Business energy efficiency

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Improving energy efficiency for your business

Rising energy costs can place a significant strain on businesses, but improving energy efficiency is one of the simplest and most effective ways to reduce expenses and enhance sustainability.

This guide explores practical strategies to improve energy efficiency for both small and large businesses.

We begin by outlining the three key reasons why businesses should prioritise energy efficiency improvements.

Reasons to improve business energy efficiency

Our business energy experts present the three most important reasons for improving the energy efficiency of British businesses.

Supplier operating costs

Reduce business energy costs

At Business Energy Deals, we specialise in helping SMEs in the UK compare business electricity prices to reduce their energy costs. Since all business energy contracts include unit charges, improving business energy efficiency is another effective way to minimise energy costs.

Green Fixed

Environmental responsibilities

The British national grid relies heavily on gas power stations to generate electricity, creating a significant carbon footprint. Using energy more efficiently reduces the carbon impact of business operations and supports efforts to decarbonise the national grid.

Certification and Compliance

Regulatory compliance

UK regulations require large business energy customers to conduct energy efficiency assessments regularly. This mandatory review, known as the Energy Savings Opportunity Scheme, is a formal way to identify energy efficiency opportunities.

Small business energy efficiency

The solutions below outline simple steps that most businesses in the UK can take to immediately reduce business electricity prices and commercial gas rates.

These energy efficiency tips are especially beneficial for small business energy customers, who may not have the resources to invest in expensive equipment or building upgrades.

Reduce boiler flow temperature

Reduce boiler flow temperature

Boiler flow temperature is a measure of the heat your boiler applies to water before pumping it to radiators. Boilers run more efficiently at a lower flow temperature.

We recommend turning down your boiler flow temperature to sixty degrees. Heating your rooms may take a little longer, but the boiler will consume less gas overall.

Replace light bulbs with LEDs

Replace light bulbs with LEDs

Many businesses still use halogen or incandescent light bulbs, which consume between five and ten times more energy than LED bulbs or tubes and have a shorter lifespan.

Investing in replacing older lighting fittings will quickly pay for itself through reduced electricity consumption.

occupancy light

Install occupancy sensors

Occupancy sensors are motion detectors that identify when someone uses low-traffic areas such as storage rooms, boiler rooms, bathrooms, and stairwells.

These sensors automatically turn on lights only when someone is in the room, eliminating electricity wastage caused by lights being left on in empty spaces.

Thermostat control

Thermostat control

A small reduction in the thermostat setting in the workplace allows your central heating system to do less work, thereby consuming less gas.

Reducing energy consumption by using less heating is straightforward but needs to be balanced against employee well-being and the government’s guidelines for workplace temperatures.

air leak

Seal air leaks

Small gaps around doors, windows, and vents allow warm air to escape your building, forcing central heating systems to work harder to maintain room temperature.

Air leaks can easily and cheaply be sealed using draught excluders or applying sealant to the affected areas.

Fan

Use fans instead of AC

Ceiling or portable fans improve air circulation and create a wind-chill effect, helping employees feel cooler and more comfortable during the summer.

Fans consume significantly less energy compared with air conditioning units, which actively lower the temperature of a room.

Staff training

Staff training and awareness

Small changes in employee behaviour, such as turning off lights and unplugging unused devices, can make a measurable improvement in business energy efficiency.

Communicating the importance of energy efficiency using visual prompts can be highly effective for both operational and environmental reasons.

Eco mode

Make use of eco mode

Common appliances in a staff kitchen, such as dishwashers, often have an ‘eco mode’ option that consumes less energy and water.

The eco mode takes longer than other cycles but typically does not compromise the quality of the clean. We recommend setting your dishwasher to run overnight, as this allows you to benefit from cheaper night-time electricity rates.

Business energy efficiency solutions

Optimising business energy consumption often requires long-term planning and upfront investment in energy efficiency solutions. A business energy audit provides a formal review to identify opportunities for efficiency improvements, particularly for larger businesses.

The five proposed steps represent the most common opportunities to enhance long-term energy efficiency for larger businesses.

💡 The best business energy suppliers offer support in implementing these longer-term energy efficiency solutions.

Energy Monitoring

Energy management systems

An Energy Management System (EMS) aggregates data from business electricity meters and commercial gas meters, along with IoT sensors monitoring lighting and heating.

An EMS actively monitors business energy consumption and uses data insights to identify inefficiencies, such as heating unoccupied rooms.

Energy Management Systems are highly adaptable and suitable for businesses of all sizes, with cloud-based solutions available for small businesses.

Natural daylight

Maximising natural lighting

Sunlight is free, proven to enhance the mood and focus of employees, and provides a welcoming and attractive environment for clients and customers.

The strategic placement of windows and skylights, combined with open-office layouts and light-reflective paint and flooring, can maximise the use of natural light and reduce dependence on electrical lighting.

heat pump

Installing a heat pump

Well-insulated commercial properties can benefit from the thermal efficiency offered by air-source heat pumps.

Air-source heat pumps are among the most energy-efficient heating systems and run entirely on electricity, making them carbon-neutral when used with a green business energy tariff.

Using air-source heat pumps enables businesses to eliminate their business gas connection and avoid the daily business gas standing charges.

insulation

Improving building insulation

In winter, poorly insulated buildings waste energy as boiler systems constantly need to replace escaping heat.

Insulation improvements, such as fibreglass wool and EPS beads in wall cavities, can significantly improve the Energy Performance Certificate (EPC) rating of commercial buildings and directly reduce gas consumption for central heating.

replace

Replacement of older equipment

Modern equipment, such as air-conditioning systems, typically offers improved energy efficiency, reducing electricity consumption by up to 30%.

Early replacement of legacy equipment can pay for itself through lower energy and maintenance costs.

Financing of energy efficiency for businesses

Several of the business energy solutions proposed in this guide require a significant upfront investment.

Below is a summary of the financing support available to businesses for energy efficiency improvements:

  • Local authority grants – Several local councils offer grants to support energy efficiency improvements for small businesses. You can search for available grants in your area using the gov.uk business finance support tool.
  • Boiler Upgrade Scheme – The boiler upgrade scheme provides a £7,500 grant for replacing a gas boiler with a heat pump system.
  • Green loans – UK banks offer a range of green loans to finance sustainable business activities.