Eco-Friendly Measures are Good for the Environment and Business
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(Part one of a 3-part series)
As a small business owner, you probably don’t know or care too much about kilowatt-hours or therms when you pay your monthly electricity or gas bill. Perhaps it’s time you did. Whether you rent or own your building, you want to pay the lowest possible amount for lighting, hot water, air-conditioning, and other energy services, right? By becoming more energy efficient, you can improve your financial bottom line even as you reduce greenhouse gas emissions that are harmful to the environment.
The nation’s small businesses spend more than $60 billion on energy each year. Thanks to advances in technology and a proliferation of energy efficient products and appliances, small businesses that invest strategically can cut utility costs 10-30 percent without sacrificing service, quality, style or comfort—while making significant contributions to a cleaner environment. In fact, small businesses can typically save as much money and prevent as much pollution, per square foot, as large corporations. Consider a business with annual energy costs of $25,000. If a comprehensive efficiency upgrade program reduces energy use by 30 percent, this business can save $7,500 per year.
In addition to the obvious savings in energy costs, there are often other benefits that are quite real, if indirect.
Operations and maintenance savings. Many energy-efficiency technologies significantly reduce your operations and maintenance requirements, saving money and staff time.
Increased customer comfort. Building upgrades will improve your facility’s appearance, make your products look their best, and provide customers and clients with a comfortable environment.
Increased asset value. Experience has shown that if you own your building, you can protect your asset with regular maintenance and increase its value with efficiency upgrades.
Protection from energy inflation.By installing energy-saving upgrades, you are reducing the monthly expense of your energy bills by investing in capital improvements. Lower energy use will always result in lower cost—even more as energy prices rise.
Marketing benefits.Your participation in the ENERGY STAR for small business program communicates your commitment to environmental stewardship. This message differentiates your business from competitors.
Better employee productivity. Due to enhanced comfort and improved lighting conditions, you may well increase staff productivity.
Your exact mix of indirect benefits will vary by business type and upgrades performed. However, for many projects, these indirect benefits could be worth several times the money you save in energy alone.
Pollution Prevented Through Energy Savings
Depending on your utility’s fuel source, for each kilowatt-hour (kWh) that you save through the application of energy efficiency technologies, you are reducing the emissions of carbon dioxide, sulfur dioxide, and nitrogen oxides. Carbon dioxide emissions are a primary cause of global climate change; sulfur dioxide is a key constituent of acid rain; and nitrogen oxide is responsible for smog. You will save money and help the environment at the same time, and your customers and clients will appreciate your efforts.
Where to Start
If you’re not sure where to start, begin by joining the ENERGY STAR Small Business Network. ENERGY STAR is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy helping consumers and business owners save money and protect the environment through energy efficient products and practices.You will receive the free monthly E-Update with money-saving tips and news, and you can benefit from the experience of other small businesses.
Next, it is essential to commit to change. No matter the size or type of organization, the common element of successful energy management is commitment.
How to Measure
The next step is to assess your current energy expenditures and establish a benchmark, or baseline of current use. The EPA offers a free tool to small businesses called Portfolio Manager that allows you to measure, set goals and track energy use. This enables you to gain control of, and manage energy expenses.
Once you establish a benchmark (measured in terms of energy intensity— energy consumption per square foot), you can compare your energy usage to other similar small businesses.
Develop and Implement an Action Plan
The next step is often the most challenging for the small business owner: creating and implementing an action plan. Here are some strategies to help you jump-start energy savings for your business with a modest investment of time and money:
- Ask your utility if they offer free or inexpensive energy audits and/or equipment rebates. Local utility companies, Small Business Development Centers (SBDCs) and other organizations may offer free energy audit programs for small businesses to help determine where they are wasting energy and money.
- Invite contractors to your facility to suggest upgrades and provide free estimates. For a list of service and product providers in your area, visit ENERGY STAR’s directory of Service and Product Providers (SPPs).
- Leverage your time by drawing on ENERGY STAR’s expertise, tools and information, including a free guidebook entitled Putting Energy into Profits. This online guide is designed to educate and assist the small business community in achieving the benefits of energy efficiency. Additionally, it can help identify cost-effective opportunities to upgrade building equipment and systems for bottom line savings.
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