I'm Spending Too Much On Energy
THE PROBLEM
How do I reduce my energy costs?
There are four (4) ways to reduce your energy costs:
- Procure from lower-cost suppliers.
- Reduce your energy usage.
- Engage in peak shaving to reduce your Capacity & Transmission costs.
- Make money with your backup generator by participating in grid-support programs.
Procure from Lower-Cost Suppliers.
Companies in states with deregulated electricity markets can purchase from alternative, lower-cost suppliers. Yet over 70% of companies still subscribe to their default local utility tariff at a premium price. Significant savings are available by changing your energy supplier.
Electric Supply Option
Reduce Your Energy Usage.
Reduce your energy consumption, without compromising your operation, by installing energy efficiency upgrades, such as LED lighting, upgrade HVAC, and by electrifying your operations.
Engage in Peak Shaving to Reduce Your Capacity & Transmission Costs.
Up to 50% of your monthly electricity bill may be due to Capacity & Transmission costs related to delivering power over long distances across high-voltage lines. Such charges are often determined by your energy draw across a handful of hours each summer during peak times. Reducing or eliminating your power demand by shifting to batteries or a genset during those hours is called “Peak Shaving,” and it can eliminate these costly charges.
Make Money With Your Backup Generator
If your operations are flexible and you can shut down some equipment on demand, the grid will pay you. This pay-for-load-reduction is called “Demand Response.” Such programs are available in many deregulated markets. Also, as discussed above, a backup generator can be used to provide demand response without you having to reduce your usage, or even allow you to sell power back to the grid at a profit. In some geographies, using a backup generator in this manner can result in a free generator.