The Case For Action
The financial reasons to make your business more energy efficient.
In recent years, rising energy prices have had a real impact on many businesses. It’s reached the point where 62% of small businesses worry about the cost of their next bill.[1]
Energy waste also has a huge impact. Due to inefficient use of energy, Australians are spending billions of dollars more than they need to on electricity, gas and fuel.
Cutting energy waste out of your business won’t just save you money. As this section will show, it can make a real difference to the productivity and efficiency of your organisation. Being energy efficient can also boost the resilience and value of your business.
A 1% improvement in Australia’s energy efficiency would boost our economy by up to $1.5 billion [2]
How much can Australians save on energy bills?
Australians are spending billions of dollars more than they need to on energy bills.
A 2013 report by Vivid Economics showed that a 1% improvement in Australia’s energy efficiency would boost our economy by up to $1.5 billion.[3]
Their research also showed that if we kept up that level of annual improvement, Australia’s economy would gain an extra $8 billion by 2020 and $26 billion by 2030.[4]
These energy savings are not just restricted to electricity and gas. If we caught up with European fuel economy standards, by 2024 we could collectively save $8 billion on petrol. For the average driver, that would be a saving of up to $850 per annum.[5]
What SME owners think about energy efficiency
Research commissioned on Australian small and medium enterprises (SMEs) for ‘My AGL IQ’[6] found that:
over 80% feel it is worthwhile making the effort to reduce energy use in their business
62% worry about the cost of their next energy bill
73% feel that more efficient use of energy would save them money
50% regularly review their energy costs
50% indicated a lack of concern from employees when it comes to energy use at work.
How energy efficiency increases the value of your business
With rising energy costs, an investment in energy saving measures can directly contribute to an increase in the value of your business.
When a company moves to buy another business, one of the key things they look at is operating costs. One of the biggest costs for any business, apart from staffing, is the amount of energy it uses.
By investing in energy efficient equipment and machinery, you immediately reduce the operating expenses of your business and improve your margins.
If you ever move to sell your business, this will make your books look better and shows that your business is efficient.
Reinvest your savings
Any savings you make in energy costs can be reinvested to further reduce your energy bills.
This includes upgrading equipment and creating your own energy with solar panels.
This will help to protect your business from rising energy costs and can increase profitability.
Depending on where your business is based, you may be able to generate revenue by selling surplus solar electricity to the grid. You may also be able to store solar energy and use it during times when electricity is charged at peak rates.
Energy waste costs Australian businesses billions of dollars every year.
