How SMEs Can Beat Soaring Utility Costs and Become Energy-Efficient

How SMEs Can Beat Soaring Utility Costs and Become Energy-Efficient

Small enterprises are the ones who get hit the hardest when an energy crisis strikes. When that happens, your operation costs get steeper. It is crucial that you save energy. Now, if your business is among those being affected by rising utility costs, read on.

How Your Business Can Survive and Become More Sustainable

Learn how to manage your costs while you gain more efficiency and beat the impact of the energy crisis using these tips.

Get a free business energy comparison for SMEs.

A business energy comparison can help you get better rates and save costs. You can unveil who among potential suppliers is offering the best deal. Also, you could receive up-to-date prices, especially when prices at the national level go down.

Take note of these when you search for an energy provider:

  • Unit rate
  • Existing charges
  • Type of tariffs
  • What mix of fuel sources produces your energy
  • The reputation of the energy provider

You will receive custom quotes that experts prepare for your business. You can get in touch with them through their online sites, where they use public data to know what your industry needs. This includes the size of your market, its nature, and its target consumers.

It is not a one-size-fits-all service. But they would provide you with tips and facts you need to decide whether you should switch energy suppliers.

Train your staff with energy-efficient practices

Train your staff in energy efficiency to lower energy use. Teach them practices that reduce your operational costs. You can reduce your energy bill by up to 25% with a simple change in one's behavior. Start by showing staff simple acts such as turning off lights and other devices when not in use.

Invest in energy-efficient businesses

Update your flow of operation to save energy. The way people do things today now evolves. Now, you can see products that use lower electricity.

Such devices or items favor Mother Nature by producing low to zero CO2, which benefits the eco-conscious sectors. Plus, it will reduce your long-term costs. You can also find suitable loan aid or schemes to get funds. Take advantage of the financial support the UK government provides. You can also find those which are offered by the private sector. Whichever you choose, find the one that will work for your business.

Take advantage of green tax breaks for SMEs.

Energy-efficient businesses are entitled to green taxes. You can get relief or be exempt if you:

  • Buy energy-efficient technology for your company.
  • Utilize a lot of energy due to the nature of your business.
  • Your business consumes less power.

Below are environmental taxes, reliefs, and schemes that allow you to pay less tax:

  • Climate Change Levy (CCL)

It applies to businesses in the industrial, commercial, agricultural, or public services niche.

  • Capital Allowances on Energy-Efficient Items

You can claim capital allowances with low to zero-carbon technology.

  • Plastic Packaging Tax

It applies to businesses using less than 30% recycled plastic packaging components.

Why Your Business Should Invest in Energy-Efficient Ideas

It takes effort to switch to efficient energy. But it will benefit you in the long run as you generate rewards.

Upscale performance

Your energy savings can help you remain competitive. When you earn more funds, you can give it to the performance appraisal of your staff. It is not enough that you invest in state-of-the-art facilities.

You should also invest in your employees' welfare. Your staff will perform better, and that will result in better performance and more profit in the long run.

Better reputation

You can promote your brand as an eco-friendly company. This way, you can attract clients that support nature-friendly brands. Doing so will also increase customer satisfaction, which can build your reputation in the long run.

Improved branding

Promote energy efficiency to help grow your customer base. Improve your branding through efficient operations. Your brand can reach more people when they find out that you support sustainable products.

Protection of the environment

Make environmental protection one of your business priorities. You will help halt climate change as you make lower Co2 emissions. If other companies and clients notice you support nature-friendly acts, you may be exempt from certain taxes. You will learn more about this below.

Steps You Can Take to Improve Energy Efficiency

It takes time and effort to switch to an energy-efficient business. But, it will help your costs improve later on. Here are steps your business can take to start the change.

1. Understand how your business uses energy.

Familiarize yourself with the ways you use energy in your company. Identify simple no-cost and low-cost energy efficiency solutions. Distribute resources that you can use toward energy efficiency measures.

2. Develop an energy action plan that includes your employees.

Create basic energy management methods. Outline your company's energy targets and implement practices that save energy. Involve your staff and consider the following ways to convince them:

  • Appoint an energy officer within your organization.
  • Form a committee that will carry out your action plan.
  • Track and assess your performance and results.

3. Invest in energy efficiency upgrades and renewable energy sources.

Your energy action plan should identify what group or department uses your energy most. Finding out where you can adjust your measures can help you manage utility costs well. You can see where you can upgrade and where to cut expenses. Consider switching to LED lights and solar panels and investing in a renewable heat source.

4. Conduct an energy audit.

Perform an energy audit that includes professional onsite inspection. The auditor can provide a review of your energy use. It should describe where your business uses the most energy. Additionally, there should be recommendations on how to reduce your consumption. Energy audits help you take successful steps toward energy efficiency and lower utility costs.

5. Track your company's energy-efficiency improvements.

You can do it through the following steps.

  • Apply energy efficiency measures with a long-term outlook.
  • Create methods to sustain the practices.
  • Perform daily monitoring of your energy use.

Observe your progress to see the most effective measures. Keep a record of your improvements to determine the long-term benefits.

6. Switch energy supplier. 

Perform an SME energy comparison to find the latest deals from energy suppliers. Therefore, you can avoid overpaying for your energy bills by finding the right provider. Renegotiate your energy deals whenever possible. Avoid an out-of-contract rate because it is more expensive than negotiated tariffs.

Final Thoughts

Utility costs will continue to rise, but your business must do what it can to survive. However, keep in mind that there are suppliers that offer what you need. All you have to do is to make the search and use tools that are available to help you compare rates and see who offers the best deal.

That said, you won't doubt making a switch to an energy-efficient provider. Even amid the rising utility costs, your business can beat whatever ongoing crisis.

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