Energy saving tips for businesses: a guide to reducing workplace costs in 2026

Whether your business operates with a few staff members from small premises or employs a large workforce across several sites, thinking about how and when you use gas and electricity is key to help maximise your business energy savings.

Reducing your energy usage and making your business more sustainable could have multiple benefits for your business, such as: 

• Save money on business energy bills
• Increase your profits 
• Help the environment
• Reduce your carbon footprint
• Improve the perception of your business
• Demonstrate ESG (Environmental, Social, Governance) credentials to stakeholders
• Meet UK government energy efficiency regulations, including MEES (Minimum Energy Efficiency Standards)

According to UK business energy data, small businesses typically consume between 5,000 and 15,000 kWh of electricity and gas annually. Reducing consumption even slightly can help your business save energy and money. And the great news is that many of these savings can be made with a few simple changes to your routine. 

Five-point summary of our guide to energy-saving tips for businesses

1. Turn heating on 1 hour before staff arrive and off 1 hour before departure; reduce thermostat by 1°C to save up to 10% on heating costs
2. LED bulbs use 90% less energy than traditional bulbs; motion sensors in low-traffic areas prevent wasteful lighting
3. Track energy consumption in kilowatt hours (kWh), identify wastage patterns, and receive accurate bills without manual readings
4. Office equipment on standby accounts for 60% of energy consumed; implement structured shutdown procedures for end-of-day savings
5. Identify inefficiencies through professional or self-assessment audits, checking insulation, heating controls, and equipment efficiency ratings

14 energy-saving tips to help your small business save money  

So, how exactly can your business start to save money?

Here, we’ll take a closer look at how to reduce energy consumption in business. Our energy-saving tips will help you be more conscious about your energy habits and cut costs without impacting the quality of your products or services. The main ways small businesses can save energy are:

1. Assess when you’re heating your premises
2. Switch appliances off
3. Pay attention to the weather
4. Install a smart meter to save
5. Be mindful of water costs
6. Turn off lights when not in use or fit light sensors
7. Encourage all staff to be energy-aware
8. Draught-proof your building 
9. Go paperless as much as you can
10. Request an energy audit
11. Embrace hybrid and flexible working
12. Consider on-site renewable energy generation
13. Review your energy contract regularly
14. Switch energy suppliers

1. Assess when you’re heating your premises 

When considering how to reduce energy consumption in business, think about when you use electricity and gas and weigh up if you need to heat your premises at those times.  

If you're on a standard fixed tariff and leave the heating on overnight or when rooms are empty, this can be a huge waste of energy and money. 

Instead, turn on the heating an hour before people enter the building so it's warmed up enough to start the day. Then, set the heating to go off about an hour before people are due to leave. The residual heat should be enough to keep the place warm until everyone's gone.

If you do need to heat your building overnight - say you have shift workers in the building - then it's worth considering a time-of-use tariff that offers cheaper rates at certain times.     

Another simple yet effective business energy-saving tip is to turn your heating down by one degree.  

You probably won't even notice this tiny temperature difference, but what you will notice is a saving on your business energy bills as a result. Just taking your thermostat down a notch is a quick way to start saving and could slash your heating bills by as much as 10%. 

The recommended office temperature is 21-23°C, but adjust this based on the heat generated by computers and equipment. For optimal efficiency, set heating to 24°C maximum and cooling at 19°C or higher.

Modern heating controls should respond to external temperature changes, usage patterns across different zones, and whether or not people are present in those zones. This type of zone-based heating ensures rooms are only warmed where people are actually working, preventing energy waste in unoccupied areas.

As a long-term investment, consider upgrading to smart thermostats, which offer greater flexibility and control over your energy use.

2. Switch appliances off 

Do you notice that you tend to leave appliances on standby rather than switching them off completely? We’ve all done it, whether accidentally or on purpose, and it hardly seems a big deal. 

But when appliances are left on standby, they’re still using energy. If you’re not using the appliance, then this is a waste of energy and money. 

