Creating an Energy Efficient Building

If your business is serious about creating an energy efficient building, the decisions you make about solar power, insulation, lighting, and HVAC systems today will determine your operating costs — and your carbon footprint — for the next 20 to 30 years.

At TerraSol Energies, the Tri-State Area’s #1 commercial solar installer, we've helped hundreds of building owners across Pennsylvania, New Jersey, and Delaware transform their properties into high-performing, energy-efficient commercial buildings that deliver real, measurable savings year after year.

This guide walks you through everything: the core principles of energy-efficient building design, the best upgrades for existing and new buildings, renewable energy solutions that work in the PA/NJ/DE climate, and how to qualify for the incentives that make it all more financially accessible.

How to Create an Energy Efficient Building: The Foundation

You may have noticed them when you’re out running errands or perhaps at your local market: green, energy-efficient buildings. Green buildings are the wave of the future, and they’re popping up all around us.

More and more businesses are adopting energy-efficient building practices, not only for the innovative ways these buildings save money, but also because societal shifts demand green features, attractive, earth-friendly materials, and functionality.

Creating an energy-efficient building starts with understanding where energy is actually going. In most commercial buildings, energy use breaks down roughly as follows:

• HVAC systems heating and cooling: 40–50% of total energy consumption
• Lighting: 20–30%
• Water heating and hot water systems: 10–15%
• Equipment and plug loads: 10–15%

Most building owners focus on one category and miss the others. True energy efficiency requires a whole-building approach—one that addresses the building envelope (walls, roof, windows), mechanical systems, lighting infrastructure, and the energy sources that power everything.

What Makes A Building “Green?”

While there’s no mold for what it means to be a green building, ultimately, the building must accomplish certain objectives that can show a reduced impact on the environment.

For instance, installing solar panels on a building allows it to make use of renewable sunlight for energy, while reducing the need for fossil fuels, and installing infrastructure that could impact the surrounding environment.

Other examples of innovative techniques include low-water use restrooms and facilities, vegetated roofs, motion-activated lights, and geothermal heating systems, to name a few.

Energy Efficiency Is Not a One-Size-Fits-All Model

While it may seem like simply reducing power usage or implementing a recycling program would make a facility green or energy efficient by definition, what really garners the distinction is when a company or business owner acknowledges the ways that they may be negatively impacting the environment and makes meaningful changes in order to reduce or offset those negative impacts.

Grocery stores, which tend to be some of the least energy-efficient buildings, could reduce their energy usage by adding solar panels on the large, unused, flat roof surfaces of their buildings and integrating motion-activated lighting in the frozen and refrigerated food sections.

Advantages of Building an Efficient Facility

The Institute for Business and Economic Research at U.C. Berkeley explored the effect that sustainability improvements in buildings have on the economy. In the report, the research team determined that there are numerous benefits to creating energy-efficient buildings, including:

• Attracting employees, tenants, and customers
• Qualifying for tax breaks, rebates, and credits
• Saving on utility costs
• Reducing the impact on the environment

While it may not always be apparent where a company can become more energy efficient, the important first step is to look for help from a qualified energy expert.

Why Energy Efficiency Matters More Than Ever

Climate change, rising utility costs, and new energy efficiency standards are reshaping how commercial buildings operate. Greenhouse gas emissions from commercial buildings account for roughly 17% of total U.S. emissions, and regulators in Pennsylvania, New Jersey, and Delaware are tightening requirements.

Beyond compliance, the business case is compelling: energy-efficient commercial buildings sell for more, attract better tenants, and carry significantly lower operating costs and utility bills than their inefficient counterparts.

For energy-efficient homes, the math is similarly favorable. Whether you're managing a warehouse in Chester County, a school in South Jersey, or an office complex in Delaware, reducing energy consumption is one of the highest-ROI investments available to a building owner today.

Solar Panels: The Cornerstone of Renewable Energy for Commercial Buildings

Installing solar panels is the most transformative step a commercial building owner can take to reduce energy costs, cut greenhouse gas emissions, and future-proof their property against rising utility rates.

For energy-efficient commercial buildings in Pennsylvania, New Jersey, and Delaware, solar power is a financial strategy.

How Solar Power Works for Commercial Buildings

Solar panels convert sunlight into electricity through photovoltaic cells. In commercial applications, panels are typically installed on rooftops — taking advantage of unused flat roof surface area — or on ground-mount or carport structures in parking lots.

The electricity generated offsets what the building would otherwise purchase from the grid, reducing utility bills directly.

Modern commercial solar systems are designed to integrate seamlessly with existing infrastructure. A building that already has strong insulation, energy-efficient lighting, and upgraded HVAC systems will use significantly less energy overall, meaning a smaller solar array can offset a larger percentage of its total energy demand — maximizing the return on both sets of investments.

