Large companies are cutting their equipment energy costs by up to $500 million each year by investing in efficient equipment, according to CommBank’s latest Equip report.
The report, based on a survey of 898 businesses, conducted between August 2018 and February 2019, shows that these savings also extended to small and medium businesses that had invested in energy-efficient equipment.
Energy costs top of mind
Our research confirmed that energy costs are firmly on the radar for most businesses when it comes to their purchasing decisions. Ninety per cent of our surveyed businesses said that the cost of grid electricity influences their purchasing decisions.1
Unsurprisingly, petrol costs influenced the purchasing decisions of 90% of our surveyed transport businesses, compared with 71% of all businesses. Meanwhile, 100% of healthcare businesses in our survey said that the cost of grid electricity influenced their decisions when buying new assets.2
Savings across the board
So, does buying energy equipment translate into cheaper energy costs for all businesses – or is it only big business that benefits?
Our research showed that all surveyed businesses were reaping the benefits when it came to their power bills – regardless of size. On average, businesses reported a significant average saving of 30% on their power costs from using energy-efficient equipment – like vehicles, heating, cooling and lighting.
Businesses earning under $150 million said they had cut an average of 23% off their power costs, while medium-sized businesses said their investment had slashed their energy costs by a third (30%). Meanwhile, energy-efficient equipment had saved large businesses in our survey a staggering 38%.3
A virtuous circle
Of course, cheaper power is only one of the benefits that energy-efficient equipment can deliver. Power-saving equipment, like hybrid and electric vehicles, solar panels and smart heating and cooling, can also reduce a company’s carbon footprint, and contribute fewer emissions to the atmosphere.
This benefits the environment – and can positively contribute to a company’s corporate and social responsibilities and reputation. What’s more, investing in energy-efficient equipment can help businesses ensure they meet changing government regulations and industry standards.
There’s also the impact that newer, more efficient equipment can have on a company’s workforce. New equipment can be safer and more ergonomic–potentially increasing productivity and reducing the costs associated with workplace incidents.