Outsource your energy management or keep it in house

Energy Management Services: Build or Buy?

Whether you decide to outsource energy management services or decide to deal with them in-house, you will need to consider the same types of issues. The main area where energy services may be needed will involve finding an outside energy manager or an energy management consultant. As part of the hiring process, you will need to get answers to these questions:

1.        What general impressions do they have about your organization and how it operates? Pay as much (or more) attention to what they don't see as what they see.

2.        Do they have a good level of knowledge about energy codes and standards?

3.        Are they familiar with energy efficiency financing options? Which ones are available to your organization?

4.        Do they know about your electric rate schedules and tariff conditions?

5.        What procedures would they recommend for conducting an internal analysis of your organization?

6.        What experience do they have in the area of economic analysis, including cost/benefit analysis, cost-effectiveness, time value of money, cost avoidance, and cost of delay?

7.        Are they prepared to guarantee that the savings your organization will get will pay for their services?

8.        What procedures do they use to measure results?

9.        Can they provide training in energy efficiency to your O&M personnel?

10.     How often will they be communicating with you, and what form will the communication take?

11.     How much will it cost for employee training and/or hiring new staff? Why does the consultant feel he or she can do a better job for you?

A good guideline to follow is that if you can create an energy manager's position (including space, support staff, a budget, etc.) for 10 percent of what you are paying in energy bills, then this is a cost-effective strategy for the organization.

Matthew Shields

Energy Expert