- Category:
Small Business Energy Savings - Published:
February 5, 2015 - Updated:
July 6, 2021
Choosing the Right Energy Product for Your Small Business
Knowing which energy product to choose for your small business doesn’t have to be complicated. As your energy ally, Constellation is here to help you with expert tips you can rely on.
In order to properly evaluate an energy product in relation to your business’s needs, you will first need to consider your facility requirements. Keep in mind that things like the size of your facility, hours of operation, and the machinery or equipment required to run your business will all impact your energy bill.
Once you understand your facility requirements, you will need to think about your risk tolerance and weigh your options carefully. If you have a limited energy budget, your risk appetite is low. If you are not tied to an energy budget and you can weather a ~20% swing in monthly costs, then your risk appetite is high.
With these two pieces of knowledge, you can start evaluating your energy options—and even eliminate some entirely. For example, if your risk tolerance is on the low side, you can concentrate on fixed rate solutions, which offer a single, fixed price per kilowatt hour for a designated timeframe and nearly eliminates your exposure to rising prices. Constellation’s Fixed Energy Solution offers the convenience of price certainty for up to 48 months from an electricity supplier you can count on.
On the other hand, if you have a high risk tolerance, you may consider a variable rate plan. Since energy is part of the commodities market, prices change regularly, just like they do on the stock market. If you choose a variable rate product, the fluctuating market may impact your energy bill in a positive or negative way. Either way, a variable rate plan exposes your business to unpredictable market changes and is an option for businesses with a high risk tolerance.
With these simple tips, choosing the right energy solution should be easy. But, it’s always a good idea to seek help from an expert. That’s why, at Constellation, we’re always here to assist. So, if you have questions, ask them. We’ll be here to listen and provide you with the customer service and support your small business deserves.
Call us today at 1.888.635.0827
