Running a business comes with many overhead costs, and electricity is a major one. However, there are several effective yet overlooked ways that I have used to significantly reduce my business's electricity expenses. In this comprehensive guide, I will share key methods to lower your business's electricity costs without negatively impacting operations.
Conduct an Electricity Audit
The first step is to conduct a thorough electricity audit for your business. This involves:
Analyze Your Electricity Usage
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Review electricity bills from the past year to analyze your average electricity usage and costs per month. Also examine usage and costs by season to account for changes.
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Break down electricity usage between essential needs (e.g. production equipment) vs non-essential (e.g. lighting). This helps prioritize reduction efforts.
Identify Your Peak Usage Times
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Peak usage times are when electricity demand and rates are highest. This is often mid-afternoon.
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Understand when your peak times are by analyzing usage patterns or contacting your utility company.
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Reduce usage during peak times to save significantly on costs.
Find Areas of Waste and Inefficiency
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Conduct an audit of all electric-powered devices, equipment, and systems.
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Identify areas of inefficiency and waste such as outdated technology, over usage of non-essential tools, etc.
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Addressing these offers easy ways to reduce electricity expenses.
Upgrade to Energy Efficient Technology
Upgrading to energy efficient technology can reduce electricity usage and lower utility bills. Consider:
Energy Efficient Lighting
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Switch to LED lighting - uses at least 75% less energy than incandescent lighting.
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Install occupancy sensors to automatically turn lights on and off around people.
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Replace old fluorescent tube lighting with new, more efficient models.
HVAC and Insulation Improvements
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Update old HVAC systems to new models which use less electricity.
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Ensure your business has proper insulation to reduce electricity leakage.
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Install smart thermostats to automatically adjust temperatures and save power.
Energy Efficient Equipment
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When old equipment needs replacing, buy Energy Star certified models which use less electricity.
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For refrigerators and freezers, use models with high efficiency compressors.
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Install variable speed drives on motors, pumps and fans to optimize electricity usage.
Change Employee Behavior Around Electricity
Simple changes to employee behavior can also reduce electricity waste and expenses:
Turn Off Lights and Devices When Not in Use
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Train staff to turn off lights in unoccupied rooms.
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Require employees to fully shut down devices like computers and printers at end of day.
Optimize Use of High Electricity Equipment
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Minimize use of electricity-intensive equipment like ovens during peak rate hours.
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Ensure tools, machines, and appliances are only turned on when needed.
Report Electricity Waste
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Encourage employees to identify and report unnecessary electricity usage they observe.
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Quickly address the reported issues before wasteful habits form.
Incentivize Conservation
- Consider community challenges or rewards programs to engage staff in saving electricity.
Install Solar Panels
Installing solar panels allows businesses to generate their own electricity and significantly reduce utility costs. Options include:
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Full rooftop panel systems which convert sunlight into electricity.
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Individual solar-powered spotlights, parking lot lights, and street lamps.
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Smaller solar devices for lighting signs, pathways and outdoor areas.
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While solar panel installation has an upfront cost, the long-term electricity savings typically provide a fast payback.
Use Electricity Suppliers With Lower Rates
Some additional ways to reduce electricity supply costs include:
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Research electricity providers in your area and compare rates. Switch to a supplier with lower rates.
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Negotiate a cheaper fixed rate contract with providers for 1-2 years to lock-in savings.
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Enroll in a provider's demand response program where you allow them to cut power during high demand times in exchange for rate discounts.
Tap Into Electricity Subsidies and Rebates
Many utilities and governments offer programs with rebates, subsidies and incentives to help businesses install electricity-saving technology and reduce usage. Be sure to take advantage of these to improve cost savings.
The key is taking a holistic approach across all of these areas - an electricity audit, equipment upgrades,solar panels, employee engagement, rate comparisons - to maximize electricity reductions for your business. Using these overlooked methods, I have been able to decrease my business's electricity costs by over 30% while maintaining excellent operations. They offer practical ways to significantly lower your overhead expenses too.