Energy Upgrades: What's the Cost of Doing Nothing?

How does it cost something to do nothing? If nothing changes, you're not paying extra, right? What exactly does the cost of doing nothing mean?

Imagine you pay the same for your energy every year for the next five years. Let's say it's 100 units a year. If you make no upgrades to your facility, you'll still pay 100 units a year. Over the next five years, that would add up to 500 units.

When you make an upgrade, your facility becomes more efficient. If the upgrade improves efficiency by 30%, you're now paying 70 units a year. So over that same five years, because of upgrades, you're paying a total of 350 units.

But, those upgrades cost money. For example, let's say the upgrades cost 60 units.

By spreading the cost of the upgrades out over two years, you continue to pay the same 100 units a year for the first two years, but continue to save 30 units every year after. And that savings continues over the life of the installation.

So, what is the cost of doing nothing? In this example, it's 90 units, or nearly a full year's worth of energy costs for those that did nothing. That could be a lot of money your facility is leaving on the table — money you could use for what matters most to your business.