Office equipment can account for 15% of the average business energy bill, with almost two-thirds of this energy consumed by devices left on overnight or in standby mode.

One of the easiest ways businesses can save energy is by switching appliances off when they’re not in use.

A structured shutdown procedure is a planned routine for powering down equipment at the end of each working day. This systematic approach prevents overnight energy waste and can help businesses take advantage of cheaper off-peak tariff rates where applicable.

How to implement effective shutdown procedures:

Create a detailed end-of-day checklist covering all energy-consuming equipment by department or zone. Assign responsibility to specific team members or department leads.

Include these items:

• Computer monitors and desktop PCs (not just sleep mode)
• Printers, photocopiers, and scanners
• AV equipment and presentation screens
• Kitchen appliances (microwaves, coffee machines, water coolers)
• Vending machines in low-traffic areas
• Non-essential lighting
• Heating and cooling systems (programmed shutdown)

Consider automation for equipment that can be centrally controlled, such as lighting circuits, HVAC systems, and some IT infrastructure. Use smart plugs or timer switches for devices that don't have built-in scheduling features.

Monitor compliance using smart meter data to identify unexpected overnight consumption. Early-morning energy spikes or consistent baseline usage during closed hours indicate equipment still running unnecessarily.

Some businesses use visual management tools like checklists by exit doors or department shutdown boards to ensure nothing is missed. Over time, structured shutdowns become habitual, delivering consistent monthly savings without requiring daily decision-making.

To help make sure everything that can be turned off is turned off at the end of the day, create an end-of-day checklist. This covers computers, monitors, printers, AV screens, vending machines, and kitchen appliances. Consider enabling power-saving features as standard across all equipment, and when buying new devices, go for those with high energy efficiency ratings.

"Switching appliances off when you’re finished with them makes a difference when you want to cut your gas and electricity costs. When you next clock off, make sure you turn off your computer monitors, lights, and any other unused appliances on your premises." - Ed Whitworth, Head of Energy Performance.

3. Pay attention to the weather  

Another way you can save energy is to adjust the thermostats at your business premises according to the weather conditions outside. If it’s a hot day and rooms don’t need to be heated, turn the thermostat down or off, and you’ll be saving money in no time.  

Domestic and business energy usage usually drops during the summer months as there's less need for lighting and heating (though cooling costs can add up). Simply being conscious of the weather outside and adjusting your thermostat accordingly can help maximise your business energy savings.

Monitor seasonal energy patterns using your smart meter data. Winter typically sees increased consumption due to heating and extended lighting requirements during shorter daylight hours.

4. Install a smart meter to save 

Smart meters are a great way to keep control over your business energy bills, largely because they help you see where and when energy is being used.  

A smart meter lets you see how much the energy you use is costing you, meaning you can curb your consumption and cut your business gas and business electricity bills. 

Key benefits of smart meters for businesses

• No installation costs - Most energy suppliers install smart meters free of charge
• Accurate readings - Receive precise consumption data to avoid overcharging
• Automated meter readings - No need to manually submit readings
• Real-time monitoring - Track energy consumption in kilowatt hours (kWh) to identify waste patterns
• Half-hourly data - For higher-use sites, half-hourly metering gives access to detailed consumption breakdowns. This will be made available to all homes and businesses as part of Market-Wide Half Hourly Settlement (MHHS) 
• Budget control - Better financial planning with accurate cost projections.

Smart meters can reveal common inefficiencies, including early-morning heating overshooting targets, unexpected weekend energy use, unnecessary equipment restarts after cold nights, and heating peaks that don't match actual occupancy patterns.

5. Be mindful of water costs 

60°C is the optimum temperature for hot water, so if you notice that you’re running water that’s hotter than that, a few issues can arise.  

Running water hotter than 60°C can be a health and safety risk for your staff or anyone using the supply – a trip to A&E to treat scalded staff isn’t good for anyone. Injuries aside, it could also leave you wide open to a costly business insurance claim. 

