Recycling : Reduce, Reuse and Recycle

With apologies to Joni Mitchell, many companies are purchasing energy saving products and are being pursued by companies representing energy components designed be sold on the basis of sustainability and incentives. Businesses that are seeking energy cost reductions rarely know if the strategy they select will financially benefit them or the company that designed and installs their sustainable systems. This article suggests a new strategy to accurately analyze past, existing and future energy costs and develop a control system leading to corporate usage understanding, control and reduction of energy. All businesses understand “you cannot control something you do not understand.” That is particularly true with energy and the related economical management. For example, a relatively efficient hotel may have utility expenses at 6% of their total budget, a food processor probably much higher and a warehouse somewhere in between. An efficient food processor makes

2% to 5% profit on their products. A LED or solar company will target businesses with the goal of selling the product they have on hand as a solution to reducing energy demand and the associated utility cost. LED or solar companies are not in the business of providing accurate long-term studies of energy usage. Their target is to provide products that reduce or offset energy usage. To do more is counter-productive. Similarly, the green sustainable industry cannot survive solely on grants and tax incentives. Addressing 20% of the utility costs through control of energy use can result in a 40% increase in profits with no other change in business operations. There is little benefit for a utility to encourage their customers to reduce usage and degrade their own revenue stream. Unfortunately, cost saving analyses provided by an energy company, is usually spotty, unreliable and often inaccurate.