DEFINITIVE GUIDE TO ENERGY EFFICIENCY - ecobiz.cciq.com.auecobiz.cciq.com.au/assets/PDFs/2018-ecoBiz-Guide-Energy-Efficiency-LR.pdf · THE POWER IS IN YOUR HANDS When you’re busy

DEFINITIVE GUIDE TO ENERGY EFFICIENCYSave money and save the planet

CONTENTS

The power is in your hands 3

Energy monitoring and usage 4

Energy Positive Payback for Business 5

How to read your power bill 6

Energy efficiency products 8

Negotiating your way to a better deal 9

Power factor correction 10

LED lighting 11

Solar power... Is it worth it? 12

Voltage optimisation 13

Small changes for quick wins 14

Helping you change 15

About CCIQ ecoBiz

CCIQ ecoBiz is a free program designed to help businesses reduce their energy, water and waste bills, delivered by CCIQ and funded by the Queensland Government.

There are many helpful resources on how to increase efficiency and reduce costs for your business on our website:

www.ecobiz.cciq.com.au

2DEFINITIVE GUIDE TO ENERGY EFFICIENCY

THE POWER IS IN YOUR HANDSWhen you’re busy running your business, calculating kilowatts is probably the last thing on your mind.

Yet the bottom line is this: the bottom line matters. Keep your energy costs in control and you’ll free up cash to flow in other areas of your business.

Deciding to be energy efficient does more than just save money. It gets you and your team focused on new ways of working in your business, and you’ll find it has other flow-on effects – like greater productivity, smarter ways of working, reduced maintenance costs and better corporate reputation.

How hard you decide to push energy efficiency in your business depends on lots of factors, including your budget and time availability.

WHAT HELP IS AVAILABLE?CCIQ ecoBiz is a free program designed to help businesses reduce their energy, water and waste bills, delivered by CCIQ and funded by the Queensland Government.

The program offers a free one-on-one coaching session with a sustainability coach at your business, to help identify ways your business can save on energy, water and waste costs. We also support you to measure your progress, and recognise your success.

Head to our website to register, and check out the wealth or resources available on a range of sustainability topics:

www.ecobiz.cciq.com.au

So, where do you start? Before you start changing lightbulbs, read this white paper to take control of your energy use.

POWER

Businesses that become energy efficient can cut an average of 28% off their bills.Source: CCIQ ecoBiz


ENERGY MONITORING AND USAGEAround the home, it’s easy to pick the big power-guzzlers. Your hot water system, clothes dryer and pool filter are usually your top three offenders. In your business, it’s not always so straightforward.

Comparison methods compare the current measurement with a previous period.

Bill comparison is one way of doing this – comparing this month with the previous. However, variations in month-to-month consumptions, billing periods and estimated bills don’t always make this as accurate as you need. Plus, your bills will only indicate an average use per day. You’ll need more detailed information from a smart meter or from your electricity retailer (if your meter records that data) to understand your peak demand each day, month or year.

There are other more complex ways of comparing energy measurements. You can look at services and software that model your building environment and changing conditions such as weather, operating hours, building uses, and up to 50% seasonal variations in how your business operates.

Indirect measurements use available facts to calculate power use, such as recording the wattage of lights and running time.

You can also invest in control systems that log measurements over time. This requires a device being wired to or controlled by a control system.

Direct measurements show energy performance without any assumptions.

You can collect meter data from your retailer, or you can install manual or automated sensors yourself. Be sure to capture this data as part of regular maintenance.

So before you make any big changes, it makes sense to gather some real data to understand your energy use.

Free, government-funded programs like CCIQ ecoBiz offer one-to-one coaching and benchmarking to help businesses work out their energy use.

If you decide to, you can also do it yourself by collecting electricity measures over time.

There are three main measurement methods:

• comparison• indirect measurement• direct measurement.

CCIQ ecoBiz offers a free benchmarking support to Queensland businesses. Visit www.ecobiz.cciq.com.au to find out more.


