Strategies to Help Retailers Save on Energy Bills
The first thing to know about energy is that there are plenty of ways to save that go beyond looking for a cheaper deal, although that certainly helps! Here are some great options to look into:
Commercial Solar
The idea of commercial solar is not new - but many of the benefits are. Of course, solar energy reduces your reliance on the electricity grid, but it goes deeper than that.
Let's start with the government incentives and rebates that are currently available to retailers. There are a range of renewable energy certificates that can be earned through the use of commercial solar. As you earn these credits, you become entitled to recoup a portion of your solar installation costs.
Then there are the instant asset tax write-offs available. Most recently the Federal Government was allowing businesses to immediately claim a $20,000 deduction on their taxable income for assets such as solar installations.
But it goes deeper still. A quality commercial solar setup means that you can actually store energy, and use it at off peak times in order to make significant savings on your energy bill. This is due to what's known as spot pricing. Spot pricing is a pricing model where energy retailers charge more for energy usage during peak times (between 5pm-8pm) and less during off-peak times. The great thing about commercial solar is that it charges up your batteries while you use the grid during the daytime (off-peak time) so that you can rely on your own supply during expensive periods in the evening.
You can even go beyond that and feed your stored energy back to the power grid, earning you further energy credits that reduce your bill. Basically, commercial solar = good 👍
Energy Procurement
The energy markets are not straightforward. If you were to just go onto Google and choose the first rate that you see, it's unlikely that you'll be receiving the best deal. This complexity is a large part of why energy brokers like Choice Energy exist. Through our energy procurement services, we analyse your energy usage and negotiate contracts with suppliers in order to secure you the best possible rates.
This protects you from overpaying for energy by leveraging our market insights and supplier relationships.
We take a tailored approach to our energy procurement for small businesses. This includes detailed analysis to secure you an energy rate that most accurately reflects your energy usage and future requirements. Beyond this, we also handle much of the negotiation of your rates. As an independent organisation, we create a scenario where energy retailers bid for your business, each competing to give you their lowest possible price.
When we talk about commercial energy procurement, we help large businesses leverage their size to negotiate significantly better rates for them. Additionally, we can help to create contracts with flexibility that consider future growth, seasonal spikes, and operational hours. We also provide ongoing market monitoring to ensure that you’re consistently getting the best deal even as times and prices change.
Energy Assessments and Efficiency Measures
As part of our service, Choice Energy provides free energy assessments to any retailers looking to save on their energy bills. These energy assessments often uncover inefficiencies that cost your business thousands.
What are the Challenges Retailers are Facing?
To touch on why it's so crucial to start saving on energy, let's look into how inflation affects retailers.
- Rising Operational Costs:
The operational costs have risen exponentially for businesses due to the impact of the cost of living crisis. Aside from rising energy bills, this also includes increased rental costs, wages, and materials. - Supply Chain Challenges:
Inflation has driven up the cost of goods, making it harder for retailers to source inventory affordably. Supply chain disruptions add to the issue of delays and higher shipping costs, leaving businesses to either absorb expenses or pass them on to customers. - Changing Consumer Spending:
With rising living costs, consumers are cutting back on discretionary spending, focusing on essentials and value-driven products. This is causing a hit to retail revenue as well.
With all this in mind, it's not hard to see why retail businesses like IGA Hackam have been working with Choice Energy to save on their energy bills. If you're ready to do the same, get in touch for your free energy assessment today.
