Is Your Energy Provider Giving 15% ROI?
Smart business owners will continuously look for strategies to improve the efficiency of their operations and processes. A key part of business management is monitoring your expenses and identifying ways to cut costs within your company. This will increase your bottom line and provide you with more capital to invest in developing core elements of your business that will drive growth and profits.
Electricity is a significant expense for all businesses, particularly for those that require a lot of power to operate. Fortunately, there are plenty of ways to lower your electricity costs and save more on your business utility bills. In particular, switching to renewable solar power can reduce your overheads and give you an impressive 15% Return on Investment (ROI). With this in mind, here are some suggestions on how solar and other strategies can cut your electricity costs:
Average business electricity costs
According to experts at BusinessEnergy.com, the average annual electricity bill for companies in the UK is now £3,061, and electricity is typically charged at 14.36p per kWh. This is a huge 100% increase in the average business electricity bills seen 10 years ago. The cost of electricity varies in different areas of the country, but for most businesses, electricity makes up a significant proportion of their monthly outgoings. You can visit energy comparison sites to get details of how much different energy providers charge across the UK. With this in mind, business owners should be mindful of their energy expenses and implement strategies to cut their average electricity costs and maximise their profits. Below, we are going to look at how a solar PV system can help you cut your electricity expenses and achieve a ROI.
Benefits of installing solar energy
Solar power actually provides a ROI, which is something you can’t say you get from the grid. Mypower customers are typically achieving an ROI in excess of 15% with their solar PV system and achieve a 65% saving compared to grid supplied electricity. What’s more, the average payback period for commercial solar panels is just 5-7 years. As mentioned above, electricity prices have increased dramatically over the past decade and this trend is expected to continue. Switching to a solar PV system will safeguard your future energy supply and protect your business from rising utility prices. Solar technology has evolved over the years and modern solar panels are more efficient than ever. Solar installations can be completed quickly by a qualified installer, and you will start to see the benefits straight away.
Other ways to reduce energy costs
Alongside installing solar power, there are various other ways to reduce your electricity costs and make your business more energy-efficient. Here are a few energy-saving tips for your business:
- Have an energy audit carried out to assess the overall efficiency of your business and identify ways to reduce your electricity usage and become greener.
- Upgrade to more eco-friendly office appliances.
- Turn computers and other electronics off from the wall when not in use and have them set to the most economical mode i.e. to auto switch off after five minutes of no use.
- Add extra wall and ceiling insulation in the workplace and seal any cold drafts.
- Use a programmable thermostat to help you maintain an ideal office temperature and reduce wasted energy. You should also try to keep the heating set as low as possible.
- Encourage your team to be more conservative with their energy use by offering green incentives.
As a business owner, reducing your operational costs and improving the efficiency of your business is of course a top priority. Simple changes can have a big impact and greatly improve your cash flow and overall revenue potential. Focusing on reducing your energy expenses is an effective way to lower your average overheads and monthly business bills. Installing a solar PV system will cut your electricity costs by 65%, protect your company against rising utilities, and lower your carbon footprint. This makes it a smart investment for any business looking to improve its processes and reduce its overheads. You can find more information on the benefits of commercial solar PV systems by contacting Mypower here.