Energy Building Labels

When discussing building labels it is important to recognize the difference between “asset value” labels, which are based on how a building performs at standard operating conditions and “operational value” labels, which are based on measurements of energy consumption using the operating conditions that are in use at a particular time.

Energy Building Labels: Asset Value v. Operational Value

When discussing building labels it is important to recognize the difference between “asset value” labels, which are based on how a building performs at standard operating conditions and “operational value” labels, which are based on measurements of energy consumption using the operating conditions that are in use at a particular time.

Most products, such as cars or appliances, are rated using asset value labels with a standardized operational component—for example, cars are rating by EPA miles per gallon (mpg) but are not resold based on the mpg that the seller actually obtained. For buildings, analysts generally recognize that both results are useful. These two types of labels are very distinct and different ways of characterizing energy use, with different purposes.

Due to the ambiguity of the terms, attached is a detailed description of the two terms and how they differ from each other.

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