Boards Weigh Practical Energy Efficiency Strategies for Oil-Fired Buildings

Co-ops and condos, many with centrally located boilers and no central air conditioning, are looking for practical strategies to improve energy efficiency. The main focus is on lowering their carbon emissions to comply with Local Law 97, but equally important is saving on mounting energy costs. The needs are pressing, but boards need to make these decisions within their building’s financial constraints. 

Oil to Gas Conversions

For buildings with oil-fired boilers — and on a tight budget — it often makes sense economically to convert from oil to natural gas. “After the cost of converting the equipment, the payback period is between one and maybe three years,” says Stuart Halper, vice president and co-owner of Impact Real Estate Management. No. 4 fuel oil is being phased out by the city — in private buildings the deadline is July 1, 2027 — so a gas conversion also makes regulatory sense. Dual fuel is also an option for some older buildings. “What this means is you are burning gas 95% of the time, and then in the winter, when the temperature falls below 20 degrees for a number of days, you switch to burning oil,” Halper says. 

Decoupling Heat and Hot Water

Another practical solution is to decouple the heating and domestic hot water, which can allow the boiler to be switched off in the summer. “You can install a separate hot water system and be able to shut down the main boilers, which allows you to run a much more efficient, smaller hot water heating system in the warmer months,” Halper explains, adding that it can generate significant energy savings for buildings. Improving your mechanical systems with smart thermostats and sensors, which gather data about the internal temperatures of apartments, can also be helpful for these buildings

Benefits of a Slow Burn

As always, the energy upgrades available to each building will depend on budgets and operating costs, which are steadily rising. “The biggest economic drivers are real estate taxes and insurance,” says Halper. Utilities are also adding to the strain, he adds, noting that water rates are rising 8.5%. “That’s why we proceed very slowly with energy upgrades and take care of priorities,” he says. 

Another reason to move ahead cautiously on compliance is the possibility that there may be amendments to LL97. Citing Gov. Kathy Hochul’s u-turn on congestion pricing in June  — within weeks of the plan becoming operational — Halper is hopeful the city and state “will take their foot off the gas” and realize the economic hardships the law presents to many buildings. “Boards can only do things that make economic sense and that they can afford to do,” he says. “That's what you need to be a healthy property.” 

—Emily Myers