When it comes to running your own small business, one of the major expenses, aside from personnel, is the cost of energy. Recent ABS data shows that electricity prices are up 15.6 percent Australia wide in just one year to November 2009. While in New South Wales, electricity prices over the same period have risen 21.7 percent! On top of this, the latest IPART recommendation to allow increases of up to 62% by 2013 will mean in some cases this could add in excess of 50% to a small businesses energy bills.
“Under this determination, the average small business in Sydney will see electricity prices rise by at least $1,433 a year. This represents a 36% increase over three years. IPART also details the cost to small business of a CPRS with average annual price increases of 60% or $2,421 under the Rudd Scheme,” said Paul Orton, Policy Director of NSW Business Chamber.
Fortunately for small businesses in NSW the state government has several initiatives currently in effect that can help businesses reduce their energy consumption and as a by-product become more environmentally friendly. In 2008, the NSW Government announced its energy efficiency strategy including a NSW economy-wide savings target; revitalisation of the energy efficiency component of the NSW Greenhouse Gas Abatement Scheme (GGAS); and a $150 million energy efficiency program – all of which are in place today.
NSW Energy Efficiency for Small Business Program
As part of the energy efficiency program, the NSW Energy Efficiency for Small Business Program, from Department of Environment, Climate Change & Water (DECCW), was launched specifically to help small businesses reduce their energy usage, save costs and at the same time reduce greenhouse gas emissions. The program offers financial support and independent advice to assist businesses to cut power bills and carbon pollution.
The first steps of the five-step program allows businesses to undertake an energy assessment, from a DECCW accredited assessor, and receive a personalised action plan for only $50. The balance of the assessment cost is covered as part of the rebate. Traditionally, independent assessors could charge small businesses up to $1,000 for a similar assessment and action plan.
Further, the rebate offers reimbursement of 50% of the cost of implementing the energy efficiency measures recommended in the action plan. This can apply to lighting, heating, ventilation, air-conditioning, insulation, electric motors, air compressors, commercial refrigeration, boilers, hot water systems for items with a payback period of more than 2 years and up to a maximum of $5,000 based on energy use.
Businesses that use up to $20,000 in electricity per year or have up to 10 employees are eligible to register for the program and benefit from the government rebate.
Overall, the program makes it easier and more affordable for those small businesses to do their bit for the environment.
Save Money and Save the Planet
The assessment and action plan are an inexpensive and easy way to identify areas of improvement for your business. Knowing how much energy your business uses, what is necessary and what is wasted, is the first step to reducing consumption.
Implementing energy efficiency measures will not only reduce your business carbon footprint, in most cases it will also significantly reduce business expenses.
“A lot of people don’t want to spend money to make money, but in the long run with electricity costs continually on the rise, we are essentially saving money on every bill we receive from now on” says Victor Rolfe, owner of Gloria Jeans Coffee at the Junction in Newcastle. As a result of their assessment and action plan, it is estimated that his business will be saving $1,600 a year on electricity costs only.
Return on investment timeframes are also included in the plan making it more relevant for small business owners. “The eIQ assessment of our offices clearly explained where and how we can save on energy costs. They recommended some simple, cost effective, changes we can make to create significant savings, like installing low energy lighting, and has provided us with all the information we require in order to implement these changes” said Joshua Price, Director of Diversity Consulting.
Environmental IQ (eIQ) is one of the many energy-assessing organisations accredited by DECCW. Bill Downing, Managing Director of Environmental IQ, says “we have reached a climate change tipping point where doing good, is good for business”.
Big Savings
In fact energy efficient businesses can make big savings. For instance, replacing an old, inefficient air conditioning system with a high efficiency system can reduce heating and cooling costs by up to 40 per cent. Or by simply switching to compact fluorescent lighting you can cut lighting electricity use by up to 75 per cent! And, these actions could be eligible for the 50% rebate – meaning you could halve the cost of becoming energy efficient! However to access the 50% government rebates, the first step must be to have an energy assessment done for your business.
To find out more about the Energy Efficiency for Small Business Program and register go to DECCW Energy Efficiency for Small Business Program.
In addition to the small business energy efficiency program DECCW offers assistance to medium and large businesses through its Sustainability Advantage Program.
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