INCENTIVES FOR BUSINESSPeak demand occurs when electricity consumption is at its highest across the residential and commercial markets.

Many energy distributors (for example, Energex and Ergon) offer incentives to reduce peak energy demand. They aim to reduce the cost to build and maintain a network that is only used on the few days when there is a high demand for electricity.

These incentives include cashback schemes, attractive loans and grants for projects including:

• air conditioning

• hot water systems

• lighting

• motors

• refrigeration

• power factor correction.

Check out what’s available in your area.


HOW TO READ YOUR POWER BILLTo get serious about being energy efficient, you need to get serious about understanding your power use.

That means taking the time to carefully read your energy bill and understand what it means.

1 ACCOUNT SUMMARYHere’s where your electricity charges can be seen in one place. It can include the amount you owe, amounts you’ve paid, overdue amounts and rebates.

2 NATIONAL METER IDENTIFIER (NMI)

The electricity meter at your property has its own National Meter Identifier (NMI) number. More than one meter? Then you’ll have more than one meter number on your bill, usually all under the same NMI.

3 RETAILER CONTACT DETAILS

Your retailer bills you for your electricity and is your first point of contact.

Electricity

Tax Invoice 00 XXXXXXX

Issued 15 January

Energy Company Pty Ltd

ABN 00 0000 00000

Supply Problems: 13 60 60

Emergencies: 13 20 60

Network Provider: Energex

Account Manager: Carly Smith

Phone: 0400 000 000

ENERGY

Account Number: 00 XXXXXXX

Due Date: 15 February

Want to direct debit instead?

Call 1300 000 333 to arrange direct

debit from your bank or fi nancial

institution.

PAYING YOUR ACCOUNT

PaymentPlease pay this account by Electronic Funds Transfer to the bank account below quoting

reference number 00 XXXXXXX

Account Name: Energy Company Pty Ltd BSB: 123 456

Account Number: 0000 0000 0000 Amount: $51,887.67

Please send remittance advice to [email protected]

Please turn over for more payment options

Account 00 XXXXXXX

NMI 00 XXXXXXX

Due Date 15 February

Amount due $51,887.67

Western Suburbs Sporting Club

100 Smith Street

COORPAROO QLD 4151

Invoice Number: 00 XXXXXXX issued on 15 January

Previous Account Details as per last invoice

Previous Balance $48,227.47

We Received $48,227.47

Invoice Opening Balance $0.00

Current Invoice Details for 01 January to 31 January

Retail Charges $22,977.23

Environmental Schemes $5,024.59

Network Charges $18,675.57

Market Operator Changes $166.14

Metering Charges $360.11

GST

$4,720.36

Adjustments (GST Free) ($36.33)

Total Current Charges (subject to GST) $47,203.64

Invoice Total (excluding GST) $47,203.64

Invoice Total $51,877.67

Total Amount Payable $51,877.67

Your Electrical Consumption and Greenhouse

Gas Emissions

Energy Company Pty Ltd ABN 33 454654567

www.energycompany.com.au

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Peak Consumption State C02e

State C02e

Average

Daily Usage:

9,136.40kWh

Average

Daily Cost:

$1,673.80

Total Greenhouse

Gas Emissions:

252 tC02e

4

3

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4 DISTRIBUTOR CONTACT DETAILSYour distributor owns the poles, wires and meter that connect you to the electricity network, and is responsible for faults or emergencies with your power supply. Your distributor — Energex in south-east Queensland and Ergon everywhere else — charges your network charges for volume, demand and service availability.

On the front page of your bill, your distributor’s contact details are generally on the right-hand side.

Contact details for your distributor are shown separately on some bills or as a contact number for emergencies.


5 TARIFF NAMEThis is the name of the tariff or plan you are on. It’s usually on the front page. If your tariff name isn’t shown, contact your retailer.

6 RETAIL CHARGESThis shows your total peak and off-peak kWh, and is the amount of electricity your business used over your billing period. This is your negotiated rate from your energy retailer.

