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For many organizations, energy efficiency has become a top priority. These companies understand that by reducing their energy consumption and implementing energy optimizing strategies, they can reap the multiple benefits of energy efficient solutions. These benefits include:
It is important to understand the difference between energy efficiency and energy conservation. While many use these interchangeably, these words are quite different in the energy world.
Energy Efficiency means using less energy to perform the same task, such as lighting a room or heating a building. Technology is usually involved in this type of energy solution. For example, lighting a room uses less energy if LED lights are installed.
Energy Conservation is to prevent energy waste or not using energy at all. It typically involves changing a person’s behavior, for example, turning off the lights when leaving a room or turning down the thermostat on a cold day so the heater doesn’t run as often.
Energy efficiency upgrades may take more time and resources, but they will also save more money in the long run.
Now that we’ve got that cleared up. Let’s discuss the many benefits of energy efficiency:
Energy efficiency is a very effective way to reduce costs for your organization. The EPA estimates that by taking a staged approach to energy efficiency, most buildings can reduce their energy use by 30%. If major capital upgrades are implemented, even larger savings can be generated. Reducing energy consumption in an existing building by 20% to 30% can deliver savings ranging from 6% to 9% to total annual costs.
Money saved from energy efficiency directly impacts your organization’s bottom line and can improve profitability. Often, energy is viewed as a fixed operating expense. Fortunately, this is not the case. A variety of energy management strategies can be put in place, improving energy efficiency while also decreasing an organization’s operating costs, which can increase their bottom line.
An organization can use savings gained from implemented energy optimization initiatives to fund additional energy efficiency projects or pay for other core business needs. We call this Making Energy an Asset®.
Energy efficiency is a way to reduce not only your energy consumption but also a way to improve sustainability. A sound energy optimization strategy can help bridge the gap between your existing carbon footprint and your company’s decarbonization goals. Commercial, industrial, and even transportation use an astounding amount of energy. In 2020, transportation was 27% of U.S. greenhouse gas emissions, and the industrial sector was 24%.
Organizations with a high level of energy use are confronted with both a challenge and an opportunity for decarbonization. The simple act of updating your organization’s lighting system with LED lights can quickly and significantly reduce the amount of electricity consumed and help achieve carbon reduction goals.
Sustainability can help beyond lowering an organization’s carbon footprint. Business leaders are coming to understand that sustainability is worth the effort – both in environmental and economic terms. A recent study by McKinsey found that “sustainability programs are not only strongly correlated with good financial performance but also play a role in creating it.”
Most people realize that energy efficient initiatives will save energy and money. Many don’t recognize that energy saving projects often produce benefits beyond energy and cost savings. It is important that facility, energy, or operations managers understand how an energy solution can also support overall corporate goals. Energy efficiency and productivity go hand in hand.
Consider a manufacturing plant where an electrical disruption can be costly and greatly affect productivity. A power disturbance can cause expensive equipment failures, prolonged machine downtime, and inconsistent or poor product quality. Energy management strategies that are put into place can improve the resiliency of the facility, which ultimately affects productivity as well as asset performance.
Let’s not forget another type of productivity – people. If employees are comfortable, they will be more productive. Energy efficiency projects that tackle things like improved lighting, better air quality and circulation, and proper temperature can make a big difference in productivity.
More organizations are realizing that energy efficiency can be a key part of a business strategy. But how does energy efficiency provide a competitive advantage? Using energy more efficiently can reduce costs, optimize operations, advance decarbonization, and increase profitability.
Furthermore, organizations can leverage a competitive advantage by doing something mentioned earlier – Making Energy an Asset®. It can be a key differentiator that helps your organization achieve its business goals faster. An example of Making Energy an Asset® is when an organization uses savings attained from energy efficiency initiatives to fund growth activities within the business.
The fact is – energy efficiency isn’t just about financial benefits. A reduced carbon footprint is often a result of energy efficiency. As sustainability, decarbonization, and energy efficiency topics rise on corporate agendas, consumers are paying more attention to how an organization’s operations impact the environment.
Organizations that are improving energy efficiency and sustainability have the opportunity to boost their brand reputation as well. According to a Global Sustainability Study 2021, “Companies that don’t have sustainability as part of their core value proposition need to act now to protect against future reputational impacts and loss of market share.”
With the rise in social awareness concerning the environment, this might be the right moment for your organization to begin the transition to become more energy efficient.
Energy efficiency has become a critical piece of the puzzle for many organizations. Energy optimization reduces energy waste, drives down costs, and reduces carbon emissions. It can also improve profitability and productivity, be a competitive differentiator, and enhance a brand. Major brands, large corporations, and local businesses are realizing the tremendous return on investment they are able to achieve through energy efficient solutions.
Chateau Energy assists organizations in creating and implementing an energy solution that cuts energy consumption and costs and provides immediate value and long-lasting results.
Our Energy Consultants can create and implement energy efficient solutions to meet your organization’s complex needs and goals. Our approach is collaborative, with teams working together to develop customized solutions that address the opportunities and challenges unique to your business.
Ready to get started on the path to energy efficiency and sustainability?