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When you look for ways to enhance your profit margin, energy management is a logical place to look for changes. Doing an energy audit or switching to energy-efficient lighting, two key steps in an energy management program, can have a significant impact on the bottom line.

Yes, as the operator of a large facility or multiple large facilities, you will need to make an investment–perhaps substantial–to get the ball rolling on energy management, but the data compiled by the U.S. Department of Energy’s Energy Star clearly indicates that the savings will be real, and that you will begin to realize them in fairly short order. Energy Star notes, for example, that the average commercial building wastes 30% of the energy it consumes.

Understanding energy management strategies can help your business benefit fiscally, but it has other advantages as well. If you’ve not explored this area before, take time to review key property and behavioral changes that can boost your business’ profits, improve productivity and increase safety.

Switching to LEDs

One of the biggest ways to reap savings comes from small sources—your lighting. The newest generation of bulbs, light-emitting diodes or LED lighting, offers more bang for your buck than traditional lighting options such as standard filament (incandescent), halogen and fluorescent strips. LED bulbs can last far longer than other lighting choices, with a range of 20,000 to 70,000 usage hours, while the average lifespan of incandescent bulbs is a diminutive 1,200 hours. LEDs also outdistance another energy-saving choice, the compact fluorescent lights (CFLs), by four to five times the lifespan.

Fewer replacements mean lower direct and indirect costs, as well as reduced hazard potential. When you switch to LED lighting, you’ll spend less money replacing bulbs, and you also won’t be bogged down with frequent, time-consuming production delays while new bulbs are installed.

But the biggest bonus is in the energy reduction. Not only do LEDs last longer, they use just a fraction of energy (up to 80% less) of conventional lighting and throw off far less heat, which can reduce your need for cooling and air conditioning. Remember that halogen and incandescent bulbs produce light as a by-product of heat and release up to 90% of their energy as heat. LED bulbs, by contrast, provide light as their foremost function and release little heat. Switching to LED lighting means your organization can start seeing an almost immediate return on investment as monthly electric bills plummet.

Changing behaviors

To make additional and meaningful cost reductions, look at your workforce. Profit improvements can be made by modifying behavior to be more energy efficient. Although behavioral changes aren’t as easy as replacing light bulbs, new habits can be learned over time, especially when they are embraced as a whole organization.

Among ways to save costs and conserve energy:

• Perform routine maintenance on equipment, especially on HVAC systems.
• Install or use fans to assist HVAC systems.
• Keep the thermostat low on weekends and after hours.
• Institute practices to keep vents clear and unobstructed.
• Inform employees which equipment can be shut off when not in use.
• Use laptops, as opposed to energy-hungry desktop computers.
• Make it a practice to turn lights off when areas are not in use, or install motion detectors.

Whenever possible, select energy-efficient windows, appliances and equipment, such as those labeled as Energy Star certified. These products are designated to save significant energy and meet stringent industry requirements.

Conduct or commission an energy survey

With your managerial and technical leaders, perform a survey of energy usage, and consider areas such as industrial processes, refrigeration, HVAC, and building controls. You can also commission an in-depth survey by an independent source.

Monitor business energy consumption and try to avoid high usage during peak times, as your costs may be increased during these peak hours. Talk to your local utility company about peak and off-peak programs and pricing. It may be worthwhile to run heavy equipment later in the evening, when electrical rates are lower.

Commitment

Change starts at the top. Create a written statement of senior management’s commitment to energy conservation and its environmental impacts. Include strategies, such as procurement of equipment and procedures, which outline how energy saving methods will be applied.

Using tax credits, rebates

Not all improvements need to be out-of-pocket costs, either. Businesses may find credits, grants or reimbursement options to help fund energy efficient lighting, equipment or HVAC changes through various programs. Federal tax credits have been available previously for property owners making energy efficient upgrades. These may also be extended in coming years, but local utility rebates or state program options are currently possible. You can check out the Federal Energy Incentive Program for a list of funding opportunities available in each state. Learn about the program in Ohio at ofb.ag/energyincentive.

Remember, embracing energy efficiency in your organization need not be a dramatic or costly investment. Even small steps, like swapping out light bulbs, will make a difference that you’ll see reflected in your bottom line. And as energy management practices are incorporated as a company goal, with the support of corporate leaders, the benefits will only increase.

About Grainger

Grainger is a long-time Ohio Farm Bureau member benefits partner. Farm Bureau members get exclusive prices on select products and supplies from Grainger, plus free standard ground shipping on all standard Grainger products. Learn more

For more on Grainger’s  environmental solutions, visit ofb.ag/graingersolutions.