You’ll also be wasting energy. Water heated to 60°C gets the job done without wasting energy. You could also think about installing touch-free taps to help make sure water is used more efficiently, too. 

Consider installing aerator taps and automatic shut-off systems to reduce water wastage. Monitor water heating costs separately to identify potential savings.

6. Turn off lights when not in use or fit light sensors 

Another easy way to save energy is to make sure you switch lights off whenever you leave a room. Simply advising staff to turn off lights when they leave an empty room or when leaving at the end of the day makes all the difference.  

You can also take advantage of natural light during the day. If it’s a bright, sunny morning or afternoon and the overhead office lights aren't making too much of a difference, pull back the blinds to make full use of the sunlight. 

Many businesses also opt to install light sensors in areas like storerooms and toilets because they are low-traffic areas that only need lighting for short spells.

Lighting can account for up to 40% of electricity consumption in winter months due to shorter daylight hours. Installing motion sensors ensures lights automatically turn off after a minute or two of inactivity, eliminating human error.

Swapping out halogen bulbs for LED bulbs can also help maximise business energy savings. Compared to halogen bulbs, LED bulbs use very little energy and are long-lasting. 

LED lights use 90% less energy than traditional incandescent bulbs and have significantly longer lifespans. While initial costs are higher, the energy savings on your business electricity bill quickly offset the purchase price. For more information, check out our guide to energy-efficient lighting for UK businesses.

Advanced lighting strategies

• Adjust lighting zones so only occupied areas are lit
• Fine-tune sensor timing to match actual usage patterns
• Use daylight-linked controls to reduce unnecessary artificial lighting
• Optimise fixture placement for maximum efficiency
• Consider task lighting instead of full overhead lighting where appropriate.

7. Encourage all staff to be energy-aware 

Decreasing our energy usage is something we all need to think about to cut costs and help the environment.

A YouGov study for British Gas Business found that 68% of employees now thought about their energy usage more mindfully at work. But there’s still work to be done. Research commissioned by Smart Energy GB surveyed 1,000 small business employees to understand the energy-saving measures and found that more than a third (35%) waste more energy at work despite adopting energy-saving measures at home.

That’s why you should talk to your staff about energy-saving initiatives and explain why it’s so important. You could think about things like incentives and rewards, or words of encouragement to spur them on to get involved.

Staff engagement tactics

• Create energy champions within each department
• Display real-time energy consumption data in common areas
• Implement friendly competitions between teams or departments
• Recognise and reward energy-saving behaviours
• Include energy efficiency in onboarding training
• Share monthly energy savings achievements
• Encourage employees to take responsibility for their workspace equipment.

Consider implementing an energy awareness campaign with clear targets and measurable outcomes. Communicate the business benefits alongside the environmental impact to increase opt-in.

8. Draught-proof your building 

If you work on ensuring your premises are well insulated, then there will be less need for expensive heating costs. Draught-proofing doors and windows is a cheap but effective way to save money on gas and electric bills, as it limits the amount of heat that can escape and stops cold air from getting in.  

Making simple changes and taking time to inspect your premises to see if there are any gaps or cracks where draughts could come through will make all the difference. Savings will be reflected in your monthly business electricity and business gas bills.  

If you have the money available, it's always worth considering double-glazing, loft and wall insulation too.

Winter-specific energy efficiency inspection checklist

• Check for heat escaping around service doors and loading bays
• Inspect insulation quality in storage and back-of-house areas
• Ensure radiators and vents are not blocked by furniture or equipment
• Verify temperature sensors are correctly positioned (away from radiators, heaters, drafts)
• Examine door seals and weather stripping
• Review window condition and consider secondary glazing for older buildings/

For businesses in older buildings, updating insulation can dramatically reduce heating costs. Wall, loft, and floor insulation improvements may qualify for government grants or energy efficiency schemes. Check your eligibility with schemes like the Industrial Energy Transformation Fund (IETF).

