Energy Efficiency in Component Insulation FAQs

Energy Efficiency Basics

Energy efficiency means using less energy to achieve the same results. It can also be defined as the percentage of energy put into equipment that is used as intended and not wasted as heat. The practical application of energy efficiency means using less energy to do more while limiting waste.

A common example is a traditional lightbulb, which wastes significant energy on heat. Energy-efficient lightbulbs produce more light without heat, using less energy to achieve the same or a better result. Similarly, when a component in a mechanical system is not insulated, energy is lost through the transfer of heat (or cold) from inside the component to the surrounding area.

Where energy efficiency involves using less energy to accomplish the same goal, energy conservation is reducing the total energy you consume. For example, energy efficiency involves insulating components in a mechanical system, such as pipes or steam traps, while energy conservation involves finding opportunities to reduce the use of that mechanical system.

If energy efficiency limits energy waste such as heat loss, energy quality is about where your energy comes from. A high-quality energy source is one that is sustainable, renewable, and has minimal environmental impact. Solar energy is an excellent example.

Insulation is one of the most effective ways to boost your energy efficiency by minimizing waste. Schedule an insulation-related energy assessment for your facility to identify opportunities to be more energy-efficient.

Prioritizing energy efficiency can significantly reduce a business’s operating costs and help minimize its environmental impact. A proactive stance on eco-friendliness is important to many consumers, with 66% of people across all age groups considering sustainability before doing business with a company. As such, an environmentally responsible position is valuable to the goal of building a loyal customer base.

Additionally, energy efficiency is important for your business, community, and the environment. In the community, organizations prioritizing energy efficiency creates jobs in construction, provides more accessible energy for vulnerable households, and improves people’s health and well-being.

From an environmental perspective, energy efficiency reduces greenhouse gas emissions. Reducing reliance on fossil fuels helps lower water, air, and soil pollution.

An energy audit is the process an industry professional performs to determine a building’s energy efficiency. There are many types of energy audits. One of the most recognizable is ASHRAE (American Society of Heating Refrigerating and Airconditioning Engineers.) They offer four (4) different levels of audit:

  • Preliminary Energy Use Analysis:  A cursory review of your facility’s utility usage
  • ASHRAE Level 1: A walkthrough analysis of your facility
  • ASHRAE Level 2: An energy survey and analysis using quantitative energy efficiency measures (EEMs) and cost savings analysis by systems in use
  • ASHRAE Level 3: An expanded analysis with measurement or modeling and vendor bids or cost estimates

Investment grade audits are done by an energy savings performance contractor and is a details account of energy and water use. It includes a cost savings analysis of potential energy and water savings opportunities and project proposal of bundled measures with a financing plan as well as implementation and savings verification plans. It typically includes guarantees energy savings as a result of implementation measures.

The cost of an energy audit can vary widely and depends on the size and scope of your business and the detail you require — a typical energy audit costs between $500 and $5,000. Thermaxx usually includes the cost of an insulation audit, a single measure energy audit, in the total price of their projects.

The time that an energy audit typically takes is entirely dependent on the building’s size as well as the level of detail included in the audit, the equipment present, and potential heat loss areas like doors and windows. A large university campus could take a week or more, while a small manufacturing facility or multi-unit building would take three to six hours.

While an energy audit requires an upfront investment, the benefits are often well worth it. Facility assessments typically pay for themselves quickly because they identify where your business wastes energy and outline opportunities to save, boosting your bottom line. In addition to cost savings, energy audits can reveal opportunities to reduce your carbon emissions, elevate workplace safety, and increase productivity.

The first step to improving your energy efficiency rating is understanding how the ratings work. Nationwide, there are a variety of energy rating programs. In the United States, some of the most referenced, nationally recognized, rating systems include Energy Star and LEED. However, be sure to check your local government website for what kind of energy benchmarking programs they have, as many cities and states utilize their own rating systems.

Energy efficiency ratings are unique based upon the system being used.  They typically utilize a set of benchmark standard against which your facility will be measured.  Qualifying measures can be, but are not limited to, LED lighting, mechanical insulation, building insulation, air source heat pump, and HVAC upgrades. Depending on the qualifying body providing the energy efficiency rating (e.g. Energy Star or LEED), the type of project being undertaken can modify the standards against your facility may be measured.

Insulation protects your facility from heat loss and reduces heating and cooling costs.

