Energy
The power within
How to reduce your energy costs by 20 to 30 percent with a minimal investment
By Jessica Tremayne
Smart Business Cincinnati | January 2009
The days are long past that energy was so
cheap you could afford to waste it. Now,
financial and environmental concerns have
made saving energy a priority for every
business. When done right, you can expect
to achieve a savings of 20 to 30 percent off
your current monthly utility bill, with minimal investment.
Getting started on saving can be as simple as making employees aware that energy efficiency is a priority for your company. Employees who regularly turn off
lights and computers at home don’t bring
that same mindset to work. By recruiting
employees to help manage your company’s energy usage, you can start to save
money.
Fifty-three percent of readers surveyed
by Smart Business say they expect energy
costs to continually increase over the next
12 to 18 months. A dedication to energy
efficiency is necessary to maximize savings, as energy experts say halfhearted
efforts get halfhearted results.
“Businesses often don’t realize they are
being penalized by power companies for
excessive energy consumption even
though it appears in black and white in the
monthly statement,” says Mike Wissman,
president, Northern Kentucky Electric
Service. “This above all other reasons warrants energy conservation.”
Why managing energy use is
important
Energy efficiency is a prime example of
what you don’t know can hurt you. Few
people are aware that energy-efficient business desktop computers are available that
cost about $10 a year to operate and are
about 75 percent more efficient than typical PCs. Installing certain models of smart
thermostats allows you to program them
wirelessly through the Internet, allowing
for temperature adjustments without physically being at the facility. Also, new smart
electric meters translate energy wattage
use into dollars and allow you to track
energy use online.
Applying new technology can help, but
don’t overlook the traditional things.
“When initiating an energy-efficiency
plan, start with simple things like super
insulating walls and ceilings, lighting systems, replacing single-pane windows, and using ENERGY STAR appliances,” says
Steve Melink, president, Melink Corp., an
energy solutions company. “An average
Cincinnati building costs $2 to operate per
square foot annually, but being energy efficient can reduce that to 50 cents.”
ENERGY STAR, an Environmental
Protection Agency and U.S. Department of
Energy program, along with your utility
provider and local city hall can help you
reduce energy waste by providing regional
energy-efficiency tips, financial incentives
and energy audits of facilities. ENERGY
STAR endorses more than 50 types of products, which are identifiable by a label that
indicates the amount of energy it will
require during average use and will tell you
the savings you can expect by choosing
that product over products that aren’t
approved by the ENERGY STAR program.
Purchasing the proper equipment and carrying out good habits will reduce your
energy expenses exponentially. For example, you will use 30 to 35 percent less energy using an ENERGY STAR battery charger or power adapter over conventional
products.
“A lot of times, there’s no handle on energy efficiency and energy costs at the CEO
level,” says Chris Sharpe, lead product
manager, Duke Energy. “Upper management needs to get involved and start
benchmarking their facility against others.”
By changing purchasing habits and being
more cautious of efficient equipment operation, you’ll immediately reduce your energy bill. By purchasing ENERGY STAR-qualified products, you’ll use about half the
amount of electricity that would be used
without the efficient product. For example,
when a computer is placed in sleep mode,
it uses 75 percent less energy and a copier
uses 40 percent less energy.
Most businesses use 25 percent of their
energy on lighting. Compact fluorescent
bulbs last longer than traditional bulbs and
use 75 percent less energy. Even if it means
renovating your entire lighting system,
you’ll see a return on your investment in
anywhere from five months to three years.
What you need to know
Performing an energy audit of your business is the first step. This is often performed
for free or at a minimal cost through your utility provider. In this audit, you’ll learn
what areas of your business are using the
most energy. You’ll then be able to work on
a strategy to reduce waste.
By visiting the ENERGY STAR Web site at
www.energystar.gov, you can compare your
company’s energy use to similarly sized companies within your industry and region.
“Your utility company is the first place to
look for guidance when looking to become
more energy efficient,” Sharpe says. “Many
offer incentive programs and can direct you
to other organizations who offer rebates to
make the energy-efficient transition more
palatable.”
After your energy audit, you’ll need to
strategize a plan of action and goals, and
then formally deliver the message to
employees.
“You first need to survey your facility to
determine which, if any, components will
need upgraded,” Wissman says. “Next, set a
goal for the amount of feasible reductions
you want to achieve with help from your
utilities provider or ENERGY STAR. Then
set a budget based upon payback time for
the savings.”
Assigning an employee to manage energy
initiatives and communicate them to the
staff will help keep everyone involved and
informed about the process. You may want
to take things a step further and provide
training to employees that can explain
operating methods and procedures to
reduce energy use, along with ways to
monitor and report collected data. ENERGY STAR provides free online training sessions for employees and is a good place to
start.
“Seek employee education through your
utility provider, ENERGY STAR or city
hall,” Sharpe says. “Educating your staff
can even be as simple as finding a reputable local source through an online
search.
“Energy costs are predicted to continue
to rise, so looking at ways to streamline
your energy use now is a smart move.
Many companies are inadvertently sloppy
with use and have formed bad habits of
energy use that really hit the pocketbook.”
When establishing a project timeline,
consider attainable energy grants, rebates
and tax breaks weighed against necessary
operational changes to accomplish goals.
Once you know what you need to change
to be more efficient and what finances you
have available, you’ll be able to better chart
progress and predict the time frame for the
return on your investment.
“You can save 10 to 25 percent on energy
bills by being more energy conscious and
another 25 to 50 by utilizing the best equipment and materials,” Melink says. “You can
go down to nearly zero dollars by using
renewable solar and wind — after the time
elapses for the return on your investment.”
