Energy efficiency promoting measures for small enterprises

The profitability and payback time of energy investments depend on several factors. In general, energy efficiency measures should be considered and implemented, whether they are big or small.

Author: Ismo Nieminen

LAB and Häme University of Applied Sciences promoted the energy efficiency solutions for the social, health and others service enterprises in the “METE2 – Maaseudun palveluyritysten vähähiiliset energiaratkaisut” (METE2) project (June 1, 2022 – October 31, 2024). (LAB 2024) One of the goals in the project was to produce concrete and applied information about energy solutions and their implementation in small enterprises

To achieve these goals, we contacted target groups for cooperation. Energy efficiency measures and investments require an analysis of energy use. An analysis was made based on the information provided by the enterprises and a short visit on the site.

Profitability of investments

Measures to improve energy efficiency should be implemented in such a way that the investment pays for itself by energy savings (Keski-Luopa 2021). Improving energy efficiency also brings other benefits, depending on the industry, in addition to reducing costs. These include, for example, an increase in the value of buildings, customer satisfaction, responsibility and the company’s reputation, a reduction in emissions and competitiveness.

Factors affecting the profitability of the investment and the payback period are the price of the investment, the energy source used and its purchase price, the timing of energy use, and the effect of the purchased system or change on energy savings. Different systems have different importance and contribution to the energy consumption of buildings. (Nieminen & Keski-Luopa 2024b, 20)

Property heating method and operation control

The profitability of changing the heating method depends on the price of the used energy source. Currently, an air heat pump that supports or replaces oil heating is a profitable investment and the payback period is quite short. The existing oil heating can be kept as a backup heating system and for additional heating during the coldest periods. When switching to pellet heating, the fuel costs are almost the same, so the payback period is long. In addition, when switching to pellet heating, the space required by pellets must be considered. However, it is difficult to predict the development of oil prices in the long term. However, the trend is now to get rid of oil as an energy source and dependence on it. In ventilation-related improvements, energy savings depend greatly on the actual air flows in the premises. In buildings where there is no heat recovery system in ventilation (HRV), it is profitable to install it. In the long term, it reduces the building’s energy consumption, improves the energy classification and increases the property’s value. By installing frequency converters to control ventilation, the costs depend on the current system and the difficulty of the installation. The payback period of the investment is short and saves considerable amounts of heating and electrical energy, especially if current ventilation works at 100% speed at all times. When making changes to the ventilation, the moisture-technical behavior of the structures and the balancing of the ventilation must be taken into account. (Nieminen & Keski-Luopa 2024b, 20)

Renewable energy

A company can reduce costs and emissions by reducing the amount of purchased electrical energy with the help of solar panels. When scaling the system, the timing of consumption and production must be considered. The calculations made in the report Esimerkkejä energiatehokkuutta edistävistä investoinneista (Nieminen & Keski-Luopa 2024b, 15), the investment payback period was about 9–11 years and, depending on the power of the system, covers about 5–27% of the target’s annual consumption.

Find the best supplier and search for it regularly

The price of energy, and especially electricity, greatly affects the running costs of the property. Unlike district heating, the electricity supplier can be changed. Based on the calculations made in the report “Esimerkkejä energiatehokkuutta edistävistä investoinneista” (Nieminen & Keski-Luopa 2024b), the cheapest option is the exchange electricity. However, the market price of electricity varies and the calculation based on 2023 may not be realized in the coming years. The second-best option was a contract based on the consumption effect, which on average gets close to the realization of stock exchange electricity. The third cheapest contract was a fixed-term contract with a fixed price, which is about 25–29% different from the previous ones. The most expensive option was an open-ended contract that could be terminated at any time.

In electrical heating systems, it is worth considering to use relay control. When relay functions and electricity stock markets are connected, intermittent low electricity prices can be used to buy more energy and store heat in underfloor heating or by controlling other high-consuming energy systems. The water in the hot water storage tank can be heated at night when the electricity transfer prices, depending on the contract, are lower.

Small and large actions to reduce energy consumption and costs

Energy savings can be achieved with individual investments or by combining different measures. Investments are generally profitable, but the payback period varies. The simplest investments are related to heat pumps and are applicable in smaller sites. The biggest impacts are related to air conditioning when there are noticeable deficiencies, such as the absence of HRV or the operating hours that cannot be adjusted. (Nieminen & Keski-Luopa 2024b) In addition is recommended to schedule functions using relay controls. However, all energy and cost-saving measures do not require large investments but can be implemented at low costs and with little effort. You can read more about the measures discovered during the project and proposed to target group in the publication “Energiatehokkuuden parantaminen tuntikohtaisen sähkönkulutuksen analyysin perusteella ” (Nieminen & Keski-Luopa 2024a, 73-74).

References

Keski-Luopa, M. 2021. Hanke-esittely ja energiatehokkuus yrityksissä. Cited 7.11.2024. Available at https://www.maaseudunmete.fi/wp-content/uploads/2021/03/Energiatehokkuuden-vaikutukset-yritystoimintaan.pdf

LAB. 2024. Maaseudun palveluyritysten vähähiiliset energiaratkaisut. Projekti. Cited 7.11.2024. Available at https://lab.fi/fi/projekti/maaseudun-palveluyritysten-vahahiiliset-energiaratkaisut

Nieminen, I. & Keski-Luopa, M. 2024a. Energiatehokkuuden parantaminen tuntikohtaisen sähkönkulutuksen analyysin perusteella. Cited 7.11.2024. Available at https://www.maaseudunmete.fi/wp-content/uploads/2024/09/METE2-Energiatehokkuuden-parantaminen-tuntikohtaisen-sahkonkulutuksen-analyysin-perusteella-pienissa-ja-mikroyrityksissa.pdf

Nieminen, I. & Keski-Luopa, M. 2024b. Esimerkkejä energiatehokkuutta edistävistä investoinneista. Cited 7.11.2024. Available at https://www.maaseudunmete.fi/wp-content/uploads/2024/09/Investointilaskelmat-METE2-yrityksille.pdf

Author

Ismo Nieminen works as an RDI-Specialist at the LAB University of Applied Sciences in METE2 – Maaseudun palveluyritysten vähähiiliset energiaratkaisut, HIILIKETJU – Urbaanin hiilenkierron uudet arvoketjut and RELE – Ratkaisuja alueelliseen kestävyyteen ja energiatehokkuuteen – projects.

Illustration: https://pxhere.com/fi/photo/1018434 (CC0)