  • Building envelope insulation maintains a stable temperature throughout the facility and protects the building from losing heat making it more energy efficient.
  • Mechanical insulation reduces heat loss in mechanical systems, such as steam, steam condensate, and hot water piping. As a result, systems are able to operate more efficiently.

Both building and mechanical insulation will increase energy efficiency, reduce carbon emissions, and result in lower utility costs.

You can schedule a mechanical insulation energy assessment for your facility to identify opportunities to be more energy-efficient. We also have an energy savings chart and a heat loss calculator to see how insulation can make a real difference in your overall energy efficiency.

Calculating Energy Efficiency

You can use a simple formula to calculate your overall energy efficiency:

Useful energy output ÷ total energy input x 100 = energy efficiency percentage

Once you know how much energy you’re saving, you can book a facility assessment with Thermaxx to see where you can save more.

The average property value benefit in the United States is 10% of the value of energy savings.

You can determine the energy efficiency of your system with a simple formula:

Useful energy output ÷ total energy input x 100

It’s essential to consider all forms of energy losses, including heat loss — the energy required to keep a room at a given temperature. You can also measure heat loss by having a heat loss survey from Thermaxx performed by an experienced technician. We can help you identify potential opportunities for thermal energy savings, giving you an accurate view of your savings potential.

The formula for energy efficiency is:

Useful energy output ÷ total energy input x 100 = % efficiency

You can calculate energy efficiency with some simple steps:

  1. Measure the energy going into your system, expressed in watts or joules.
  2. Measure the useful energy output of your system.
  3. Divide the energy output by the input to get your energy efficiency ratio.
  4. Multiply your energy efficiency ratio by 100 to turn it into a percentage.

To learn more about the specifics of calculating heat loss, be sure to check out our article on calcuating heat loss for steam pipes.

In order to get an accurate calculation of your building’s energy efficiency, an qualified auditor needs to assess the useful energy output of all of the systems within and divide it by total energy input. Some of the inputs measured will include your basic utilities along with any other specialized fuel sources for your building (e.g. Solar.) Useful energy output is the amount of energy that is actually utilized in any of the systems in your building or facility.

Energy efficiency improvement is measured by establishing a baseline of a facility’s energy consumption without any energy-efficient measures in place. Then, you measure your facility’s energy consumption with energy-saving measures to see how much your consumption has changed.

For measurements to be effective, they must be quantifiable, so it’s helpful to have a metric for measuring energy performance. The energy use index (EUI) is a common metric that describes energy use in British thermal units (BTU) per square foot.

Energy Efficiency Implementation Steps

The pursuit of energy efficiency already employs at least 2.2 million people in the U.S., and more businesses are implementing energy-efficient solutions each year. Commercial energy savings are not only for large conglomerates — as a small business or residence, energy efficiency is just as essential for your bottom line and environmental impact as it is for a multinational enterprise. Knowing how to make smart energy decisions can increase your small business’s profits and make your products more marketable.

Regardless of your home or business’s size, the first step to more energy-efficient operations is outlining an actionable strategy. Think about short and long-term goals and how to accomplish them.

Your next step is to perform an energy assessment on your residence or facility. At Thermaxx, we can identify opportunities to make your business more energy-efficient with our heat loss audits, which can be one part of an assessment. With the data from our audit, we will outline immediate opportunities to improve energy efficiency and reduce demand. Installing insulation blankets can help you reduce energy usage on day one. Book a heat loss survey to take the first steps toward an energy-efficient future.

The first step is to establish how much energy your building uses. Schedule an energy assessment for your facility so the experts can help you identify opportunities for improvement. You can take several steps in the initial stages, including:

  1. Repair any leaks or drafts.
  2. Install high-energy light fixtures.
  3. Schedule a heat loss survey with Thermaxx to see where new or upgraded insulation solutions can help you save energy.

Energy Efficiency Standards

Utilities are compensated for energy efficiency programs in several ways, depending on their jurisdiction and the regulatory frameworks in place. Utility compensation can occur via performance-based incentives, state and federal grants, and ratepayer-funded programs.

Establishing your goals and metrics is essential to identifying which data to collect during an energy efficiency assessment. Some standard measurement processes include:

  • Energy simulation computer programs.
  • Whole energy usage measurements before and after upgrades.
  • Field measurements or estimates by the individual upgrade.
  • Field measurements or estimates encompassing the individual upgrade and any other affected systems.

Resistance (R) value measures thermal resistance, or the ability to prevent heat transfer. The more heat loss you experience, the less energy-efficient your facility, as your heating and cooling systems have to use more energy to regulate the structure’s internal temperature. Insulation increases the R-value of anything it’s applied to, which means that object will experience less heat loss and require less energy.

