Energy costs take up a large portion of your operational budget. But, at the same time, you have greater control over your energy bill. Business owners have plenty of options while choosing their supplier because of deregulation in the energy market.

Here are the top 4 factors you need to consider to devise an ideal energy plan for your business and before you go get yourself a supplier:

1.    Fixed or Variable Rate   

Most of the energy provides today offer both fixed and variable rates. Choosing a fixed rate lets the business owners know exactly how much they will spend each month. Whereas, a variable rate help the business owners in enjoying the benefits of the market swings and eventually, getting a better deal.

A business that has a fixed budget every month should choose a fixed rate plan so, they are ready for any sudden price changes.

2.    Getting Time-of-Use Plans

Signing up for a time-of-use plan might be a smart idea if your business operates during unconventional hours such as during the weekend or at night. These plans provide customers with different rates for different times of the day.

If your business uses most of its energy during a time when the demand happens to be at its lowest, you could get a lower rate.

3.    Renewable Energy

Customers today have the option of choosing between renewable or non-renewable energy plans. Some companies charge higher rates if you want clean energy. But, this isn’t the norm. You could research and look for what works for your business and budget.

Businesses, which opt for clean energy can increase their profits not to mention gain respect in their community. Making an environment-conscious decision for the plan boosts your business’ reputation, gets your respect from your staff and makes your community a healthier and cleaner place to live in.

  1. The Length of Contract

Business owners usually have the option of committing to energy plans for a certain time period which could range between 3 months to 5 years even. If you get a good deal on a fixed rate plan, then you should lock that rate for a longer time period. Do ask if there is a cancellation fee if you decide to switch to another supplier.

At the same, pay attention to the fact that if the energy rates drop during your long contract, you wouldn’t be able to enjoy the low rates. Then again, suppliers offer lower rates on short term plans such as for 6-months. These plans are great for a business that wishes to have more flexibility along with more control over their energy costs.

Keep in mind the time of year when you sign up. The energy rates are highest when its demand is highest.

For business owners, the variety of energy plans is expansive. No single plan could be ideal for everyone. Go for a combination of the plans mentioned above according to your business needs.