Energy bills and operating costs have been on the rise for some time now forcing many companies to pass on their running cost increases to consumers through increased prices, just to survive. However, with the cost of living crisis and many people having to cut back on spending just to eat and heat their homes, this can put businesses at a disadvantage when competing against larger companies or those that are more established and/or have bigger cash reserves.
There is no price cap on business energy and businesses have less protection than domestic energy customers when it comes to energy. Whilst the government’s Energy Bill Relief Scheme gave business owners financial support with their energy bills from October 1st last year, the support only lasts for 6 months, meaning the scheme is soon to finish. A survey by MAKE UK, the Manufacturers’ Organisation, revealed that almost 40% of manufacturing leaders think the Energy Bill Support Scheme, which is due to replace the Relief Scheme, would not reduce their energy bills to a reasonable amount.
Wholesale gas prices have fallen in recent months, but the drop is yet to feed through to businesses and consumers. This is due to the fact that suppliers buy their energy months in advance. But when it comes to large scale production, small changes can have a large impact, resulting in savings on energy costs. And even average small and medium sized enterprises (SME's) could reduce energy bills by 18 – 25% by installing energy efficiency measures and implementing behavioural changes according to the Energy Saving Trust.
Read on to see what you can do to save your business money on its energy bills. Or, check out our recent blog to know when to buy your agricultural or commercial oil.
Lighting
Maximising the use of natural daylight as much as possible will reduce the need to switch lights on and help save on your energy bills. Think carefully about where you locate desks and workstations to mitigate the need for artificial lighting as much as possible. However, when a great deal of electric lighting is necessary, there are lots of energy saving ideas to help you use it more efficiently.
Fluorescent lighting uses about a quarter of the energy of more traditional lighting, with a lifetime that is 10 times longer. LED lighting is also a great way to save energy where lighting is kept on for long periods of time, such as in stairwells and for illuminated signs.
It’s a common myth that turning lights off and back on uses more energy than leaving them on all the time, but ensure you train your staff to turn off lights when leaving a room that is not going to be in use for some time. Think about installing a timer so that lighting is switched off outside working hours, or think about installing movement or daylight sensors.
Something that is often forgotten about is that dust on lights and shades can greatly dim lighting. Make sure lights are cleaned regularly, so you can get the most out of them.
You could even consider installing commercial solar panels to convert sunlight into electricity, which could have a real impact on your energy usage and would dramatically reduce the carbon footprint of your business.
Heating
Heating can often be one of the most significant energy costs in a factory or workplace, and can account for up to 40% of energy usage according to the Energy Saving Trust, although of course this is dependent on the type of business.
It's important to make sure you’re not overheating your factory - the longer you have your heating on and the higher the thermostat is set, the more expensive your fuel bills will be. Keep thermostats set to around 20˚ C, ensure they are only on during working hours, and keep them away from machinery so that the temperature is not skewed. Temperatures in corridors and storerooms can usually be set at lower temperatures. It’s a good idea to make a calendar reminder to reset timers as the clocks change and as the days draw out, and don’t forget to consider weekends and bank holidays when setting controls.
It sounds like an obvious thing to avoid, but one way that energy is commonly wasted is through simultaneous heating and cooling. For instance, are the heating and air conditioning units operating at the same time and in the same place? Leaving a gap between your heating and cooling systems ensures that they are not working against each other.
Also, keep an eye on whether you’re losing a lot of heat in easily avoidable ways. Fix draughts, insulate outside walls, install double glazing, and ensure windows are closed when the heating is on and radiators are free from obstructions, just like you would at home.
Maintaining your heating systems is essential to saving energy. Regular servicing and replacing old boilers with new, more efficient ones can make heating your factory far more efficient.
If you use have previously been using red diesel, otherwise known as gas oil, in your heating appliances, you will have been impacted by the changes to red diesel tax which came into effect in April last year, when the Government withdrew tax relief for a number of sectors and business groups. If your business no longer qualifies for red diesel tax relief, there is a more costly alternative to white diesel called GO:35 which is suitable for commercial and industrial heating, processing, manufacturing and incinerators. A more environmentally friendly alternative for commercial heating, it’s considerably cheaper than white diesel as it doesn’t attract excise duty. It’s also completely compatible with existing boilers, has long-term stability as well as winter-grade and zero bio content. Take a look at our recent blog to find out how to cut heating costs with GO:35.
And then there’s LPG which is extremely versatile and economical, as well as being more environmentally friendly than red diesel or derv. And whilst there would be a cost to replace your old oil boiler with a new LPG boiler, the efficiency advantages gained would contribute to your long-term cost savings.
Machinery and equipment
We may remember to switch off devices when they're not in use at home, but do we carry that practice to work? Ensure employees switch off computers when not in use, and turn off monitors and computers at the plug when they leave work to avoid standby charges. Many devices have power saving settings, so check they’re activated, and optimise the brightness of your computers as well. If you have an IT department, ask them about your power saving settings and what else you can do to save energy.
A lot of energy can end up being wasted through machinery and older or poorly maintained equipment that is not working efficiently, or is not being used properly. This could be costing you, so ensure that maintenance checks are carried out regularly on all your machinery, and that your employees are well trained on how to use it. For example, check your compressed air system for wasteful leaks - it is not unusual to find up to a 50% leakage in compressed air equipment, and being aware of this and reacting to it quickly could make a big difference.
Check that machinery and equipment is not left running when it is not needed. Factories often run compressors all day, but it is usually only necessary to have them on occasionally, as and when compressed air is needed. Other machinery, such as fans, pumps and conveyor systems should also only be switched on when being used, and should all be turned off at the end of each working day.
You don’t have to always use external assessors. Get staff involved in carrying out frequent walk-rounds to check that everything is working as it should be. And think about labelling switches so staff know which operating machinery can be turned off and how to do it properly.
If you use fork lifts in your factory, consider the type of energy they run on. Again, you might have fallen victim to the change in excise duty on red diesel if your fork lifts run on oil, a popular choice of fuel in the past due to the previously lower taxation levels. But now, considerable savings could be made by switching to LPG which is much more cost-effective, and more flexible and environmentally cleaner.
If you’re currently using electric fork lift trucks which have a limited range, you can save considerable down time by switching to LPG, as it takes away the need to waste time recharging, not to mention the savings from not having to buy costly batteries and recharging equipment or pay for battery disposal.
Water
One thing that’s often overlooked is saving water. There are a range of measures you can take to ensure that your factory is only using the amount of water it needs, and not unnecessarily pouring water (and money) down the drain. Consider installing a calibrated water control system, or even water flow reducing taps and shower heads which can be used for all kinds of applications and can help you to stop paying for water you’re not using. If your factory does use a lot of water, consider reusing or reclaiming wastewater. Also, make sure that all the water coming through your pipes is getting to its final destination by frequently checking for leaks.
These small, but very effective tips can help any organisation, however big or small, make energy savings. And we're always here on hand to offer any help and advice you may need. Just give us a call on 01423 770 668 or contact us.