According to the EPA, a traditional convenience store is one of the most energy-intensive small businesses to operate. The only business that uses more energy is a quick-service restaurant, which can use up to 10 times more energy per square foot than other commercial buildings.
Many retailers combine both business models, which means that energy is a cost, and a cost-savings opportunity for owners. The cost savings can be significant:
- 7-Eleven is committed to reducing its energy footprint in stores and offices by 20% by 2025.
- A Michaels Energy study of 50 convenience stores in Minnesota found owners could save 21% on average through lighting, refrigeration upgrades and other improvements. One store owner had an estimated 1.6-year payback period that was cut to 1.05 years after rebates from the local utility.
- Kwik Trip began focusing on energy efficiency more than a decade ago. The La Crosse, Wisconsin-based retailer estimated that making new stores more energy efficient than its traditional store design would increase building costs by 10%, but any additional costs would be quickly recovered through the resulting energy savings.
The largest contributors to a convenience store’s electric bills are refrigeration, lighting and the heating, ventilation and air conditioning (HVAC) equipment. Refrigeration alone can be up to 40% of the total energy cost in a convenience store.
Equipment today uses much less electricity than equipment from ten years ago. Whether building a new store, refreshing an older one, or just looking for ways to reduce operational costs, consider energy-efficient products in the following categories:
Energy-efficient models often have the lowest operating costs. Look for units with self-closing doors, LED lighting, high efficiency compressors, ECM (variable speed) fan motors, low-e glass, and advanced automated anti-sweat heater controls to prevent condensation on glass doors. EPA's Energy Star program lists products that meet requirements, provides information on operating costs, and provides links to utility rebate programs for purchasing energy-efficient products.
Peforming regular maintenance and keeping coils and vents clean helps keep refrigerators and freezers running at peak performance. On at least an annual basis, check the refrigerant, adjust belts, repair or replace seals and lubricate moving parts.
Like with customer-facing refrigerated or freezer display cases, the refrigerators and freezers used in the back of the house should meet the Energy Star requirements.
QuikTrip achieved significant savings by switching some stores to a parallel-rack refrigeration system. The parallel-rack system uses two or more refrigeration compressors for cooling. When greater cooling needs exist, the system runs multiple compressors. When less cooling is needed, only one compressor is used, switching between the compressors to avoid overtaxing any of them. According to QuikTrip, the fully loaded costs generate a double-digit savings.
Modern LED technology can cut parking-lot lighting energy bills by 40% or more with controls, while delivering additional benefits such as longer life, reduced maintenance costs and improved lighting uniformity. Similar benefits exist for indoor LED lighting.
As a result, many retailers have switched to LED:
- Casey’s launched a four-year transition plan to LEDs in 2016 and estimated that it would cut energy use by more than 50%.
- 7-Eleven transitioned in-store lighting to LED. By the end of 2017, more than 6,000 stores converted from fluorescent to LED, saving an estimated 38,756 kWh per store.
- QuikTrip retrofitted all stores to LED lighting.
- RaceTrac was one of the first convenience stores to embrace LED technology beginning with its outdoor lights.
- Kum & Go uses only LED lighting in its new stores and is currently transitioning existing stores.
Rutter’s stores use the power of the sun to reduce energy costs with solar tubes on the roof that channel sunlight inside the building. As with studies on LED lights, some studies found that daylit stores report higher average sales per store. A 2003 California Energy Commission study, “Daylighting and Productivity in the Retail Sector,” suggests that sales in daylit stores increased by up to 40%.
Another way to reduce lighting costs is to turn off lights when they are not needed. Automatic switches, timers, and occupancy sensors in closets, storage rooms, breakrooms, restrooms, and walk-in refrigerators help ensure that lights are off when they are not being used.
There are three considerations for the energy use and environmental costs of an HVAC system:
- Size the unit appropriately to the store’s needs. EPA estimates that more than one out of four HVAC systems are larger than needed. Architects and building engineers typically oversize HVAC units on the assumption that “too much is better than not enough,” or in case the owner decides to expand the size of the store. The assumption that bigger is better significantly increases electricity costs and the associated environmental impacts.
- Buy an energy efficient system. While HVAC systems have drastically improved their energy and environmental performance, Energy Star-certified systems can be about 6% percent more efficient. The more efficient systems have lower operating costs.
- Perform regular maintenance. HVAC systems require regular upkeep to maintain peak performance. Changing filters, lubricating moving parts and checking for coolant leaks all help ensure that the system is as efficient as possible. Studies show that properly maintaining an HVAC system can reduce electricity costs by 5% to 40%, depending on the system or equipment involved.
While refrigeration, lighting and HVAC are the most significant causes of oversized electric bills in the convenience industry, “anything with a plug” contributes to the electric bill.
People frequently underestimate how much electricity something uses. “Energy vampires,” products that suck money out of wallets by using more electricity than needed, can be hidden everywhere. The electricity it takes to power signs, display cases, vending machines, kitchen equipment, televisions, cable boxes, satellite dish receivers, computers, cash registers, bathroom hand dryers and fans all add up.
Many convenience retailers use an energy management system (EMS) to control and measure energy efficiency.
QuikTrip invested in an EMS and building automation system in 2008. The system manages lighting, heating, cooling, refrigeration, exhaust fans and more. The system'senergy dashboard tracks electricity use at the store level. By comparing store-level energy on a per-square-foot or per-dollar-of-sales basis, QuikTrip can identify maintenance needs and opportunities to reduce electricity.
In its 2019 Environmental Sustainability Review report, QuikTrip said its energy efficiency efforts reduced its electricity use by almost 44 million kilowatt hours. Those savings reduced its global warming contributions by 30,305 metric tons of carbon dioxide (CO2). The company attributes its energy savings to its chain-wide EMS and its focus to improve the energy efficiency of its lighting and refrigeration.
7‑Eleven has strengthened its energy management strategy by implementing an EMS in stores to monitor, control and optimize the performance of HVAC and refrigeration equipment. The EMS enables remote control of HVAC and other energy-consuming equipment, and generates real-time data used to perform self-diagnostic and optimization routines to reduce energy consumption and manage costs.
Reducing energy use requires determining which investments provide the greatest return. The first step is to understand how much electricity a store is using and how it compares to other convenience stores.
Through its Portfolio Manager tool, EPA's online Energy Star program can help convenience retailers identify information to collect, such as the store’s total square footage and at least one year of electric bills to show the costs and the amount of electricity used.
Portfolio Manager tool can compare a convenience store’s energy use with other small format retailers and assign a score from 1 to 100. A score of 75 or above indicates that the store is one of the most energy efficient. NACS worked with EPA to develop a convenience-store specific Energy Score that will be available later this year. Visit convenience.org/energystar for more information.
Retailers can use Energy Star’s Cash Flow Opportunity Calculator to evaluate the rate of return for different potential energy efficiency projects. It simplifies answers to the following questions:
- How much energy efficient equipment can be funded by the anticipated savings?
- Is it better to wait and use cash from a future budget or finance the equipment now?
- What are the benefits (if any) of waiting for a lower interest rate?
Include rebates for energy efficiency improvements from utilities when calculating the rate of return.
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