As per a report published in 2022, the wholesale electricity cost in Australia rose by 140%, year on year. Besides domestic challenges in producing energy, a surge in the cost of natural resources globally has been the biggest worry for the Australian energy sector. In such a scenario, domestic and commercial electricity consumption costs have risen drastically.
This article will focus on the energy cost for businesses or commercial places. How can small businesses in Australia cope with the rising energy costs? What are the alternative ways of overcoming the soaring electricity consumption costs? This article will delve deeper to explore the potential answers to the questions asked.
Rising Energy Cost Is a New Normal
The limited availability of non-renewable resources is the main cause of the rising electricity cost. Keeping this factor in mind, the Australian government encourages businesses to adopt alternative energy for a more cost-effective and greener future. It is noteworthy that the wholesale energy price is one-third of the overall energy cost that businesses pay for their energy usage.
The wholesale energy market is volatile since it depends on a range of parameters. In the following section, let us explore the parameters that have proven impact on the rising energy cost.
- Ageing Infrastructure: Conventional infrastructure is in place to generate and distribute conventional energy. Infrastructure ageing is a significant problem, and the cost keeps escalating in infrastructure upkeep.
- Volatile Fuel Market: The global fuel market is volatile since production depends on many factors. Countries also often keep production limited to maintain a fair raw material cost. As a result, the fuel price remains at a higher end.
- Extreme Weather: Weather conditions also have an impact on the energy raw material cost. Due to bad weather, raw material transportation could be delayed. As a result, the supply gets halted, leading to a rise in fuel costs.
- Import Tariffs: Recently, many countries have imposed a high import tariff on raw materials for the energy industry. Therefore, the overall energy production cost shoots up significantly, resulting in a high energy cost.
Smart Meters for Commercial Places
Businesses can invest in smart meters in order to reduce their electricity usage and track their consumption anytime to develop a cost-saving strategy. The smart meters help users understand their electricity usage patterns.
According to the studies, Victoria is the leading state to adopt smart meters, featuring a staggering 99% of domestic and commercial penetration. On the other hand, smart meter penetration in the Australian Capital Territory (ACT) is around 40%. So, how can smart meters prove beneficial for your business? Let’s find the benefits of installing smart meters in place of the outdated or old meters.
- Identifying Inefficiencies: Smart meters provide a detailed load insight, which helps you find inefficient machines or appliances that potentially spike electric consumption. It also helps identify appliances that continue consuming high electricity even when left in standby mode.
- Load Shifting: Smart meters also enable load shifting, which can potentially save big on your monthly energy expenses. Load shifting is a strategy to perform certain energy-intensive tasks during non-peak hours. The businesses can avoid paying high bills by saving energy during peak hours.
- Solar Support: Solar has emerged as an alternative source of energy. A smart meter is an excellent investment if you are considering solar. The smart meter enables cheaper solar generation by establishing an efficient energy system.
Conducting an Energy Audit
Knowledge about your power utilisation can help you save big on energy consumption. Businesses often have various appliances and machines that can consume a high amount of energy. In such a scenario, it is crucial to conduct an energy audit to identify low-efficiency motors, high-energy-consuming appliances, and more. Moreover, auditing includes comparing the business electricity plans and finding a tailored plan for your business.
- Upgrade Outdated Equipment: An energy audit helps the commercial units identify the outdated equipment. Identifying and replacing the outdated equipment can help you reduce the electricity cost to some extent.
- HVAC and Lighting Optimisation: HVAC equipment in commercial places consume the highest amount of electricity. Periodic maintenance for such equipment is crucial to maintain it at the best performance level. Similarly, lighting optimisation is also essential for energy-efficient business management.
- Power Management System Installation: Automated energy management systems ensure that equipment runs when it is necessary. For example, occupancy sensors can turn off lights and the air conditioner in unused areas.
- Employee Engagement: Creating an energy-conscious workplace is essential to build awareness and maintain cost-effectiveness. Some companies offer incentives to the teams which adapt to sustainable practices.
Invest in Renewable Energy for Long-Term Resilience
Businesses should find alternative energy sources to counter the soaring energy expenses. Investing in solar is a good way of obtaining a sustainable future with long-term resilience. The initial cost is high, though it prevents expenses in the future.
While solar is an alternative option, you still need to pick the most cost-effective electricity plan for your business. SelectNSave is an online platform where you can find and compare various business electricity plans. Comparing the plans will help you choose the most cost-effective one. Talk to the experts and find a tailored business electricity plan with us.