9. Go paperless as much as you can 

Sometimes we don’t actively think about how many documents we’re printing and how much paper we’re using each day. And we very rarely consider how much electricity is being used to activate the printer. 

As more and more businesses ditch the physical paperwork, you could maybe think about whether this option works for you, too. Going paperless can be a great cost-effective solution if you find that you can email digital receipts or read a document online instead of printing. 

Photocopiers and printers consume both energy and paper. A paperless office policy saves on energy costs, paper expenses, and storage space. Upload documents to shared drives or cloud platforms instead of printing for meetings or reference. This also eliminates the need to reprint lost documents.

If printing is unavoidable, use duplex (double-sided) printing as the default, print in draft mode for internal documents, and ensure printers are set to energy-saving modes when inactive.

10. Request an energy audit 

Energy audits can be incredibly helpful, and your current energy supplier will be able to help you get started. By taking part in an energy audit, you’re ensuring that you know exactly where you are using the most and how you can cut this down. It’ll help you take full control of your spending.  

Many energy suppliers offer audits to help your business pinpoint exactly where you can save power and how you can do this. Just contact your current supplier to find out more and get started. For more information, including how you can carry out an audit yourself, check out our guide to business energy audits.

What a comprehensive energy audit covers

• Analysis of current energy contracts and billing structures
• Assessment of heating, cooling, and ventilation systems
• Review of lighting systems and controls
• Inspection of equipment and machinery energy efficiency
• Identification of insulation and draught-proofing issues
• Benchmarking against industry standards
• Recommendations for short-term behavioural changes and long-term capital investments
• ROI calculations for suggested improvements

Professional audits typically identify savings opportunities of between 15 and 30% of current consumption. Even a basic self-assessment can reveal quick wins like equipment left running unnecessarily or outdated heating schedules.

Consider conducting winter-specific audits to identify seasonal inefficiencies that only become apparent during colder months due to extended heating and lighting requirements.

11. Embrace hybrid and flexible working

Since the pandemic, many UK businesses have adopted hybrid working models that deliver both employee wellbeing benefits and significant energy savings. According to the Office for National Statistics, 78% of hybrid workers in the UK report improved work-life balance, making this arrangement attractive for recruitment and retention.

From an energy perspective, hybrid working allows businesses to reduce their physical office footprint through hot-desking. This also means offices need less heating, lighting, and equipment on-site compared to traditional full-time office setups. Businesses with flexible working patterns can consolidate staff into specific zones or floors, allowing unused areas to remain unheated and unlit.

Energy savings from hybrid working include

• Reduced daily heating and cooling requirements with fewer staff on-site
• Lower lighting costs with partial office occupancy
• Decreased equipment usage (computers, printers, kitchen appliances)
• Smaller office space requirements lead to reduced overall energy consumption
• Fewer peak-time energy demands when staff work staggered schedules

For businesses considering hybrid models, coordinate with your facilities team to implement zone-based energy controls that can power down unoccupied areas automatically. This maximises savings while maintaining comfort for on-site employees.

12. Consider on-site renewable energy generation

Businesses can waste energy through devices and systems running unnecessarily outside working hours. Equipment like computers, monitors, AV screens, printers, vending machines, photocopiers, and kitchen appliances all use power long after staff leave.  

According to British Gas Business, almost half of UK businesses are now exploring on-site energy generation as part of their long-term energy strategy, with solar power being the most popular option. While renewable energy systems require upfront investment, they deliver multiple benefits, including reduced grid reliance, lower energy bills, improved energy resilience, and enhanced environmental credentials.

Here are some things to consider:

• Solar panels
• Heat pumps
• Wind turbines
• Combined Heat and Power (CHP) systems
• Biomass boilers

For more on renewables, check out our guide to renewable energy for business.

13. Review your energy contract regularly

Your business energy contract can significantly impact your bottom line. If you're out of contract or on a tariff that doesn't suit the energy needs of your business, you'll almost certainly be overpaying for energy.  tariffs simply because they haven't reviewed their arrangements recently. 

