Unlike large commercial buildings, the systems that control appliance and heating systems in buildings of less than 100,000 square feet only understand "on or off." In most cases the networks that oversee a building's infrastructure can't verify what is or isn't working at any given moment.

However, a new intelligent network of controls and software tools developed by smart grid company Echelon will automatically know when equipment goes offline, and will react to changing conditions at the local utility.

Echelon has upgraded its LonWorks platform that has been used around the globe to control large commercial buildings with faster processors and new software development applications aimed at the small building market. The version 2.0 tools will be used by the designers of building management networks and device manufacturers to create networks for smart offices, retail outlets, and apartment complexes.

Steve Nguyen, director of corporate marketing from Echelon, said restaurant owners are an example of those who will benefit from the new tools. Instead of worrying if the food in their refrigerated cases has spoiled due to a power failure, they would be automatically alerted if the temperature rises.

The new smart systems will turn off lights in an office building when not needed, monitor computer rooms to make sure they don't get too hot, or turn off non-essential devices such as a dishwasher during times of peak power demand.

Building managers can automatically be alerted via emails or text messages when equipment fails. When power is getting pricey due to peak demand, or when the grid is in danger of being overloaded, buildings can automatically adjust their power consumption.

Nguyen says the role of energy manager will be a growing profession in the coming years as people who previously only installed or fixed equipment will now be asked to monitor building performance using Internet networking technology (aka Web services). Energy managers might be asked to oversee a strip mall of stores, or a chain of laundromats, according to Nguyen.

Companies that upgrade their buildings will benefit from reduced operating costs while lowering their carbon footprint.

Commercial buildings that are less than 100,000 square feet consume the majority (58 percent) of the energy used by all buildings in the U.S., according to data from the Energy Information Administration.

The days of tenants paying for power based on the square footage of an apartment or storefront may soon be over, Nguyen said. As part of the newly intelligent building systems, smart sub-meters will charge each tenant individually for energy use. This will pass the incentive to save energy down to those who consume it.

Echelon's new products, which include more powerful 8- and 16-bit processors that will be embedded into devices, will be rolled out this summer. Nguyen said the new platform is built on ISO standards, and is backward compatible with previous LonWorks products.