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Protect the Environment and Cut Costs With Simple Energy Upgrades

Becoming an environmental steward helps the earth, reduces costs, and creates goodwill among employees, clients and customers.

(Part two of a three-part series.)
In the energy crisis of the 1970s, conservation meant lowering thermostats in the winter, raising them in the summer, and sacrificing comfort. Since then there have been advances in equipment, appliance, and product technology. As a result, you can get inexpensive off-the-shelf products that are environmentally friendly, longer lasting, and provide higher comfort for less money than you are currently spending.

A business with annual energy costs of $25,000 can save $7,500 per year based on a 30 percent reduction in energy use. For each kilowatt-hour that you save through energy-efficiency technologies, you reduce greenhouse gas emissions, which cause global warming, acid rain, and smog. But how do you go about implementing a comprehensive efficiency upgrade program—and where do you start?

Analyze Current Energy Use
Once you have decided to improve the energy efficiency of your building or rental property, a comprehensive analysis of the whole building is recommended. (See Eco-Friendly Measures are Good for the Environment and Business.) This analysis should look at current energy use and potential options for improvement along with costs and potential savings returns. EPA’s free Portfolio Manager tool enables you to measure, set goals and track energy use. In addition, you can measure the impact of your actions through cost savings and carbon reduction, and compare your energy usage to other similar small businesses. Free and low-cost energy audits are often available from local utility companies and contractors. Based on your findings, it will be easier to decide which energy-efficiency upgrades will make the most sense for you.

Steps for Energy-Efficiency Upgrades
It is important to organize a strategy for putting potential upgrades on a timeline. It is typically most helpful to upgrade in steps and have those projects build upon past completions to maximize potential energy savings, minimize investment requirements, and improve comfort and profitability for your business. The following categories highlight the most common energy wasting culprits.

Lighting
Many retailers and offices spend half of their electric bills on lighting, so it makes sense to address lighting first. Efficient lighting pays for itself quickly and often improves lighting quality, which can boost worker productivity and enhance the appearance of your environment and merchandise. Lighting upgrades such as installation of compact fluorescent lamps (CFLs), switching from T12 florescent lamps with magnetic ballasts to T8 or T5 lamps with electronic ballasts, and installing light-emitting diode (LED) exit signs are relatively simple to implement and can reliably deliver cost savings. It makes the most sense to upgrade your lighting before changing your heating or cooling systems because increasing lighting efficiency lowers air-conditioning requirements. In the summer, you are adding heat to your building by using older incandescent lights causing your cooling system to use more energy. For example, ENERGY STAR-qualified CFLs use 3/4 less energy than a standard incandescent bulb and last up to 10 times longer and can save $30 or more in energy costs over each bulb’s lifetime. CFLs also generate 70 percent less heat, so they are safer to operate and can cut energy costs associated with cooling. Additionally, lighting controls such as occupancy sensors, bi-level switching, and daylight dimmers will decrease the time lighting is in use.

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Resources

Finance»
An objective site for your personal financial needs, including advice, calculators and rate comparisons. Small business section includes calculators to determine debt to asset ratios, gross profit margins, operating profit percentages.
Accounting»
Everything you need to account for every dollar—CPAs, software, etc.
Taxes»
Want to save on taxes? Find the best resources for small business tax management here.  
Legal and Regulatory Info»
Protect your business and your intellectual property. Learn where you stand on government regulation.
Government»
How can government help your business? We help you count the ways.
Technology»
Need a shortcut out of a tech jam? Are you confused about how to use technology to boost productivity? You’ll find all the experts here.
Travel»
Looking for trade shows and industry meetings to help your business grow? Need great deals on business travel. This is the destination.
Estate Planning»
Worried about holding on to your assets and taking care of your family? Estate planning experts can help.

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