How Does Renewable Energy Save Money for Businesses?

How does renewable energy save money?

Despite more emphasis on renewable energy solutions, it’s still estimated that nearly 80 percent of the nation’s energy comes from fossil fuels. Furthermore, about 8.5 percent comes from nuclear sources, leaving renewable energy to account for just over 12 percent. And while this number is likely to climb in the coming years and decades, it still has a long way to go.

We can all agree that renewable energy is a good thing, especially when it comes to reducing carbon footprint, reliance on natural resources, and – perhaps most importantly – cost. Yet there are other ways that firms can reduce all three of these, and it doesn’t necessarily have anything to do with wind turbines or solar panels. In fact, one of the most effective ways to reduce energy costs is to have a utility bill audit done. In this post, we’ll talk more about the value of a utility bill audit and discuss how renewable energy solutions can help supplement any initial cost savings.

Prioritize a Utility Bill Audit

While renewable energy is trending in a positive direction when it comes to sustainable power, conserving natural resources, and reducing carbon footprint, it shouldn’t be the first option a business jumps at if they’re interested in saving money. This is largely because making the switch to renewable energy is a significant investment. And while the long-term benefits of the said switch may be able to make up for it, businesses tend to have better options for cost savings. Perhaps the most significant from a low-risk, high-reward perspective is a utility bill audit.

A utility bill audit is exactly what it sounds like – it’s a thorough analysis of a firm’s existing utility usage in its building. An auditor will carefully assess rate structures, analyze any potential tax benefits or exemptions a firm may be privy to, and take note of any errors or unfavorable rate structures. At the end of their investigation, the auditor will meet with the property manager or business representative to present all that they found and recommend various changes to facilitate cost savings on utilities. In some cases, auditors can also submit refund claims if they discover a billing error during the assessment process.

It’s estimated that firms can save up to 10 percent on their utility costs following a thorough audit, which can amount to a savings of anywhere from hundreds to thousands of dollars per month depending on the size of the firm and its energy output. Utility audits are also often combined with energy audits, which assess the specific systems and features of a building to determine ways to improve energy efficiency. They may also be complemented with other energy management solutions.

Utility Bill Audit vs Renewable Energy

As we said above, a utility bill audit can help a firm reduce its energy costs by up to 10 percent. And while there’s a cost to have the audit performed, it’s nothing compared to the high upfront cost of outfitting renewable energy solutions for your business. Again, renewable energy is a positive trend and it will likely continue to play a significant role in energy production over the coming years and decades. And while technology has improved, these solutions (i.e., wind turbines, solar panels, etc.) still aren’t at the point where they’re mainstream at the individual level. Presently, renewable energy solutions often help complement conventional power generation for municipalities via solar farms and wind farms.

Benefits of Renewable Energy

Here’s a look at some of the key benefits of renewable energy, from the obvious financial benefits to being able to truly own your power.

Financial Benefits

How does renewable energy save money? For starters, you’re relying less on conventional means of fossil fuel-generated power and more on natural power-generation solutions, such as that from the wind or the sun. When renewable energy solutions are implemented to either replace traditional energy sources or supplement these traditional sources, it is going to result in cost savings. The savings are contingent on how significant of a role these renewable solutions play in powering a facility.

The second financial benefit is price protection. Energy prices increased by about 8 percent in 2022 compared to 2021, and they’re expected to further tick upwards in the coming years. You won’t have to worry about price swings when relying on the sun or the wind for power generation.

Finally, firms that create more energy than what they use can actually sell excess energy back to the grid and essentially even make money off renewables.

Reliable Energy

Nobody likes a power outage, yet they’re happening more frequently in certain parts of the country largely due to inclement weather. Furthermore, the power grid tends to be a vulnerable infrastructure – so it doesn’t take much for problems to arise. And when they do, they can lead to business interruption and lost profits. Renewable energy allows firms to “own their power.” Businesses won’t be at the mercy of the grid and all the problems it’s susceptible to.

Government Incentives

One of the biggest drawbacks of implementing renewable energy solutions is the high up-front cost of doing so. The good news is that there are still various government incentives at the local, state, and federal levels to make implementation costs more manageable. Check with your local state and municipality, and the Department of Energy to determine what incentives your firm may be eligible for.

Risk-Free Energy Audit with Green Line Rates!

For more information on a utility bill audit and the cost savings that can be experienced as a result, contact Green Line Rates today.