7 LOSS FACTORThis is used to factor in the power that is lost during transmission of your power from the generator to your business as it is set by the Australian Energy Market Operator (AEMO). It varies according to where you are based.

8 ENERGY CHARGESThese charges are calculated by multiplying the loss factor with the volume.

9 ENVIRONMENTAL SCHEMES

LRES and SRES rates reflect the current cost of participating in the Renewable Energy Target Scheme.

10 NETWORK CHARGESNetwork charges cover the costs involved in transporting the electricity from the electricity generators, across the electricity transmission and distribution networks, to a site. They are annually reviewed by the network and approved by the government.

11 DEMANDThis is the largest 30-minute peak total of real power (kW) and reactive power (kVAr) that you used during the billing period.

12 MARKET OPERATOR CHARGES

This section shows your market charges. These charges are paid to the Australian Energy Market Operator (AEMO) to operate and maintain the National Electricity Market (NEM). AEMO ancillary charges are fees for activities undertaken to ensure safe and secure power delivery while maintaining the integrity and stability of power generation and energy demand.

13 METERING CHARGESThese are charges by your metering company for the services they provide to you.

A good metering company can help you with invoice validation, network tariff verification and financial forecasting.

See if you can get a better power deal for your business.Visit Energy Made Easy at energymadeeasy.gov.au to find out more.

NMI: 00 XXXXXXXAddress: 100 Smith Street COORPAROO QLD 4151Period: 01 January to 31 January

PRICING DETAILS

ACCOUNT: 00 XXXXXXX

NMI PROFILE SUMMARYMAXIMUM DAILY DEMAND

ChargesUsage

Unit Price Loss Factor Total Price (ex GST)

Retail ChargesQLD Peak

157,000.600 kWh 9.5096 c/kWh1.05138 $15,697.24

QLD Off Peak126,227.700 kWh 5.4855 c/kWh

1.05138$7,279.99

Environmental SchemesSRECs

283,228.300 kWh 0.3603 c/kWh1.04190

$1,063.23

LRECs283,228.300 kWh 1.3424 c/kWh

1.04190$3,961.36

Network Charges8100 – Usage

283,228.300 kWh 1.7740 c/kWh

$5,024.47

8100 – Demand679.000 kVA 18.4030 $/kVA/Mth

$12,495.64

8100 – Supply Charge31 Days

37.2730 $/Day$1,155.46

Market Operator ChargesAMEO Ancillary Fee

283,228.300 kWh 0.0222 c/kWh1.04190

$65.51

AMEO Market Fee283,228.300 kWh 0.0341 c/kWh

1.04190$100.63

Metering ChargesMeter Charge

$360.11GST

$4,720.36

Total (ex GST)

$47,203.64

TOTAL for NMI 00 XXXXXXX

$51,924.00Highest actual metered demand this period 604.60 kW(Recorded 14/01/2017 13:30)Power Factor at time of highest metered demand: 0.890Load Factor

63.0%Carbon Intensity

0.90436Distribution Loss Factor

1.04190Transmission Loss Factor

1.00910Net Loss Factor

1.05138TOTAL USAGE 283,228.30 kWh

Meter Usage (kWh) Meter Usage (kWh)E1-211345673 283,228.300

800

600

400

200

0

05/0

1

10/0

1

15/0

1

20/0

1

25/0

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13


ENERGY EFFICIENCY PRODUCTSThe world today is demanding more power than ever!

Understanding which energy efficiency products suit you best depend on the answer to some core questions:

Are you using your power efficiently and effectively? Who are you relying on for power? What measures have you taken to ensure the power you’re paying for isn’t going to waste, and are you getting the best bang for kWh to reduce your operating expenses?

It’s one thing knowing which energy efficiency products are available, but the real trick is knowing which ones would best benefit your business.

• Is Power Factor Correction equipment going to provide the best return on investment, or should I install LED lighting first?

• And if I do, what affect will that have on my solar system?

These are just some of the questions that need answering before you consider what solution is right for you.

