Energy costs are often a “dark” or hidden expense because we so often take them for granted. In fact, our society in general accepts a certain amount of energy use without stopping to consider how to cut energy costs in business.
The truth is that there are many options at a company’s disposal to reduce their energy consumption. These options can include simple practice changes, technology investments or participating in energy rebate programs offered by your local supplier.
When looking to cut energy costs in business, start with these four steps to get toward your cost reduction goals:
“You can’t control what you can’t measure” some say, although others may put it more bluntly as “How the heck can you fix something if you don’t know what’s broken?”
This philosophy is what governs the motivation behind comprehensive energy audits. By examining typical energy expenses and energy-consuming activities in detail, your organization can look for areas to target with the most opportunity for cost reductions.
An energy audit highlights work activities both on a top-down and granular level. Your organization sees how much energy consumed through equipment, lights, heating, telecoms, workstations and more. You can also identify incidents where energy use spiked or plummeted, and learn on a case-by-case basis.
Your organization can then compare its energy usage to national averages to obtain a benchmark for moving forward in an action-oriented way.
2. Utilities Contract Evaluation
Determining the potential for cost savings on your utilities contract involves asking yourself questions like these:
- Am I paying the lowest rate on energy I could be?
- Are there energy suppliers I could switch to in order to realize energy cost savings?
- Am I taking advantage of all the possible rebate or incentive programs for energy usage?
Often, you will find that energy cost savings can be immediately had as a result of answering these questions. Managed energy savings providers like Freedom Profit Recovery can also assertively negotiate energy and utility contracts on your behalf to get you the best possible rate. Twelve months before a contract’s expiration tends to be one of the best times to engage FPR.
3. Investing in New Technology
Energy consumption is often heaviest within a few narrow areas—namely: lights, air conditioning, appliances, work stations and equipment. Investing in building systems like automatic lights can help automate energy-saving activities, such as turning off the lights when no one is in the room. Even purchasing new, more-efficient equipment could be the answer as long as a positive ROI can be obtained in a reasonable time frame.
Making decisions on what to keep and what to change is an area ripe for potential energy cost reductions.
4. Using a Cost Savings Partner Who Can Teach You How to Cut Energy Costs in Business
All of these energy-reducing activities can be had without committing any extra effort or resources by hiring Freedom Profit Recovery. We rigorously audit your current energy consumption and put forth actionable suggestions on how to cut energy costs in business in a sustained, long-term way.
Discover more about the potential cost savings you could enjoy by reading about our energy cost reduction auditing services.