How to Lower Your Commercial Electricity Costs With These Simple Tips

Running a commercial business comes with many overhead costs, and electricity is often one of the largest. High electricity bills can quickly eat into your bottom line. However, there are several ways you can lower your commercial electricity costs without negatively impacting operations. Here are some of the most effective tips to reduce electricity usage and save on power bills for your business.

Audit Your Electricity Usage

The first step is to understand where and how electricity is being used in your commercial space. I recommend requesting an energy audit from your utility company or hiring an independent energy consultant. This will provide a detailed breakdown of your electricity consumption so you can identify areas for improvement.

During the audit, the consultant will:

• Examine your utility bills and analyze your rates to find billing errors or better rate plans.
• Inventory all electrical equipment, noting their wattages and hours of operation.
• Use energy measuring devices to identify the biggest electricity drains.
• Locate air leaks, inadequate insulation, and other sources of energy waste.

The audit report will highlight the best opportunities for energy and cost savings based on your specific electricity usage patterns. Knowing where you can achieve the biggest reductions is key to lowering your electricity costs.

Upgrade to Efficient Lighting

After the audit, I recommend focusing first on upgrading to energy-efficient lighting, as it is often one of the quickest and most effective ways to reduce electricity consumption. Some lighting upgrades I suggest include:

• Replace incandescent bulbs with LEDs which use at least 75% less energy.
• Install occupancy sensors or timers so lights automatically turn off when not in use.
• Use task lighting where possible instead of brightly lighting an entire area.
• Replace fluorescent tubes with more efficient T8 or T5 tubes.
• Add daylight sensors that dim artificial lights when sufficient natural light is available.

You can also consider switching to smart lighting systems that provide computerized control over lighting based on time of day, occupancy, and available daylight. Though pricier upfront, they can optimize lighting usage for maximum energy savings.

Adjust Thermostat Set Points

Heating and cooling account for roughly 40% of a commercial building's energy use on average. Adjusting your thermostat set points by just a few degrees can yield significant electricity savings:

• In winter, set the thermostat to 68°F (20°C) when occupied and lower when unoccupied.
• In summer, set thermostats to 75°F (24°C) and allow the temperature to rise to 80°F (27°C) when unoccupied.
• Consider setting wider temperature ranges or pre-cooling before occupancy hours.
• Ensure programmable thermostats are actually programmed properly and override settings are disabled.
• Upgrade to a smart thermostat system that optimizes temperature settings for comfort and efficiency.

Pro tip: Installing ceiling fans allows you to feel comfortable at higher thermostat settings in summer.

Improve Envelope Insulation

A poorly insulated and sealed building envelope can waste a tremendous amount of energy needed for heating and cooling. Consider:

• Adding insulation in attics, walls and ceilings to recommended R-values.
• Installing weather stripping around doors and windows.
• Caulking and sealing all cracks and openings.
• Replacing old windows and doors with well-insulated models.
• Having an expert evaluate insulation levels and air tightness to pinpoint problem areas.

Improving insulation reduces heat gain/loss through building surfaces, allowing HVAC systems to operate less to maintain desired temperatures. It provides excellent returns on investment through energy savings.

Add Smart Plug Strips

Computers, chargers, printers and other office equipment draw power even when turned off or not in use. The term for this is "phantom load" and it can waste a surprising amount of electricity over time.

Smart power strips help reduce phantom loads by cutting power to outlets when a primary device plugged into them is switched off. For example, when you turn off your computer, the smart strip also cuts power to the monitor, speakers, printer and any other peripherals plugged into it.

These inexpensive devices can help curtail vampire loads from equipment that is rarely fully turned off. Position them in areas like workstations, breakrooms, storage rooms and more.

Schedule an HVAC Tune-Up

Heating and cooling systems become less efficient over time if not properly maintained. I recommend scheduling annual tune-ups of your HVAC equipment to keep it running at peak performance.

Ask technicians to:

• Clean coils, filters and heat exchangers
• Lubricate moving parts
• Inspect refrigerant charge and ductwork
• Verify economizer operation
• Check system controls and thermostats
• Make any needed repairs immediately

Routine maintenance combats wear and tear for optimal efficiency, saving on costly repairs down the road. It's one of the most effective ways to keep HVAC systems operating at their lowest kWh usage.

Investigate Demand Response Programs

Some electric utilities offer demand response programs that provide bill credits or other incentives for curtailing electricity usage during certain peak demand hours.

Ways to participate include:

• Allowing the utility to cycle A/C compressors off and on during peaks
• Adjusting thermostat setpoints temporarily
• Shedding non-essential loads when requested

These voluntary reductions often happen only a few hours per month but can generate substantial credits to offset your electricity costs. Contact your utility to see if any demand response or load shedding programs are available.

Install Solar Panels

One of the most impactful long-term investments is installing a solar photovoltaic (PV) system to generate renewable electricity on-site. With solar panels, you can:

• Reduce daytime peak load on the grid
• Lower your overall monthly power needs
• Receive bill credits for surplus power sent back to the grid
• Enjoy complete protection from utility rate hikes

Commercial solar systems can pay for themselves within 3-7 years on average through energy savings and credits. And they keep producing free, clean electricity for another 20+ years after that.

Though still a sizable investment, on-site solar generation can be a smart, profitable way to take greater control over your business's electricity costs over the long haul.

Summary

The strategies above provide a strong starting point for most commercial businesses looking to reduce their energy usage and electricity bills. The most important steps are to audit your current consumption, upgrade inefficient lighting and equipment, maintain HVAC systems diligently, and tap into any savings from demand response or solar programs available in your area.

Small changes made consistently over time can add up to major cost savings and a reduced environmental footprint. Approach energy efficiency as an ongoing initiative rather than a one-time fix. Empower staff to offer ideas and collaborate to ensure everyone works together to lower electricity costs at your commercial facility.