Why Low-Cost Energy Efficiency Strategies Are the Best First Step for Reducing Operating Costs

For commercial building owners and operators, reducing operating costs is always a priority. In a market where margins are tightening and sustainability expectations are rising, finding cost-saving measures that also support long-term business goals is critical. While there are many paths to improving financial performance, the most effective—and often overlooked—starting point is operational energy efficiency.

Simple, low- or no-cost changes to how buildings are run can deliver immediate savings, improve occupant comfort, and pave the way for deeper efficiency gains over time. Before investing in capital-intensive retrofits or equipment upgrades, it pays to focus on operational improvements that yield fast, measurable results.

The Financial Impact of Operational Efficiency

Energy is one of the largest controllable expenses in commercial buildings, typically accounting for 20 to 30 percent of total operating costs. Reducing energy waste through improved operations directly lowers utility bills—without the need for major investments. Many efficiency opportunities, such as optimizing HVAC schedules, adjusting lighting use, and managing plug loads, can generate significant savings with minimal effort. These measures are low-risk and deliver fast returns, often within a matter of months.

Operational efficiency also helps extend the life of building systems. When equipment runs more efficiently, it experiences less wear and tear, reducing maintenance needs and preventing costly breakdowns. Over time, these savings add up. And by starting with operational improvements, building teams can better identify where future capital investments will have the greatest impact, strengthening the overall business case for energy upgrades down the line.

Why Start with Operational Improvements Before Capital Upgrades?

Jumping straight to large-scale retrofits or equipment replacements may seem like the more expedient route to savings, especially with the growing focus on decarbonization and building performance. But without first addressing how systems are currently being operated, these investments can fall short of their potential. Operational efficiency offers a smarter starting point—one that can deliver benefits quickly, without impacting day-to-day building usage or straining capital budgets.

Unlike more disruptive energy conservation measures, operational changes typically have no negative impact on tenant experience or building performance. In many cases, they actually improve comfort, reliability, and indoor environmental quality. These improvements can be implemented quickly and begin generating savings immediately. Additionally, organizations can begin with small, targeted actions (such identifying unoccupied equipment runs) and build toward more advanced or comprehensive strategies (like automated demand management) as momentum and savings grow.

Operational changes also play an important role in meeting sustainability and regulatory goals. As cities and states introduce building performance standards and climate disclosure requirements, energy efficiency becomes not just a financial opportunity, but a compliance imperative. Starting with operations allows organizations to make measurable progress quickly—while laying the groundwork for long-term strategies. 

Top Low- and No-Cost Opportunities for Energy Savings

One of the most impactful places to begin is with HVAC optimization. HVAC systems are responsible for nearly 40 percent of energy use in commercial buildings; often, these energy-intensive systems run longer or harder than necessary. Simple adjustments—such as refining temperature setpoints, aligning schedules with occupancy patterns, or using demand-controlled ventilation—can lead to immediate savings without affecting comfort. Even small changes, like turning off systems earlier in the evening or delaying morning start times, can produce measurable results.

Lighting controls can offer another quick win. Lighting typically accounts for 15 to 20 percent of a building’s energy consumption. In many spaces, especially restrooms, storage areas, and conference rooms, lights remain on long after they’re needed. Installing occupancy sensors or scheduling lighting based on business hours can significantly reduce unnecessary usage. Where natural light is available, daylight harvesting strategies can further cut down on energy use by dimming lights automatically when daylight is sufficient.

Plug loads are another source of energy waste that is often overlooked. Office equipment, appliances, and electronics consume a surprising amount of power—especially when left on during nights and weekends. Simple measures such as enabling sleep settings on computers, installing smart power strips, or encouraging tenants to power down or unplug unused devices can reduce this “phantom” energy use. These changes require little effort but can yield a noticeable reduction in electricity bills.

Monitoring and data-driven decision-making are also critical to unlocking operational savings. Even in properties without a full building automation system, real-time energy data capture and dashboards and data visualizations can provide valuable insights into consumption – and reveal opportunities to save. Analyzing usage patterns can help identify equipment that runs when it shouldn’t, uncover inefficient processes, or highlight areas where schedules need fine-tuning. Over time, these insights will support continuous improvement, enabling facility teams to make smarter, faster decisions that reduce energy and emissions.

Finally, behavioral engagement is another underutilized but powerful strategy. Facilities teams and building occupants alike can contribute to energy savings through simple, everyday actions. Training engineers to interpret energy data and identify inefficiencies, and coordinating with property management to run tenant awareness campaigns about energy-conscious habits can reinforce operational changes and drive a culture of efficiency throughout the organization.

Getting Started with Operational Efficiency

Taking the first step toward energy efficiency doesn’t require a major overhaul or large upfront budget. Often, it begins with something as simple as a building walkthrough to identify systems running unnecessarily or areas where schedules can be improved. Prioritizing these no-cost and low-cost wins creates immediate savings and helps build momentum for further action.

Most buildings already collect some level of energy data, whether through utility bills, smart meters, or building management systems. Tapping into this data and reviewing it regularly can reveal trends, spot anomalies, and guide operational decisions. This type of visibility is key to optimizing performance and ensuring that efficiency measures deliver lasting results. Energy management and analytics platforms (like Noda) can be among your most valuable assets here, helping you centralize data across equipment and buildings and giving you a "single pane of glass" for managing and optimizing operations.

From there, organizations can start to build long-term strategies that incorporate both operational improvements and strategic capital upgrades. Starting with low-cost operational projects can generate quick wins that help build the business case for future investments and deeper retrofits, and the insights gained along the way will ensure that those investments deliver the maximum return. And having a strong foundation of data underpinning your energy program will enable you to measure and verify the impact and ROI of costlier upgrades, setting you up for success when reporting to investors and other stakeholders.

Final Thoughts 

Operational energy efficiency is the smartest, fastest, and most accessible way to start reducing operating costs in commercial buildings. It delivers immediate savings, extends equipment life, and sets the stage for longer-term improvements—all without the need for capital investment. By focusing on how buildings are run today, organizations can realize meaningful financial and environmental benefits while avoiding disruption to daily operations.

Small changes to HVAC scheduling, lighting use, plug load management, and system monitoring can add up to substantial savings. These early wins help build momentum, create buy-in across teams, and establish a strong baseline for continuous improvement. For any organization looking to cut costs and boost performance, operational energy efficiency is not just an option—it’s the best place to begin.

About Noda

Noda is a data and analytics company on a mission to make every building smarter, more efficient, and more sustainable. Recently ranked in the top 10 tech companies leading the charge on climate action, its AI-powered suite of products surface unique insights that empower real estate teams to reduce costs, decrease time spent on routine work, and find and act on opportunities to save energy and carbon. Discover how Noda's solutions can unlock the potential of your assets and accelerate the transition to net zero. Visit us at noda.ai to learn more.