Utilities are the Highest Controllable Operating Expense for Most Businesses
Electricity rates continually have been rising and are projected to more than double in the very near future. Now is a great time to take a look at your HVAC System since it is the largest single energy consumer in almost all buildings. For many businesses, heating and cooling can account for 20% to 50% of their annual energy usage.
HVAC Equipment is the largest single energy consumer in Commercial Buildings. Heating and air conditioning accounts for 39% of the electricity used in U.S. Commercial Buildings, which means your business can realize significant savings by improving the efficiency of their AC Systems.
For many Restaurants, heating and cooling is the largest energy cost next to cooking. So making smart decisions about their HVAC System can have a big payoff. Restaurants operate with narrow profit margins and have pre-tax income that is 4% to 7% of total revenue. Achieving just a 20% reduction in energy costs will translate directly into an additional 1% in profits.
A typical 40,000 sq. ft. Grocery Store in the U.S. can spend nearly $230,000 annually on energy. Although energy only represents about 15 of total grocery store costs, it is approximately equal to a typical Grocery Store’s profit margin. Therefore, a 10% increase in profits.
According to Energy Star, the nation’s School Districts spend more than $7.5 Billion annually on energy – More than the money spent on computers and textbooks combined. Even worse, as much as 30% of a School District’s total energy expense is spent unnecessarily. Heating and cooling accounts for more than half the energy consumed in school buildings.
Healthcare Organizations spend more than $5 Billion each year on energy, according to the U.S. Department of Energy Information Administration. The Consortium for Energy Efficiency reports that HVAC Systems comprise approximately 45% of a typical healthcare facility’s energy use. Hospitals are under increasing pressure to reduce costs, so clearly the opportunity to net significant savings on electricity costs is compelling.