As any savvy entrepreneur knows, reducing operational expenses—including energy costs—can make a difference in your business’s profit margins. Here are some practical tips for business owners to not only lower your commercial energy expenses, but also claim small business tax deductions on energy savings.
1. Conduct an energy audit
An energy audit identifies inefficiencies in your business’s energy use, helping you prioritize improvements. An audit can pinpoint cost-saving opportunities like upgrading outdated equipment, improving insulation, or changing operational practices. Schedule an audit with a certified professional to understand your energy profile before making changes. Find a certified energy auditor with Michigan Saves’ Find a Contractor tool.
2. Upgrade to energy efficient lighting and equipment
Replacing incandescent and fluorescent lighting with LED versions and swapping out old equipment for energy efficient alternatives significantly increases the energy savings commercial buildings can glean. The ENERGY STAR® for Small Business program is a helpful resource for understanding the benefits of energy efficient HVAC systems, LED lighting, and ENERGY STAR-rated appliances. While there may be an upfront cost, the long-term savings are substantial.
3. Optimize your building’s energy efficiency
Improving your building’s insulation, maintaining your HVAC system, installing energy efficient windows, and using reflective roofing materials can dramatically lower heating and cooling costs at affordable price points. For example, regular maintenance of existing HVAC systems helps them run more efficiently, experience less strain, and be less prone to needing costly repairs. Upgraded windows maintain a consistent indoor temperature without overburdening your energy systems.
4. Consider renewable energy investments
Installing solar panels is an excellent way for businesses to reduce their reliance on traditional energy sources. Solar panels offer significant tax benefits and cost savings over time.
5. Leverage smart technology
Automating energy management is a game changer for businesses. Invest in smart thermostats, motion-sensor lighting, and energy-monitoring software to optimize energy use. These technologies allow you to adjust settings remotely and track consumption in real time, helping you identify wasteful habits and measure your savings.
Boost your business energy savings with Michigan Saves
Michigan Saves makes it easier for business owners to reduce energy bills all year long with affordable financing options for energy-saving upgrades. From energy efficient windows to updated HVAC systems, our authorized contractors can help make your business more comfortable and cost-efficient.
Whether you’re looking to save money, conserve energy, or both, Michigan Saves has solutions tailored for Michigan businesses. Learn more about our commercial financing options to get started today!
