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The ROI of Building Automation: Real Numbers for NYC & Long Island Properties

April 10, 2026 · 2 min read · MJI Energy Insights

When facility managers and property owners evaluate building automation system (BAS) upgrades, the first question is usually: what's the payback period? For commercial buildings in New York City and Long Island, the answer is typically 2–4 years — and that calculation has gotten even better with rising energy costs and Local Law 97 fine exposure.

Where the Savings Come From

A modern BAS generates savings across several systems:

  • HVAC optimization: Scheduling, setback programming, and demand-controlled ventilation typically reduce HVAC energy use by 15–30%
  • Lighting control: Occupancy-based lighting and daylight harvesting can cut lighting loads by 20–40%
  • Fault detection: Catching equipment faults early prevents both emergency repairs and the "ghost loads" of malfunctioning equipment running unnecessarily
  • Remote monitoring: Reducing truck rolls and emergency service calls through proactive alerts

A Real Example

A 120,000 sq ft Class A office building in Midtown Manhattan spending $800,000/year on energy can reasonably expect a BAS upgrade to reduce that spend by 20–25%, saving $160,000–$200,000 annually. At a typical system cost of $350,000–$500,000 for a building that size, payback is 2–3 years.

Add in avoided LL97 fines — which for a building at this size and energy profile could easily run $80,000–$150,000 per year — and the economics get even more compelling.

Long Island Considerations

PSEG Long Island's commercial rates and demand charges make energy efficiency investments particularly attractive for Nassau and Suffolk County properties. Buildings on Long Island also tend to have older controls infrastructure, meaning the gap between current performance and what's achievable with modern automation is often larger.

Getting Started

The best starting point is a building energy assessment that benchmarks your current consumption, identifies the highest-impact automation opportunities, and produces a prioritized investment plan. Most buildings see meaningful savings from the first phase of implementation.

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