Cost Control Measures | Reducing Electricity Costs Through Energy-Efficient Appliances

Electricity cost is a variable cost for a business. It fluctuates depending on the monthly electricity usage of the company. Controlling electricity costs can be a tough management policy, especially for small and medium enterprises.

Commercial refrigerators for sale nowadays have “energy saving” features. In fact, appliance manufacturers and sellers use energy efficiency as a marketing tool to encourage commercial establishments to buy their appliances.

Understanding electricity costs

Being a variable cost, electricity cost fluctuates with the level of usage and changes in the cost driver. A cost driver for electricity can be kilowatt-hours.

It is worth noticing that sometimes, electricity costs increase due to changes in the price per kilowatt-hour. Even though you reduce the level of usage, your electric bill can still be high if the local electricity company charged a high price per kilowatt-hour.

If that’s the case, changes in prices per kilowatt-hour are beyond your control. In analysing your costs, paying attention to such details can help you realize that specific increases in cost are due to external factors outside your influence as the manager-owner.

Setting that aside, if your electric bill is indeed too high due to the level of electric usage of the appliance, here is a quick guide to help you buy energy-efficient appliances for your business.

Check out energy level guide

When you look a meat cooler for sale, the first test to do if the appliance is energy-efficient is if it has an ENERGY STAR label. The second test to do is to look for the energy level rating. It must be hanging or pasted on the body of the appliance.

In the label, you will see six stars arranged similarly like a speedometer. The more stars covered means that the appliance is energy efficient.

Let’s say you’re buying ice making machines for sale and you want to know the annual operating cost. In the same energy label, check the consumption level expressed as kilowatt-hours.

Assume there are two commercial refrigerators for sale that you like:

Refrigerator A Refrigerator B
No. of Stars ★ ★ ★ ★ ★ ★
Consumption level 542 kWh per year 318 kWh per year

Which should you choose? To help you make a decision, there are two questions to answer:

  • Which is more energy efficient?
  • Which is more cost-efficient?

If energy-efficiency, refrigerator B is more efficient than refrigerator A. For cost efficiency, you have to compute the annual operating cost.

The annual operating cost is the kilowatt-hours per year multiplied by the electricity tariff per territory. In Queensland, peak rate tariffs are around 33 to 35 cents per kWh. Take note, however, that electricity tariff rates differ per territory.

Therefore, the annual cost to operate refrigerator A and B using a tariff rate of $0.35/kWh is $189.70 and $111.30, respectively.

Assume that your current fridge has annual operating costs of $171.15 and drinks fridges for sale have annual operating costs of $111.30, then you have cost savings of $59.85 per year. In ten years, your total cost savings would be $598.50.

Did this article inspire you to buy a new energy-efficient appliance? If yes, visit Cold Solutions at to see commercial refrigerators for sale and other appliances.

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