As energy prices continue to rise, small businesses are scrambling to find ways to lower costs. While it may be tempting to try a patchwork approach to saving energy, making slight alterations to a variety of areas, it is more practical to concentrate on the biggest energy consumers to save the most money with the least effort.

For example, restaurants can focus on installing highly-efficient refrigeration systems and lighting, as those tend to be the biggest energy costs, says consultant Virginia Lacy.

Other strategies include energy-efficient water heaters, switching to high gas mileage vehicles for deliveries, and giving drivers access to GPS systems or mapping sites such as MapQuest so they can find the most efficient route to a destination and not have to drive around to find a location.

Once the large energy consumers are taken care of, focus on small changes in behavior that could lead to big savings. For example, turn off equipment and lights when not in use and make sure buildings are properly insulated. Energy-efficient light bulbs can be a significant investment initially, but they can pay for themselves in three years or less.

A building recommissioning, essentially a professional building tuneup, can help a business save up to 10 percent on energy costs by checking for leaks in heating and air-conditioning systems, among other strategies, Lacy says.

An energy audit can also help save money by helping businesses determine which energy-strategy project will garner the fastest returns. Energy auditors thoroughly analyze a business' energy usage by examining energy bills and inspecting equipment and the building. Many local utility companies offer free energy audits to small businesses. The power company can also help businesses find utility rate plans that best fit their usage patterns.

"Strategies for Reining in Energy Costs"
Wall Street Journal (07/05/08) Spors, Kelley K.