Article

Pathways to achieving net-zero in buildings

Evaluating efficiency, electrification, generation and storage solutions for long-term sustainability

May 27, 2025 · Authored by Cora Klemme, Valerie Nubbe

As net-zero energy (NZE) and energy transition initiatives become increasingly prevalent – driven by policy requirements, decarbonization commitments and market demand – the built environment has emerged as a key focus area. The journey begins by identifying the right solutions for your facilities and operations, such as energy efficiency upgrades, electrification, on-site energy generation and storage. Complementary strategies like demand reduction and load shifting can further optimize performance, reduce upfront and operational costs and improve resiliency to grid disruptions. Taking a holistic approach to techno-economic assessment in scoping and bundling NZE initiatives can help bring them to fruition.

Efficiency and electrification

The first step in advancing net-zero goals is improving energy efficiency and electrifying on-site loads. By upgrading lighting, HVAC systems, weatherization and building controls, facility energy consumption can be significantly reduced. Electrifying end uses – such as space and water heating – reduces reliance on fossil fuels and enables clients to take advantage of an increasingly renewable power supply. Consider partnering with the right advisory firm to evaluate existing systems and utility consumption patterns to identify opportunities. At Baker Tilly, we use energy modeling tools and load profile analysis to help our clients understand the operational, emissions and cost impacts of energy conservation measures and fuel switching. These measures present the first line in reducing energy consumption and serve to prepare buildings for renewable energy integration. These upgrades often have the added benefit of improving occupant comfort, modernizing aging infrastructure and streamlining facility operations.

Increasing on-site generation

After reducing building load through efficiency and electrification, on-site energy generation is the next tool in the toolbox to achieve NZE. The remaining building demand can be met by powering facilities with low-carbon generating systems such as rooftop solar, or through the purchase of clean energy via the utility or a third-party agreement. Pairing these two strategies together helps to reduce overall cost by minimizing facility loads – and therefore the system size or residual energy purchases required to maintain those smaller loads. Baker Tilly supports our clients in identifying best-fit solutions for on-site installations and energy suppliers, including cost-benefit analysis, regulatory analysis and design support such as siting and sizing. Our data-driven approach empowers clients to make informed decisions about investing in energy production, advancing NZE targets and boosting on-site capabilities.

Demand-side management and resiliency

Demand-side management strategies allow owners and operators to dynamically adjust energy consumption. Shifting energy consumption to off-peak windows or shedding loads during peak demand periods helps to reduce utility costs including expensive demand charges. Beyond cost and energy savings, demand management solutions have the added benefit of supporting grid stability and resilience.

When paired with on-site energy resources, demand management strategies can also help to match building loads with generation profiles, optimizing utilization of energy produced on-site. Energy storage solutions like battery systems can support load shedding and shifting strategies, and store excess on-site generation for use during peak demand periods, grid outages, extreme weather events or times when on-site generation is low — enhancing both energy resilience and cost savings.

Utilizing industry-leading tools can inform and evaluate demand-side management strategies, integrating energy resources and utility partnerships.

Assessing financial feasibility and structuring partnerships

Aligning technical strategies with funding opportunities and long-term goals is critical. For some organizations, a phased approach – starting with efficiency and electrification – can reduce initial costs and prepare for future additions like solar and storage. For others, bundling upgrades can help to balance out overall economics.

Assessing financial feasibility can be achieved by analyzing initial and long-term costs, expected energy savings and potential revenue. Evaluate the financial viability of various scope packages against your decision metrics to guide investment decisions based on expected economic performance and emissions impact. This often considers avenues to supplement the capital stack, such as energy tax credits, utility incentives and applicable grants. Strategic partners can assist you in identifying, pursuing, securing and complying with eligible outside funding sources.

Additionally, strategic partnerships with developers, contractors and service providers can streamline funding, enhance returns and ensure long-term success. Alternative delivery models – such as off-balance sheet financing, performance contracting and as-a-service – shift financial and performance risk from the building owner and reduce the upfront investment required.

Getting to NZE

As you can see, reaching net-zero goals requires a holistic planning approach. By leveraging commercially available and innovative solutions, organizations can significantly reduce their energy and carbon footprint while improving the bottom line. With the right financial strategies, these projects can be implemented without large upfront costs.

Baker Tilly provides comprehensive support to organizations looking for cost-effective ways to achieve their net-zero goals. We also help clients evaluate the right delivery models and find qualified, best-value partners to bring NZE projects to bear. Contact our energy and infrastructure professionals to start shaping your NZE plans today.