Energy costs can account for a significant portion of overhead expenses for many companies. Indeed, any steps to optimize energy use or invest in efficiency upgrades typically lead to quick payback and ongoing cost reductions. Energy savings then flow directly to the bottom line as increased profitability.
In addition to financial benefits, efficient energy use allows businesses to lower their carbon footprint. With sustainability becoming increasingly important for company branding and reputation, energy efficiency is a key part of corporate social responsibility.
In this guide, we explore five simple strategies for companies keen on improving their energy performance and reap the many benefits increased efficiency provides.
Conduct an energy audit
The first step for any business looking to improve efficiency should be conducting an energy audit. Put simply, this involves a detailed assessment of all the energy-consuming systems and processes within a facility. For example, an energy auditor will survey the building envelope, HVAC systems, lighting, appliances, equipment, and controls. They will then identify opportunities to optimize energy use and provide recommendations including getting a more affordable business utilities provider.
Most businesses benefit from at least a standard energy audit every 3-5 years while more comprehensive audits may be recommended for large, energy-intensive facilities.
Audits provide critical information that sets the foundation for an effective energy management strategy. All opportunities for efficiency gains are identified, allowing the business to prioritize upgrades that offer the best return on investment.
Upgrade to energy-efficient lighting
Lighting accounts for 15-30% of energy use in commercial buildings. Upgrading to energy-efficient lighting is therefore one of the fastest payback efficiency measures you can take. Recent advances in lighting technology along with declining costs also make lighting upgrades a prime target.
Some lighting options to consider include:
- LED Lighting uses up to 25-80% less power than traditional incandescent or fluorescent lighting and has a longer lifespan and better light quality.
- Compact Fluorescent Lamps utilize about 75% less energy and last up to 10 times longer than incandescent bulbs. They are a cost-effective efficiency upgrade where LEDs may not be feasible yet.
- Natural Lighting. This involves the strategic use of skylights, light tubes, and windows to maximize free natural daylight in interior spaces.
In addition to upgrading bulbs, a full lighting design assessment is recommended to right-size lighting for each unique space.
Improve HVAC efficiency
Heating, ventilation, and air conditioning (HVAC) systems are usually the biggest consumers of energy in commercial buildings. Keeping these systems properly maintained and upgraded means you can save a huge amount of money in electricity costs.
To get started, perform regular maintenance and tune-ups of all HVAC equipment. This ensures they operate as efficiently as designed. Air filters should be changed 3-4 times per year. You can also upgrade older HVAC units to new high-efficiency models.
Other ideas here include:
- Install programmable thermostats to set back temperatures when spaces are unoccupied
- Check that ductwork and piping are well insulated. Seal any air leaks throughout the system using mastic sealant or metal foil tape.
- Make sure air intakes and returns are unobstructed and replace filters regularly
- Have a professional commission or tune up the HVAC system annually before peak season
Replace old appliances and equipment
Commercial appliances, electronics, and other equipment can consume a considerable amount of energy over their operational lifetime. As this equipment reaches the end of its useful life, replacing it with new high-efficiency models can significantly save energy and money. Some equipment to evaluate for efficiency upgrades include:
Office equipment like computers, printers, copiers, and monitors
For these, look for ENERGY STAR-certified models that use about 35% less electricity than their older counterparts. Also, enable power management settings which put equipment to sleep when not active.
Kitchen appliances like refrigerators, dishwashers, and cooking equipment
Again, these should be upgraded to ENERGY STAR-certified appliances. New units also incorporate better insulation, controls, and design features to cut energy waste.
Water heaters
Look for “heat pump” water heater models which can be over 300% more efficient than conventional resistance element heaters.
Industrial electric motors
Replacing those 10-20-year-old motors with new premium models can save 5-10% on motor system energy use.
Whenever older equipment requires replacement, always emphasize replacing them with ENERGY STAR-certified models with the highest efficiency ratings. The incremental cost is typically recouped within a few years through energy savings over the life of the equipment.
Encourage a better culture around energy use
Installing efficient equipment and systems is an important strategy but only part of the equation. To sustain maximum efficiency, you need to engage and work together with the people within your organization.
For starters, help employees understand the environmental and financial benefits of energy efficiency and get their buy-in to actively participate. Some ways to encourage behavioral changes on this front include:
- Provide regular communications about the company’s efficiency initiatives and goals. While at it, have managers and those in leadership lead by example.
- Train staff on energy-saving best practices like how to power down equipment, adjust thermostats appropriately, and identify wasteful behaviors.
- Configure computers, monitors, printers, and other office equipment for energy-saving modes by default.
- Consider providing small rewards or recognition for those who actively participate in efficiency efforts. This could be a monthly drawing for gift cards or shout-outs in company newsletters.
Conclusion
Becoming a more energy-efficient business comes with tremendous benefits to the bottom line while also reducing its environmental footprint. The five strategies we covered here is a good place to start if this is an area you are prioritizing this year.
And no, you don’t need to do all this. Adopting even a portion of these recommendations can help your company realize meaningful efficiency gains.
What’s more, energy management, like most things, needs to be an ongoing process. With persistence and commitment to addressing energy use, your businesses can realize significant triple-bottom-line benefits – reducing costs, strengthening brand value, and minimizing environmental impact.
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