Every business has recurring monthly costs that are taken as “a given.”
Recurring monthly business costs are taken as a given. They hurt your business’s cash flow on a monthly basis, and when mismanaged can seriously lower your profit margin. Energy costs are among the leading recurring costs that businesses need to contend with. Nevertheless, they are often left unchallenged and overlooked. The good news is, energy costs are one budget item that many companies can reduce.
When it comes to business energy savings, these factors can be critical.
How Are Your Heating, Cooling and Ventilation Systems?
Thirty-three percent of business say that heating and cooling make up the largest portion of their energy costs. Link Outdated or inefficient heating, ventilating, and air conditioning systems can be a considerable source of unnecessary spending. Have an industry technician visit your business to evaluate your equipment; you will learn if your systems are outdated or need repair. This is one important way to promote energy efficiency in your manufacturing plant or offices.
When Was Your Last Energy Evaluation?
For an overall view of your company’s energy efficiency, have a complete energy analysis. Many utility companies come on-site and provide a comprehensive energy evaluation of your particular business. These evaluations are usually free, or done at a low-cost. You will benefit from this evaluation which will analyze your energy needs and usage, and will recommend things you can do to save money. If your company has medium-to-large energy bills, this can be a very worthwhile activity.
Review Lighting and Other Equipment
Evaluate your office and/or plant lighting expenses in terms of energy costs. Installing different light bulbs or computer-regulated lighting systems, or installing more energy-efficient lighting systems, can positively affect your energy costs. Careful monitoring of business equipment, and making sure any new purchases are energy-efficient models, will cut energy costs as well.
Learn About Government Tax Incentives for Energy Savings
Investigate what programs the federal, state and local governments are doing to promote energy savings. Your business may be eligible for certain tax incentives or credits when your purchase energy-savings equipment, or take other steps to reduce your energy usage. In addition, there are agencies that will help business’s purchase energy-saving equipment and facilities. You should become aware of these special loans, grants, and assistance programs, as they can mean a considerable improvement to your company’s cash flow.
Take Advantage of Competition
In 1999, the Electric Discount and Energy Competition Act was passed in NJ. It allows every energy customer in the state, businesses and individuals alike, to shop for their energy suppliers. The supply portion of the utility bill is separated from the delivery portion, with the supply portion being open to competition. It is advised that businesses will benefit from shopping around if they fall into any of these categories:
- – use large amounts of electric and/or natural gas
- – have a relatively constant energy usage
- – have much electric usage in off-peak hours
- – can voluntarily curtail energy needs.
Are You Leaving Money on the Table?
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