5 smart strategies to improve commercial energy efficiency.
Proven strategies for building performance, budget control and resilience in commercial environments.
Commercial energy efficiency is often framed as a daunting, high-stakes challenge. Rest assured, your energy goals are attainable. The key is to start with what you can control, lean into collaboration and let quick wins fuel your long-term strategy.
In a recent panel discussion hosted by TVA EnergyRight, energy leaders offered an objective and actionable perspective on commercial energy efficiency. Featuring voices from General Mills, Metro Nashville, Middle Tennessee Electric (MTE), and Nashville Electric Service (NES), the discussion offered practical steps organizations of all sizes in both the private and public sectors can take. Here are five standout strategies — rooted in both experience and impact.
1. Prioritize utility and government collaboration.
Work with your local power company and city team, not around them.
When working in sectors such as large industrial facilities, municipalities, hospitals or universities, efficiency goals are often developed in isolation — only to run into roadblocks related to permitting, infrastructure or communication. But when utilities and city agencies are brought in early, those barriers can become opportunities.
Public-private partnerships can accelerate impact, and transparent conversations can help clarify shared goals and smooth the path forward. For example, public-sector entities like Metro Nashville are aligning energy planning efforts across more than a dozen departments by coordinating data and infrastructure planning — proving the value of early relationship-building for shared success.
“We’re often working across a very diverse set of departments, and we’re trying to create a centralized way of thinking about energy use and performance,” explains Kendra Abkowitz, Senior Director of Sustainability and Resilience, Office of Mayor Freddie O’Connell, Metro Nashville.
Utility-customer collaboration is one of the strongest predictors of success in commercial energy efficiency programs, particularly when supported by effective data sharing and technical guidance. According to Fulcrum, partnerships that unite the strengths of different sectors around shared energy goals tend to deliver better outcomes. That’s why electric utilities often team up with local governments, technology providers and community organizations to expand energy capacity and embed smarter energy management practices across operations.
Sources: fulcrumapp.com; nashville.gov
2. Focus on community partnerships.
Broaden your network to broaden your impact.
Think beyond facility systems and consider where your community is already laying the groundwork for success. Partnering with local energy providers or city agencies can unlock funding, enhance resilience and help large energy users — like industrial facilities, municipalities, hospitals and commercial campuses — better serve their operations and communities. Tapping into these partnerships can unlock access to tax credits, grants and TVA programs. More importantly, it’s an opportunity to build trust and deliver a broader impact.
Public sector partnership in action: Powering Metro Nashville’s efficiency goals.
One standout example of partnership in action is the 160 megawatt (MW) solar project developed through TVA’s Flexibility program. This unique initiative allows participating local power companies to generate up to 5% of their energy load through locally sourced, cleaner energy.
In this case, Nashville Electric Service (NES) teamed up with Metro Nashville and Silicon Ranch to develop a utility-scale solar array that directly supports Metro’s ambitious sustainability goals — providing clean, renewable energy to power key municipal facilities, reduce carbon emissions and stabilize long-term energy costs.
This collaboration didn’t just result in new solar infrastructure. It demonstrated what’s possible when utilities and public sector organizations align their goals, share the planning process and leverage the financial and technical support available through TVA’s regional programs.
Industrial collaboration: General Mills’ waste-to-energy solution.
Private-sector businesses like General Mills are also embracing collaborative, circular solutions by working hand-in-hand with local utilities and city leaders. At their Murfreesboro, Tennessee, facility — home to the production of all Pillsbury Toaster Strudels and about half the nation’s Yoplait yogurt — they partnered with Middle Tennessee Electric (MTE) and leveraged federal green energy incentives to turn yogurt waste into usable power.
Together, they leveraged federal rebates to turn yogurt waste into energy, installing a 1.6 MW generator powered by methane from their on-site anaerobic digester. The project not only reduced emissions and operational costs but also improved site resilience, all of which was made possible by proactive support from the local power company.
Daren Kaiser, Global Energy Strategy Leader for General Mills, says, “We got 40% of that cost covered by a federal rebate, but the real win was Middle Tennessee Electric’s willingness to partner with us. MTE was with us every step of the way. They probably worked harder than our contractors to make sure it came together. That kind of partnership makes innovation possible.”
This type of solution — where waste becomes fuel and utilities help enable, rather than hinder, the process — demonstrates how circular systems can thrive through a shared vision and effective execution.
Sources: siliconranch.org; nashville.gov; cen.acs.org
3. Engage communities and employees.
Efficiency starts with people, not just systems.
Many organizations focus on systems, sensors and technology while overlooking the people who use them. However, both the City of Nashville and corporate leaders on the panel emphasized the importance of engagement in building trust and long-term buy-in.
Metro Nashville gives public tours of solar installations and dashboards to make performance visible and celebrate wins. Internally, companies like General Mills are establishing “green teams” across departments and empowering employees to participate in efficiency planning. And in large systems like hospitals, facility directors and energy teams can use similar tactics — engaging both staff and the surrounding community through energy awareness campaigns as well as training and incentives for employees to identify efficiency opportunities.
