Friday October 24, 2025
Rising energy costs can significantly affect your association’s budget, no matter where your high-rise building is located. By taking proactive steps, you can create a more sustainable and financially sound community.Reducing high-rise energy costs requires both short-term actions and lasting improvements. Regular maintenance, efficient HVAC and elevator use, and tenant awareness help daily operations. Investing in better insulation, windows, LED lighting, and solar panels reduces energy usage long-term.
In this guide, we’ll dive deeper into practical strategies and long-term upgrades that help high-rise buildings achieve significant savings.
The importance of reducing energy costs
Effectively managing and reducing energy costs is a critical responsibility for condominium and co-op boards. It directly impacts the financial health of the association by lowering operational expenses and freeing up funds for other essential projects or reserve contributions. Lower utility bills can also translate to more stable or lower association fees for residents, increasing property desirability.
"The goal is always to make the best decisions for each community. Every building is different, and when boards and councils understand where their energy dollars are going, they can make changes that meet the specific needs of their building."Beyond the financial benefits, a commitment to energy efficiency demonstrates environmental stewardship. Taking proactive steps in this area helps the building stay ahead of evolving energy performance standards and regulatory requirements. This approach can enhance the building's reputation, attract eco-conscious buyers, and contribute to a healthier living environment. A strategic focus on reducing energy costs safeguards the association's budget while building a more sustainable and resilient community for the future.
Kelly Dougherty, president of FirstService Energy
Operational and maintenance strategies
Simple, consistent operational adjustments and routine maintenance can yield significant results in reducing energy costs. These strategies focus on optimizing the systems you already have in place.Upgrade HVAC systems
Upgrading the HVAC (Heating, Ventilation, and Air Conditioning) systems in your property provides an opportunity to enhance energy efficiency and indoor comfort. Modern HVAC technologies offer significant energy savings and improved indoor air quality.Improving your building’s air conditioning efficiency is a relatively simple undertaking. However, it can reduce your building’s electricity usage by 5 to 10 percent, with a one-to three-year payback.
Our 2025 High-Rise BENCHMARK report, featuring data from almost 1,000 buildings across North America, mentions how in Washington DC, HVAC system repairs have emerged as an unexpected cost pressure, particularly for newer properties built between 2015 to 2020 with VRV/VRF systems. These installations are experiencing more frequent and costly repairs than anticipated.
Improve Insulation
Proper insulation is fundamental to managing a building's energy consumption. Sealing air leaks around windows and doors with weatherstripping is a low-cost, high-impact first step. For more substantial savings, adding insulation to walls, roofs, and pipes helps maintain internal temperatures, keeping heat in during the winter and out during the summer.Optimize Elevators
Elevators are a major energy consumer in a high-rise. Installing destination dispatch systems can group passengers traveling to similar floors, reducing the number of stops and overall trips. Upgrading to more energy-efficient motors is another effective long-term solution. In some cases, turning off select elevators during low-traffic periods can also contribute to savings.Monitor and control energy use
Implementing energy management systems or programmable thermostats in common areas allows for precise control over energy use. You can schedule heating and cooling to align with occupancy patterns, avoiding waste during off-hours. Installing motion sensors for lighting in low-traffic areas like stairwells and storage rooms also cuts down on unnecessary electricity use.Long-term and upgrade strategies
While operational changes are effective, long-term capital upgrades offer the most substantial and lasting impact on reducing energy costs. These projects require planning and investment but deliver returns for years to come.Upgrade lighting to LED
One of the most significant ways to save electricity, between 10 and 20 percent, is by converting your building’s incandescent and fluorescent lights to LED lighting in all common areas. By replacing outdated, energy-intensive fixtures, high-rise properties can achieve substantial cost savings. LED lighting offers lower energy consumption, a much longer lifespan, and superior light quality, reducing both utility and maintenance expenses.Optimize cold water booster pumps
By installing a control device on water pumps, you can operate them at lower speeds while still providing the water pressure your building needs. This can result in electrical savings between one and five percent with a one- to five-year payback. One of the Toronto high-rise buildings we serve was able to optimize its water pumps and expects to save almost $38,000 a year.Add cooling tower fan controls
Cooling tower fan controls are designed to adjust the speed of the fans based on real-time conditions. Many of them have a variable frequency drive, or multiple speeds, and sometimes those fans work needlessly hard. Reducing their use through a speed drive will still keep the building cool, but can reduce energy consumption by as much as 20 percent.Invest in a comprehensive energy management plan
An energy management plan is a complete strategy developed to efficiently manage and optimize energy consumption. It is particularly relevant for high-rise properties due to their size and energy demands. The plan outlines specific goals, measures, and actions aimed at reducing energy usage and lowering operational costs.According to our 2025 High-Rise BENCHMARK report, electricity costs represent the largest driver of budget increases across the DC market, with published forecasts indicating rate increases in the 20% to 25% range. Boards should prioritize energy efficiency initiatives and consider alternative procurement strategies to mitigate these unprecedented utility cost pressures.
Implementing an energy management plan can lead to significant cost savings by identifying and addressing areas of inefficiency and supporting compliance with energy regulations. Determining which programs are most appropriate for your building can be challenging. A professional property management company experienced in planning and implementing energy management programs can make that job much easier.
Building on these strategies, having reliable data and benchmarking resources is key for boards and managers who want to optimize energy consumption and reduce costs year over year. The right insights can empower your property to target improvements, track progress, and set realistic, achievable goals for your high-rise.
High-Rise BENCHMARK report
Implementing the right strategies for reducing energy costs in your high-rise or condo is most effective when supported by reliable data and industry benchmarks. The 2025 High-Rise BENCHMARK report is designed to complement the operational tips and upgrade recommendations outlined above, equipping boards and council members with valuable insights to guide smarter budgeting and long-term planning.To help you navigate these complexities and stay ahead of industry trends, we invite you to download our 2025 High-Rise BENCHMARK report.
Watch the panel below to learn insights from top industry experts as they discuss findings from the latest High-Rise BENCHMARK report:
With rising resident expectations and increasing regulatory requirements, high-rise boards and councils need reliable data to guide budget decisions.
Our BENCHMARK report provides actionable insights on budgeting and strategic planning, featuring budget allocations from nearly 1,000 high-rises in major U.S. and Canadian cities, cost benchmarks for utilities, insurance, staffing, and amenities, strategies to generate revenue and manage rising costs, and guidance for developing your next budget and long-term strategic plans.
Click here to download your free 2025 High-Rise BENCHMARK report today.
To see insights from our 2024 High-Rise BENCHMARK report and panel click here.
Contact FirstService Residential, the high-rise management leader, to learn how our in-house energy management expert, FirstService Energy, can help your high-rise property take the next step in reducing energy costs.