How to Set Energy Saving Targets with Your Registered Energy Manager

Reading time: ~12 minutes
Key takeaway: With the right guidance, you can set clear, realistic, and measurable energy-saving targets that lower costs and keep your business compliant.

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Introduction (PAS Framework)

Problem: Energy bills keep rising, and many companies struggle to figure out how much they can actually save without hurting operations.

Agitation: Without clear targets, you end up guessing. That guesswork can lead to wasted money, inefficient systems, and missed compliance deadlines.

Solution: This is where your Registered Energy Manager (REEM) steps in. In this guide, we’ll walk through How to Set Energy Saving Targets with Your Registered Energy Manager—in simple steps, without the jargon.

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Quick Summary

✅ Learn why targets matter for cost savings and compliance
✅ See how your REEM helps set realistic, trackable goals
✅ Understand how to measure progress and adjust plans
✅ Walk away with a practical method to cut costs immediately

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How to Set Energy Saving Targets with Your Registered Energy Manager

Setting energy-saving targets isn’t just a formality. It’s the backbone of smart energy management. In this section, we’ll dive deep into the practical steps. We’ll keep it at an eighth-grade reading level—so it’s easy to follow, no matter your background.

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Why You Need Energy Saving Targets

Without a target, saving energy feels like shooting in the dark. Here’s why targets matter:

• Clarity: You know exactly what you’re aiming for.

• Accountability: Everyone in your company understands the goal.

• Measurement: Progress can be tracked and celebrated.

• Compliance: Many regulations now require clear energy goals.

When you work with a REEM, you’re not just guessing numbers—you’re building a plan based on data.

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Step 1: Know Your Starting Point

Before you can set a goal, you need to know where you are right now.

• Collect your past 12 months of electricity, water, and fuel bills.

• Identify your biggest energy users (e.g., lighting, HVAC, machinery).

• Ask your REEM to conduct a quick audit.

This gives you a baseline. For example, if your building uses 100,000 kWh per year, that’s your starting point.

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Step 2: Work with Your REEM

Your Registered Energy Manager is your guide in this journey. They will:

• Break down your energy data into clear insights.

• Show you industry benchmarks for comparison.

• Identify “quick wins” like LED upgrades or improved schedules.

• Suggest realistic reduction percentages (e.g., 5–10% in year one).

Think of your REEM as your coach—they don’t just tell you to “use less,” they show you exactly how.

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Step 3: Define Realistic Targets

Don’t aim for 50% savings in the first year. That’s unrealistic. Instead:

• Short-term target: 5–10% savings in the first 12 months.

• Medium-term target: 15–20% savings in 3 years.

• Long-term target: 25–30% savings in 5 years.

Example: If your current energy bill is RM500,000 per year, a 10% reduction means RM50,000 saved in the first year.

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Step 4: Break Down Targets by Area

Your REEM will help you split the targets into sections:

• Lighting: Switch to LEDs or motion sensors.

• Air Conditioning: Adjust thermostat settings, maintain equipment.

• Production Equipment: Introduce schedules to cut idle time.

• Office Equipment: Encourage automatic shutdown policies.

By dividing the goal, you avoid overwhelming your team.

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Step 5: Make Targets SMART

SMART targets are:

• Specific: “Reduce HVAC usage by 10%.”

• Measurable: “Cut electricity by 20,000 kWh in 6 months.”

• Achievable: Fits your budget and timeline.

• Relevant: Directly supports business goals.

• Time-bound: Must be reached within a set deadline.

Your REEM ensures every target meets these standards.

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Step 6: Assign Roles

Energy-saving is not just the REEM’s job. Everyone needs to be on board:

• Management: Approve budgets and policies.

• Operations Team: Follow schedules and maintenance tasks.

• Staff: Adopt simple daily actions like switching off unused devices.

When roles are clear, targets are easier to reach.

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Step 7: Track Progress

Your REEM will set up monitoring systems. These may include:

• Monthly utility tracking

• Real-time energy dashboards

• Regular site inspections

Tracking helps you spot problems early. For example, if energy use suddenly spikes, you can find the cause before bills skyrocket.

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Step 8: Celebrate Wins

Even a small reduction should be celebrated. Share progress with your team:

• Announce savings in company meetings.

• Give small rewards for departments hitting targets.

• Share updates on notice boards or internal emails.

Celebration keeps motivation high.

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Step 9: Review and Adjust

Energy use changes with seasons, staff levels, and equipment upgrades. Every quarter, review:

• Are you meeting your targets?

• Do you need to adjust goals?

• Are new technologies available to help?

This makes the process dynamic and effective.

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Practical Example

Let’s say your REEM sets this plan:

• Baseline: 200,000 kWh/year

• Target: Reduce by 20,000 kWh in year one (10%)

• Actions:

  • Replace 500 fluorescent lights with LEDs

  • Adjust air conditioning from 22°C to 24°C

  • Train staff on equipment shutdown procedures

Result:

• 25,000 kWh saved

• RM12,500 cut from annual bills

• Target achieved ahead of schedule

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Mistakes to Avoid

• Setting targets without data

• Ignoring staff involvement

• Choosing unrealistic goals

• Not tracking progress

• Forgetting to review and adjust

Your REEM helps you avoid these pitfalls.

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Final Thoughts

Now you know exactly How to Set Energy Saving Targets with Your Registered Energy Manager. The steps are simple: start with data, set realistic goals, involve your team, and keep tracking progress.

Energy saving is not just about cutting costs—it’s about building a smarter, more sustainable business.

👉 Ready to start saving? WhatsApp or call 0133006384 today and let a Registered Energy Manager guide you step by step.