How to reduce your business energy consumption

In this guide, we’ll explore how to reduce your business energy consumption and why doing so could lead to significant savings, freeing up funds to invest in other areas of your business.

Why should you make your business more energy efficient?

Energy efficiency refers to reducing the amount of energy required to fulfill a task or provide a service.

Making your business more energy efficient could save you a significant amount of money in the long term, protecting against exponentially increasing energy prices while simultaneously increasing your sustainability profile.

Here are some of the key reasons you should consider making your business more energy efficient:

1. 1

   Cost-effectiveness

   This is a key benefit. By reducing gas and electricity consumption, businesses can lower their utility bills, resulting in long-term savings. Additionally, investments in energy-efficient technologies and practices are a more cost-effective option in the long term. Sure, the initial outlay can seem expensive, but you will see the price savings reflected in your monthly bills.

2. 2

   Environmental impact

   By using less energy, your business is helping to reduce carbon emissions that are harming the environment. Instead, your business is reducing its carbon footprint and becoming part of the solution – not the problem.

3. 3

   Better reputation

   Adopting energy-efficient practices can improve a business's reputation among customers, stakeholders, and the public. Demonstrating a commitment to sustainability and environmental responsibility can attract environmentally conscious consumers and investors, leading to positive brand perception, increased loyalty, and increased profit margins.

4. 4

   Potential competitive advantage

   Businesses that operate more efficiently can afford to reduce the prices of their products, gaining a competitive edge over their rivals. So, not only can energy-efficient practices open up new market opportunities with socially conscious consumers, but they can also enable businesses to price their products more competitively.

5. 5

   Increase employee satisfaction

   Looking after your employees is key to a productive workplace. Little changes like making sure the office is well insulated or using softer, natural energy efficient lighting could increase employee happiness and boost productivity.
   
   Research published in the Frontiers in Psychology journal found that employees working for businesses that have implemented an energy efficiency strategy are more productive on average. This was put down to appropriate lighting and the installation of Heating Ventilation and Cooling (HVAC) systems.^[2]

Top tips on reducing business energy usage

According to the Department of Energy & Climate Change, the average small to medium-sized business can reduce energy bills by up to 25% by implementing energy efficiency measures.^[3]

In this section, we offer nine tips on how to reduce your business energy usage and increase the energy efficiency of your workplace.

1. 1

   Lower your heating

   Sometimes, simple fixes go a long way when trying to save money on your energy bill. Every extra degree of warmth can increase your business’ heating costs by 10%, so it pays to be vigilant.^[4]

   Match the temperature of different rooms to the amount of activity occurring inside them. For example, rooms in which staff are sitting and focussing may need to be heated at 19°C or above, whereas high-traffic rooms such as corridors can be set lower than 19°C.

   Implement timers to automatically turn off heating when your business premises are not in use, e.g. weekends or after work hours.

2. 2

   Service your heating equipment

   Ensure your boilers, heaters and radiators are regularly serviced and functioning optimally. Install smart heating controls for efficiency and convenience, and give any fans or vents a quick clean so they can function smoothly.

   Move obstructions, such as filing cabinets or desks, from in front of your radiators. They absorb heat and end up costing you more money to warm your workspace.

3. 3

   Switch off work appliances when not in use

   It may seem pedantic to enforce rules on switching off appliances when not in use, but it can dramatically low your energy bill.

   You could save hundreds of pounds by ensuring your employees turn off their computers rather than leave them on standby mode.^[5]

   Unplugging printers, scanners, photocopiers, televisions, chargers, and other technical appliances during out-of-office hours. You’ll find your savings quickly add up.

4. 4

   Kitchen equipment

   Often overlooked, kitchen equipment uses a lot of energy. Using posters to remind employees to unplug unused devices such as microwaves, toasters, smoothie makers, or coffee machines can lead to savings.

   Here are some other steps you can take:

   • Consider investing in an energy-efficient fridge/freezer, microwave, and kettle.

   • Do not overfill fridges, defrost freezers regularly, clean filters regularly, and ensure refrigeration vents are unobstructed to allow air to circulate efficiently.

   • Ensure the dishwasher is full before switching it on.

   • Buy insulated cooking equipment e.g. deep fryers and ovens

   • If your business serves food, switch off back-up fryers and ovens during non-peak times

5. 5

   Energy-efficient lighting

   Up to 40% of your business energy expenditure can go towards keeping the lights on. Using energy-efficient lighting is smart and can save you stacks of cash.^[6]

   Installing LED lighting, CFL, or halogens usually comes with a higher upfront cost than traditional lighting, but uses significantly less energy, resulting in lower electricity bills over time.^[7]

   Additionally, energy-efficient lights have longer lifespans, reducing the frequency of replacements and maintenance.^[7]

   Integrally, lower energy usage decreases greenhouse gas emissions and improves your business’ environmental footprint. There are also a number of government incentives for installing energy-efficient lighting, providing even more savings, subject to your business’s eligibility.^[8]

   Lastly, ensuring you and your employees turn off the lights when no one else is using your workspace will result in further savings. It is a myth that turning lights on and off uses more energy than leaving them on constantly.^[9]

   A further step you can take is adding timed switches, motion sensors, or daylight sensors, which can lead to lights only being on when required.

6. 6

   Natural light is your friend

   Don’t underestimate the effect natural light can have in brightening your space. Ensure any windows are unobstructed, and consider lighter paint colours on the wall to maximise the effect of any natural light.

   If you work in an office, strategically place desks to allow as much light to flow from one side of a room to the other as possible. Adding vertical window blinds, rather than horizontal blinds or curtains, can let in more light when either open or closed.

   Maximising the amount of natural light in your workspace can not only save you money on your energy bill but also boost the mood of your employees.

7. 7

   Reduce draughts

   You can make sizeable savings on your heating and energy costs by preventing unwanted cold air from entering and warm air escaping through gaps.

   Identify where your draughts are coming from and install proofing measures.

   Make sure any unused doors and windows are tightly shut and consider getting double glazing if you don’t already. This makes a massive difference to heat retention.^[10]

8. 8

   Learn your business energy use inside out

   If you only take meter readings sporadically, it can be difficult to pinpoint where you are making energy savings.

   Getting a smart meter can help in this pursuit. Analysing your smart meter’s energy usage data or appointing an employee to do so enables you to see exactly how much energy your business uses throughout a workday.

   Doing so enables you to see where you are wasting energy and how you can implement measures to save your business money.

   Additionally, automatic meter readings will increase the accuracy of your bills, meaning you get charged for the energy you use rather than an estimated amount.^[11]

9. 9

   Get your team onside

   Everything in life is easier when all team members are rowing in the same direction. Creating a top-down energy-saving culture at work, from CEO to intern, will have a positive effect on your energy bill. Steps you can take include:

   • Circulating a monthly email containing a checklist for employees on how to save energy for your business.

   • Appointing an employee to conduct a regimented check on all office equipment’s power status at the end of the workday.

   • Holding monthly management meetings around the subject of energy efficiency to share new ideas and monitor the progress of already implemented measures.

   • Allowing people to dress casually during summer if you work in an office, to reduce the amount of air conditioning needed.