TerraSol's commercial solar projects across the Tri-State Area consistently demonstrate that installing solar panels is one of the most impactful ways to significantly reduce energy consumption and operating costs for building owners.

Our work on the Lawnside, NJ Woodcrest Station Business Park — a 1,416-panel system delivering 849,041 kWh in annual solar performance — is a case study in how integrating solar energy into building design from the start creates significant savings and a 405-ton annual reduction in carbon footprint.

Renewable Energy Solutions Beyond Solar

While solar power is the most widely adopted renewable energy source for commercial buildings in the Northeast, it is part of a broader toolkit of renewable energy solutions available to forward-thinking building owners.

Wind turbines are viable in certain high-wind locations, though their applicability to typical commercial buildings in Pennsylvania, New Jersey, and Delaware is more limited than solar due to site requirements and local zoning. For agricultural properties and large industrial sites, small wind turbines can complement a solar array effectively as part of a comprehensive renewable energy strategy.

Geothermal systems use the earth's stable subsurface temperature to provide highly efficient heating and cooling, substantially reducing the energy demands placed on HVAC systems. While upfront costs are higher than conventional systems, geothermal significantly reduces long-term operational costs and can work synergistically with a solar array to create a near-zero-energy building.

Battery storage — paired with solar — allows building owners to store excess solar power generated during the day for use in the evening or during grid outages. As utility rates rise and time-of-use pricing becomes more common, battery storage transforms a solar installation into a full energy management tool that maximizes potential savings.

Learn more about how storage works with solar in our Guide to Residential Energy Storage, which covers principles applicable to commercial settings as well.

PECO Incentives for Commercial Solar

Pennsylvania building owners in the PECO service territory can access a $0.10/kWh solar incentive for commercial and industrial solar installations, stacked on top of federal Investment Tax Credits of 30–70%.

This combination dramatically reduces the net cost of installing solar panels and accelerates the payback period. Read our full breakdown of how to access these incentives in our article on PECO's Commercial Solar Incentive Program.

The Financial Case: What Building Owners Actually Save

The numbers behind energy efficient building design are compelling:

LED lighting retrofit: 70–90% reduction in lighting energy consumption. Typical commercial payback: 2–4 years.

Air sealing and insulation: 15–30% reduction in heating and cooling loads. Low-cost measures pay back within 1–3 heating seasons.

Smart HVAC and building management systems: 10–20% reduction in total energy use. Savings compound across the lifetime of the building.

Commercial solar array: Eliminates 50–100% of grid electricity purchase depending on system size and energy demand. Combined with PECO incentives and federal tax credits, payback periods of 4–7 years are typical in the Tri-State region — followed by decades of less energy cost and significant savings.

ENERGY STAR certification: Buildings with certification sell for a premium and command higher rents, adding asset value on top of operational savings.

For most commercial building owners, the question is not whether to invest in energy efficiency. It’s which upgrades to prioritize first, given their specific building, budget, and operational context. That's where a qualified energy partner makes the difference.

Improve the overall energy efficiency of your building with solar panels from TerraSol Energies. Our knowledgeable staff will work with you to lay out the ideal solar system for your specific needs. Contact us today at (888) 873-9995 or visit https://www.terrasolenergies.com/

Frequently Asked Questions

What is energy efficient building design?

Energy-efficient building design is an integrated approach to reducing a building's energy consumption through better insulation, high-performance HVAC systems, energy-efficient lighting, smart controls, and renewable energy sources like solar panels. The goal is to deliver the same or better indoor environment using significantly less energy — lowering utility costs, reducing greenhouse gas emissions, and improving the building's long-term value.

What are the most cost-effective energy efficiency upgrades for commercial buildings?

LED lighting retrofits, air sealing, and insulation offer the fastest payback — often 1–3 years. Installing solar panels typically pays back in 4–7 years when incentives are factored in, then delivers decades of free solar power. Building management systems deliver strong returns in larger buildings by optimizing HVAC performance and reducing wasted energy use.

How do I know if my building qualifies for ENERGY STAR certification?

Buildings are scored on a 1–100 scale based on energy use intensity compared to similar buildings. A score of 75 or above qualifies for ENERGY STAR certification.

What renewable energy solutions are available beyond solar for commercial buildings?

Beyond installing solar panels, options include wind turbines (for appropriate sites), geothermal heating and cooling systems, solar thermal water heating, and battery storage paired with solar. The best combination depends on your building type, location, energy demand, and budget.

How can I get started with commercial solar in the Tri-State Area?

The fastest way to understand your potential savings is to share a recent utility bill with TerraSol Energies. Our commercial team will assess your roof, energy demand, and available incentives — at no cost to you — and provide a clear picture of the savings you can expect from installing solar panels and other energy efficient upgrades.