Beyond the Commodity: Innovative Energy Solutions for Your Business

Commercial energy management is about more than keeping the lights on.

With energy costs on the rise, increasing strain on the grid, and a need for more sustainable practices, now is the time for commercial energy decision-makers to consider their options for more efficient energy management.  

The good news: There’s ample opportunity for businesses to optimize their energy use, reduce costs, and maintain operational efficiency through innovative solutions beyond the commodity. 

In May, experts from IGS Energy’s Commercial Energy Services (CES) team hosted a webinar focused on strategic approaches that can help organizations successfully manage today’s challenging and unpredictable energy markets. This recap highlights important takeaways to help commercial energy consumers better understand the challenges and opportunities in the current energy landscape. 

Here's a closer look at the insights we shared during the webinar and how these solutions can transform your approach to energy management. 

The Important Role of Innovative Energy Solutions   

Energy demand is rising faster than new power generation can come online, putting strain on the grid and driving up costs. Businesses need innovative solutions that address this challenge while delivering tangible benefits. Integrating modern energy management practices can make a significant difference.

Demand Response and Peak Shaving 

There are two quick-to-deploy solutions for commercial energy customers seeking an effective way to reduce energy spending. 

The Power of Demand Response 

Grid operators are working to design a system that can provide reliable electricity at all times, but it's very expensive to build power plants or other resources just to meet peak demand. 

Demand response programs incentivize businesses to reduce energy usage during peak periods when the grid is under the most pressure. This not only supports grid reliability but also allows companies to reduce their costs if they have the flexibility to participate in a demand response program.  

Think of demand response as a natural hedge against capacity: When capacity costs rise like they have recently, the payment potential for demand response goes up as well. 

While this solution can offer financial benefit to some companies, success depends on having the necessary infrastructure to react swiftly and effectively. It’s important to work with an energy partner that has experts to help you analyze and understand your power usage. 

How Peak Shaving Works 

Peak shaving is a great choice for customers who are trying to reduce their energy usage on peak days to help reduce their future capacity costs — and it's a more flexible alternative to demand response. If your organization has a strong summer bias — that is, you consume much more peak power in the summer than you do in the winter — peak shaving is worth considering. 

Here’s how peak shaving can make an impact:   

• Electricity is more expensive during peak times. 
• Utilities often charge extra fees based on the highest usage during a billing period. 
• By "shaving" that peak, you can save money and reduce strain on the grid. 

Ultimately, peak shaving is a way to reduce electricity costs by lowering the amount of power you use during times when energy demand is highest — called peak periods. Think of peak shaving in terms of rush-hour traffic: Just as you might leave your home earlier or later to avoid a traffic jam, businesses or buildings reduce or shift their electricity use during peak hours to avoid high energy charges.  

The choice between demand response and peak shaving depends on your organization's energy consumption patterns and operational flexibility. A careful analysis of your energy data can reveal the most effective approach. 

LED Lighting and Solar 

Both demand response and peak shaving are what we call “virtual” solutions — they don’t require a lot of manual work. There's no installation of new technology typically to deploy these solutions.  

Lighting solutions and solar, on the other hand, require a significant amount of time as well as resources, but the overall impact on your organization and the value they can deliver is typically much larger as well. 

When done right, these solutions are going to deliver some significant results for your organization. 

LED Lighting: Your First Step in Efficiency  

Few solutions deliver as much immediate value as upgrading to energy-efficient LED lighting. Benefits include: 

• Significant reductions in energy consumption (up to 70% in some cases) 
• Longer-lasting fixtures that reduce maintenance costs 
• Improved lighting quality, which can enhance safety and productivity 

Despite the initial investment, LED retrofits often achieve return on investment within 1 to 3 years, thanks to energy savings, state-level rebates, and federal tax incentives.  

Some IGS Energy customers have reduced energy consumption by 70 percent — while often increasing their light levels by at least double. With an LED installation, customers have made their workplace safer while saving money on their energy spend at the same time.  

So, why not just have your own team upgrade lighting as it burns out? Because the payback on an LED upgrade is typically short — compared to other upgrades — it’s beneficial to complete a complex upgrade in a matter of weeks instead of chipping away at it for years.  

The right partner can help you maximize these savings while ensuring a seamless installation process. 

Harnessing Solar Power 

Once energy efficiency measures like LED lighting are in place, on-site solar generation becomes a compelling next step. On-site solar generation can help organizations:  

• Offset energy costs  
• Hedge against rising energy prices 
• Reduce carbon footprints and support sustainability goals 

Solar works best when combined with other energy-saving measures to ensure the system is right-sized for your facility’s needs. Businesses can choose between owning the system outright or partnering with a third party to minimize upfront costs while still benefiting from lower energy bills. 

Every solar project is unique. IGS Energy has helped hundreds of commercial customers choose solar, and not one system has been the same — though our team has learned a lot over the years about how to design optimal systems that can create the most savings and the longest benefit for customers.  

It’s important to note solar won’t offset your entire energy cost because other fixed costs aren't offset by reducing your usage. At IGS Energy, our experts examine your power bill to determine what percentage of the bill and what line items on your bill can be offset. 

Make the Most of Your Energy Strategy 

Developing an impactful energy management strategy isn’t just about implementing new technologies: It’s about making informed decisions based on accurate data. At IGS Energy, we use advanced tools to analyze your energy consumption patterns, identify opportunities for savings, and tailor solutions to your unique needs. 

It's more important than ever to have an agile, trusted partner to help navigate increased volatility in the energy markets and mitigate the impact of rising transmission costs as the grid ages and demand rises. IGS Energy has developed a deep bench of expertise and resources to evaluate solutions and deliver accurate, actionable analysis so organizations can make informed decisions.  

We understand modern businesses require energy strategies that go beyond the basics. Want to explore how these solutions can work for you? Contact IGS Energy today to schedule a consultation. Together, we’ll build an energy strategy that drives efficiency and savings. 

Our Spring 2025 Energy Market Update