Innovative energy projects can sometimes spark internal pushback, especially when other departments are facing budget constraints. Employees may question why specific initiatives move forward while their priorities are put on hold. That’s why transparency and communication are key.
Brent Baker, EVP and Chief Operations and Innovation Officer for Nashville Electric Service, notes, “When budgets are tight, people notice where the money goes. Even if it’s a different bucket, you still have to explain why one project moves forward over another. That’s real.”
Don’t underestimate the power of storytelling. Sharing before-and-after data or involving staff in pilot projects can drive broader adoption and boost your bottom line.
When it comes to employee engagement, nearly 74% of employees report that their jobs are more fulfilling when they have the opportunity to positively impact social and environmental issues. And companies with a highly engaged workforce are 21% more profitable and 17% more productive.
Whether it’s showcasing real-time dashboards, giving public tours or celebrating internal wins, making energy progress visible helps build trust and enthusiasm. The more employees and community members understand the impact of efficiency efforts, the more likely they are to support and sustain them.
Sources: conecommunicationsco.com; gallup.com
4. Start with quick wins and build momentum.
Progress beats perfection.
Instead of getting stuck on your biggest energy challenge, start with what’s doable. Whether it’s lighting upgrades, HVAC optimization or low-barrier process improvements, small steps build trust, deliver results and recruit allies.
Kendra Abkowitz recommends identifying low-conflict opportunities — even if they don’t move the emissions needle right away.
She says, “Find your quick wins, so you can build momentum, but work where you have that runway and not too many barriers, even if it doesn’t always seem like the most impactful area. This can help gain allies for the work who can be helpful as you move into more challenging areas.”
These smaller successes are more than morale boosters — they can lay the groundwork for long-term change. According to the U.S. Department of Energy, low-cost or no-cost improvements, like LED lighting or thermostat adjustments, can reduce energy use by up to 20% in commercial buildings. That’s not just savings — it’s proof that efficiency works.
Cross-functional teams can accelerate this process. Brent Baker of NES recommends pairing skeptics with champions. “The lightbulb moments happen when cross-functional teams come together — when someone who’s not sure gets to see the benefit firsthand,” says Baker.
Source: energy.gov
5. Scale smart: invest for resilience and carbon reduction.
Pair your momentum with long-term investment.
Once you’ve captured early wins and built internal support, the next step is to take on transformational projects that deliver lasting cost savings, operational resilience and regulatory compliance — ideally with strong utility partnerships and a clear strategy for financing and implementation.
These investments may include:
- On-site solar and battery storage.
- Waste-to-energy systems such as anaerobic digesters or combined heat and power (CHP) units.
- Fleet electrification or replacing fossil-fueled equipment with electric alternatives.
Energy-intensive facilities, including manufacturing plants, universities and hospitals, can benefit from these investments, not only to reduce emissions but also to ensure energy reliability for critical systems. For example, some healthcare facilities have already implemented combined heat and power (CHP) units to enhance energy efficiency while providing a resilient backup power source for operating rooms, ICUs and labs in the event of an outage.
While the up-front costs for these technologies can be higher, aligning with utility programs and incentive structures can dramatically improve ROI. TVA’s EnergyRight incentives, for example, have helped companies across the region accelerate their transition while staying competitive. Early coordination with your local power company can also help smooth interconnections, identify potential grid limitations and ensure operational reliability.
Investing in Carbon-Free Technologies.
At General Mills, a combination of clean energy strategies has helped them reach net-zero emissions for Scope 2 electricity use, thanks to a mix of RECs and renewable power purchase agreements. To reduce Scope 1 emissions — which are typically harder to address — they’ve implemented waste-to-energy systems at several sites, including a 1.6 MW CHP unit fueled by methane from yogurt waste at their Murfreesboro plant.
Think of Scope 1 as “on-site” emissions and Scope 2 as “purchased energy” emissions.
Why it matters.
According to the International Energy Agency, clean electricity and electrification will account for more than 50% of global CO₂ reductions needed to reach net zero by 2050. Businesses that adopt low-carbon technologies now are better positioned to address regulatory shifts, meet customer expectations and ensure future energy resilience.
It’s not just about checking a sustainability box. It’s about improving reliability, controlling costs and preparing for long-term success.
Source: iea.org
The bottom line? Balance.
From morale and momentum to grid resilience to cost savings to decarbonization, the path forward isn’t one-size-fits-all, but it is a walkable one. As panelist Robert White of MTE explained, “This next generation of customers, they’re pushing, and they don’t want to hear excuses. They want to hear commitments — at the same time, we’re trying to find that balance between reliability and affordability. We want to be part of the solution.”
Meeting energy goals in both private and public commercial sectors requires balancing performance, cost and care delivery — without compromising on reliability. As TVA’s VP, Environment and Stewardship, Michael McCall explains, “There’s no free lunch. Every energy source has trade-offs. The real goal is to stay committed, work together and keep showing up.”
Ready to take the next step?
Connect with your local power company and a TVA Energy Expert to explore energy efficiency options tailored for your business or facility.
