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The key elements of the offering include:

1. Energy Benchmark

   Providing energy benchmarks is the most important step in the process. It's the on-ramp to all other energy-related services. It qualifies customers and maximizes the productivity of your salesforce. It should be offered to every service customer you encounter as a way to start the conversation about energy and determine their level of interest in engaging with you in an energy program.

2. Monitoring and Verification

   Monitoring and verification (M&V) services track the savings generated from conservation measures you implement. This is a critical element of the program because it provides a way to continually show your customers the value you're delivering. An important first step in the M&V process is to baseline the current energy performance of the building. This should happen early in the process, before any energy assessments or audits are conducted. Then, as energy conservation measures are implemented the savings generated can be quantified by comparing the new energy use profile of the building to its previous baseline.

   A good M&V system can also serve to monitor the ongoing long-term performance of the building, to identify changes from the expected performance. Studies have shown that 5 to 30% savings can be realized through tight control of a building's operations and maintenance practices. There are low-cost M&V tools available that provide a simple way for contractors to provide this high value service. (For more information, visit the website listed in the “Take Action - Next Steps” sidebar pictured above.)

3. Energy Assessments/Audits

   While the energy benchmark provides a high level gauge of the savings opportunity, the energy assessment or audit identifies specific energy conservation measures that, when implemented, will reduce energy costs in the building. A wide range of techniques and tools can be used, but according to ASHRAE the basic steps should include:

   • Collect and analyze historical energy use
   • Study the building and its operational characteristics
   • Identify potential energy conservation measures
   • Perform a return on investment analysis
   • Prepare a rank-ordered list of recommended measures
   • Prepare a report to document the process and results.

   Typical tools used will range from simple checklists, data loggers, and analysis spreadsheets, to fully integrated data collection, analysis, and reporting software. Software can be a major factor in increasing the ability of contractors to cost-effectively deliver energy assessments and audits in a broad range of building sizes. Software can can also simplify the process, and contribute to the success of the program, especially if the customer doesn't have energy engineers on staff.

4. Propose and Implement Retrofits

   In addition to the service revenue opportunities, selling retrofit solutions that save energy is the other significant revenue producer of an energy services program. The information learned in the energy assessments and audits will identify simple low and cost changes to building operations, as well as larger capital projects that, when implemented, will reduce the energy costs in the building. A well-written energy assessment or audit report that focuses on the financial benefits of the project is an essential part of the retrofit proposal.

Tim Kensok is vice president, market development for AirAdvice, makers of diagnostic technology and programs that enable service providers to improve the energy efficiency and mechanical systems operations of their customers' buildings. For additional information, visit airadvice.com/commercial.

Taking Action - Next Steps

To help you get started, visit http://bit.ly/ZmHkc, a special web page exclusively for readers of Contracting Business.com. On this page, you can access free downloads of valuable resources and articles related to this entire series of articles on energy services. Start taking action to grow your business through energy services today.