Operating Costs

Commonly considered operating costs are the utility costs associated with operating your building or perhaps the actual technology. For instance, the insulation, windows, and HVAC equipment will all affect the heating and cooling costs for your building. These costs are not at all insignificant as many of these systems will be around for a long time. For example, if the building is still functional the insulation and windows may be functional; and the HVAC equipment is likely to have a 15- to 20-year lifespan. So, as you consider annual operating cost, be sure to multiply it by the expected life of the technology you are considering.

For all public and assisted housing, especially multifamily buildings, safety and security are concerns that can impact operating costs. For instance, both indoor and outdoor lighting must be designed to ensure the safety of the residents and deter unwanted intruders. To avoid high electrical costs associated with lighting in common areas, corridors, and stairways it may be a wise economic decision to not only invest in more efficient lighting technologies, such as LEDs (light emitting diodes), but also advanced innovative control systems. Such controls can range from motion sensors and astronomical time clocks to Wi-Fi automation that enables you to program and control all the lighting for your building from a central location or remotely. Such an investment may mean greater savings in operating your building over many years, thereby offsetting the higher initial cost. The safety and security of the residents and the actual building are enhanced as well.

Nonenergy operating should also be considered. An example of this approach would be a security system that requires remote monitoring. The actual system has an initial cost, but it also includes a monthly expense to keep the technology effective.

As you consider operating costs, be sure to investigate different metering strategies and time-of-use plans offered by your utility. Such plans may offer economic advantages and warrant consideration of slightly different types or sizes of equipment to find the best-fit solution for your project.