Every industry whether small or big needs energy to carry out their operations. The sources of energy for MSMEs are electricity, coke/coal, petroleum products. The consumption of energy is high and hence energy conservation is the need of the hour. MSMEs do not have control on Energy, (Man & Machine) & Raw Material prices and due to increase in these prices, slowly profit margins are shrinking.
Most of the MSME sector, firms engaged in energy-intensive operations incur higher costs as these firms pay more per unit of energy compared to larger industries making them more vulnerable to increases in energy prices.
Energy audits aim to increase efficiency of energy since energy is a key resource. It is the most substantial cost in the process of manufacturing which is controllable. Energy audit is the first step in understanding the potential of an organization for energy saving.
Energy audit involves evaluation and analysis of energy conservation. It identifies the potential areas of saving energy.
Benefits of Energy Audit to You
1. Audit helps to determine how you can make your organization more energy efficient.
2. Reduces cost on energy.
3. Increases both profitability and productivity.
4. Reduction in emission of carbon dioxide and lesser impact on environment.
How We Can Help
Energy audits can save at least 10% to 30% in energy bills. This could be a major booster to the profitability of an organization considering the fact that energy costs are increasing every day and will continue to increase in future also. For survival and to remain competitive, energy cost is one untapped area, which should be fully explored.
Now the question arises why generally MSMEs are reluctant to go for energy audits. The answer is purely cost. They consider it as mere compliance and ignore the benefits in the long run. It is correct that an energy audit has its cost but the cost of energy audit would be hardly 10% to 20% of the value of the energy saving which could be achieved in a year. On top of it 75 % of the cost of energy audit (pre-audit and post-energy audit) subject to a maximum of Rs.2 Lakh can be reimbursed.
So effectively, the cost of energy audit after taking into account net savings is quite less and there is no point not to go for it.
In order to get the reimbursement of expenditure on energy audit you need to contact us at below address and provide necessary information after which it’s our duty to get you the desired result.
At Lawmax Management Consultants Private Limited we offer the best quality solution to the entrepreneurs to improve their business outcomes. We have been able to cater the entrepreneur’s exact need by keeping confidentiality, reliability, and trust.
Please feel free to contact us while planning for a new project.