Boosting Your Bottom Line: A Guide to Energy Efficiency for Small Businesses

Small steps backed by data can help save money and reduce energy waste.

Provided by Xcel Energy

October 7, 2024 at 5:00AM

Small businesses are anything but small when it comes to energy use – and the cost of energy certainly does not feel small to their owners and operators! Small businesses use energy worth over $60 billion annually, with an average monthly bill for commercial properties in the U.S. of approximately $650. Finding ways to be more efficient offers relief both to business owners and to the community as a whole – reduced energy usage makes the local energy grid better able to serve customers even when demand is high and can reduce carbon emissions.

A smart place to start is with a comprehensive energy assessment and analysis, complete with energy-saving recommendations from a trained expert. Energy advisors both understand the many ways small businesses can improve efficiency and reduce costs, and know about opportunities like rebates that might be available in a certain location or for certain types of businesses.

By harnessing the power of strategic investments, small business owners can slash utility bills by 10%-30%, while fostering a cleaner environment. Here are some steps a small business can take to start on its own energy efficiency journey.

Measure Your Energy Use

Measuring energy use is an important first step. It identifies a baseline so owners can track progress and know what works and can identify areas of opportunity for the most potential substantial savings. The average monthly energy consumption for commercial properties in the U.S. is around 6,000 kilowatt-hours (kWh), although this will vary significantly by business.

Different businesses have varying energy consumption patterns, influenced by factors such as location and industry. Start by simply recording your monthly energy use and bills.

To calculate the energy use and cost of specific equipment, multiply a device’s wattage by hours used monthly, divide by 1,000, and then multiply by the kilowatt-hour rate. This allows businesses to identify power-hungry appliances and strategize for cost-effective usage.

Invest in Efficiency

Once you have identified opportunities to improve efficiency, you can look to invest in more efficient versions. Lighting, heating and cooling systems, computers, printers, security systems, and appliances are among major energy consumers.

Investments that tend to offer excellent return include:

  • LED commercial lighting, which uses a fraction of the electricity of even fluorescent bulbs.
    • Lighting sensors, which turn off lights when not in use.
      • Programmable thermostats and zoned HVAC, to deliver heating and cooling only where and when it is needed.

        Use Energy-Saving Practices

        Energy insights and efficiency investments only matter if you put them into use. When everyone at your business makes saving energy a part of their job, the savings can really add up.

        • Start with simple yet effective strategies like turning off lights and equipment when not in use.
          • Adopt paperless practices to reduce the energy consumption of printers and copy machines.
            • Perform regular HVAC system maintenance to keep equipment running at peak efficiency.

              Taking Control of Your Small Business’s Energy Consumption

              Analyzing energy costs, understanding usage patterns, and making informed adjustments are crucial steps for small businesses to take control of their energy consumption. Even minor changes, like encouraging employees to unplug devices and implementing energy-efficient practices, can lead to savings. By embracing energy efficiency – and ensuring that all employees are efficiency advocates – small businesses can contribute to a greener planet while enhancing the businesses’ financial stability.

              The journey toward energy efficiency is not only an environmental responsibility but a strategic move for small businesses looking to thrive. By adopting a proactive approach, small business owners can navigate the energy landscape, reduce costs, and pave the way for a sustainable and prosperous future.

              Visit Xcel Energy’s business services website for more information on ways to control energy costs or to schedule a Business Energy Assessment.

              Visit bizenergyhq.startribune.com to view more tips from Xcel Energy and discover how your business can start saving money and energy today.