Maximizing ROI: Benefits of Using Natural Gas for Commercial Use
Bringing "Virtual Pipeline" to the Southeast
Today’s energy choices play a major role in the success of any business, large or small. Good thing natural gas is here to help businesses run smoothly day to day, while also providing important financial, strategic and operational returns.
From upfront savings and long-term reliability to making the planet more sustainable, natural gas has earned its reputation as a fuel that delivers. Here’s a closer look at the many ways natural gas pays off for businesses, including a few you might not have realized.
The ROI of Natural Gas for Your Business
Energy proves to be one of the main ongoing operational costs for commercial businesses. Fortunately, natural gas helps deliver reliable savings compared to electric or fuel-oil alternatives. Let’s look at how.
Commercial Natural Gas Rebates and Incentives
In many regions around the U.S., area utility companies offer fixed, easy-to-claim rebates for commercial businesses to install high-efficiency natural gas equipment. Examples include natural gas water heaters, furnaces and boilers, kitchen and laundry equipment, HVAC upgrades and lab machinery.
In other cases, where uses may not be so prescriptive, utility companies often offer custom incentives, covering process improvements and system redesigns and upgrades.
All of these rebates and incentives help reduce upfront capital costs, lower expenses through greater efficiency, accelerate return on investment for energy-saving projects and improve sustainability efforts.
Lower Comparative Prices
Historically, natural gas has been more stable and affordable than electricity and propane, helping businesses better predict and control their monthly expenses.
When heat is essential to your business—from laundry services that run hot water constantly, to agricultural operations that keep greenhouses and livestock barns warm, to the manufacturing sector that powers boilers and steam systems—natural gas has proven, nationwide, to offer a degree of protection from dramatic energy price fluctuations.
Higher Efficiency
When used directly to help fuel a business—versus using electricity generated by this clean-burning fuel produced at a power plant—natural gas appliances convert more of the energy they burn into usable heat, which means more bang for the buck.
A great example of this comes from the restaurant industry, where a natural gas fryer can save up to $800 a year in energy costs. Its faster heat recovery, shorter cook times and lower costs per BTU make it far more efficient than an electric fryer.
Less Maintenance, Longer Life
Natural gas systems and appliances typically exhibit less wear and tear, which means fewer repairs and less cost to maintain:
- Gas burners can last up to 12 years, while electric heating elements need replacement every 2 to 4 years
- Gas furnaces/boilers can go 10 to 15 years before needing repairs, while electric systems often require service every 5 to 7 years
- Commercial gas dryers may last 7 to 10 years before needing major service, while electric dryers typically need repair every 3 to 5 years.
Strategic Advantage: Resilience and Risk
Natural gas also offers advantages beyond cost, giving commercial businesses stability and control unmatched by other sources of energy. Here’s how:
Reliability Based on Infrastructure
Unlike electricity, which largely depends on above-ground infrastructure that can be vulnerable during storms, high winds and grid breakdowns, natural gas is delivered through an extensive network of pipelines that run underground.
These pipelines are protected from bad weather, and multiple supply routes mean gas can still get to where it’s needed should a section ever become compromised. The fact that it can be stored beforehand in facilities, too, means there’s usually a supply ready to help cushion during periods of high demand and emergencies.
In fact, this reliability is why so many critical facilities like hospitals, emergency operations units and data centers rely on natural gas generators. When power goes out, businesses that depend solely on electricity face immediate operational challenges and risks.
Flexible Procurement Options
Natural gas offers financial reliability through flexible procurement structures, as well. Businesses can choose, or mix and match, pricing models that work with their particular budgeting needs and appetite for risk.
Fixed pricing helps lock in rates for a set term, which can be especially advantageous when prices fluctuate, as well as making it easier to predict monthly expenses. Schools, restaurants and small businesses typically rely on fixed prices.
On the other hand, index pricing ties natural gas costs to the current market, which means prices are likely to change month to month. This can be beneficial when prices drop, as long as a business is able to pivot when prices go back up. Index pricing is often used by manufacturers, agricultural operations and large commercial users.
Some operations opt for the best of both worlds with a hybrid strategy, mixing the advantages of budget stability with opportunities to save with index pricing.
Expert Guidance
In addition to this buying flexibility, many natural gas companies offer services to help guide businesses in these decisions. Gas South, for instance, offers expert energy guidance with teams and specialists who get to know the needs of your business. We’re here to help you understand pricing structures, usage patterns and market behavior, so you can make informed decisions that give your business a competitive edge. In many cases, we even offer customized plans, delivery and billing to suit your unique needs.
Corporate Social Responsibility
In today’s world, fossil fuels sometimes get a bad rap compared to alternative energy sources like wind and solar. But natural gas stands apart as the most efficient and clean-burning option in the fossil fuel family, helping meet today’s high energy demands that renewables aren’t yet able to fully support. It serves as a practical, reliable bridge as we transition toward even greener solutions.
Because of this, natural gas plays an important role in many corporate social responsibility strategies. It’s widely recognized as a more sustainable energy choice that reduces environmental impact and demonstrates a company’s commitment to responsible operations.
Ready to Get Started?
Whether you’re looking for meaningful returns on cost, efficiency, reliability or sustainability, natural gas can show you the way to success for your commercial business—today and long into the future! And if you’re exploring provider options, take a moment to read our How to Choose a Gas Company for Your Business. As a leading natural gas provider, Gas South is here to help.
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