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Business Energy Audits Explained

Gas and electricity are a big expense for any business, so using energy as efficiently as possible is integral to keeping your business energy costs down.

An energy audit is a shrewd option to explore if you want to save energy, decrease your carbon footprint, and make savings.

Samir Kadri
Mike Rowe
Written by Samir Kadri
Edited by Mike Rowe
04 November 2025
6 mins read

What is an energy audit?

Essentially, a business energy audit is a comprehensive analysis of energy consumption within your business. This allows you to pinpoint where energy is being wasted and implement measures that can help you become more energy efficient and, thus, save money.

Conducting an energy audit at your own business premises can be as simple as walking around your site and examining building systems, equipment, and other processes to uncover opportunities for improvement.

It may help to create a checklist of items to investigate, including the following things:

  • Lighting

  • Heating

  • Ventilation

  • Insulation

  • Electrical appliances

Remember, the goal of an energy audit is to provide actionable insights into how your business can become more energy efficient and achieve cost savings while meeting sustainability targets.

What are the different types of energy audits?

Business energy audits are generally carried out in a few different ways. Some you can carry out yourself, while others will require the services of an external auditor. No way is better than another – it all depends on your circumstances.

The three primary types of energy audits are as follows:

woman providing audit over the phone

Over-the-phone audit

You also have the option to have a professional auditor carry out your energy audit over the phone. Not only can this be cheaper than an on-site audit, but it can also save you time.

The auditor will call you at a pre-arranged time and ask you a series of questions about how your business uses energy. They will structure and analyse this information before creating a plan for you to follow. This plan will contain measures you can take to save your business energy and money.

Occasionally, energy providers offer free over-the-phone business energy audits when you are switching suppliers, so it is worth asking prospective suppliers if they will provide this service when the time comes to switch.

On-site audits

On-site audits

Conducted by an external auditor, an on-site energy audit involves a physical inspection and detailed analysis of your business’ energy usage.

The energy auditor will review your business’ everyday operations and provide recommendations for changes you can make to become more energy efficient.

By assessing factors like lighting, HVAC systems, insulation, and operational practices directly on-site, your auditor can get a feel for your business and provide you with accurate data on which you can base energy-saving decisions.

Internal audit

Internal audit

This is the cheapest option as it’s a DIY job. Smaller business owners who want to save money on their energy bills but do not want to splurge on an external auditor can carry out an energy audit themselves.

While a professional can offer you the assurance of a detailed job, if you plan carefully and curate a thorough checklist, there’s no reason you can’t conduct your own energy audit.

Another option is to appoint a staff member to evaluate your energy usage and make recommendations.

Does my business need an energy audit?

All businesses can benefit from regular energy audits. Here are some of the primary reasons your business would benefit from an energy audit:

  • Improved efficiency

    By pinpointing opportunities for improvement in energy usage, equipment, and processes, an energy audit helps you ensure everything is working optimally to maximise productivity and efficiency.

  • Cost-saving opportunities

    Perhaps the most obvious benefit, a commercial energy audit empowers your business to implement energy conservation measures that reduce your utility bills over time.

  • Reduce your environmental impact

    Implementing energy-saving measures identified in the audit can reduce your business's carbon emissions and environmental impact, demonstrating your commitment to sustainability.

  • Brand image

    Making your business more energy efficient can enhance your business's reputation and brand image among customers, investors, and other stakeholders.

  • More attractive workplace for employees

    Improvements in lighting, heating, ventilation, and air conditioning systems identified through the audit can create a more comfortable and productive work environment for employees.

How to conduct a business energy audit

If you are considering conducting your own business energy audit but don’t know where to start, you’ve come to the right place.

If you follow these steps, you’ll be well-placed to identify energy-saving opportunities across your business.

1. Analyse your past and present energy consumption patterns

Before getting started, you need to understand how your business uses energy. Looking at your daily energy usage patterns can help you identify areas for improvement. If you have a smart meter, you should be able to access a breadth of energy data through your provider.

Take note of periods where you regularly use large amounts of energy. Write down all the reasons you think these periods are particularly energy-intensive.

Make a checklist of every way your business uses energy, being sure to include lighting, heating, broadband, air conditioning, office equipment, kitchen appliances and bathroom facilities.

2. Conduct a physical inspection

Walk through your business premises, systematically examining each area of energy usage that you noted in your checklist.

Here are some common areas where energy efficiency improvements can be made:

  • Heating

    Check your schedules to make sure heating systems are turned off when the workspace is not in use.

  • Lighting

    Energy efficient lighting, such as compact fluorescent lamps (CFLs) and light-emitting diodes (LEDs), are cheaper to run than traditional lighting.

  • Building insulation

    Check your business premises for leaks, draughts, cracks in the wall, and any other crevices through which heat could be lost. Cavity wall insulation and double glazing are worthwhile long-term investments in heat retention if you don’t already have them.

  • Equipment maintenance

    Regularly cleaning vents and filters of machinery can decrease their energy consumption.

  • Employee education

    Educating employees about energy-saving practices, encouraging behaviour changes such as turning off lights and equipment when not in use, and fostering a culture of energy conservation.

When you’ve documented your observations from your walkthrough, you can cross-reference them with your energy usage data and make a plan for your business to become more energy-efficient.

3. Create an action plan

Develop a structured action plan, including short-term and long-term measures to increase your energy efficiency.

Short-term measures can be implemented immediately. These include setting timers to ensure your heating isn’t on during out-of-office hours, encouraging employees to turn their equipment off after the workday is finished, and switching off lights when rooms aren’t in use.

However, long-term measures, such as double-glazing installation, require planning, research, and budgeting.

Writing up your findings in a clear, structured manner is important, as they will become a reference point for you going forward. Include an overview, introduction, your audit’s findings, and recommendations for improvements. Also include any cost projections for projects you hope to complete in both the short and long term.

How much does an energy audit cost?

The answer to this question depends on both how you choose to conduct your energy audit and how you interpret cost.

For example, conducting an internal energy audit is cheaper than getting an external auditor. However, the external auditor may do a more thorough job, saving you more money in the long term than if you had done a DIY job.