Recent commercial energy market changes, including standing charge reforms, updated network charging, shifts in non-commodity costs, and the RAB nuclear levy, mean contract reviews are more important than ever.

​When to review your energy contract

• Up to six months before renewal - This gives adequate time to compare alternative suppliers and negotiate better terms without being forced onto expensive out-of-contract rates. Most business energy contracts have specific renewal windows—missing these can result in automatic rollover to higher variable rates.
• After significant business changes - If you've expanded operations, reduced your workforce, changed operating hours, or moved premises, your energy usage pattern has likely changed. Your current contract may no longer suit your needs.
• Annually, as best practice - Even mid-contract, understanding your energy costs, consumption patterns, and contract terms helps inform longer-term energy strategy and budgeting.

What to check during your energy contract review

• Contract structure 
• Standing charges and non-commodity costs 
• TCR banding and capacity settings 
• Deemed and out-of-contract rates 
• Contract length 
• Green energy options 

For more detailed information, check out our guide on the best time to switch business energy suppliers.

Working with a business energy broker or consultant can simplify contract reviews, especially if your business has multiple sites or complex energy needs. They can help you find a supplier and contract type that suits your business, and that may not be immediately obvious from standard tariff comparisons.

14. Switch energy suppliers

Once you've reviewed your contract, it's time to switch.

No matter how happy you are with your current energy supplier, they may not be providing you with the best deals, especially if you've let a fixed-rate contract expire without arranging a new one. This means you'll be on your supplier's out-of-contract rates. These are variable rate tariffs that usually come with much higher unit rates and standing charges than fixed-rate contracts. 

Similarly, if you move into new business premises without sorting out an energy contract, you'll be on more expensive deemed rates. You can find out more about this in our business relocation and Change of Tenancy (CoT) guide.

If you want to do a little more for the environment, it's worth considering a green energy deal or even putting your own renewable energy technology in place.

For more information about how you can save energy and cut your business gas and electricity bills, start a comparison on our business energy page, or click the button on the right. 

Understanding your energy contract

• Review contracts between three and six months before renewal to avoid automatic rollover
• Understand the difference between the different types of energy contracts
• Check renewal window and switching window dates
• Verify unit rates, standing charges, and non-commodity costs

Energy-saving tips for different types of businesses

Although there are loads of general ways all businesses can save energy, some of the best ways to save will depend upon the type and size of business you run, as well as things like operating hours and the type of premises you work from. Here are some tailored energy-saving tips for different types of businesses.

Energy-saving tips by industry 

• Retail: Focus on efficient lighting (LEDs), optimised heating and cooling, and energy-efficient refrigeration.
• Manufacturing: Implement smart meters, upgrade machinery to energy-efficient models, and consider heat recovery systems.
• Office-based: Reduce standby power, use smart lighting systems, and ensure proper insulation.
• Hospitality (hotels/restaurants): Upgrade kitchen appliances, install occupancy sensors for lighting, and use efficient heating, ventilation, and air conditioning (HVAC) systems.

Energy-saving tips by business size

• Small business: Switch to smart meters, use energy-efficient office equipment, and implement simple behavioral changes like turning off unused devices.
• Medium business: Conduct energy audits, upgrade heating and cooling systems, and consider renewable energy sources.
• Large enterprise: Implement large-scale automation, invest in solar panels or CHP systems, and use AI-driven energy management solutions.

Energy-saving tips for typical operating hours

• 9-5 business: Optimise natural daylight usage and ensure HVAC is programmed to turn off outside working hours.
• 24/7 operations: Install high-efficiency HVAC systems and use smart automation to optimise energy usage throughout the day.
• Evening-heavy business (e.g., bars, entertainment venues): Focus on LED lighting and energy-efficient kitchen and refrigeration equipment. See if you can also save money by switching to a time-of-use tariff.

