The City of Denver is taking significant strides toward its ambitious goal of reducing greenhouse gas emissions through the Energize Denver program.
This innovative building performance policy aims to assist Denver in eliminating emissions by 2040.
Energize Denver focuses specifically on establishing energy requirements for existing commercial buildings within the city limits.
A central component of the program is the request for these buildings to decrease their energy use intensity (EUI), which is a measure of energy consumption per square foot.
The policy differentiates between various building sizes: those ranging from 5,000 to 24,999 square feet and those that are 25,000 square feet or larger.
For larger buildings, compliance involves not only setting an energy efficiency target based on historical benchmarking data submitted since 2017 but also enhancing energy efficiency through operational and equipment upgrades.
These buildings can demonstrate compliance through benchmarking reports reflecting their progress toward energy efficiency or by developing detailed plans to meet their targets over time.
In contrast, buildings falling between 5,000 and 24,999 square feet face different compliance requirements.
Owners of these smaller properties can opt to reduce energy usage by upgrading to LED lighting or by investing in renewable energy sources, either onsite or offsite, to offset at least 20% of their annual energy consumption.
The Energize Denver initiative has recently modified its compliance timelines, extending deadlines to 2028 and 2032.
Property owners can also apply for compliance holds or extensions beyond 2032.
Additional recent changes include reduced penalties, expanded financial support, improved clarity on compliance steps, and an increase in resources and collaboration opportunities to assist building owners.
One of the most impactful solutions for achieving the Energize Denver requirements is the installation of solar energy systems.
Transitioning to solar energy presents a substantial opportunity to both lower EUI and positively affect a building’s financial performance.
For instance, the Energize Denver guidelines have assigned a target EUI of 48.3 for office buildings, while many existing structures currently report EUIs ranging from 41 to 80.
A typical 30,000-square-foot office rooftop can accommodate a 200kW solar system, producing ample electricity to significantly decrease the building’s EUI by 33 points, potentially bringing numerous properties into compliance.
Moreover, investing in commercial solar presents significant financial advantages.
With available tax benefits, utility savings, and incentive income, such an investment typically achieves breakeven within 7 to 9 years and boasts an internal rate of return (IRR) exceeding 10%.
This scenario represents a considerable win for building owners, yielding not only compliance with city regulations but also fostering long-term financial benefits.
Additional advantages of adopting solar energy include increasing the property’s value, stabilizing energy costs, reducing reliance on fossil fuels, and enhancing marketing opportunities for the building.
For owners leasing to triple-net (NNN) tenants, the benefits of solar investment remain accessible, allowing both landlords and tenants to capitalize on the financial advantages.
With the final compliance deadlines approaching swiftly—2028 and 2032—the urgency for buildings over 25,000 square feet to act is growing.
From initial consultation to installation, the timeline for implementing a commercial solar system requires foresight and planning.
Thus, it is advisable for building owners to start the process now to avoid penalties and start experiencing financial returns.
Those interested in solar energy solutions can request a consultation with solar experts at Namaste Solar.
During the consultation, basic information will be collected to prepare an indicative proposal, illustrating the potential solar implementation for the property and projected return on investment.
Namaste Solar prides itself on a commission-free approach, focusing instead on aligning with clients’ goals and providing comprehensive information for informed decision-making.
Operating since 2005, Namaste Solar is a local Colorado business with extensive knowledge of the state’s solar landscape and a commitment to making projects successful.
To explore commercial solar options, interested parties are encouraged to reach out via phone at 303.816.3892 or visit the company website at www.namastesolar.com/businessbenefits.
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