How Energy Efficiency and Renewables Can Hedge Against Rising Costs

By Rick Crawford @ Emerger Strategies

The cost of doing business is rising in America. For example, electricity bills in the U.S. increased 13% and household natural gas prices increased 98% in 2025, according to Climate Power. The surge in electricity demand from data centers, rising natural gas prices, and infrastructure upgrades led electric and gas utilities to raise their prices. Additionally, the "cost of employer-sponsored health insurance rose for the third year in a row in 2025, approaching an average of almost $27,000 for a family plan", according to an annual survey. Finally, Tariffs are imposing major new monthly costs on small businesses. Small-business importers paid about $25,000 more per month in tariffs from April through September 2025 compared with the same period last year. Hundreds of thousands of small businesses are facing six-figure tariff burdens, according to the Center for American Progress.

As a small business owner, I keep a close eye on my costs, and in 2025, my energy costs increased 13.61%, my health insurance went up 29%, and thankfully, I don't have to worry about tariffs, but I know many of you do. So, how can your business hedge these rising costs?

Energy efficiency and renewable energy adoption can hedge against rising energy costs by reducing demand. For example, switching to LED lights can reduce your energy bills by about 10%, based on my experience working with clients. More specifically, Z-Man Fishing Products is one of my clients at Emerger Strategies, and they completed an LED lighting upgrade and installed solar on their roof, resulting in $80,000 in annual savings, and actually created a new revenue stream because the utility pays them for the excess power they are supplying to the grid. This has made them more resilient to rising energy and health insurance costs, as well as tariffs. And here’s the kicker…energy efficiency and renewable energy also protects the fish their business is dependent upon as the negative impacts of climate change on our fisheries continues to rise.

Even though many of the tax incentives from the Inflation Reduction Act no longer exist, you can reduce your payback period for energy efficiency, renewables, and electric vehicles by taking advantage of local and state tax incentives and rebates by visiting the Database of State Incentives for Renewable & Efficiency to see what incentives and rebates apply based on your location.

You can find more resources in the AFFTA Sustainability Toolkit, which is an exclusive AFFTA member benefit. If your brand or fly shop would like more information on additional ways to make the business case for sustainability, contact me directly at: rcrawford@emergerstrategies.com.