Essential energy-saving tips for small businesses

Essential energy-saving tips for small businesses

By Ben Lobel on Small Business UK - Advice and Ideas for UK Small Businesses and SMEs

On top of all the overheads of running a small business, energy costs can often prove the biggest financial burden. Whether it’s a shop, an office or a warehouse, the cost of gas and electricity can come as a shock for small business owners, particularly those who haven’t accurately factored this cost into their original business plan.

The good news is, by making simple changes to the way your business operates, you stand to make great savings on your annual business energy costs. There are lots of ways for small businesses to cut down on their usage and save money, and we’ll be sharing some of the best advice here, including everyday tips and more unusual ways to save.

Replace existing lightbulbs

Because most businesses leave their lights on all day, it’s important to install energy-efficient bulbs that don’t cost a lot to run or maintain. Typically LED lightbulbs can run for 25,000 hours and cost between £2 to £6 per bulb to buy.

According to energy broker Bionic, small businesses could save between £1,080 to £2,700 per year by upgrading to LED lightbulbs.

There is an initial cost to making the switch, which may dissuade many businesses from using LED lightbulbs. However, they are becoming increasingly popular. In 2022, LEDs made up 50% of lighting sales globally, and are seen as an easy way to reduce greenhouse emissions.

Always use sleep mode

Whether popping out for lunch or answering nature’s call, you and your staff should get in the habit of switching computers and tech to sleep mode when not in use. Of all the energy-consuming devices in the workplace, computers are often guilty of using the most electricity, adding precious pennies to your overall bill. By switching to sleep mode wherever possible, you’ll limit the amount of power the computer requires, so more cash can stay in your pocket.

For more reasons why you should use sleep mode, check out this article from PC World Magazine.

Buy Energy Star equipment

If your business is in the market for new electrical equipment (computers, printers etc.) don’t base your purchase purely on price. To save money in the long term, not just the short, opt for devices which have been given the seal of approval from Energy Star, part of the U.S Environmental Protection Agency.

Their aim is to help people reduce their consumption by promoting efficient products, such as energy saving computer monitors and televisions. Opt for electrical equipment featuring the Energy Star logo, and you can save money while doing your bit for the environment.

Invest in an energy audit

Investing in a professional energy audit might sound counterintuitive to saving money, but doing so could prove lucrative. An audit is basically the process of an expert team assessing your workplace’s energy efficiency, highlighting areas where you could trim down your overall use.

Ways to save on business energy bills

Encourage your employees to work from home

While this might not be applicable for some small businesses, those that can could let their employees work from home to make significant savings on energy. With fewer people in the office, this means less power consumed, and meaning you could see a drop in your electricity bill as a result. A large number of computers whirring away or laptops left charging all day equates to more money spent powering them, so if your staff can comfortably work from home, why not let them?

Secondly, a recent study found that employees working from home had a 10% increase in productivity, with many remote employees working an additional 1.4 days a month (or 16.8 days a year) than those who worked in the office.

Take advantage of tax breaks

Local government offer a number of tax breaks and incentives to businesses which actively try to operate in a more environmentally friendly way, and small businesses in particular could really benefit from the reliefs offered.

To find out if your business is eligible for environmental tax relief; the government’s dedicated Green Taxes and Reliefs site has all the information you need. While this won’t directly affect your bills, it could take the sting out of your monthly tax overheads.

Ask your staff to check for draughts

While we wouldn’t recommend devoting much time to draught-sealing your workplace, asking your staff to let you know of any obvious leaks, before having them sealed, could save you a fortune on your gas and electricity bills.

Heating and climate control are among the biggest expenses when it comes to business energy, and leaks and draughts can hamper their efficiency. Asking staff to be mindful of draughts will help to ensure your heating and cooling systems aren’t using gas and electricity unnecessarily.

This is representative of the entire push for greater energy efficiency; small changes can lead to significant long-term savings without inhibiting the performance of the business.

Further reading on energy performance

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