With energy costs on the rise, multi-family property builders need to consider the long-term cost of utilities for the completed building. Electricity, natural gas, and oil rates will continue to climb, so it’s worthwhile to use building techniques that maximize energy efficiency, even if you’re not the one paying utility bills.
Tenants view energy-efficient construction as an amenity. It saves them money and improves satisfaction, keeping occupancy rates high. At E3 Power, we offer professional guidance on how to build a property that reduces MDU utilities in Denver. Below are our insights and recommendations.
Build a Tightly-Sealed and Insulated Multifamily Residential Property
The most important thing you can do to reduce multifamily utility bills is to construct a tight building envelope. According to ENERGY STAR, air leakage and improperly installed insulation can waste 20% or more of all the energy used to heat and cool a building. This is directly felt on utility bills.
Besides being a waste of money for tenants, it also increases the wear and tear on your HVAC equipment. The more often and the harder it needs to run, the more frequently you’ll need to invest in repairs.
Insulation and air sealing are also an important part of energy code compliance. Denver has specific insulation R-values and air leakage test parameters that must be met.
Use Energy Efficient Lighting Solutions
Lighting accounts for 15% of a home’s electricity use. If you want to save money with MDU utilities in Denver, this is a good area to focus on during construction. LEDs are the most efficient and practical option. They use 90% less electricity than incandescent bulbs and last 25 times longer.
In the Denver metro area, multifamily units between 5,000 and 25,000 sq. ft. must use LED lights in 90% of the building. If you’re unsure about the best way to implement this, e3 Power can provide a lighting consultation that ensures code compliance and eligibility for Xcel Energy rebates.
Design a Correctly-Sized HVAC System
Heating and cooling consume the most energy in an MDU, regardless of whether it’s produced by an electric heat pump or a furnace. No matter which type of unit you decide to install in your property, it’s important that it’s sized correctly to keep energy costs low. An incorrectly sized HVAC system creates many issues:
- Underpowered systems will run longer, use more energy, and increase multifamily utility bills in Denver.
- Overpowered systems will short-cycle, causing excess wear and tear on the HVAC unit.
- Permitting departments will not approve MDU construction without detailed, accurate HVAC designs.
Denver requires Manual J, Manual D, and Manual S calculations for all new MDU construction. These standards determine the building’s HVAC load calculations, ductwork sizing, and equipment selection. Compliant HVAC systems will operate as efficiently as possible and minimize energy costs.
Why You Should Prioritize Low Energy Bills for Tenants
Code compliance aside, many MDU owners wonder why they should care about utility costs. Most of the time, it’s the tenant that pays, not the building owner. In reality, lower energy bills benefit every stakeholder.
Tenant dissatisfaction leads to vacancy. The last thing you want to hear from tenants every month is, “Why is my energy bill so high?” If their energy costs are too expensive, they will look for another place to live. Energy-efficient appliances and construction are major selling points to renters.
Additionally, prioritizing low energy bills with properly sized HVAC equipment, air sealing, and adequate insulation means that the systems will run more efficiently. They’ll break down less, and your MDU property manager won’t have to respond as frequently.
Get a Consultation for Your MDU New Construction
Building an MDU that’s designed to minimize energy costs benefits the building owner, the tenants, and the environment. However, it’s not easy to navigate Colorado’s energy efficiency requirements.
E3 Power is a fully independent energy efficiency consultant. Our industry-certified experts can help keep your project compliant and on schedule with clear documentation and guidance throughout the process. We’ve completed over 2,000 Manual J/D/S calculations, and we offer REScheck reporting that provides peace of mind that your building envelope is efficient, cost-effective, and code-compliant.
