Recommendation: Account for Energy Within Cost of Goods Sold

by | Apr 3, 2015

An article in recommends several ways energy managers can improve their performance. The first recommendation is that energy managers should consider energy not as a fixed cost but rather a variable cost, which is included within Cost of Goods Sold (CGS). This strategy makes energy consumption more visible.

The article also warns against “once-and-done commissioning.” Today’s buildings have infrastructure to support cloud-based energy management for ongoing monitoring from energy meters and building equipment. Not only does this data provide real-time information to make HVAC and lighting decisions, but the data can also be input into the US EPA’s Energy Star Portfolio Manager to benchmark the building’s energy use.

Energy managers must, however, find ways to make their data consistent across assets, systems and buildings. This can be difficult when equipment comes from a variety of vendors, some of which use proprietary protocols. says there is intelligent software to create a common and open data infrastructure that can be layered across disparate equipment and provide a common view of data and events, regardless of the underlying manufacturers.

The US Green Building Council also wants to eliminate “once-and-done-commissioning” and is integrating its new LEED Dynamic Plaque near-real-time monitoring tool with building automation technology from Honeywell.

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