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Sustainable Living by Shawn Dell Joyce

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Energy Efficiency is Good for the Bottom Line

Did you know that your business could actually be more profitable if it became more efficient? Rising energy costs and decreasing profits mean tough economic times, but also an opportunity to save money by becoming improving efficiency.

If your business's energy bills are $800 or more per month, you could save money by having an energy audit, and taking the auditor's advice. I'm the director of a nonprofit arts organization in New York called the Wallkill River School (like the Hudson River School, only more local), and our building is an historic landmark built around 1810.

We recently had an energy audit where the auditor found ways to increase our building's efficiency by about 20 percent, or $2,160 off our annual energy bills of $10,800. Our building is already very efficient, with a thick layer of insulation in the attic, well-insulated ducts and ventilation system, and compact fluorescent bulbs in every socket. If you haven't already changed out your bulbs, you can save an immediate 20 percent on your electric bill just by making that one small improvement.

The auditor pointed out that the tiny gaps around the baseboards, windows and masonry were our biggest heat loss culprits, costing us as much as $948 annually. Our biggest energy savings would come simply by plugging all the little holes and gaps. If we were to hire someone to caulk around the outer walls, it would cost us about $4,500. But the payback in savings from our energy bills would be only 4.7 years.

If we were to insulate our basement walls, we would save about $886 per year in heat loss. To hire a local contractor to insulate would cost us $3,773 according to our auditor. That improvement would pay for itself in 4.3 years. We could also replace a large hot water heater with a small, "on-demand" heater, and install special window inserts that would increase our efficiency even more.

For our small business to take every recommendation the auditor made would cost about $12,000. Through New York's Energy Star program, the cost of the audit (between $400-1,200) would be refunded, and our business would be eligible for a low-interest loan (between 2 percent and 4 percent for a 10-year term). With these incentives, we would have a loan payment of about $115 per month, but would save $178 per month on our energy bills. This means we could actually keep $57.05 per month by using energy more efficiently.
We would see a return on our investment in less than six years.

Each business is going to get different results, and states have different incentives for commercial efficiency, but the bottom line is that efficiency is good for your bottom line.

Some municipalities are encouraging small businesses to become more efficient. Cambridge, Mass., is setting an example for municipalities across the nation. Cambridge formed a nonprofit, city-sponsored group called the Cambridge Energy Alliance to connect local business owners with energy efficiency experts and bankers willing to loan them money for efficiency upgrades. The Alliance generally reduces a business' energy use 15 percent to 30 percent, lowering their operating costs in the process.

Because most auditors, efficiency contractors, and local banks are members of local chambers of commerce, it would make sense for chambers nationwide to offer the same service to their members.

A side benefit to businesses becoming more energy efficient is that it creates economic stimulus. As more businesses hire local contractors to improve their buildings, more money circulates in the local economy and generates local economic impact.

It makes economic and environmental sense to improve your business' efficiency.

The U.S. Environmental Protection Agency's ENERGY STAR program will show you how: www.energystar.gov. This website will guide you through the process by business type.

Download the no-cost "ENERGY STAR for Small Business Guide: Putting Energy into Profits." If you join ENERGY STAR, you can have a hard copy of the guide mailed to you.

Inputting your zip code will give you a list of incentives that might help your business fund efficiency upgrades.

Check the "Technical Resources" section to learn ways that your nonprofit or congregation can achieve energy efficiency.

Find a commercial energy auditor near you through ENERGY STAR.

Take the auditor's advice! Don't procrastinate, now is the time to upgrade your business before the winter heating season begins.

Shawn Dell Joyce is an award-winning sustainable activist and director of the Wallkill River School in Orange County, N.Y. You can contact her at Shawn@ShawnDellJoyce.com. To find out more about Shawn Dell Joyce and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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Originally Published on Tuesday October 28, 2008

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