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I am often asked why and how a Subaru retailer should track utility usage in a retail facility and what actions to take to do something about it. Here’s an answer to that, as well as a question at the end (to which we want you to respond) concerning Electricity Demand Charges.
Tracking Utility Usage in a Retail Facility and Taking Action
Introduction
Utility costs—electricity, water, gas, and more—are significant operational expenses for Subaru retailers. With large showrooms, service bays, and outdoor lots, retailers often face high and variable utility bills. Tracking utility usage is not just about cost control; it’s also about sustainability, compliance, and operational efficiency.
Why Track Utility Usage?
1. Cost Management:
Utilities can account for a substantial portion of overhead. Monitoring usage helps identify waste and opportunities for savings.
2. Sustainability:
Reducing unnecessary consumption aligns with environmental goals and can enhance the retailer's reputation.
3. Regulatory Compliance:
Some regions require businesses to report or reduce their energy and water usage.
4. Operational Insights:
Tracking can reveal equipment inefficiencies or leaks that might otherwise go unnoticed.
How to Track Utility Usage
In addition to tracking utility usage through tools like ENERGY STAR Portfolio Manager or other tracking, you can do so with your own spreadsheets, etc.
Consider:
1. Installing Smart Meters and Submeters:
Modern smart meters provide real-time data on electricity, water, and gas consumption. Submeters can be installed for specific areas—like the service department, car wash, or HVAC systems—to pinpoint where energy is being used most.
2. Using Utility Management Software:
Many platforms aggregate data from multiple meters, visualize trends, and alert managers to unusual spikes in usage.
3. Conducting Regular Audits:
Periodic reviews of utility bills and on-site inspections can uncover billing errors, leaks, or malfunctioning equipment.
4. Engaging Staff:
Train employees to recognize and report waste, such as lights left on in empty rooms or water leaks in the wash bay.
Actions to Reduce Utility Usage
1. Upgrade to Energy-Efficient Equipment:
Switch to 100% LED lighting, energy-efficient HVAC systems, and low-flow water fixtures. These upgrades often pay for themselves through reduced utility bills.
2. Implement Automated Controls:
Motion sensors for lighting, programmable thermostats, and timers for outdoor signage can ensure utilities are used only when needed.
3. Maintain Equipment Regularly:
Well-maintained equipment runs more efficiently. Schedule regular checks for HVAC systems, compressors, and water heaters.
4. Optimize Building Envelope: Improve insulation, seal windows and doors, and use reflective coatings on roofs to reduce heating and cooling loads.
5. Set Usage Targets and Monitor Progress:
Establish realistic reduction goals and track progress monthly. Celebrate milestones to keep staff engaged.
Taking Action: A Continuous Process
Tracking and reducing utility usage is not a one-time project but an ongoing process. By combining technology, staff engagement, and regular review, Subaru retailers can control costs, operate more sustainably, and set themselves apart as responsible businesses.
For commercial customers like Subaru retailers, Electricity Demand Charges can make up a significant portion of the monthly electricity bill—sometimes even more than the charges for total energy consumed. Demand charges are based on your highest short-term (often 15-minute) spike in electricity use during a billing cycle, not your total usage. This means that even a brief period of high demand—such as running HVAC systems, EV chargers, or other equipment simultaneously—can dramatically increase your bill. Do you want to know more about this subject in our next newsletter?
Please share your ideas. E-mail me at chuck@greendealersupport.com or reply to this e-mail with your information.
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