One of the simplest equations in business math is revenue – expenses = profits. Every business has control of both sides of that equation, but most businesses do not look deep enough at their commercial electricity bills as a means of lowering costs. A business that looks for ways to save money on electricity is a business that has its priorities in the right place.
Use Energy Efficient Equipment
The first area any savvy business owner should look at is eliminating or reducing energy waste. Replacing old equipment with more energy efficient models, changing regular light bulbs to fluorescent counterparts, and shutting unused equipment, should be the first items on the energy saving checklist. Furthermore, by regularly servicing your HVAC system you could reduce its energy usage by as much as 25%.
Comparing Energy Providers
Businesses of all sizes used to have only one source of electricity to choose from, and that did not help to keep down commercial electricity costs. In recent years, many states have passed laws allowing for the creation of alternative energy companies that are creating competition for the major utilities. This new form of competition has helped to bring down electricity rates and improve the quality of service.
If you want to save money on electricity, then you can do an instant plan comparison offered by the alternative commercial electricity providers in your area. These suppliers have plans tailored towards specific businesses needs and could offer peak/off-peak demand, fixed-term and renewable energy options. Any business, from restaurants to retail shops, can go online, compare rates and switch to a new provider.
Lock In Your Electricity Rates
Many alternative energy suppliers and major utility companies give business customers a chance to lock in their commercial electricity rates for the year. All utility companies are required to announce the upcoming rate increases ahead of time, and the savvy business owners can take advantage by comparing these to the ones published by third-party providers. Generally, the comparison websites estimate the savings the company could realize by switching. Most of the time these savings could be in the thousands of dollars, and the owners could lock-in the longer-term rates to maximize the benefits.
Regulating Your Heating Bill
Sometimes the simplest solutions can save you a lot of money on your commercial electricity bills. For example, installing a smart thermostat to control the heating and cooling in your office can help to keep your energy bills down. A programmable thermostat can lower your heating and cooling usage when no one is in the office, and it can even turn down your HVAC system when everyone is at lunch.
Talk To Your Provider About A Demand Response Program
With a Demand Response program, businesses are rewarded for lowering their commercial electricity use during the peak usage times of the day. You should ask your provider if they offer such a program and how your business can get involved. If your current company does not offer a Demand Response program, then you may want to switch to a provider that does.
Switch To Renewable Energy
Quite often going green means not only saving the environment, but also your business bottom line. Installing solar panels on the roof or next to the building will lower your energy bills, and sells excess electricity back to the grid, generating additional revenue. Further, having skylights or larger windows, could reduce your need for electric lighting and produce extra savings.
Create Employee Incentives
Your efforts to lower your commercial electricity costs can be more successful if you get your employees interested in saving energy as well. You should put together an incentive program that gives back part of your commercial electricity savings to your employees in the form of a quarterly bonus, gift cards, or free lunches.
Your commercial electricity costs are among top five expenses faced by small businesses. If you want to reduce your expenses and put more profit on your bottom line, then you need to get proactive about finding the best ways to lower your monthly energy bills.
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