Energy Efficiency and Your Bottom Line
As the common saying in business goes, you need money to make money. But what if you want to save money?
Energy efficiency should be an increasing consideration for savvy business owners who want to minimize their risk of future utility price volatility eating into their bottom line. Therefore, creating an energy strategy can create new sources of competitive advantage for those looking to improve their bottom line performance and win new customers in the process.
Here are some common mistakes that business owners make when considering the cost of their utilities
1. Treating utility costs as fixed.
While future rates will always be uncertain, the amount of energy your business consumes is not. While your business will undoubtedly use electricity and natural gas, the amount you use can be significantly reduced, more than 50% in some cases through energy efficiency technology.
2. Avoiding the investment in efficiency measures to save in the short-term.
What many do not realize is that short-term savings can have long-term effects that negatively impact your bottom line. Many businesses already intend to take control of their energy costs through efficiency measures. Forbes states that 57% of approximately 500 executives surveyed, planned to invest in energy efficiency technology, as it has become increasingly viewed as a smart operational practice to improve bottom line performance and derive competitive advantage in the market.
Saving on lighting, for example, by choosing CFL or Incandescent options over LED will end up costing you up to twice as much on electricity, maintenance costs and bulb replacements over the long term. Click here to view our infographic on the cost differentials between different types of lighting when you account for all the hidden costs involved.
3. Wasting resources instead of reinvesting in the business.
According to Energy Star, organizations waste approximately 30% of their energy costs through inefficiencies. Investing in efficiency can result in instant positive cash flow that can be used to reinvest in your business. Moreover, building owners can benefit from increased asset value as efficient buildings statistically sell at a premium and receive higher rents when compared to inefficient buildings.
4. Not taking advantage of incentives when available.
In 2017, 2100 businesses in Alberta took advantage of the Business Energy Savings program to claim over 3.5 million dollars in rebates. The program, however, is changing but you can still receive rebates for up to 35% of the cost to replace, old inefficient equipment.
Click here for more information on Energy Efficiency Alberta’s Business Energy Savings program.
5. Positive marketing effects.
Lastly, going green will never hurt your brand image. Letting people know that you’ve gone energy efficient can be leveraged to attract a new market of consumers that are focused on purchasing green and sustainably.
LEAP Energy Solutions is one of Alberta’s first electrical utility companies providing energy efficiency solutions, electrical contracting services and operating as a government-bonded competitive electricity retailer. At LEAP Energy, our goal is to help Albertans control their energy costs by providing our customers with a strategic energy solution.
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