The following are some of the strategies that you should consider when you’re looking at reducing energy costs within your business.

• negotiating charges• power factor correction• LED lighting upgrades • solar energy• voltage optimisation

All of the above products have their place and they all work very well but, most importantly, you need to know if any of them will benefit your business and if they will have an impact on each other.

In energy efficiency, like in all other business decisions, do your research. CCIQ ecoBiz’s sustainability coaches can help talk you through the options.


NEGOTIATING YOUR WAY TO A BETTER DEALOnce you have a good handle on your usage and billing, you can try to negotiate a better deal from your energy retailer.

You can negotiate energy charges for peak and off-peak usage. Since the electricity market in south-east Queensland was deregulated in July 2016, electricity pricing has reflected market forces rather than the Queensland Competition Authority. In the long term, this will mean a greater choice of electricity providers and more competitive plans.

The Australian Government’s business portal, business.gov.au, offers six negotiating tips:

1. PROVIDE DETAILED USAGE DATA Be prepared to show your energy provider at least a year’s worth of data containing your energy use for each half-hour period. That will show them your peak, shoulder and off-peak usage and maximum demand, and this can influence the consumption charges you pay.

2. EXAMINE YOUR CONTRACTIf you’re a small business on a market retail contract, ask your retailer about the terms and conditions. Pay particular attention to details on pricing and any discounts, such as those for on-time payment. If you’re on a negotiated contract, review it carefully before you make any changes. Look for special clauses, like a ‘take or pay’ condition that means you still have to pay even if you use less than the minimum amount of energy.

3. SHOP AROUNDYou can easily do an online search to see how your energy contract compares to similar businesses, or talk to an energy broker.

4. NEGOTIATE AT A CHEAP TIMEYou don’t have to wait until the end of your contract to look for a better fee. While you do need to consider cancellation or exit fees, see if you can negotiate on a low-priced day or when market prices are generally low. Find out more about how energy prices fluctuate: https://www.eex.gov.au/large-energy-users/energy-management/energy-procurement.

5. CHOOSE THE BEST CONTRACT PERIOD

You can control the length of your contract to save money. In a rising market, where current prices are cheaper than expected future prices, it may be better to choose a longer contract. When prices are high and expected to fall, choose a shorter period and buy cheaper for longer, later.

6. PLAN FOR THE FUTUREIt’s important to consider any major business changes ahead. If you plan to expand your operations, consider a shorter contract and then reassess your energy needs.

Confused about energy offers? Visit Energy Made Easy at energymadeeasy.gov.au to tackle jargon head on.

As a consumer, you have the right to a 10-day cooling-off period if you change your mind about

your new energy retailer.


Reactive power is the difference between the two: it’s the non-working power delivered to your business that you don’t use. It can be caused by any equipment – such as an inefficient motor or transformer – on any business site.

Power factor is measured on a scale between -1 and 1, with 1.0 representing optimal energy efficiency.

Increasingly, energy distributors are looking to change from charging you for the power they are supplying (kVA) rather the power you use (kW), as they still need to generate this power even though it is being wasted.

Power factor correction systems, such as capacitor banks and controllers, can minimise wasted energy and improve plant efficiency by temporarily storing energy. It also helps to rectify any overloading issues and gives you the chance to expand what you have without upgrading expensive transformer or supply equipment.

If you invest in a properly designed power factor correction system, you can expect to recover your costs within two to three years, but sometimes in as few as six months.

THINK BEERIf maths does your head in, then the analogy of beer in a glass works just fine to understand power factor correction.

Understanding power factor correction is a powerful tool in the hands of any business.This is a charge on your electricity account that you can control and reduce without turning off equipment.

Power factor is how effectively your premise uses electricity supplied to it. It’s expressed as a ratio of the power you use (in kilowatts) divided by the power supplied to you (kVa).

