Energy is one of the most significant expenses for any business, especially for small and medium-sized enterprises (SMEs). According to a report by the Federation of Small Businesses (FSB), the average annual energy bill for an SME in the UK is £19,000. That’s a lot of money that could be better spent on growing your business and increasing your profits.
But how can you reduce your business energy costs without compromising on quality or productivity? The answer is simple: by being smart and savvy about your energy consumption and choosing the best energy deal for your needs. In this article, we will show you how to do just that.
We will cover:
• How to measure your business energy consumption
• How to compare and switch to a better energy deal
• How to optimise your IT infrastructure and devices for energy efficiency
• How to invest in green technology and renewable energy sources
By following these tips, you can slash your gas and electricity bill by up to 50% and make your business more sustainable and competitive. Let’s get started!
How to measure your business energy consumption
The first step to reducing your business energy costs is to measure how much energy you are using and where you are using it. This will help you identify the areas where you can save the most money and improve your energy efficiency.
There are several ways to measure your business energy consumption, such as:
• Checking your energy bills: Your energy bills will show you how much gas and electricity you have used over a certain period of time and how much you have paid for it. You can use this information to calculate your average energy consumption per day, week, month, or year. You can also compare your bills with previous ones to see if there are any changes or trends in your usage patterns.
• Using a smart meter: A smart meter is a device that automatically records and sends your gas and electricity readings to your supplier. It also shows you how much energy you are using in real time and how much it costs. You can access this information online or on a display device in your premises. A smart meter can help you monitor your energy consumption more accurately and conveniently, and avoid estimated bills.
• Using an energy monitor: An energy monitor is a device that measures how much electricity you are using at any given moment. It is usually plugged into a socket and connected to a display device or an app on your phone. An energy monitor can help you see which appliances or devices are using the most electricity and how much they cost to run. You can use this information to adjust your usage habits and switch off or unplug any unnecessary or inefficient devices.
• Conducting an energy audit: An energy audit is a professional assessment of your premises’ energy performance. It involves inspecting your building, equipment, lighting, heating, cooling, ventilation, and other systems, and identifying any issues or opportunities for improvement. An energy audit can help you find out where you are wasting energy and how much you can save by making some changes or upgrades.
How to compare and switch to a better energy deal The second step to reducing your business energy costs is to compare and switch to a better energy deal. This means finding an energy supplier that offers you the best price, service, and contract terms for your needs.
There are many factors that affect the cost of your business energy, such as:
- Your location: Different regions have different rates for gas and electricity due to supply and demand, network charges, taxes, and other factors.
- Your consumption: The more gas and electricity you use, the more you pay. However, some suppliers may offer discounts or incentives for high-volume users or low-carbon users.
- Your meter type: There are different types of meters that measure your gas and electricity usage in different ways, such as standard meters, economy 7 meters, half-hourly meters, etc. Each meter type has its own tariff structure and rates.
- Your contract type: There are different types of contracts that determine how long you are tied to a supplier, how often your prices change, how much notice you need to give to switch, etc. Some common contract types are fixed-term contracts, variable-rate contracts, rollover contracts, deemed contracts, etc.
To compare and switch to a better energy deal, you need to:
- Gather some information: You need to know how much gas and electricity you use (or estimate it), what type of meter you have, what type of contract you have (or want), when your contract ends (or if you can exit early), etc. You can find this information on your bills, statements, or online account.
- Shop around: You need to compare the offers from different suppliers based on their prices, service, reputation, customer reviews, green credentials, etc. You can use online comparison tools, brokers, or consultants to help you find the best deal for your needs. One of the best online comparison tools for business electricity prices is British Business Energy, where you can compare business electricity prices for your business today with britishbusinessenergy.co.uk.
- Switch: You need to contact your chosen supplier with the best electric prices for business and confirm your switch. You also need to inform your current supplier and settle any outstanding balances. Your new supplier will handle the rest of the process and notify you when the switch is complete.
How to optimise your IT infrastructure and devices for energy efficiency
The third step to reducing your business energy costs is to optimise your IT infrastructure and devices for energy efficiency. This means making sure that your computers, servers, printers, scanners, routers, and other IT equipment are running as efficiently as possible and consuming as little energy as necessary.
There are several ways to optimise your IT infrastructure and devices for energy efficiency, such as:
- Upgrading your hardware: You can replace your old or outdated hardware with newer or more efficient models that use less energy and generate less heat. For example, you can switch from desktop computers to laptops or tablets, from hard disk drives to solid state drives, from incandescent bulbs to LED lights, etc.
• Updating your software: You can update your operating systems, applications, drivers, and firmware to the latest versions that have improved performance and security features. You can also uninstall or disable any unnecessary or unused software that may slow down your system or consume energy in the background.
• Configuring your settings: You can adjust your power management settings to reduce the energy consumption of your devices when they are idle or not in use. For example, you can set your devices to enter sleep mode or turn off the screen after a certain period of inactivity, lower the brightness or volume of your display or speakers, enable hibernation or shutdown options, etc.
• Implementing best practices: You can follow some simple tips and habits to save energy and extend the lifespan of your devices. For example, you can turn off or unplug your devices when they are not in use or overnight, avoid overcharging your batteries or leaving them in extreme temperatures, clean your devices regularly to remove dust and dirt, etc.
How to invest in green technology and renewable energy sources
The fourth step to reducing your business energy costs is to invest in green technology and renewable energy sources. This means using technology that reduces your environmental impact and reliance on fossil fuels, and using energy that comes from natural and sustainable sources such as solar, wind, hydro, biomass, etc.
There are several benefits of investing in green technology and renewable energy sources for your business, such as:
- Saving money: You can save money on your energy bills by generating your own electricity or selling any excess back to the grid. You can also save money on maintenance and repair costs by using more durable and reliable equipment. You may also qualify for tax credits, rebates, or subsidies for using green technology or renewable energy sources.
• Enhancing your reputation: You can enhance your reputation among your customers, partners, suppliers, employees, investors, regulators, and competitors by demonstrating your commitment to sustainability and social responsibility. You can also attract more business opportunities and talent by showcasing your green credentials and values.
• Reducing your risks: You can reduce your risks of facing energy shortages, price fluctuations, supply disruptions, regulatory changes, legal actions, or reputational damages by diversifying your energy sources and reducing your carbon footprint. You can also improve your resilience and adaptability to changing market conditions and customer demands.
There are several ways to invest in green technology and renewable energy sources for your business, such as:
• Installing solar panels: Solar panels are devices that convert sunlight into electricity. They are usually installed on rooftops or other sunny areas of your premises. They can help you reduce or eliminate your dependence on grid electricity and lower your carbon emissions.
• Installing wind turbines: Wind turbines are devices that convert wind into electricity. They are usually installed on high or open areas of your premises or nearby locations. They can help you generate clean and renewable electricity from a free and abundant resource.
• Installing heat pumps: Heat pumps are devices that transfer heat from one place to another. They are usually installed in basements or other underground areas of your premises. They can help you heat or cool your premises more efficiently and cheaply by using the natural temperature of the ground or water.
• Installing biomass boilers: Biomass boilers are devices that burn organic matter such as wood pellets, chips, logs, etc. to produce heat or electricity. They are usually installed in outdoor or separate areas of your premises. They can help you use a renewable and carbon-neutral fuel source that is cheaper and more stable than fossil fuels.
