Energy IQ: Why businesses need to unlock value with better energy management strategies

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Think your business couldn't benefit from having an energy management strategy? Think again. 

Most successful companies have a marketing, product or supply chain strategy, but there is one more important but often overlooked area to consider when wanting to maximize profit: An energy management strategy. Today, a well-planned energy management strategy can position a company to take advantage of the recent trends shaping the energy markets.

"The days of considering energy costs as a given is long gone for most businesses," said Gino Butera, Vice President of Power Generation at Cummins. "A combination of five macro trends ranging from digitization and de-carbonization to electrification and de-regulation has created opportunities for businesses to be more pro-active with their energy costs." 

Energy use intensity for commercial buildings
Commercial businesses with higher energy use intensity benefit the most from energy management strategies.

According to a 2019 Deloitte study, 88% of businesses have changed their view of energy procurement from simply a cost to the business to an opportunity to create value. Cummins has identified three benefits or values to be unlocked by an effective energy management strategy.

No. 1: Improving the company’s financials

Energy bills (electricity, heating and transportation fuel) are one of the major expenses for many businesses of any size. If you are simply paying the energy bills without seeking the opportunities to lower your bills, you might be leaving money on the table. 

When it comes to electricity and heating costs, there are opportunities ranging from demand response and demand charge management to combined heat and power for your business to lower costs. You can even create a competitive advantage for your business through an effective energy management strategy, depending upon your local cost of electricity. Hawaii's largest craft brewer has accomplished this and created its competitive edge with the ability to estimate the cost of electricity. 

An effective energy management strategy would integrate the latest technologies in intelligent controls and microgrids into your company’s infrastructure, enabling your business to take advantage of financial opportunities. 

No. 2: Protecting the core business from interruptions

Lives, money and reputation. In the case of certain healthcare facilities, interruptions in a business could have disastrous outcomes including putting lives at risk. Even in the least harmful case, an interruption caused by a power outage will still cost your business money in the form of lost business. Both instances could do irreversible damage to the company’s reputation.

Even the most reliable power grids are at risk to fail. For example, electricity customers in the U.S experienced an average of over seven hours without power due to outages in 2017. In some states such as Maine and Florida, customers experienced an average of over 30 hours without power due to outages during the same year. 

An effective energy management strategy would feature a diverse set of energy assets ranging from storage systems to emergency generators to minimize interruptions caused by power outages. A diversity of energy assets would increase the resiliency of your company’s energy infrastructure instead of relying solely on the grid. 

No. 3: Advancing the environmental sustainability efforts

Today, more businesses are not just talking about sustainability but are establishing environmental sustainability goals to keep themselves accountable. One might think this is a trend for large multinational corporations, but in fact increasing number of small businesses also have sustainability goals.  

A business’ environmental footprint gets impacted by a variety of factors ranging from how its facilities are built to how its products are disposed, yet the use of energy gets the spotlight due to its significant impact on overall environmental sustainability. 

Electricity goals for businesses
Most companies have goals to reduce carbon footprint, and use of electricity and natural gas. 

An effective energy management strategy introduces new energy assets that produce less harmful pollutants to displace high-carbon sources such as coal. These new assets, including renewables and storage technologies, help businesses improve preservation of air, water and soil. 

Whether it is improved financials, continuity to serve customers or reducing environmental impact, an effective energy management strategy has multi-faceted benefits for any business. Building an effective strategy requires a consideration of both the company’s future goals and current operating realities. Check out this article outlining how you can start building an effective energy management strategy for your business.  If you are ready to take your energy strategy to the next steps, you can simply get in touch with an expert from Cummins to partner with you

Sign up below for Energy IQ to periodically receive relevant insights and trends about energy management. To learn more about distributed generation solutions Cummins offers, visit our webpage

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References:

1 Deloitte Insights (2019). Deloitte Resources 2019 Study [PDF file]. Retrieved from https://www2.deloitte.com 
 

Aytek Yuksel - Cummins Inc

Aytek Yuksel

Aytek Yuksel is the Content Marketing Leader for Cummins Inc., with a focus on Power Systems markets. Aytek joined the Company in 2008. Since then, he has worked in several marketing roles and now brings you the learnings from our key markets ranging from industrial to residential markets. Aytek lives in Minneapolis, Minnesota with his wife and two kids.

