Strategies for Managing Rising Energy Costs in Ohio

Businesses in Ohio are facing significant challenges due to the continuous rise in commercial electricity rates. As shown in the image above, electricity prices have been steadily climbing from 2018 to 2024, making it more difficult for companies to maintain their energy budgets. To stay competitive, Ohio businesses need to implement strategies that can help them mitigate these costs. This article explores some of the most effective strategies to manage rising energy expenses and keep operations efficient.

Understanding the Impact of Rising Energy Costs

The commercial electricity rate increase in Ohio has placed pressure on businesses to find ways to manage their energy consumption and reduce overhead expenses. Rising energy costs can negatively affect a company’s bottom line, forcing owners to reconsider budgets and, in some cases, cut down on other operational costs. This trend is expected to continue, making it crucial for businesses to proactively adopt cost-management strategies.

Key Factors Contributing to Rising Energy Prices in Ohio

• Increased Demand for Energy: With Ohio’s growing industrial base and commercial expansion, the demand for energy has surged, pushing prices higher.
• Limited Energy Supply Options: The state’s reliance on traditional energy sources and lack of diversification has constrained the supply, impacting overall pricing.
• Regulatory and Market Factors: Changes in energy regulations and utility market dynamics can contribute to fluctuating rates.

By understanding these factors, businesses can take steps to minimize their exposure and implement targeted strategies to optimize energy usage.

Strategies to Manage Rising Energy Costs

1. Energy Audits and Efficiency Upgrades

One of the most effective strategies to manage rising energy costs is to conduct a comprehensive energy audit. An energy audit identifies inefficiencies and highlights areas where businesses can implement upgrades to reduce energy consumption.

• Upgrade to High-Efficiency Lighting: Switching to energy-efficient lighting options like LED bulbs can significantly reduce electricity usage.
• Implement Smart Thermostats: Smart thermostats help control heating and cooling systems more effectively, reducing unnecessary energy use.
• Optimize Equipment Usage: Ensuring that machinery and office equipment operate efficiently can prevent energy waste.

2. Negotiate Better Energy Contracts

Commercial businesses in Ohio can benefit from negotiating better energy contracts. Working with an experienced energy broker like Group Energy can help businesses compare multiple suppliers, lock in lower rates, and avoid unexpected price hikes.

• Compare Multiple Suppliers: Energy brokers can help businesses obtain quotes from different suppliers and choose the one that offers the best value.
• Fixed-Rate Contracts: Consider securing a fixed-rate contract to hedge against future rate increases.
• Review Contract Terms Regularly: Keep track of contract renewal dates and negotiate for better terms before they expire.

3. Implement Energy Management Systems (EMS)

Investing in an Energy Management System (EMS) can provide real-time data on energy consumption, allowing businesses to optimize their usage patterns. EMS tools enable companies to track energy use, identify peak demand times, and automate energy-saving processes.

• Demand Response Programs: EMS can be used to participate in demand response programs, where businesses reduce consumption during peak times in exchange for lower rates.
• Energy Consumption Analysis: Using EMS to analyze energy usage patterns can uncover hidden opportunities for savings.

4. Peak Shaving and Load Shifting

Peak shaving and load shifting involve reducing energy usage during peak demand periods when rates are highest. This can be achieved by adjusting operating schedules or using backup power sources.

• Schedule High-Energy Processes During Off-Peak Hours: Consider running energy-intensive processes during off-peak hours to avoid higher rates.
• Use Backup Generators During Peak Times: For some businesses, using backup generators during peak periods can help reduce reliance on the grid.

5. Energy Efficiency Incentive Programs

Ohio offers several energy efficiency incentive programs that can help businesses lower the cost of implementing energy-saving upgrades. These programs may include rebates, tax incentives, and grants.

• Explore State and Federal Programs: Check eligibility for programs like the Ohio Efficiency Incentive Program, which offers rebates for high-efficiency equipment upgrades.
• Utility-Sponsored Incentives: Many utilities in Ohio provide rebates for businesses that invest in energy-efficient technology.

6. Monitor and Control HVAC Usage

Heating, ventilation, and air conditioning (HVAC) systems are often the largest energy consumers in commercial settings. Optimizing HVAC usage through regular maintenance, smart controls, and scheduling can significantly reduce costs.

• Regular Maintenance: Perform routine inspections and maintenance to ensure HVAC systems operate at peak efficiency.
• Use Zoned Heating and Cooling: Zoning allows businesses to heat or cool specific areas as needed, reducing overall energy usage.
• Programmable Thermostats: Set temperatures according to occupancy schedules to avoid wasting energy when spaces are not in use.

The Role of Energy Brokers in Managing Energy Costs

Energy brokers, like Group Energy, play an essential role in helping Ohio businesses manage rising energy costs. By leveraging their knowledge of the energy market and extensive supplier networks, brokers can find the best rates and contract terms tailored to the unique needs of each business.

Benefits of Using an Energy Broker

• Access to Competitive Rates: Brokers have access to a wide range of energy suppliers, enabling them to find the most competitive rates.
• Customized Energy Solutions: Energy brokers can create customized energy strategies that align with business objectives and budgets.
• Continuous Monitoring: Brokers provide ongoing monitoring and support, ensuring that businesses are always on the most favorable rate plan.

For more information or to discuss how your business can reduce energy costs, contact Group Energy at 402-431-2646 or email support@groupenergy.org.

Future Outlook for Ohio’s Energy Market

While the trend of rising energy costs is likely to persist, businesses that take proactive steps to manage their energy usage will be better positioned to stay competitive. As the Ohio energy market continues to evolve, staying informed and working with trusted partners like Group Energy will be key to navigating the changing landscape.

Final Thoughts

Rising energy costs in Ohio present a significant challenge for businesses, but with the right strategies, it’s possible to mitigate these expenses and maintain profitability. Conducting energy audits, leveraging energy management systems, and negotiating better energy contracts are all effective approaches. Partnering with an experienced energy broker like Group Energy can further enhance cost management efforts, providing businesses with the insights and resources they need to thrive.

Group Energy Contact Information:

• Phone: 402-431-2646
• Website: GroupEnergy.org
• Email: support@groupenergy.org

Implementing these strategies will help your business stay resilient in the face of rising energy costs. Contact Group Energy today to explore customized solutions that meet your energy needs!