How can you reduce your electricity costs?
With volatile energy markets as well as inflation and interest rates on the rise, businesses are looking for ways to reduce their overheads. Here we look at how changing the way you use energy could help your organisation.
Fixing your costs
As the electricity market continues to experience volatility, and with the approach of Brexit causing ever greater uncertainty, many businesses are opting to fix their costs.
Choosing fixed rate electricity contracts reduces your organisation’s vulnerability to unexpected budget shocks, gives you greater certainty about your energy prices, and the ability to manage your budget more effectively.
Improving your business’s energy efficiency is one proven way to reduce your costs. Indeed, we estimate that a business with 50 employees could save up to £5,000 every year by following these energy efficiency tips.
And if you’d like to reduce your costs even more, an independet energy audit could help you identify further cost savings.
Using less energy will also help reduce your carbon footprint, helping to make your business more sustainable too.
Given that third party costs make up around 60% of your electricity bill, generating your own electricity can be an effective way to reduce costs.
Many businesses choose to generate renewable energy such as wind or solar PV. This can also reduce carbon emissions and increase your energy resilience.
Combined Heat and Power
Generating electricity thermally always produces a significant amount of heat alongside energy. And that offers your business another opportunity to cut costs. Combined heat and power (CHP) harnesses that heat – which is often wasted.
This process can cut carbon emissions by almost one third when you compare it to generating heat and electricity in separate plants. These reduced emissions are thanks to reduced energy use, which also translates into savings for your business.
With costs falling and more options available, battery storage is one way many businesses are reducing energy costs. Combined with self-generated power, batteries enable you to store surplus electricity and use it when you need it –free of charge.
Even if you don’t generate your own energy, battery storage can still help your business reduce day-to-day costs. That’s because you can charge them with cheap electricity during off-peak periods, and put them to work when you need (including peak periods).
Demand Side Response
More and more businesses are reducing their costs by being more flexible in their electricity use. Many are choosing to benefit from Demand Side Response (DSR). This is a Government scheme that rewards businesses for changing or shifting their electricity usage when asked.
Businesses participating in DSR agree to change the time they use electricity from the Grid. They can also agree to switch to battery storage or self-generation if they have the capability. National Grid rewards these businesses with payment for helping them balance demand and capacity on the system.
DSR can help reduce costs and even turn energy into a revenue stream with minimum disruption.
If you’d like to find out more about how Haven Power can help your business reduce its electricity costs, please use our contact form to get in touch.Contact us
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