Why you should become a Cummins Home and Small Business dealer

Cummins dealer smiling next to home generator

For more than 100 years, Cummins Inc. has been dedicated to making people’s lives better by powering a more prosperous world. As a company, we seek to be customer-driven, innovative, responsible, and trustworthy so that we can truly make a difference now and in the future.

But exactly what does Cummins do? At a high level, we create power solutions. You’ll find Cummins products and solutions for on- and off-highway engines, turbochargers, electronics, fuel systems, generators and power systems, and more. We’re not in this on our own, though. With a broad network of Cummins-authorized dealers in the home and small business power solution space, we count on our independent dealers and their local relationships. If you’re interested in becoming a Cummins-authorized dealer, keep reading to find out the benefits and how to get started.

Does Cummins make Home Generators and Small Business generators?

Yes, Cummins offers generators that are sufficient for residential homes and small businesses, including:

  • 13-20 kW air cooled emergency standby generators
  • 25-150 kW liquid cooled emergency standby generators
  • 9,500-watt portable, dual fuel heavy duty generators
  • 2,500-4,500-watt portable, lightweight inverter generators
  • 300-1,000-watt portable lithium battery powered power stations

In the midst of severe weather, increased blackouts, and aging power grids, generators are becoming more and more important. Consider this: 83% of power outages were the result of weather-related incidents from 2000 to 2021.

When these outages occur during extreme temperatures, generators are critical to keeping homes and businesses comfortable, safe, and operational. Families won’t have to worry about losing their heat or everything inside their refrigerators. Businesses won’t have to worry about the potential financial impact that comes with an outage—which can be as much as $12,500 a day for a small business. 

All of these reasons are likely why search terms like “Cummins generator dealers near me” are so popular on Google and other search engines. Local people are consistently looking for the right generator solution. Cummins-authorized dealers can help ensure they have the power they need, no matter what.

What are the benefits of being a Cummins Generator Dealer for Home and Small Business?

Of course, if you’re thinking about becoming a Cummins-authorized dealer, the fact that there’s a market isn’t the only perk. Here are eight more reasons why you should become a Cummins-authorized Home and Small Business generator dealer.

  1. You’ll be backed by the Cummins brand, a name that’s synonymous with support, reliability, and sustainability. Cummins generators are quality, trustworthy equipment that you and your customers can count on.
  2. You will receive state-of-the-start training. Cummins provides courses and the certification path required to become a Cummins-authorized partner and product expert. Our technical training and certifications provide knowledge on Cummins home generator service like installation, maintenance, and repair.
  3. You can connect to a robust network of Cummins resources. Our dealers have access to a world-class set of tools, including training, a dedicated account executive, an online portal, sales and training certifications, and so much more.
  4. You’ll receive “preferred parts” pricing. By becoming an authorized dealer, you’ll get the best parts pricing around so you can maximize your profits. You can also pass these savings on to your customers to ensure your pricing is competitive.
  5. You can capitalize on marketing support. Cummins regularly invests in brand-building and lead generating campaigns to drive customers to our dealers. 
  6. You have access to warranty claim submission. Warranties don’t have to be a hassle for you or your customers. As an authorized-service dealer, you can submit warranty claims on behalf of your customer to improve customer satisfaction and loyalty. 
  7. You can join the ChannelOne Partner Rewards Program. This competitive rewards program helps you maximize your earning power.
  8. You can list your company on the Cummins Parts & Service Locator. The Cummins service locator makes it easy for local customers to connect with your business, and it increases your overall brand visibility.

How to become a Cummins Dealer: It’s easier than you think

Stop missing out on all of the local online traffic searching for “Cummins authorized dealer near me,” and bring great products to your community! It takes just four simple steps to get started.

  1. Complete the online “Become a Dealer” interest form. A regional Cummins Account Executive will contact you to start the discussion.
  2. Share additional information about your business, your experience, and why you’re interested in becoming a Cummins dealer.
  3. Fill out and return the necessary paperwork to be processed by the Cummins team.
  4. Complete your required product training and become a Cummins Home and Small Business Dealer.

At Cummins, our company is dedicated to providing great products and services to customers throughout the world. If you’re ready to join our world-class network, get started now.

Cummins Office Building

Cummins Inc.

