A Guide to Improving Energy Efficiency in Business

With energy costs continuing to place pressure on businesses, reducing consumption and improving energy efficiency has become an important part of managing operating costs. While there is no single solution that works for every organisation, businesses can take a number of practical steps to reduce energy waste, improve efficiency and gain greater control over their energy costs.

Understand how your business uses energy

Before making changes, businesses need to understand where their energy is being used. Reviewing energy bills, consumption data and meter readings can help identify unusual patterns, periods of high demand and areas where energy may be being wasted. Regular meter readings are also important. Providing accurate readings to your supplier helps reduce reliance on estimated consumption and gives your business a clearer picture of how much energy it is actually using.

For larger businesses, more detailed monitoring through Automated Meter Reading (AMR) or smart metering can provide valuable insight into consumption across different sites, buildings or individual meters. Understanding when and where energy is being used makes it easier to identify opportunities for savings.

Improve energy efficiency

Energy efficiency is one of the most straightforward ways businesses can reduce unnecessary consumption.

Simple measures can include:

• Upgrading to LED lighting

• Improving insulation

• Installing heating controls and thermostats

• Using timers and occupancy sensors

• Maintaining heating, ventilation and air conditioning systems

• Switching off equipment when it is not required

• Reviewing refrigeration and cooling systems

• Improving the efficiency of machinery and other equipment

For businesses with larger energy demands, more significant investments may also be worthwhile. Upgrading inefficient equipment or improving building performance can reduce energy consumption over the long term while potentially delivering a relatively short payback period.

It is also worth investigating whether grants or funding are available to help with the upfront cost of energy efficiency improvements.

Consider onsite generation

Generating electricity onsite can help businesses reduce their reliance on electricity from the grid. Solar PV is increasingly being considered by businesses with suitable roof space, particularly organisations with significant daytime electricity consumption.

The electricity generated can be used directly by the business, reducing the amount that needs to be purchased from the grid. Depending on the installation and the business's circumstances, surplus electricity may also be exported.

For some organisations, combining solar generation with battery storage can provide additional flexibility by allowing electricity generated during the day to be stored and used at another time.

However, the financial case for onsite generation will depend on factors such as energy consumption, available space, generation potential and the cost of installation.

Review your heating and cooling

Heating and cooling can represent a significant proportion of a business's energy consumption. Older heating systems can be inefficient, while poorly controlled heating and air conditioning can result in energy being used when buildings are unoccupied.

Businesses should consider whether heating and cooling systems are appropriately sized, maintained and controlled.

For some properties, replacing traditional heating systems with more efficient technologies such as heat pumps could reduce energy consumption and carbon emissions.

Improving insulation, draught-proofing and building controls can also reduce the amount of energy required to maintain a comfortable temperature.

Look beyond consumption

Reducing the amount of energy a business uses is only part of the picture.

Businesses should also review their energy contracts and procurement strategy to make sure they understand what they are paying for. Energy bills contain more than just the wholesale cost of electricity or gas. Network charges, taxes, levies and other non-energy costs can make up a significant proportion of the overall bill.

Understanding these costs can help businesses identify opportunities to improve their energy strategy and avoid paying more than necessary. For organisations with multiple sites or meters, consolidating and analysing billing data can also help identify discrepancies, unusual consumption and potential billing issues.

Use energy data to make better decisions

Once a business has access to accurate and detailed consumption data, it can begin making decisions based on how energy is actually being used rather than relying on assumptions.

Monitoring consumption over time can help businesses:

• Identify unexpected increases in usage

• Compare different sites

• Understand peak demand

• Track the impact of efficiency projects

• Identify potential equipment issues

• Measure progress against energy reduction targets

Energy management is not necessarily about making one large change. Continuous monitoring can help businesses find smaller opportunities that collectively make a significant difference.

Don't overlook funding opportunities

The upfront cost of energy efficiency improvements can sometimes prevent businesses from taking action.

However, there may be grants, funding schemes or other financial support available depending on the business, technology and location. Businesses should investigate available support before committing to an investment, as this could improve the financial case for a project.

Taking control of energy costs

Reducing energy bills does not have to mean making dramatic changes overnight.

For many businesses, the first step is simply understanding where energy is being used and identifying where improvements can be made. From improving energy efficiency and upgrading heating systems to installing onsite generation and reviewing energy procurement, there are several ways businesses can take greater control of their energy costs.

The most effective approach will depend on the individual business, its buildings, operating hours and energy consumption. A combination of smaller efficiency measures and longer-term investment can often deliver the greatest opportunity to reduce costs while also supporting wider sustainability objectives.

Want to understand where your business could reduce energy costs?

At ECBS, we help businesses understand their energy consumption, identify opportunities for improvement and develop strategies designed around their individual requirements.

Contact our team to discuss how we could help your business take greater control of its energy costs.