POWER FACTOR = =

Real power (kW)

Apparent power (kVA)

Beer

Beer + foam

Rea

ctiv

e P

ower

(k

VAR

)R

eal P

ower

(kW

)

Appa

rent

Pow

er (k

VA)

POWER FACTOR CORRECTION


LED LIGHTINGLighting accounts for a significant portion of business electricity usage. This means that making changes to your lighting can significantly reduce your electricity demand and running costs.

Replacing or upgrading old light fittings with newer, more energy-efficient options can save you electricity and money immediately.

LEDs emit more light (lumens) per watt than standard incandescent light bulbs while maintaining a longer rated life. In contrast to traditional commercial lighting, LEDs radiate very little heat and do not contain harmful substances such as mercury or lead.

Lighting can account for up to 25% of your

power billSource: CCIQ

Bob runs a warehouse that operates 12 hours per day, 7 days per week with 88 400W high bay lights. To save electricity, he changed his lights to 120W LEDs. Every month, he now saves 14,100 kWhrs, and reduces his demand by 25kVA. In under two years, Bob recovered the cost of changing his lights, and has been pocketing the savings ever since.

CASE STUDY


SOLAR POWER... IS IT WORTH IT?Smart businesses have long had their eye on solar as a way of saving costs.

The big question, though, has always been about storage: What’s the point of solar if you can’t bank away the energy you save?

But with better and cheaper energy storage starting to hit the market from solar innovators like Tesla, it won’t be long before batteries are cost-effective enough to make them worthwhile for all businesses.

Until then, here’s the latest.

According to a survey of Australian businesses in September 2016, one-quarter of businesses have now made the leap to solar power.

That means investing in enough photovoltaic (PV) cells and an inverter to convert solar energy into electricity to power at least part of your business.

CCIQ ecoBiz suggests solar power – even without storage – offers the following business benefits:

• Power even when the sun doesn’t shine: A 1kW system in Brisbane and Cairns will produce around 4.2 kWh per day, and just a bit less on cloud and rainy days.

• Use the space you have: A 1kW solar array will require around 8–10m² of roof space, and a 1.5kW solar panel system requires around 12m².

• Power even during blackouts: If keeping on going is important to your business, installing PV and battery storage systems that are off-grid (disconnected from mainstream electricity) could be your answer. On-grid systems can’t be used during blackouts because they generate electricity back to the system, making downed wires dangerous.

• Cut your costs: Battery storage can feed electricity into your business when you reach a certain electricity usage level to reduce peak demand.

Visit ecoBiz for more resources on solar and other hot topics here (www.ecobiz.cciq.com.au/hottopics).

But there’s always a but. Here’s what you should know before you make the leap.

• Not all solar panels are made equal, and Australia has been the dumping ground for poor-performing solar panels in the past. Do your research before you buy, and check out the Australian Solar Council’s top tips for installing solar.

• Choose the panel direction that best benefits your business. Panels on north-facing roof will generate, on average, more energy than those facing other directions. They also will help to reduce peak demand in the middle of the day but are less effective than those facing east (in the mornings) or west (in the afternoons).

• Do your homework to be eligible for the best rebates. You might be eligible for small-scale technology certificates (cleanenergyregulator.gov.au), reduced rate loans and tax deductions.

The smart money is on investing in efficient energy that pays back your costs within a few years.

Is your business power bill between $2K and 5K a month? If so, the Queensland Government estimates solar panels will save you $7K a year off your bills.

12SAVE MONEY AND SAVE THE PLANET

VOLTAGE OPTIMISATION

Did you know the voltage delivered to your company could be higher than it should be, and it may be costing you thousands? Approximately 70 per cent of Australian businesses are receiving voltage at a higher level than required.

Reducing your voltage can mean reduced costs. When your company is running on a higher voltage than required, it is a little like driving your car with your foot flat to the floor. Most Australian equipment is designed to run at a particular voltage and when it receives a higher voltage it will not run at an optimum state. Just like your car, you will use more energy to arrive at the same destination and the chance of equipment failure along the way is higher.

Voltage optimisation brings the voltage within your premises to the optimum level for the efficient and safe operation of your equipment. When your equipment receives voltage within this optimum range, it consumes less power and lasts longer—resulting in significant financial savings for your business.

Get your business a free coaching session with an eco-efficiency expert. Register at ecobiz.cciq.com.au

THE CASE FOR VOLTAGE OPTIMISATIONApproximately 90% of buildings in Australia receive electricity at a higher voltage than they need.

The allowable voltage range in Australia is 216–253 volts (AS60038). Due to the nature of the electricity grid, most buildings receive voltage on the higher end of this range.

Receiving high voltage levels can result in:

• increased energy consumed by many types of equipment

• reduced operating lifespans of equipment

• increased repairs and maintenance costs

• increased electricity costs.

POWER


SMALL CHANGES FOR QUICK WINSWhenever you save energy within your business, you save money.

If you’re looking for quick wins without a big financial outlay, then try out these ideas.

OFFICE EQUIPMENT• Turn off computers,

monitors, printers and lights at the end of each working day.

LIGHTING• Clean dusty diffusers and

lamps every six months.• Turn off lights when they’re

not needed.• Replace incandescent lamps

with compact fluoros.• Replace fluorescent or

incandescent exit signs with long-lasting, low-energy LED exit signs.

• Install dimmers so you can choose how much light you really need.

HEATING, VENTILATION AND AIR-CONDITIONING• Close shades during early

morning and late evening to reduce solar heat.

• Close doors to the outside to contain air-conditioning.

• Turn the air-conditioning off for the last hour of each work day.

• Keep room area temperatures at 18 degrees during winter and 25 during summer.

• Install timers or programmable thermostats to maximise efficiency of your air-conditioning.

• Install locking covers on thermostats to prevent people from tampering with temperature settings.

• Perform regular maintenance on units including checking ducts and pipe insulation for damage, cleaning condenser coils and replacing filters.

FAST FACTS

Office equipment can make up 20% of your power bill, and the heat they generate can increase air-conditioning power by 25%. So turn off the office equipment when it’s not being used, and you’ll win twice.

Inkjet printers use up to 90% less electricity than laser printers.

Laptops use up to 90% less power than desktops.

Most computer power use goes to the monitor, so buy LCD or LED monitors for better energy efficiency when you replace older ones.

Printers with automatic power-down features can reduce electricity usage by more than 65%.

Photocopiers are often shipped with the energy-saving mode disabled. Turn it on to save power.

If something is plugged into a power socket and it lights up or gets warm, then it’s using power even if it’s not being used. Unplug laptop cords and chargers when they’re not in use.

Power management software that turns your monitor off saves more energy than screen savers.

Find more tips here for businesses of all sizes. www.ecobiz.cciq.com.au/ do-it-yourself/ #Fact-Sheets

14SAVE MONEY AND SAVE THE PLANET

HELPING YOU CHANGESome energy saving actions, such as changing over to more energy-efficient appliances, may involve an initial investment.

Others – like leaving the thermostat alone on the air-conditioner or turning lights off at the end of the day – will require a cultural shift.

That’s where programs like CCIQ ecoBiz come in. They’ll support you and your team for free as you introduce energy efficiency changes.

Their expert coaches will also help you to work out the big changes you need to make, and an action plan to how you approach investing in energy efficiency, like power factor correction units.

You’ll know the approach that will work best for you – so think carefully, then put it in place.

When you do, both your cashflow and the environment will both thank you for it.

Register for CCIQ’s free ecoBiz Program at

www.ecobiz.cciq.com.au and embark on your

savings journey


Chamber of Commerce & Industry QueenslandIndustry House, 375 Wickham Terrace, Spring Hill, Qld, 4000Telephone 1300 731 988www.cciq.com.au

Documents

DEFINITIVE GUIDE TO ENERGY EFFICIENCY - ecobiz.cciq.com.auecobiz.cciq.com.au/assets/PDFs/2018-ecoBiz-Guide-Energy-Efficiency-LR.pdf · THE POWER IS IN YOUR HANDS When you’re busy