New Data: How Businesses Are Cutting Energy Costs & Boosting Efficiency
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A new global report shows that in 2024, energy efficiency for business is a big priority, and that more companies are implementing improvements than they were just two years ago in 2022.
The Energy Efficiency Investment Readiness Survey 2024 was released by the Energy Efficiency Movement ahead of the International Energy Agency’s ninth Energy Efficiency Conference this year. The report has a ton of interesting data about the actions and sentiments of business owners regarding energy and sustainability. Overall, it shows that reducing energy usage is more important than ever and that businesses who ignore it are falling behind their peers.
Below are our top takeaways from the report, including what actions business owners can take to begin enacting energy and cost saving practices themselves.
Businesses are taking concrete steps to prioritize energy efficiency.
93% of businesses have plans to implement energy efficiency upgrades within the coming three years. 61% already are investing in making their energy usage more efficient, a significant increase from the 54% who were investing in 2022.
69% of companies are now performing energy efficiency audits, which helps them understand how much energy they are using, see when and where they use it the most, and identify opportunities to reduce consumption and costs.
If you want to join them, click here to sign up for a free energy audit from Budderfly.
Cost savings are the biggest motivator for implementing efficiency.
According to the report, 24% of businesses’ annual operating costs are being spent on energy usage in 2024. That number is slightly higher than it was in 2022 (23%) and demonstrates that the cost of energy is still a significant issue for businesses. This problem isn’t going away any time soon.
In fact, 58% of businesses say rising energy costs are at least a moderate threat to profits, up 5% from the 53% who complained of these costs in 2022.
That is why the top reason companies say they are investing in energy efficiency is the cost savings (52%).
Cost is the biggest barrier to energy efficiency.
Despite the ongoing savings that implementing energy efficiency guarantees, 53% of businesses say that cost is the top barrier to improving energy efficiency.
A lot of businesses don’t have the capital to invest in the new equipment and technology needed to drive down energy usage. Another top concern is business disruption, and 34% of businesses say downtime is a barrier for them to enact efficiency.
Increasingly, though, many are working with energy-as-a-service companies like Budderfly to eliminate upfront costs and minimize downtime. Budderfly provides businesses and facilities in the U.S. with high efficiency equipment and industry-leading energy saving technology with no capital required.
Most companies have serious net zero goals.
Though cost savings is the main reason businesses are going all in on energy efficiency, it is followed by 48% saying corporate sustainability commitment is a factor. There are growing desires to lower carbon footprints and to reduce negative contributions to climate change.
According to the 2024 survey, 47% of businesses are aiming to achieve Net Zero emissions within the next 5 years, while another 32% are setting their target for the next 10 years. Energy efficiency is a big piece of the Net Zero puzzle, alongside renewables like solar panels, geothermal energy, and battery storage.
Business owners are worried about grid reliability.
In addition to growing energy costs, a lot of business owners are also worried about the future availability of energy. 41% are at least moderately concerned that there might be a lack of electrical grid power in the coming years. To address this concern, 44% of businesses have adopted energy efficiency measures, while 42% have adopted on-site renewable energy sources like solar panels.
Grid reliability is a growing issue as energy consumption increases around the globe, while infrastructure and supply fall behind. Plus, the increasing frequency of extreme weather events can leave businesses vulnerable to outages. With renewables and battery storage, though, businesses can improve their energy reliability by having their own supply and backup that decreases their dependence on the grid to keep operating.
Energy consumption poses a consistent problem for businesses in 2024 and will continue to do so in future years. It is a necessity for operations, yet rising costs threaten profitability. By reducing how much energy your business needs through more sophisticated equipment, innovative technologies, artificial intelligence for sustainability, and more, you can avoid these issues and boost your bottom line.
To learn more about how Budderfly can help you get on the efficiency bandwagon, contact one of our energy experts today.