blogHero
BMS
Building Management System
BACS Decree
What is the IRR/ROI of installing a BMS?

This is probably the most common question. Building Management Systems (BMS) are a significant financial investment. Beyond the subsidies, it is logical to question its profitability. The BACS decree briefly addresses this subject by exempting buildings that would not achieve a return on investment within 10 years. We invest in CAPEX to reduce OPEX, namely energy consumption. This question is legitimate, but the answer is complex.


Reminder: What is BMS? 🤔


It is a centralized system that allows you to manage the building's energy consumption in real time and automatically based on its use. For example, where previously anyone could change the heating thermostat, you now automate its settings based on presence, without human intervention.


Energy savings are at the heart of public concerns, and we understand that energy has become a precious resource that must be managed.


The government has observed that 1/5 of the nation's energy consumption comes from tertiary buildings. Tertiary buildings include all professional-use buildings that are not police stations or production factories, such as schools, supermarkets, administrative offices, and warehouses.


The Tertiary Decree legally requires these buildings to reduce their energy consumption by 40% by 2030. Public authorities set the course to achieve this objective by publishing the BACS Decree (Building Automation Control System).

This regulation ultimately mandates the installation of an intelligent energy management system, known as the Building Management System (BMS).

So, when can I expect a return on investment for my energy management? 2 years? 5 years? Longer?


1) Conclusions of the energy audit ⚡


The answer largely depends on the results of the energy audit you must also perform. Nevertheless, when it comes to estimating energy savings from a BMS installation, answers vary from one installer to another. We often hear about a 3-5 year ROI. This is not necessarily accurate.


The truth? Without addressing the design and insulation of the building, it is impossible to provide a precise answer. Are the attics insulated? What about the roof? What materials are the windows made of? This information, combined with an on-site inspection of the HVAC systems (heating - ventilation - air conditioning), provides an estimate. It will therefore be a case-by-case assessment.


No matter how much you automate heating and cooling operations, if your building is an energy sieve, the savings will not be significant. This is also why I never commit to energy performance contracts (EPCs) when we install BMS systems alone.

By conducting the audit before installation, the ROI of all actions can be reliably calculated. This is of great interest and simplifies the process for all stakeholders in your property portfolio.


2) The energy class of your installation ♻️


Another essential parameter to measure your ROI is the energy class of your installation. According to the BACS decree, there are 4 energy performance classes to evaluate your system (A-B-C-D).


This classification also defines the amount of financial assistance you can obtain.

The installation of a Class A system (the most efficient class) automates the regulation of your HVAC and lighting based on occupancy, outside temperature, daylight, etc.


Example: The brightness of your lighting automatically adjusts in real time based on natural daylight. This is a Class A application.


The goal here is not to expand on the criteria of each class, but you understand that there is a vast difference between Class D and Class A. Links at the end of the article to our various resources will allow you to delve deeper into the topic.


In summary 🤓


The BMS is a key element of the trajectory defined by the Tertiary Decree, aimed at reducing energy consumption in businesses by 40% by 2030.


This is certain. However, it cannot be considered in isolation. The design of the building plays a central role in achieving energy savings. A broader perspective is required.


At Alva Systems, this approach is systematically integrated during our inspections and project definitions. We work closely with engineering firms that have conducted your audits, assisting them with the technical aspects of energy management.

Logo
6+ R.C.S Amiens B 914 244 173Atelier N4 rue des indes noiresBoves 80440
Smart buildings for a decarbonized future