Energy Efficiency & Sustainability Consulting

Energy Efficiency Translates to Increased Operating Income

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Image courtesy of Ponsulak/FreeDigitalPhotos.net

Image courtesy of Ponsulak/FreeDigitalPhotos.net

Energy efficiency has quickly become one of the best ways to increase operating income and more and more business owners are joining the ranks of efficiency believers. Why?

Everyone knows electricity is a necessary but expensive line item on a company’s budget. Do you know how you could decrease the amount you spend on electricity? Those savings could be spent on sales and customer service instead. It’s all about your usage; once you realize how energy consumption works, it is easy to reduce it. Energy consumption is based on two important factors: how long your use your lighting, heaters, air conditioners and equipment and the energy use intensity for each device.

Imagine if all of your lights are currently using 312,000 kWh per year and you replaced them with more efficient lights that only use 134,000 kWh per year. Let’s look at a company with the average U.S.. electricity rate of 10.7 cents/kWh. This business could cut their lighting costs from $33,000 down to $14,000 annually. That is more than a 50% reduction just on lighting!

How could your business benefit if it had an extra $19,000 to spend on creating value for the customer?