Energy saving tips by premises type

• Office building: Upgrade insulation, install motion sensor lighting, and ensure energy-efficient IT infrastructure.
• Warehouse: Use energy-efficient heating, LED high-bay lighting, and skylights to reduce daytime energy use.
• Factory: Optimise production schedules to reduce peak energy usage, and use variable-speed motors to control machinery efficiency.
• Shop: Use automatic doors to maintain indoor temperature, install energy-efficient lighting, and minimise refrigeration energy waste.

Energy-saving tips if you use major energy-consuming equipment

• Heavy machinery: Use energy-efficient motors, implement predictive maintenance, and adopt automation to optimise performance.
• Refrigeration (retail & hospitality): Install energy-efficient models, maintain proper sealing, and use night blinds to reduce energy waste.
• IT servers (office & tech companies): Consolidate servers, use cloud computing, and optimise data center cooling systems.
• Lighting: Switch to LEDs, install motion sensors, and take advantage of natural daylight whenever possible.Lighting: Switch to LEDs, install motion sensors, and take advantage of natural daylight whenever possible.

Looking for help to maximise your business energy savings?

At Bionic, we know that different businesses have different needs. But, no matter the shape or size of your business, implementing these energy-saving tips can have a significant impact on your business’s operational costs and environmental impact. 

If you need help maximising your business energy savings, get in touch with our helpful team to compare business energy tariffs and find the right one for your business.

Business energy efficiency FAQs  

Here’s an at-a-glance guide to some of the most frequently asked questions about business energy efficiency: 

How can small businesses reduce energy costs in the UK?

Small businesses can reduce energy costs by switching to LED lighting, installing smart meters for consumption monitoring, improving insulation and draught-proofing, switching off equipment when not in use, lowering thermostats by 1°C (saving up to 10%), and regularly reviewing energy contracts to ensure competitive rates.

What is the cheapest way to heat a business premises in winter?

The cheapest way to heat business premises is to program heating to operate only during occupied hours (starting 1 hour before staff arrive and stopping 1 hour before departure), reduce thermostats by 1°C, install zone-based controls to heat only occupied areas, ensure proper insulation and draught-proofing, and consider time-of-use tariffs for 24/7 operations.

Do smart meters really save money for businesses?

Yes, smart meters save money by providing real-time consumption data in kilowatt hours (kWh), eliminating estimated bills and overcharging, identifying wastage patterns such as overnight equipment usage, enabling accurate budgeting, and highlighting opportunities for behavioural changes that typically reduce energy costs by 10-20%.

How much energy do LED lights save compared to traditional bulbs?

LED lights use 90% less energy than traditional incandescent bulbs, last significantly longer (reducing replacement costs), generate less heat (reducing cooling demands), and can reduce business lighting costs by 40-50% annually when combined with motion sensors and daylight-linked controls.

What temperature should I set my office thermostat to save energy?

Office thermostats should be set to 21-23°C in winter (with 19°C as the cooling threshold in summer), reducing by just 1°C can save up to 10% on heating bills, and zone-based controls should ensure heating only operates in occupied areas during working hours to maximise savings.

Are business energy audits worth the cost?

Yes, professional business energy audits typically cost £300 to £1,500 but identify savings opportunities of 15 to 30% of current consumption, many energy suppliers offer free audits, and the investment usually pays for itself within three to six months through implemented energy-saving measures and reduced bills.

How long does it take for solar panels to pay for themselves for UK businesses?

Solar panels for UK businesses typically achieve payback in 3-5 years based on current energy prices, have 25+ year lifespans, making them profitable for two decades after payback, and businesses can earn additional income through the Smart Export Guarantee (SEG) for excess electricity exported to the grid.

Can upgrading office kitchen appliances reduce business energy bills?

Yes, upgrading to energy-efficient office kitchen appliances can reduce energy consumption by 20 to 40%. Key savings can come from switching to A+++ rated fridges that use 60% less energy than older models, boiling only the water needed in kettles rather than full kettles multiple times daily, replacing older microwaves with efficient models, and implementing a tea/coffee rota, so one person makes drinks for 5-6 people in a single kettle boil instead of six separate uses throughout the day.