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Expensive business energy bills are not inevitable. There are opportunities for savvy business owners not only to reduce their costs but also to champion sustainability by reducing unnecessary energy consumption.
This article unveils seven strategies for cutting business energy costs.
Learn more by jumping to the relevant section below:
- Monitor and Analyse Energy Consumption
- Optimise Business Energy Usage
- Conduct Your Own Energy Audit
- Find Cheaper Business Energy Deals
- Generate Renewable Business Energy
- Take Advantage of Business Energy Grants
- Improving Staff Awareness
Monitor and analyse energy consumption
Business energy monitors offer an opportunity to understand how your business uses energy in real-time and prevent any unpleasant surprises on your bills.
Most commercial electricity and gas supply points are fitted with either a smart business energy meter or a half-hourly meter that automatically records and transmits meter readings.
Energy monitoring software utilises this rich data to provide real-time energy consumption insights, including:
- Notifications and alerts when energy consumption is outside the normal range.
- Reports to assist in identifying inefficiencies in energy usage.
- Measurement of the impact of energy efficiency improvement initiatives.
- Real-time cost feedback for electricity and gas usage.
For more information, read our full guide to business energy monitors.
Optimising business energy usage
For small businesses with standard properties, several ‘low-hanging fruit’ areas exist when it comes to electricity and gas usage.
Most of these simple ideas do not require significant investment in time or money but can meaningfully lower energy consumption. Here’s a summary:
- Reduce Boiler Flow Temperature: Lowering the boiler flow temperature from 70°C to 60°C can reduce gas consumption by 7%, increasing boiler efficiency with minimal impact on heating performance.
- Improve Building Insulation: Enhancing insulation in walls, roofs, and windows reduces energy loss, significantly lowering heating costs. This includes using cost-effective materials like fibreglass and EPS beads.
- Reduce Thermostat Temperature: Decreasing the office temperature by just one degree can lead to a 5% reduction in energy bills.
- Upgrade to LED Lighting: Switching to LED bulbs can drastically reduce electricity use. LEDs are similar in price to traditional bulbs but are 90% more efficient and have a longer lifespan.
- Upgrade to a Heat Pump: Although initial costs are higher, heat pumps are much more efficient than traditional heating systems and can lead to long-term savings and reduced carbon emissions.
Our business energy experts have produced a full guide on implementing these strategies. Explore these in our full article on energy efficiency tips for businesses.
Conduct your own business energy audit
An energy audit is a systematic review of how your business uses energy. An audit evaluates your current business energy usage and offers advice on improving efficiency and reducing energy consumption.
Our business energy experts have prepared a self-audit checklist to allow your team to search for common instances of inefficient energy consumption.
Alternatively, your business electricity or business gas supplier can send an audit specialist. An energy auditor will physically inspect your plant and equipment and write a detailed report recommending areas for improvement.
Many trusted suppliers we work with offer a free business energy audit to new customers who switch business energy suppliers.
Compare business energy tariffs
One of the easiest ways to reduce your annual energy bill is to compare business energy prices. The business energy market is highly competitive, with suppliers offering attractive rates to attract new customers.
Comparing business electricity prices allows you to secure the best deal when your existing tariff is due for renewal.
Provided you have 12 months or less remaining on your energy contract, you can compare and secure competitive rates for the future.
Ensuring you pay the best possible rates for business gas and electricity will significantly reduce your annual business energy bills.
Generate renewable business energy
Investing in commercial solar panels is an opportunity to take control of your business energy needs and generate your own green electricity.
Recent advancements in solar technology have reduced the cost of commercial solar arrays while simultaneously, the price of electricity has increased. Solar panels present a more attractive investment opportunity than ever before.
Investing in solar panels guarantees a source of free renewable business energy for up to 30 years and can lower overall costs through:
- The reduction of maximum demand charges by using a solar battery to decrease electricity usage during peak hours.
- Selling excess electricity back to your business energy supplier through the Smart Export Guarantee scheme.
- Increasing the value of your commercial property.
Take advantage of business energy grants
The UK government is committed to meeting its climate commitments and is offering generous incentives to encourage businesses to become more sustainable.
Grants are available from central governments, devolved administrations, and local councils to support investments in:
- Upgrading gas boilers to sustainable heating systems.
- Improving the thermal efficiency of commercial buildings.
- Installing electric vehicle chargers for commercial fleets.
- Reducing the cost of external energy audits.
- Investing in local green energy generation.
Review our guide to business energy grants to determine what grants are available for your business.
Improving staff awareness
Educating your staff on energy best practices can significantly reduce energy consumption.
Simple actions, such as switching off computers when leaving, turning off lights, and not overfilling the kettle, may seem basic but collectively contribute to reducing consumption.
There are numerous articles and explainer videos available to help staff understand their responsibilities towards energy conservation in the workplace.
For example, the charity Energy Saving Trust offers interactive workshops covering various issues related to commercial energy sustainability.
Our business energy experts have also compiled interesting guides on broader sustainability topics, such as:
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