Demystifying Energy for SMEs
Electricity is a significant monthly cost for small businesses, with much of the usage occurring throughout the day. But what if using power throughout the day could be turned into cost savings for business owners?
By understanding how energy works, the specific usage patterns of the business and opportunities for better deals, small businesses (SMEs) can take back control of their energy consumption, costs and carbon footprint.
In fact, achieving better energy efficiency is one of the simplest and fastest ways SMEs can save money and improve their environmental performance.
Why should SMEs regularly review business energy efficiencies?
Energy use impacts nearly every aspect of business operations, from lighting and heating to machinery, IT, and production. With energy bills often considered ‘simply a necessary part of doing business’, it often takes an unexpected spike in costs to make business owners re-evaluate energy alternatives. At a time of fluctuating energy prices and tightening of environmental regulations, strategic energy management for businesses is no longer optional - it's essential.
Here’s what SMEs need to know:
Understand how you’re using energy
- Start with your energy bill: Many SMEs don’t know where or how energy is being used — and that’s the biggest barrier to action. Before you experience bill shock, pull out your last energy bill and look at the facts – supply charge, network charges, tariffs for use at different times of the day, and demand charges. Look for trends that highlight when usage is rising, and compare your energy rates to the market averages.
- Track and monitor: It’s all well and good to see how much energy you're using – the key insight will be how energy is used. Smart metres can help to track and monitor your energy usage patterns in real-time. Knowing this information as it happens helps to spot inefficiencies, like out-of-hours usage or equipment left running.
Take Action
- Look for easy ways to save: One of the most common energy guzzlers is inefficient lighting, such as old fluorescent tubes being used instead of LEDs. This is an easy, quick fix that can save significant money. Changing to LED lighting can reduce lighting costs by up to 80%. They last longer and pay for themselves quickly.
- Shop around for the best energy deal for your business: Regularly reviewing your energy contract and comparing providers can lead to substantial savings. Speak with an energy provider that specialises in energy solutions for SMEs, such as Nectr, to receive tailored advice for your business. Nectr Business Buzz is a business energy plan designed to deliver competitive rates, reliable service, and sustainable energy solutions tailored for small and medium sized businesses.
- Timers and Controls: Install heating and lighting controls to ensure energy is never wasted.
- Nurture energy champions: Create an energy-aware business culture that encourages employees to turn off unused equipment and report energy waste and inefficiencies. By making energy management everyone’s responsibility, costs can be managed or reduced, creating better business and environmental outcomes.
Think long-term
- Investment in solar panels and battery storage can be a game-changer: Clean, green solar power can power business operations and reduce the amount of energy being pulled from the grid. Adding battery storage can further reduce energy costs by using stored energy when the sun isn’t shining. There are various government grants and incentives to help SMEs shift to renewable energy sooner, particularly for those interested in solar and battery storage. Short-term outlay can result in long-term savings – it’s worth investigating solar and battery options now through reputable providers such as Nectr.
- Upgrade: Poor insulation or heating systems, equipment being left in standby mode, or inefficient refrigeration and cooling systems are all common culprits for energy wastage. Upgrades such as insulation and building fabric upgrades, or high-efficiency HVAC systems, can incur a high upfront cost, however, they can lead to long-term savings.
By understanding how energy is used and taking action, SMEs can unlock savings, reduce their environmental impact, and gain a competitive edge.
For advice tailored to your business needs, contact Nectr to speak with a small business energy specialist.