Cummins, a global power technology leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from internal combustion, electric and hybrid integrated power solutions and components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, electric power generation systems, microgrid controls, batteries, electrolyzers and fuel cell products.

How do I calculate what size generator I need?

Customers talking to Cummins dealer

There are several great reasons why you might be considering a standby generator for your home or small business. In the event of a power outage (caused by severe weather, for example), having a standby generator helps ensure ongoing safety and comfort. And in the case of a business, the ability to reduce downtime and maintain operations is a significant advantage.

Standby generators—also known as permanent or whole-house generators—offer reliable and efficient backup power solutions for a wide range of applications. If you’re currently exploring your options, we imagine you have a few concerns. You’re probably looking for a generator that’s sold and serviced by a reputable company, and want to determine the right generator capacity for your needs.

In this article, we’re going to help you answer a key question: “What size generator do I need to run my house or small business in the event of a power outage?” Keep reading for an overview of how to find the perfect Cummins Inc. standby generator for your needs.

What is the rule for generator sizing?

When it comes to understanding generator sizing, one important rule to keep in mind is that the generator needs to be able to power everything requiring electricity, but it also needs to have additional capacity to account for various appliances’ starting wattage. Otherwise, you might find yourself in a situation where your generator simply won’t cut it, potentially leaving your home or small business without the power it needs.

Next, we’ll cover a basic framework for calculating your power needs.

How to Calculate Standby Generator Size

Here’s a simple, three-step process for assessing your needs and priorities, understanding generator sizes, and finding what size generator is going to work best. 

Let’s take a look at what this process looks like.

Step 1: Understanding Generator Sizes

Here’s a basic formula for how to calculate standby generator size:

  1. First, create a list of everything in your home or small business that would need to be powered by the generator in case of an emergency. This should include anything that requires electricity and isn’t something you would want to go without should you lose power. It’s important to not only consider running wattage, but starting wattage as well—since most appliances will require a few seconds’ worth of extra wattage to get started. There are several online sources for determining appliances’ wattage requirements.
  2. Add together each item’s running watts. When in doubt, err on the side of overestimating wattage requirements since it’s much better to have a little more power available than is needed as opposed to having to adapt to a generator that lacks sufficient power.
  3. Then, to roughly account for starting wattage, add the single-highest starting watts figure to the total.
  4. To ensure a margin of safety—and to account for potential future needs—you should multiply that figure by at least 1.25. The resulting number is the minimum generator capacity you should consider.

You can also use our home generator sizing calculator to estimate your power needs.

Step 2: Assessing Your Needs

It’s important to understand your priorities. While getting the right size and type of generator that fits your budget are important, it’s also important to consider how you intend to use the generator.

  • Will it need to be capable of maintaining enough power for your home or small business in case of an emergency?
  • Do you envision having a permanently-installed generator, or is portability important?

How you answer these questions should help provide context for the next step: exploring generator sizing and zeroing in on the perfect product for your needs.

Step 3: Finding the Right Generator

In addition to the generator size calculator, our online buyer’s guide to home generators is a great starting point for exploring your options. Cummins offers three main types of standby generators suited for a home or small business:

  • Permanently-installed 13-20 kW air-cooled home standby generators that can be powered up when needed. 
  • Permanently-installed 25-150 kW liquid-cooled home standby generators that can be powered up when needed. 
  • Heavy-duty, gasoline- or propane-powered 9,500-watt dual fuel portable generators that can provide backup power for a home or small business. 

Cummins: Reliable and Affordable Standby Power Solutions

At Cummins, we build versatile, high-quality standby generators for homes and small businesses. Don’t let their quietness fool you—they’re powerful and reliable. 

When you’re ready to explore your options, you can reach out to request an on-site assessment. One of our authorized dealers will help you assess your needs, evaluate different generator types and capacities, and understand how much a generator might cost to have installed.

Cummins Office Building

Cummins Inc.

Cummins, a global power technology leader, is a corporation of complementary business segments that design, manufacture, distribute and service a broad portfolio of power solutions. The company’s products range from internal combustion, electric and hybrid integrated power solutions and components including filtration, aftertreatment, turbochargers, fuel systems, controls systems, air handling systems, automated transmissions, electric power generation systems, microgrid controls, batteries, electrolyzers and fuel cell products.

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