Energy-efficiency upgrades serve multiple purposes. They reduce overall energy costs, the level of exposure your business has to grid instability, and your business’s carbon footprint.
It is important to factor all of these in when calculating your return on investment (ROI).
Crucial Measurements
Before expending capital on implementing any kind of energy efficiency upgrade, you need to know exactly what your energy consumption is. This means carrying out a comprehensive energy audit of every aspect of your operations.
Without this baseline data in place, it is impossible to know where improvements can and should be made or how those improvements would contribute to reducing your overall energy usage.
A similar audit needs to be carried out after the interventions have been implemented so you can more accurately compare the before and after.
Reducing Overall Energy Costs
Topline energy costs are the first thing you’re going to want to see improve when you implement energy-saving initiatives.
Put simply, you want to see your electricity bills reduced enough to translate into savings that can effectively pay off the investment you made in upgrades.
Reducing Exposure to Grid Instability
Planned loadshedding and unscheduled power cuts have plagued South African businesses for about 15 years. Businesses that have proactively reduced their reliance on the grid, such as by minimising energy consumption and installing solar power systems, have shown greater resilience to grid instability compared to those fully dependent on the grid.
By reducing their exposure to the grid, these businesses have mitigated the impact of power outages, ensuring uninterrupted operations and flowing productivity. This operational continuity contributes significantly to the business’s overall financial performance and return on investment (ROI).
Reducing Carbon Footprint
Over the past decade, the fight against climate change has risen to a fever pitch, with investors around the world focussing on sustainable energy usage as a key metric and deciding factor.
Businesses that fail to reduce their carbon footprint and implement sustainable energy consumption measures are already recognising difficulty in securing financing and/or clientele.
Therefore, reducing your carbon footprint is no longer just a matter of good public relations but is now crucial to determining the future success and longevity of your growing business.
Therefore, when calculating the ROI of your energy efficiency investments, it’s crucial to consider the potential financial losses incurred due to lost revenue and missed growth opportunities that could have resulted from grid instability had your business not prioritised sustainable energy consumption.
Energy Management Solutions will help you determine the best way to save on your energy expenditure and maximise your return on investment. Contact us now to get started.