There is no denying our total dependency for electricity, but it’s rising costs has today made it a target for potential expense reduction. According to the EIA’s average price of electricity, to ultimate consumers between 2010 and 2019, cents per kilowatt hour, across all sectors rose from a 2010 rate of 9.83 to a 2019 rate of 10.54 cents per KW/H.
Residential, commercial and Industrial averages all increased over this time, while only transportation electricity costs fell from 10.56 to 9.66 during this period.
Electricity consumption is highest in the residential and commercial sectors, with residential users always paying the highest rates per kilowatt hour. The average residential cost in 2019 was 13.01 cents followed by commercial at 10.33 cents per KW/H.
Electricity rates are forecast to only continue to increase over the next decade, presenting a predictable future for everyone who resists the change to become energy efficient.
It’s well documented that commercial electricity users waste around 30% of the electricity they purchase each year. Using less or better still, using only what you need is an obvious example of how electricity costs can be significantly reduced.
It’s realistic and easily achievable for most organizations to eliminate all of their electricity waste, without the need to increase or invest any further funds than already budgeted for on current expected electricity costs.
Smart electricity cost reduction programs utilize only the dollars saved from electricity use, to fund the entire reduction program. Therefore you already have the budget available to take this important next step!
Electricity waste/losses occur in all things; even through the transmission lines and the power quality you are being provided!
Identifying and quantifying your electricity waste, is a specialist task, which can only be performed accurately with the use of real time electricity monitoring equipment? You can’t manage what you can’t measure and it’s highly likely that waste will continue, until finally being exposed!
Commercial buildings are ideal targets for energy efficiency improvements, by optimizing the equipment already in service, significant savings will be achieved. This sets up a future of predictable lower electricity costs helping both profits and planet together.
Renewable energy sources such as solar PV systems have an intrinsic appeal, the thought of producing your own electricity and eliminating the power company drives consumers to jump into large investments that often take a considerable amount of time to break even. Whereas energy efficiency improvements can reduce your energy usage by 20%! These efficiency improvements can be achieved quickly and their costs recovered in around a 2 year period.
The very best investment by far is to improve your overall energy efficiency first, use less to achieve more!
Once electricity waste is fully under control and cost all reduction goals have been achieved, then it’s time to investigate renewable energy sources such as Solar PV. Once electricity is being used efficiently your investment in Solar becomes financially much more attractive as 100% of the renewable energy is now being used, zero waste. Smaller PV investments equal faster returns on investment and greater value over the life of the renewable energy source.
A smart approach to lowering your electricity costs would be to plan for your future electricity costs. First by identifying all energy waste, then prioritize the best use of funds to achieve the greatest reduction in energy use, track the performance of each step and then finally once all performance improvement goals have been met, invest in renewable energy production.
Vootu’s Energy Management Services are aimed at those organizations that recognize the importance of conserving their energy use and improving their energy efficiency to ultimately lower their operating expenses and become a responsible user of our decreasing natural resources that are predominantly used to create the energy we rely on each day.
Vootu can be contacted at 727 314 8656 where honest, ethical and experienced advice is always readily available. Our passion is saving you money and helping our planet combat Climate change.