Energy conservation doesn’t always save you money

I know what you’re thinking. If I cut my energy use I pay less money. It seems logical but it doesn’t always work that way. Most companies strive to improve their energy efficiency to save money and improve processes, but don’t understand that the unit price they pay is often dependent on their energy consumption.

Take for example one of our customers who hired us to audit their facility. They had already done some expensive upgrades on their own and were surprised to find that their utility cost didn’t drop as much as they expected. After analyzing their utility bills it became clear why. They had replaced a very old inefficient boiler system with a high efficiency system. The problem was that by reducing the amount of gas they used with the new system they unexpectedly found themselves in a higher pricing bracket. The charts below show a significant drop in their energy consumption but only a slight drop in their energy bill. The second chart shows the dramatic increase in the unit price they pay for natural gas.

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Energy efficiency isn’t the only factor to consider

Saving energy (and money) is important, but it isn’t always the only thing to consider. You also have to look at:

  • Desired productivity improvements
  • Reliability
  • Environmental concerns and corporate image
  • Marketing needs (energy audits often create case studies, white papers, and press releases that are fantastic marketing tools)
  • Regulatory requirements like the EPA’s Boiler MACT

This is where a certified energy auditor can help

You may still need to replace that boiler system but we can help you see up front what kind of saving you can expect and point out several options to maximize your investment. We also give you the ROI on all of our recommendations and highlight the recommendations that are low cost with instant savings potential.

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