Unlocking the Future of Commercial Facilities Through Occupancy Setbacks

Commercial office building owners are racing to make their properties smarter, more resilient, and more adaptive. The drive for greater energy efficiency and occupant comfort is intensifying, fueled by the need to deliver rapid returns on investment while navigating rising electricity and operational costs.

Supporting Net-Zero Goals

Occupancy setbacks have been identified as a powerful tool for achieving energy and carbon reduction targets as well as enhancing occupant comfort. This approach is paving the way for the future of facility operations, aligning with the larger net-zero ambitions of commercial office buildings. Occupancy setbacks are a type of energy conservation measure (ECM) that refers to the intentional adjustment or reduction of building systems (such as heating, cooling, ventilation, and lighting) during periods when a space is unoccupied or lightly occupied. Recent research from Schneider Electric has demonstrated how facilities managers can benefit from this ECM.

New Age of Building Technology

Modern-day office buildings serve many roles. They are expected to be state-of-the-art workplaces, while also meeting stringent sustainability standards in both design and operations. Building owners are regularly looking to balance policy adherence with the need to cut costs and provide a healthy environment for occupants, in an effort to keep pace with modern demands for commercial real estate.

Schneider Electric’s recent study conducted at Sidara’s headquarters at 150 Holborn, London, U.K. reveals that implementing occupancy-based room conditioning can significantly enhance energy efficiency and reduce carbon emissions. The research focused on meeting rooms and demonstrated that occupancy setbacks delivered an average of 22% savings in operational energy use and carbon, and did not impact healthy indoor air quality (IAQ), ensuring occupant well-being.

To help support sustainability objectives, buildings should be configured with smart building technology and infrastructure. This includes a modern building management system (BMS) with a network of sensors and controls designed to adapt to occupant usage patterns and environmental conditions. This technology works in concert with ECMs to deliver better energy performance outcomes.

By integrating sensors with the BMS and room-booking platform, the space becomes more adaptive and responsive, automatically adjusting room conditions ahead of scheduled meetings to enhance occupant comfort.

Occupancy Setbacks in Practice

Occupancy setbacks can keep rooms in an energy-efficient state during business hours because room settings and conditioning become demand-based versus schedule-based. This saves energy and extends the life of the mechanical equipment in the space, as usage is tailored towards system reactions to sensor data on IAQ, room occupancy, and reserved bookings.

The research also found significant impacts on the timing and context of occupancy setback deployments. For instance, the rooms studied were designed to modify temperature set points and adjust them across a seven-degree range based on occupancy. In the winter months, the temperature set point “sets back” to 65°F when the room is unoccupied and adjusts to 72°F when the room is occupied. Lighting levels are adjusted on/off based on the state of occupancy as well. Per Sidara’s company policy, the room is considered “occupied” only if there is a formal reservation in the room-booking system, which allows room conditioning to begin ahead of the commencement of the meeting. If the person who booked the reservation or attendees do not attend the meeting, the room will revert to the unoccupied state settings.

IAQ & Occupancy Well-Being

Occupancy setbacks do not compromise healthy IAQ, supporting occupant comfort even as occupancy levels vary.

The analysis demonstrated that CO2 concentrations consistently stayed below 1,000 ppm, meeting ASHRAE guidelines, because the IAQ sensor directed the BMS to supply more fresh air when occupancy rose during meeting times. Relative humidity levels fluctuated between 30% and 50% during the winter period, which helped avoid common seasonal issues such as condensation or dryness.

Furthermore, volatile organic compound levels (VOCs), remained below 250 ppb, and when brief spikes did occur—an expected condition in dynamic environments—the BMS quickly restored levels by increasing fresh air circulation.

Return on Investment & Payback

Deploying advanced sensors in meeting rooms that empower setback strategies can enable a significant return on investment (ROI).

Schneider Electric’s analysis compared the higher upfront costs of these sensors—including equipment and installation—with the projected energy savings over time, benchmarked against a baseline scenario using basic room thermostats with limited functionality. The calculation was based on London’s prevailing commercial electricity rates (pence per kWh) and factored in seasonal variations to normalize energy savings estimates.

Notably, the payback estimate is conservative, as it only accounts for energy reductions related to room-level systems (FCUs, plug loads, and lighting) and excludes additional savings from larger HVAC components like air handling units and variable air volume boxes, which could further accelerate payback. Based on this analysis, the expected payback period for the rooms used in the study was conservatively measured to be approximately two years.

Paving the Way Forward

For facilities managers, the findings from this study make a compelling case for prioritizing smart building technologies and EMCs like occupancy setbacks. The research at 150 Holborn demonstrated that deploying these strategies reduced operational energy use and carbon emissions by an average of 22% in the rooms that were studied.

These results are particularly relevant for decision-makers seeking to maximize ROI on building investments amid rising energy costs and stricter ESG mandates.

In conclusion, occupancy setbacks are not just a technical enhancement; they are a strategic lever for operational excellence. By aligning real-time occupancy insights with automated building controls, commercial offices can enhance occupant well-being, extend equipment life, and accelerate progress toward net-zero goals—all while delivering clear, data-backed financial value.

Sadiq Syed is the senior vice president of digital buildings at Schneider Electric.

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