NYSERDA
Small business owners are no stranger to wearing many hats, but developing a plan for energy reduction and electrification could be unfamiliar territory.
When time and resources are scarce, making clean energy upgrades and efficiency improvements, such as installing on-site electric vehicle charging or attic insulation, can feel overwhelming. But these investments align with many business priorities: employee productivity, lower overhead costs, and customer satisfaction.
There’s no one-size-fits-all approach to decarbonization – the process of switching from equipment powered by fossil fuels to efficient, all-electric technologies. From mixed-use buildings to commercial properties and leased spaces, let’s unpack how small businesses can prepare for an electrified future.
Take Stock of Energy Use
Beginning with an energy assessment can benchmark current energy performance and identify energy-saving and electrification opportunities that are specific to a business’s needs.
These recommendations outline expected energy savings and cost estimates and can range from immediate energy-saving improvements, such as air sealing windows, to more complex upgrades like installing heat pumps.
Small businesses can access funding through Green Jobs – Green New York or their utility to cover the cost of an assessment, or tap into cost-share support for a more in-depth energy study through NYSERDA’s FlexTech Program.
How to Plan and Prioritize Energy Investments
Assessments give small businesses a framework to reduce their energy use and switch to clean energy technologies. It’s important to note that decarbonization is rarely an all-in-one investment. Rather, a phased approach that begins with energy efficiency to reduce consumption and optimize building performance before installing new, all-electric equipment offers a more cost-effective model.
Project cost and payback period are often top of mind for businesses. When assessing costs, consider how decarbonization investments compare to the net present value (NPV) of continuing business-as-usual. This involves going beyond energy savings to factor in maintenance costs and current equipment lifespan, among other factors, when evaluating the long-term cost of energy retrofits.
Inflation Reduction Act (IRA) tax credits and New York State incentives should also inform decision-making, as there are equipment and contractor requirements for small businesses to be mindful of to ensure project eligibility.
Business owners may weigh additional factors, such as indoor air quality and occupant comfort, when prioritizing decarbonization projects.
Going All-Electric
Heating and cooling are generally the largest energy hogs for small businesses. Replacing fossil fuel heating equipment with heat pumps – a dual heating and cooling solution that’s efficient, all-electric, and effective in cold climates – can deliver energy and maintenance savings while enhancing indoor temperature control and comfort.
Matt Green, owner of Liquid Fables in Beacon, NY, says that improved comfort has been the greatest impact of their business’s air source heat pumps. “You can keep your customers comfortable without having to condition the whole space the same way,” adds Green.
Electric vehicles (EVs) and charging stations represent an opportunity to reduce business costs and attract a growing number of EV drivers, whether customers or employees. EV charging infrastructure is eligible for a 30% tax credit, potentially in combination with upfront discounts on level 2 charging stations through Charge Ready NY 2.0.
SRC, Inc. in Syracuse, NY, utilized Charge Ready incentives to expand their charging capacity, which now totals 30 chargers. “SRC wanted to be ahead of the curve when it came to accommodations for electric vehicles,” says Kevin Hair, President and CEO at SRC, Inc. “Offering this technology helps us attract top talent and enhances the employee experience,” notes Hair.
As businesses electrify more equipment, installing solar panels and energy storage or subscribing to a community solar project can help save on electric bills while boosting resilience to outages and fluctuating energy costs.
Developing Your Decarbonization Strategy
Finding the time and resources to dedicate to clean energy and efficiency upgrades can be challenging amid competing priorities. Small businesses have an array of funding opportunities and technical assistance at their disposal to reduce energy use and improve their bottom line.
Developing a plan that aligns with your business goals can streamline efforts to begin saving energy today while working toward a decarbonized future.
The New York State Energy Research and Development Authority (NYSERDA) connects commercial and industrial leaders with technical experts and resources to take the guesswork out of decarbonization.