constraints. We are monitoring this situation closely, and looking at rates now could be a wise decision.
Savings Strategy #2: Maintain Your Equipment for Peak Efficiency
As a full-service energy provider, Approved also offers installations, upgrades and maintenance of heating systems.
Proper maintenance is essential for controlling energy costs: When your systems run optimally, your fuel consumption decreases.
Implement these three tactics to ensure peak performance:
Savings Strategy #3: Avoid the Hidden Costs of Poor Quality
When vetting potential full-service energy providers- prioritize quality and value. Choosing a provider solely based on price can leave you out in the cold if you run out of fuel or your equipment fails at a critical time.
To ensure a superior level of service for all Approved customers, Approved makes significant investments in staff, equipment, technicians and training.
Approved delivers superior service with exceptional value. For homeowners, landlords and property manager alike, this peace of mind is priceless when problems arise.
Lower Your Costs with Approved
Now is the perfect time to start saving and enjoy peace of mind as an Approved customer. With locked-in rates, quality service, and comprehensive maintenance, Approved helps you control energy costs without compromising on quality. We would love to discuss how our full-service approach can benefit your energy needs.
Switching to Approved is simple: just complete our application and we’ll get you onboarded quickly. Contact us today to learn more about minimizing your energy costs while maximizing reliability.
Key Takeaway: With NYC energy regulations looming, building owners and property managers must act now. Partnering with experts to assess compliance gaps and implement efficiencies can help avoid penalties while cutting operating costs.
Back in 2019, when the New York City Council passed the Climate Mobilization Act and Mayor de Blasio signed it into law, no one seemed too eager to get their buildings in compliance. Owners of buildings larger than 25,000 square feet had five full years to comply with Local Law 97, which set greenhouse gas emission targets for different types of buildings.
Now we are in 2024 and compliance concerns have suddenly gotten very real, and the time for procrastination is over. New York City’s energy transition has become an urgent issue for building owners and property managers, as the requirements — and penalties — of Local Law 97 are starting to go into effect.
While certain building categories like affordable housing have gotten a temporary reprieve, other types of residential and commercial buildings must reduce their carbon emissions immediately if they haven’t already done so. Enforcement of carbon emission thresholds is already taking place, with fines expected to start in 2025.
Get Started with a Building Assessment
Building owners and property managers have a variety of ways to learn how far out of compliance their buildings might be. NYC Accelerator, for example, a city agency offering resources, training, and guidance about the energy transition, lets you enter your building address on their website to quickly get information about your energy usage and Local Law 97 compliance status.
Service providers like Approved, a leading boiler installation and maintenance company and a premier energy supplier of electricity, natural gas, and fuel oil, including Bioheat® fuels, also offer free assessments and advice that can help New York City building owners and property managers prioritize energy transition initiatives for the biggest impact.
At Approved, we conduct free and thorough assessments to determine the most effective carbon emission reduction strategies, based primarily on:
Fuel Switching—A Quick Win
For many buildings in New York, the biggest culprit when it comes to high carbon emissions are the heating systems. So, one of the first things you can do to achieve or get closer to compliance is to change the type of heating oil you’re using.
As you may know, the use of grade No. 6 heating oil was prohibited throughout the State of New York in 2015, moving building owners and property managers to cleaner-burning fuels like No. 4 oil, No. 2 oil, Bioheat fuels, and natural gas.
No. 4 heating oil will be prohibited for use in city-owned buildings after July 1, 2025 — and for all other buildings in the city after July 1, 2027. Furthermore, as of June 30, 2024, building owners and property managers won’t be able to get a new permit, or renew an existing permit, that involves No. 4 oil.
The good news is that moving to No. 2 oil, Bioheat fuels, or natural gas can dramatically impact your emissions and lower your operating costs at the same time. What’s even more amazing is that it can happen in as little as two days. Changing to a lower carbon fuel is the first step, improving efficiency is the next step!
Improve Efficiency through Heating System Upgrades
After changing your heating oil, you can start to think about other changes you can make to your heating system to make it more efficient and bring your buildings into compliance.
For most heating systems, building owners and property managers can take the following measures to significantly reduce energy usage and cost:
For steam-based systems, additional measures like steam trap upgrades, thermostatic air valves, and radiator covers can go a long way towards reducing your fuel usage and your carbon emissions. Keep in mind that if you do have a steam-based system it’s next to impossible to convert it to a hot water-based system.
For hot water based systems, there are numerous high efficiency options available, including on demand, direct vent heating plants, as well as fire tube boilers that operate at 97 % efficiency. These types of systems can cut your annual expenses in half.
Find One Source for All Your Needs
At Approved, we offer several advantages over other service providers. Not only can we upgrade, repair, install, and maintain your entire heating system, we can also provide you with the most environmentally friendly fuels available at incredibly affordable rates.
To maximize your savings and eliminate unpleasant surprises, we offer long-term price guarantees and pricing bundles for customers with multiple properties. Why go to several different providers when you can get all your heating system compliance needs met by a single company?
As compliance deadlines loom ever closer, Approved offers yet another advantage that can help you avoid fines and penalties. Because we have one of the largest truck fleets — and one of the largest rosters of expert technicians — in the Tri-State Area, there’s a good chance we can take care of your energy transition needs in a timely manner.
The Financial Upside
We know from talking to many building owners and property managers in the city that no one’s happy about making changes to meet compliance requirements. But in point of fact, making the energy transition will likely have a positive impact on your cash flow in the long run.
The local agency NYC Accelerator provides attractive financing opportunities through the Property Assessed Clean Energy (PACE) program. These incentives enable retrofits through long-term financing at relatively low interest rates.
At Approved, we work with Willdan Group for energy equipment rebates and Verdant Commercial Capital for financing. These partners make projects more feasible by reducing or eliminating upfront costs and keeping monthly costs low.
In addition to looking at your expenses, you’ll also want to consider the long-term savings associated with your energy transition initiatives, as well as reducing or eliminating your carbon emission penalties.
Start your compliance journey with Approved today
As New York City’s energy transition progresses, building owners and property managers must take action to achieve compliance.
By partnering with New York City-recommended contractors like Approved, building owners and property managers can transform a compliance burden into a long-term financial opportunity by achieving emission goals, avoiding fines and penalties, and reducing operating costs for years to come.
To learn more and schedule a free building assessment, contact Approved today. If you’re a building owner or property manager who’s not already an Approved customer, you can also submit a commercial customer application and we’ll get back to you as soon as possible.