Conducting a heat loss survey reveals areas that are prone to high levels of energy loss so you can see where applying insulation will have the most benefit for your daily operations. To plan a survey, contact the Thermaxx team to have a professional evaluate your facility. We will identify ways you can improve workplace safety, save on heating and cooling costs, and achieve energy-related goals by insulating overlooked areas.

Your materials must suit your application for the best results. Thermaxx can provide a personalized recommendation of materials based on your specific use case, as every environment and application will have its own specific needs. Many insulation materials also degrade and fall apart with repeated exposure to the elements. Thermaxx has resolved this challenge by using PTFE coated cloth for the inner and outer layers of our insulation jackets, providing protection from moisture, UV rays, and other concerns.

We use only the highest-quality materials for insulation and offer a best in class 5-year warrantee on all our products in order to give you the peace of mind in knowing you’ve made a worthwhile and reliable investment.

Energy efficiency standards establish requirements for energy efficiency in buildings and comprise the procedures and regulations for energy performance. Often, energy efficiency standards include having a specific energy efficiency ratio or rating:

  • Energy efficiency ratio: A building’s efficiency ratio determines how efficiently it uses energy and resources. You can calculate yours by dividing all forms of energy usage over 12 months by the total potential energy available at that time. A good energy efficiency ratio is around 50% or higher.
  • Energy efficiency rating: Your energy efficiency rating measures your energy consumption against similar buildings. A good energy efficiency rating is a score of 75 or higher.
  • Energy efficiency tier rating: The energy efficiency tier rating is a method of rating energy efficiency in products and buildings. Set by the Consortium for Energy Efficiency, there are four tiers, with Tier 1 being the minimum for Energy Star qualifications. Tiers 3 and 4 go above and beyond this threshold and denote exceptional levels of efficiency.

Energy Efficiency Financing & Incentives

Saving on energy costs is a priority for many businesses, but deciding how to pay for energy efficiency upgrades in commercial buildings can be a challenge. The first step is to find the most cost-effective energy-efficiency upgrades with the highest return on investment (ROI).

The Office of Energy Efficiency and Renewable Energy offers funding, tax credits, and financial assistance to help organizations build energy efficiency. The U.S. Department of Energy (DOE) also works with small businesses to boost their energy efficiency.

Additionally, many local power utility companies offer incentives to offset the cost of energy savings projects, reducing the out of pocket expense to your business or facility.

Utilities are compensated for energy efficiency programs in several ways, depending on their jurisdiction and the regulatory frameworks in place. Utility compensation can occur via performance-based incentives, state and federal grants, and ratepayer-funded programs.

Power utilities often promote energy efficiency with changes in utility rates that motivate consumers to lower their total energy usage. If your utility has one of these plans in place, implementing energy efficiency solutions for your business may save you money on several levels.

Lack of knowledge, fear of the unknown, and limited access to capital are common reasons stakeholders choose not to invest in energy upgrades. You can meet these objections to investing in energy efficiency by providing cost-effective, easy-to-implement solutions with a high return on investment (ROI). Thermaxx hot and cold insulation jackets meet this criterion while also simplifying maintenance processes, extending equipment longevity, and improving workplace safety. Thermaxx also provides a clear ROI on all project proposals and will work with you to break a large scale project down to multiple phases when necessary.

One of the main benefits of improving energy efficiency is that it saves money, as your equipment draws less power to produce the same results. If you can reduce the energy required to heat, cool, and maintain your facility, you can reduce the costs of those services.

Insulation is one of the most cost-effective methods of improving energy efficiency and has many additional benefits, including increased safety and equipment life.

For specific information on how much it will cost to add insulation to your facility, request a heat loss survey.

Making your facility and equipment more energy-efficient means making changes and investing in new resources. Knowing how to perform a cost-benefit analysis for energy efficiency is the first step. Insulating your pipes, valves, and heavy equipment helps them retain heat, meaning it costs you less to regulate their temperature. Use our heat loss calculator to see firsthand how maximizing energy efficiency can save money.

From there, book a heat loss survey and obtain a quote so you can compare what you’ll spend to what you’ll gain and determine how long it will take for the insulation to pay for itself. Many Thermaxx insulation blankets yield energy savings greater than their upfront price in less than a year, so you can look forward to considerable savings in the long term.

 

Request a Heat Loss Survey