Heading into the new financial year, you should take the time to reassess your business’s approach to power to help save and unlock value from your current energy strategy.
From energy management and efficiency to building your energy literacy, we’ve rounded up the changes you can make to your energy strategy that are worth planning for this financial year.
Contract in advance and save
Is your energy contract set to expire in the next six months or even the year? If it is, think about recontracting sooner, rather than later.
Energy prices have fallen to the lowest since 2015 or 2016, depending on which region you are in. That means, acting now could help you lock in a much lower rate than what your business has paid for many years.
But how do you know if now is the right time to contract?
Historical analysis shows that energy contracts tend to become more expensive closer to their start date, like the end of the previous financial or calendar year. So, acting early and thinking long term can help you lock in a better rate too.
Worried about prices dropping? Choose a contract that can move you down if prices fall, like Power Active with the Active Option.
Now’s the time to get energy projects up and running
Energy projects, like on-site solar and energy efficiency upgrades can have a major impact on reducing costs but they do require upfront investment. This can make it hard to make a business case for them.
Businesses planning on taking on these projects in the next year are in luck. Thanks to several national and state incentives for businesses, these projects are now much more accessible.
If your business is considering its own renewable projects, like on-site solar, there are a few programs that can help you get them up and running.
The Small-scale Renewable Energy Scheme (SRES) is just one incentive for businesses to install small-scale renewable energy systems.
For businesses looking to lower costs and emissions, there are also a few energy efficiency programs, like the Energy Efficient Communities program, which help unlock access to equipment upgrades, energy assessments, and energy and emissions monitoring and management systems.
Start thinking about how you use power
Many businesses are used to being unable to control how much they pay for power beyond securing a lower rate or implementing efficiency improvements. However, businesses that can change how and when they use energy throughout the day or week can unlock significant new savings.
Making the switch to wholesale energy means paying the true price of energy and driving down costs by knowing when to use energy. Businesses able to make daily changes to operations can make the most of the actual off-peak periods in the market – like the middle of the day.
Businesses can further benefit from temporarily reducing site consumption in exchange for a financial payment. This is known as demand response.
For example, businesses can get involved in the RERT (Reliability and Emergency Reserve Trader), where they can be rewarded financially for reducing their demand for energy on the hottest days in summer, preventing blackouts and ensuring the integrity of the grid.
FY21 is the year to take control
Accessing energy through the wholesale market gives you control to make changes to your operations to reduce costs.
Whether it be renewables, smart tools or management strategies, there’s lots of ways your business can set itself up for success in the new financial year.
Get in touch with our engineering team to learn how they can work with you to optimise your business energy strategy to reduce your overall costs and emissions.