3 Benefits of Energy Efficiency
Business owners are discovering that energy efficiency is the best way to save money. Once thought of as an uncontrollable expense, energy is actually a very controllable cost. A business’s bottom line can be affected in many ways. From lower utility bills to higher productivity, energy use can have a significant impact on its bottom line. A recent report from the UK government found that 39% were saved on energy bills due to energy efficiency. Those savings equate to PS3.7 billion!
Lower utility bills
Most people think of energy expenses as an ongoing cost of home or business ownership. They assume that energy efficiency means expensive renovations. You can reduce your energy expenses by changing your behavior and purchasing energy efficient appliances. You can lower your monthly electricity bill by using energy-efficient lighting or programmable thermostats. You will be more protected against sudden rises in energy prices by increasing the energy efficiency of your house.
Energy efficiency also has significant benefits for utilities. They can reduce the costs of generating electricity, replacing power plants, and complying with environmental regulations. In addition, they can avoid the costs of building new power lines, substations, transformers, and other infrastructure. Utility companies also benefit from efficiency investments, which can lower their costs and make their services more affordable. Utility costs can be reduced by improved customer satisfaction, fewer interruptions of service, and lower risk.
Energy-efficient design improves comfort levels in the workplace. Energy-efficient equipment is quieter, consumes less energy and allows workers to concentrate more. Similarly, improved lighting can boost productivity by increasing accuracy and quality control. These energy-efficient technologies are becoming a priority in policy. However, they are not without controversy. However, there has not been a systematic approach to energy-efficient design that has produced definitive results. Research on the impact of energy-efficient design on the bottom line was scarce until recently.
Energy efficiency improves fuel security. Australia is becoming more dependent upon oil imports. The country consumes almost 90 percent of its oil. Energy-efficient improvements in Australia’s light vehicle fleet could cut demand for imported oil by 66 billion barrels by 2024. Increased productivity can also improve the economy’s fuel security. Electrification will also reduce the need to import oil. Therefore, boosting productivity will benefit both businesses and households.
Electricity system benefits
Not only can energy efficiency programs reduce energy costs but they also help to lower utility bills. State utility regulatory agencies have made it mandatory for investor-owned utilities to implement energy efficiency programs. While these programs reduce utility bills for consumers, they can reduce revenues for utilities. In some cases, the utilities compensate these costs through higher rates. These programs may lose their value due to a variety of factors. These are just three examples. – Improved Insulation of buildings enables energy efficiency.
- Lower electricity demand. Energy efficiency measures reduce demand and therefore reduce the cost of electricity. Electricity bills will drop and power bills are less volatile. – Deferred investments in transmission and distribution capacity. – Reduced fuel demand from other sources. – Reduced demand will result in a reduced need for new capacity. – Lower electricity costs. Energy efficiency projects can help consumers save money by reducing their demand. – Energy efficient projects will create more employment.