Going green doesn’t have to cost small businesses more money.

Sure there are upfront costs to replace light bulbs or switch to recyclable paper, but over the long haul the return on investment should more than cover those expenses. Not to mention that the customers of many small businesses are demanding greener practices, whether it’s the corporations they provide services to or the consumer that buys their products.

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Embracing green practices “is really a good business move particularly when gasoline prices are soaring and energy prices are going up,” said Byron Kennard, founder and executive director of the Center for Small Business and the Environment. Small businesses are suffering because they pay more for energy than big businesses do, he said.

What’s more, industry watchers said that while green initiatives are voluntary today, that may not be the case in the future. By embracing green practices now, small businesses can offset costs later.

“A lot of the efforts are voluntary, but over time these things inevitably will become regulated by local, state and federal governments,” said Alex Szabo, founder of The Green Office, which provides consulting services and runs thegreenoffice.com, where customers can buy green office products.  Small businesses can “get ahead of the curve” and save money, he said.  

The most obvious way for small businesses to save money is on energy costs. Simple things like replacing traditional light bulbs with compact fluorescent light bulbs, making sure appliances are Energy Star compliant, and regularly servicing heating and air conditioning systems can result in double-digit savings. The government's Energy Star Web site lists countless examples of small businesses that made simple changes to save money and at the same time help the planet.

“Energy efficiency does wonders for small businesses,” said Kennard. “Fairly simple stuff like installing programmable thermostats and changing light bulbs can cut an energy bill 20% to 30%.”  

While most small businesses will go after the low-hanging fruit, there are those companies that take a more radical approach.

Consider The Raritan Inn at Middle Valley in Califon, N.J., which for about four years has had no electricity bill whatsoever. The Raritan’s innkeeper’s cottage has 72 solar panels while the Raritan’s barn and B&B boast 70 solar panels. The innkeeper’s cottage also acts as a residential power plant. The inn uses solar hot water and geothermal heating and cooling.  A 1,220 feet free-standing wind tower is in the works.

“It’s very eco-friendly but still it’s a business endeavor,” said Bill Asdal, owner of the Raritan Inn and a home remodeler. “There are 26 different technologies, all of which were selected around return on investment.” He said that while there were initial upfront costs, there’s a 16.7% return on investment.

But energy isn’t the only easy costs savings small businesses can tackle all the while being green. Taking stock of existing equipment and deciding if it’s really necessary can also help reduce costs. For example, consider a small office that has a copier, printer and scanner. It could be more beneficial for the company to swap those three devices for an al- in-one device, which would reduce electricity consumption. Or consider printing. Anna Clark, president of consulting firm EarthPeople, said she was able to show a law firm how to save $10,000 a year simply by reducing the paper usage by 10%. The law firm also found cost savings by printing in draft mode which conserved ink. Experts note that reusable ink cartridges are 25% to 50% cheaper and are good for the environment.

In addition to clear costs savings there are intangible benefits to going green. For one it breeds loyalty. And it could help you get more customers.

“People want to work for good companies,” said Joel Makower, executive editor of GreenBiz.com. “Given two companies that pay the same and all other things being more or less equal the company that’s perceived to be environmentally and socially responsible has an advantage.”  It’s similar to how many consumers would choose the greener product if all things were equal, he said.

More important to small businesses, however is the bottom line. Sure you will feel good about being green, but if it’s not making you money it may not be worth it. Industry watchers said that since more small businesses cater to large corporations that already have green polices, it's in their best interest to be green. Plus it can draw new customers, especially if your business if focused on the green market.

Scott Sklar, founder of The Stella Group, which consults companies on their green practices, built a two story office in Virginia outside of Washington D.C. which is energy independent. The office has solar roofing shingles that provides electricity in the day and a small wind turbine that provides energy at night. It incorporates other green technology like a ductless heat pump and back up fuel cells.

“I normally would have a $180 a month electric bill and these innovations bring it under $60,” said Sklar, noting a majority of his bill are fees associated to staying hooked up the power grid. “It’s absolutely helped me get more business. Because it’s (the office) in the midst of all this stuff (customers) can take a look at the good, bad and ugly of all this new technology.”