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What is an energy conservation measure (ECM)?

An energy conservation measure (ECM) is a specific action that reduces a facility's energy consumption or demand — such as replacing inefficient HVAC equipment, installing LED lighting, reprogramming building controls, or sealing compressed air leaks. Each ECM is quantified with estimated annual savings, implementation cost, and payback period.

UpdatedJune 2026
Read time4 min read
CategoryCommercial Energy Audits
Reviewed byGI Engineering
Clear answer

Clear answer, explained.

An energy conservation measure is any physical change, operational adjustment, or controls modification that reduces the amount of energy a facility consumes or the peak demand it draws from the grid. ECMs are identified through an energy audit and ranked by their financial return — giving facility managers and CFOs a prioritised list of actions with clear, data-backed justification for each.

Common ECMs in commercial and industrial audits include HVAC recommissioning and variable frequency drive (VFD) installation on fans and pumps, building automation system (BAS) reprogramming to align equipment operation with occupancy schedules, LED lighting retrofits, economiser upgrades, compressed air system improvements, and building envelope improvements. The mix varies by facility type and the systems installed.

Each ECM is modelled individually: the energy saving is calculated based on the facility's actual baseline data, the implementation cost is estimated, and the simple payback and return on investment are derived. This allows the client to select and sequence measures based on budget, operational priorities, and incentive program timelines — rather than implementing everything at once.


Key points

What this means in practice.

  • An ECM is any change that reduces a facility's energy consumption or peak demand
  • ECMs are identified through an energy audit and quantified with savings, cost, and payback
  • Common ECMs include HVAC recommissioning, LED lighting, BAS reprogramming, and VFD installation
  • Each ECM is modelled against the facility's actual consumption baseline — not industry averages
  • ECMs are ranked by financial return to allow prioritised, budget-conscious implementation
  • Implementing multiple ECMs reduces the consumption baseline, which also improves solar system economics

When this applies

Best-fit environments.

  • You have received an energy audit report and want to understand what the ECM list means
  • You are prioritising capital investments and need to compare the return on individual measures
  • You are applying for IESO saveONenergy incentives and need to identify qualifying ECMs
  • You are preparing a multi-year energy roadmap and need to sequence measures by ROI and budget

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