How the carbon tax will impact operating costs and how to keep costs down
NuGreen shares five tips to reduce the impact of the carbon tax, which, according to the Allen Consulting Group’s report on the Carbon Pricing Mechanism, is set to increase the operating costs of commercial buildings by an average of 1.8 percent.
According to the Allen Consulting Group’s report on the Carbon Pricing Mechanism, the carbon tax is set to increase the operating costs of commercial buildings by an average of 1.8 percent.
The report estimates that the operating costs of an average 25,000 square metre building in Sydney are expected to rise by $61,961 or $2.48 per square metre. In addition, it states that 60 percent of the total impact comes from energy costs, which will increase by 10.8 percent, which translates into $40,313 ($1.61 per square metre) of example building.
According to the report, property owners will not be eligible for government compensation under the scheme, so they will have to absorb costs or increase rent.
The report notes that energy efficiency measures can help to mitigate the increase in price of the inputs. Sustainable building development and management firm, NuGreen outlines five tips for business to reduce energy costs and the impact of the carbon tax:
- Audit your current energy use – the average saving by implementing recommendations is 20 percent
- Install LED light fittings – LEDs are between 25 and 50 percent cheaper to run than fluorescent lighting, and 80 percent cheaper than halogen lighting
- Optimise your tariff contract with your electricity supplier – better management of peak/off-peak energy supply and demand can save up to 30 percent per year
- Lease your infrastructure – organisations do not need to tap the CAPEX budget to update energy infrastructure; like leasing a car or office space, businesses can now lease lighting and equipment operation infrastructure through OPEX;
- Investigate government green schemes – the Victorian Energy Efficiency Target (VEET) scheme is an example of a program that funds commercial investment that reduces greenhouse gas emissions