Choosing Energy Efficiency: Considerations and Advice for Nonprofits

This guide provides a framework for nonprofit organizations to implement energy efficiency projects, covering goal setting, the assembly of internal energy teams, benchmarking processes, and the utilization of financial incentives and auditing standards.

• Nonprofits are encouraged to establish an internal 'energy team' to manage efficiency projects. This team should ideally include a facility manager, energy manager, a development professional or grant writer, and a representative from accounting or finance, led by an individual capable of planning and communicating with external stakeholders such as contractors and utility managers.
• The guide recommends using the U.S. Environmental Protection Agency's ENERGY STAR Portfolio Manager for benchmarking. This free software allows nonprofits—including hospitals, colleges, universities, schools, and worship facilities—to track energy usage, set baselines, and calculate greenhouse gas emission reductions. Approximately 25 percent of commercial building space in the United States uses this tool.
• Benchmarking requires at least 12 months of utility bills and physical documentation of facility performance. The process results in a score from 1 to 100; a score of 75 indicates the building is in the top quartile of energy efficiency for its category and is eligible for an ENERGY STAR rating.
• The guide highlights the benefit of 'whole-building retrofits,' where bundling multiple measures creates compounded savings. Examples include combining insulation and air sealing with new heating and cooling equipment, or pairing LED light bulbs with occupancy sensors and dimmers.
• ASHRAE defines three levels of energy audits: Level 1 (walk-through analysis), Level 2 (energy survey and analysis), and Level 3 (detailed analysis of capital-intensive modifications). Most nonprofits typically only require Level 1 or 2 audits, while Level 3 is reserved for those with high financial thresholds or energy-intensive operations across multiple sites.
• To offset upfront costs, nonprofits can utilize various financial tools. These include utility rebates for appliances and lighting, the Database of State Incentives for Renewables & Efficiency (DSIRE), and the U.S. Department of Energy’s Better Buildings Financing Navigator. On-bill financing is specifically mentioned as a way to combine energy payments and retrofit costs into a single monthly payment.
• The typical 'payback' period—the time required for energy savings to equal or exceed the initial cost of measures—is often between five and 10 years.

APA

Yañez-Barnuevo, M. (2022). Choosing Energy Efficiency: Considerations and Advice for Nonprofits. Environmental and Energy Study Institute. https://www.eesi.org/articles/view/choosing-energy-efficiency-considerations-and-advice-for-nonprofits

Chicago

Yañez-Barnuevo, Miguel. Choosing Energy Efficiency: Considerations and Advice for Nonprofits. Environmental and Energy Study Institute, 2022. https://www.eesi.org/articles/view/choosing-energy-efficiency-considerations-and-advice-for-nonprofits.

Wikipedia

{{cite report |last1=Yañez-Barnuevo |first1=Miguel |title=Choosing Energy Efficiency: Considerations and Advice for Nonprofits |publisher=Environmental and Energy Study Institute |date=10 June 2022 |url=https://www.eesi.org/articles/view/choosing-energy-efficiency-considerations-and-advice-for-nonprofits |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{yaezbarnuevo2022choosing, author = {Yañez-Barnuevo, Miguel}, title = {{Choosing Energy Efficiency: Considerations and Advice for Nonprofits}}, institution = {Environmental and Energy Study Institute}, year = {2022}, month = jun, url = {https://www.eesi.org/articles/view/choosing-energy-efficiency-considerations-and-advice-for-nonprofits}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }