Giving Compass' Take:

Mark Henderson shares three strategies that can help innovate the energy sector and promote small- and medium-sized businesses to shift their energy consumption.

How are you supporting energy-saving initiatives? What role can you play in facilitating partnerships? 

Learn about how to prioritize equity in energy efficiency.


Historical data shows that small businesses typically balk at the upfront costs and perceived risk of implementing energy-saving initiatives. While small- and medium-sized businesses (SMBs) consume 40 to 50 percent of the nation’s energy and more than three in 10 of them state that energy is one of their top three business expenses, less than 2 percent participate in their utility’s energy efficiency programs. This poses a huge challenge for the utilities trying to reach this untapped market and bridge the gap between SMBs and those program resources.

Fortunately, there are signs this is changing due to market evolution and innovation.  Three strategies in particular serve as critical change agents for utilities' SMB engagement in the coming years:

1. Deploying Data-Driven Targeting and Engagement

Data analytics provide significant value for utilities through identification of high-potential customers for energy savings by examining their meter consumption data at scale. These include pinpointing customers who can save 10-20 percent or more on their energy bill through cost-effective equipment adjustments and upgrades.

2. Embracing Intelligent Equipment

To capture the next frontier of savings, utilities and businesses must go beyond thinking about initial equipment installation to ensuring that the equipment is operated optimally over time. Operational improvements, in fact, account for 30-50 percent of the energy-saving potential in businesses.

3. Meeting Them Where They Are

Small businesses may also make purchases like everyday consumers — in a retail store or online. To meet the growing demand for digital channels, utilities can offer small businesses marketplaces specifically oriented around energy efficiency products and education to provide easy access to solutions and support. As utilities increasingly rise to the forefront of the purchase process for energy-related devices, they have the power to influence the distribution, purchase and installation of these products to create a seamless energy buying experience.

Read the full article about the green partnership between utilities and small business owners by Mark Henderson at TriplePundit.