How to Budget for Energy Management

January 16, 2020

Companies today don't invest in energy management for a myriad of reasons. Many view energy management as an expense rather than an investment. Energy costs often account for the largest portion of a company's expenditures, but there way be several barriers to overcome before investing in energy management.

Why Companies Aren't Investing

1. Prefer to Spend Available Resources Elsewhere

More often than not, the initial investment cost in proper energy management deters companies from devoting resources to such a program. Lacking an energy management system can be a serious hindrance for a company. High energy costs have an impact on all departments and operations.

2. Reactive Mindset

Reactive management is fixing items only once they are broken. This can make it difficult for facilities to keep up with repairs and maintenance while remaining in budget.

3. Lack of Information

Energy costs are continually on the rise. Without detailed understanding of energy usage, it is difficult to reduce consumption effectively. Companies may also lack information on the benefits of energy management, and thus don't deem it necessary to invest in power monitoring.

Incorporating Energy Management into the Budget

Energy Management Brochure Thumbnail

Many don't realize the benefits of an energy management program outweigh the costs. Energy management provides companies a great investment opportunity because it allows them to use real-time data to better understand their usages. This encourages them to change behaviors and reduce costs by understanding consumption patterns. Such proactive maintenance reduces the cost of a system by preventing issues. With the savings from reducing electricity usage, companies can expand their focus on key business needs. Here are some suggestions for how to make room in the budget for energy management:

Participate in Energy Monitoring Programs

In times of high energy demand, many energy management programs reward decreased energy use with regular payments. Said payments should be incorporated back into the budget for energy management. Using energy data to reduce energy consumption at peak times, companies can operate more effectively and uncover additional savings opportunities.

Join Utility Incentive Programs

Utility incentive programs are becoming more streamlined as utilities plan to spend more on providing rebates. Some programs include covering costs for energy efficiency services such as audits and retro-commissioning, while others fund installation fees.

Plan Ahead with Your Supply Contract

Planning ahead with energy management allows you to include those investments in your supply contract. The ROI of energy management investments begins early on and remains a long-term benefit.

Topics: Power Monitoring, Energy Management