Energy – Are You Paying Too Much?

Energy

Over the last 10 years, energy prices have doubled and experts predict a further 50% rise in costs over the next 10. The question is, is this something that you as a business owner can control?

Yes, in short. They are one of the few costs you can control. Key to controlling this cost is understanding where your business currently experiences these high energy costs. When you understand this there are essentially three phases of energy saving tactics that you can employ, depending on how you feel your individual company would benefit most.

Phase 1

General behavioural practices such as:-

  • Switching off electrical equipment when not in use.

Experts have indicated that making this small effort can reduce energy costs by up to 10%.

Phase 2

Investing in more energy efficient equipment like:-

  •  Sensors for lighting
  • Improved insulation
  • Energy efficient white goods

This can generate up to a 30% saving on energy bills, and whilst you have to invest initially, with these changes you can expect a payback period of 1-4 years. Thereafter any savings will be as a result of the initial investment.

Phase 3

Investing in clean and renewable energy sources such as:-

  • Solar PV technology
  • Wind turbine generators
  • Bio-gas generators

Whilst these investments can be costly, in the long term they are the most beneficial. Payback periods can vary but such investments can attract government incentives such as feed-in tariffs which give a fixed rate for every unit of electricity generated on site, even if it’s used for your business.

Regulatory changes

Whilst none have been officially announced, there are rumours of regulatory changes by the government regarding energy efficiency of businesses/buildings. For example, larger firms are going to be subject to energy efficiency audits as of December 2015 as a result of the EU Energy Efficiency Directive.

Experts say 9/10 companies don’t employ any energy saving tactics and are thus spending un-necessarily on energy costs.

Please do not hesitate to contact us at Green and Co if you have any queries.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Image courtesy of digitalart at FreeDigitalPhotos.net

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