In our attempt to uncover financial leaks in small businesses that will help save them money, our research has found that U.S. small businesses spend, collectively, approximately 60 Billion dollars annually on various forms of energy according to the U.S. Department of Energy.
Energy usage is a huge expense for small businesses. A recent survey that was conducted by NFIB has discovered that energy costs are one of the top three expenses that small businesses experience and this is holding true for more than one out of three small businesses nationwide.
With this in mind, small business owners have the potential to experience significant savings about their energy consumption. They have the potential to reduce their cost by 10% to 30%; according to Energy Star, if they are willing to make appropriate changes by exploring competitive rates, adjust behaviors and implement efficiency upgrades.
Listed here are some categories for energy saving tips that, if implemented by your small business, will surely bring savings through reduction of energy use:
When Purchasing Your Energy for Your Business:
- Consider locking in your natural gas and electricity rates
- Change your service to a retail energy provider if your business resides in a deregulated state
- Think about changing to solar power – (Make use of the ITC tax credit by implementing solar power)
- Take advantage of all tax breaks available to small businesses that use energy efficient equipment as well as appliances
- Consider participation in a Demand Response Program – (this is what is known as a “load management system that will pay small businesses to reduce their electricity use during peak demand times)
Monitor Your Energy Usage:
- Set appropriate benchmark goals and stick to them
- Work to get your employees invested in the energy saving changes you wish to implement
- Have an energy audit conducted to assist in the determination of what changes would best benefit your business
- Implement the ability to track your business’ energy usage online
- Consider the use of data analytics to determine where your energy leaks are located and most prominent
Update or Upgrade and/or Regularly Service (HVAC) Equipment:
- Change and/or clean your filters regularly
- Install blinds in your building’s windows to help control direct sunlight in the summer
- Repair or replace declining HVAC units
- Consider planting trees that will provide shade on the outside of your business
- Implement the use of fans inside of your building to improve airflow and maintain temperatures that are comfortable, also reducing electrical usage
- Set your thermostats higher during the months you will be cooling your building and lower when you’re heating in the winter months
- Locate leaks in your building and apply caulking or weather stripping to assist in the prevention of energy losses
- Implement a dress code that is casual for your employees that will help provide comfort while saving money
Make Positive Use of Light Resources:
- You and your employees should be encouraged to turn off lights and equipment when not in use to save significantly on energy costs
- Switch from incandescent to compact fluorescent lamps also known as CFLs, LEDs and/or halogen bulbs as these are known to use up to approximately 80% less energy and are longer lasting
- Use natural light where possible
- Install energy efficient exit signs
- Consider installing occupancy and dimmers that will turn lights off automatically
With Regard to Office Equipment:
- Use power strips in so that you and your employees will be able to easily turn off appliances when not in use
- Turn off office equipment when not in use
- Consider the use of power management software
- Be certain to put your computers to “sleep” by adjusting settings to shut down after a specific amount of time
- If you have devices that require batteries, consider the use of rechargeable batteries
- The reduction of the use of paper in your office can save energy especially when it comes to printing
- Consider the installation of air hand dryers
Conserve Your Business’ Energy Consumption by Practicing Water Conservation:
- When a water heater fails, consider upgrading to something more energy efficient
- If the age of your water heater is seven years or more, you should wrap the heater in insulation so that it will maintain water heat.
- Whether older or newer, insulate the first three feet of the pipe where the heated water is sent out
- Locate and address any water leaks as immediately as possible and have repairs made to save gallons of water monthly
- Adjust the temperature of your water between 110 and 120 degrees to save energy
- Consider installing sensor faucets specifically designed to conserve water.
- If you have landscaping performed, try to adhere to sustainable water practices
Energy Savings Pertaining to Company Transportation:
- Consider telecommuting your employees if possible or at least on days you would consider designating
- Consider holding meetings in virtual locations as opposed to wasting fuel to appear in person
- Encourage employee carpooling, ride sharing, splitting costs on rental cars especially during required business trips
- Take advantage of the many tax incentive, leases, loans, grants and even available rebates that are provided to small businesses willing to improve their vehicle fuel economy
- Make use of this fueleconomy.gov calculator to evaluate how your business can save on the high cost of fuel
Although no business will implement all of these strategies, making some of these changes will either be free or they will rapidly pay for themselves and continue to save money for years to come. If you have other money/energy saving suggestions, we would love to hear from you.
At Cogent Analytics, we never stop looking for ways to improve your business and neither should you. So, check out some of our other posts for helpful business information:
