Why Businesses Are Turning to Boutique Energy Consulting

Doing business in California comes with the reality of paying the highest rates among the West Coast states. To illustrate, did you know that the commercial average for January 2025 played at USD$0.238/kWh, more than that of Oregon and Washington combined? Only Hawaii outprices California’s rates (and those of the rest of the U.S.) by a wide margin. (1)

With this reality, a strategic solution for businesses is to partner with boutique energy consulting firms to develop tailored energy management solutions. Here are examples of how companies can use a professional’s expertise to their benefit.

The Feasibility of Going Green

Adopting renewable or “green” energy systems is a common response to rising electricity rates. In fact, California is one of the best places to go green, primarily solar power, due to the state experiencing up to 290 days of sunshine per year. In Q3 2023, it produced a total of almost 13,000 mWh of solar energy—more than any other state. (2)

Solar panels and batteries are finding their way into more commercial rooftops across the state. But while many businesses recognize the environmental benefits, not all properties can accommodate solar power systems. Moreover, not all enterprises have the resources to go fully green. Despite technological advances over the years, these systems remain costly.

Boutique energy consulting firms understand this challenge. They use data analysis to create realistic long-term energy plans for businesses. Instead of pushing for immediate full renewable adoption, they offer gradual approaches that work with a company’s budget. With a commitment to these step-by-step plans, businesses can steadily improve their energy situation over time.

Creating Energy-Saving Policies

Energy conservation requires more than just installing solar panels. A business can run on renewable energy, but its benefits won’t matter if wasteful habits continue. And without awareness of such practices, company leaders might mistakenly invest in expanding their solar system rather than fixing the actual problem.

A study of five office buildings found that 56% of energy is wasted after work hours due to people leaving lights and equipment on when they go home. That said, implementing energy-saving policies in the workplace is just as important as installing green energy systems. (3)

Before setting rules for your business, understand how you actually use energy. Check your energy billing history and seasonal consumption. The tools used here are available to the public, but an energy consultant helps make sense of the data. With their analysis and insights, you can better create rules that promote an energy-saving company culture.

Qualifying for Energy Rebates

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AI-generated content may be incorrect.

Government and private-backed incentives can be powerful motivators for businesses. Every tax-deductible and rebate they qualify for helps keep them afloat, especially during tough economic times. But while many incentive programs exist, identifying applicable programs often requires navigating a complex legal framework.

For example, the IRS allows a tax deduction for certain improvement works on energy-efficient commercial buildings or retrofit properties. However, the work has to meet the guidelines under ASHRAE 90.1 to be eligible. There are also other factors for deduction to consider, such as meeting prevailing and apprenticeship requirements. (4)

For boutique energy consulting services, compliance isn’t just a task—it’s a core offering. Business leaders can depend on these professionals’ understanding of incentive terms to gauge eligibility and avoid costly missteps. This expertise also extends to providing foresight into the evolving energy landscape and informing future strategies.

Future-Proofing the Grid

Solar power technology has come a long way, especially in terms of efficiency and ease of manufacture. Over the past decade, the panels’ ability to convert sunlight into renewable energy has improved by 0.5% per year. At the same time, the silicon used for solar cells has gotten cheaper from USD$400/kg in the 2000s to under USD$10/kg today. (5)

Considering this trend in terms of performance, it’s no surprise that newer and better solar power systems are continuously emerging. This progress presents a significant advantage for commercial properties looking to install their first set of solar panels and battery systems.

But the same can’t be said for upgrading existing systems. Swapping the panels out before the end of their 30-year service life contributes to a growing accumulation of what is being referred to as “solar trash.” And at the rate it’s going, experts forecast a spike in the coming decades. (6)

While a future-proof energy system is nice to have, one built at the expense of the environment would ultimately defeat its purpose. So, before pursuing any upgrades, consider working with an energy consulting firm. They can conduct an audit of your current system. And with deep industry knowledge in renewable energy technology, they can give recommendations for minor updates and other strategic changes, which can potentially offer a more sustainable path forward.

Energy-Hungry Industries

Boutique energy consulting firms are a blessing for companies in energy-hungry industries. According to the Department of Energy, these industries account for 75% of U.S. industrial energy demand and include: (7)

Iron and steel manufacturing
Cement and concrete manufacturing
Chemical and petrochemical manufacturing
Forest products
Food and beverage products

The reason isn’t just their immense energy needs but also their environmental impact. For instance, every kilogram of cement made releases an equal amount of carbon dioxide into the atmosphere. And with cement being a staple of modern construction, it’s no surprise that strides have been made to use low-carbon concrete. (8)

Even if these industries’ energy demands remain higher than others, energy consulting can still make a difference by lowering them. Every kWh saved is every kWh made available to fulfill other needs elsewhere.

Final Words

Amid uncertainties like the next economic slump or energy crisis, businesses are increasingly driven to optimize their energy use for the future.

In this case, access to data-driven insights and practical knowledge from boutique energy consulting firms can be beneficial. Their specialized understanding of the energy landscape can allow your business to move beyond general approaches and make informed decisions. They can also help craft resilient energy strategies that anticipate future challenges and capitalize on emerging opportunities.

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