How your small business can save energy during the summer

We all know that most UK homes and businesses use more energy during winter than summer - darker, colder weather means more gas and electricity is used for heat and light. But an increasing amount of energy is being used during the summer months as temperatures reach new record highs. Air conditioning, refrigeration and cooling costs can add up fast in these warmer months.

If your business is being clobbered by increased energy bills, it's important to take control of your energy usage and costs, whatever the weather.

This guide walks you through why summer energy usage can spike and what you can do to cut your costs without disrupting your working day.

Five-point summary of our guide to saving energy in the summer

1. Many UK small businesses see higher summer energy bills because air conditioning, refrigeration and cooling can use more electricity than winter heating in some workplaces.
2. Energy prices have eased since the 2022 peak but still sit well above 2021 levels, so managing summer kWh usage is essential to protect cash flow and margins.
3. Simple low‑cost changes, like using fans wisely, improving shading and ventilation, switching to LED lighting, fixing leaks and tackling “vampire” standby loads, can significantly cut summer demand.
4. Upgrading to efficient cooling, improving insulation and controls, reviewing tariffs and using smart meters all help businesses manage seasonal peaks and avoid bill shocks.
5. UK SMEs may also be able to access grants and low-cost finance for energy-efficiency projects, and Bionic can help you find a better-value business energy deal.]

Why is it important to save energy during the summer?

For small businesses, cutting back on unnecessary costs is fundamental to maintaining a healthy bottom line. While this applies all year round, people may assume that less energy is used in summer due to warmer temperatures and less reliance on heating and lighting. But, businesses should look at how they can make energy efficiencies throughout the year, regardless of the weather. 

Summer is also when sustainability and environmental concerns come to the fore. Global temperatures continue to break records, and every business has a part to play in reducing its carbon footprint. High energy consumption leads to higher greenhouse gas emissions. Adopting energy-saving habits in summer is both a smart economic move and an environmentally responsible one.

Summer efficiency is also about comfort and productivity. Keeping offices and shops cool in smarter ways helps staff stay focused, and customers stay longer, without sending your bills through the roof.

According to the Department for Energy Security and Net Zero, small and medium-sized businesses account for around 60% of all commercial energy consumption in the UK. Getting on top of your summer energy use could put you ahead of most of your peers.

What is summer energy saving for businesses? 

Summer energy saving for businesses is a set of changes to the way a business uses and manages electricity and gas during the warmer months, with the aim of reducing kWh consumption, lowering bills and cutting carbon emissions.

Why are energy bills so high?

To better understand why energy bills are still high, we need to look at the broader energy market and how the buying and selling of energy influences prices. The price we pay for energy isn’t just the simple cost of generating electricity or gas - it’s affected by a complex number of factors, as outlined below:

1. Supply and demand – Energy prices are affected by supply and demand. During times of high demand or short supply, prices tend to rise. Likewise, when there's an oversupply or reduced demand, prices can decrease. With geopolitical tensions causing import difficulties to the UK in 2022, energy prices reached sky-high levels and remained volatile. Prices have since fallen and stabilised, but rates are still much higher than in 2021. 
2. Renewable energy – The transition from fossil fuels to renewable energy sources also influences energy prices. Investment in renewable energy infrastructure, research, and development requires significant capital, which is often reflected in energy prices. If renewable energy, like solar or wind power, isn’t generating enough power, the Grid is balanced using gas-powered generation, which increases wholesale prices and the rates we pay. Find out more about renewable energy for businesses with our guide. 
3. Taxes and levies – Taxes, levies, and regulatory costs can also contribute significantly towards energy bills. Governments often impose these charges on energy providers to fund renewable energy initiatives, energy efficiency schemes, and to maintain the energy grid's infrastructure. These green taxes are then passed on to businesses that purchase energy from the suppliers. The latest of these is the RAB Nuclear Levy.
4. Low energy market security – With so many factors affecting business energy bills, the high chances of volatility within the market mean that prices can dip and soar quickly. If several of the above conditions occur at the same time, it puts even more strain on energy suppliers, and businesses will end up having to pay the consequences. 
5. Geopolitical instability - Although there were several causes of the 2022 price spikes, Russia's invasion of Ukraine was one of the main catalysts. Current prices are relatively stable, but we're already seeing signs of returning volatility due to instability in the Middle East.

Even when wholesale prices fall, non-commodity costs, like network charges and policy levies, can make up a significant part of your unit rate. That limits how far prices can drop, regardless of what happens in the wider market. Your standing charge is also worth watching, as this can rise independently of the unit rate. 

To learn more, read our guide to what influences UK gas prices.

Why are your business energy bills so high in the summer?

Many businesses expect bills to peak in winter. But your highest bills could arrive in summer instead.

Air conditioning, cooling and ventilation systems can use more electricity than heating does in winter. AC units in particular are heavy consumers of electricity. This surge in demand raises bills and puts pressure on the power grid, which can push prices up for everyone.

In a typical UK office or retail space, poorly controlled air conditioning (AC) can easily add tens of pounds a month to electricity costs during a warm spell, especially if units are set too low or left running out of hours.

 Refrigeration, IT equipment, commercial kitchens and cold‑rooms can also push up summer usage, so it’s worth looking beyond AC alone when analysing your usage.

What is phantom power (vampire energy)?

Phantom power, also called vampire energy or standby power, is the electricity consumed by devices that are plugged in but switched off or not actively in use. In summer, when more equipment is running, phantom power loads can be a high and avoidable cost.

How can my business reduce its energy consumption during the summer?

Making even a few small changes to the way you use energy can have an impact on your bills. Here are a few ways to cut your usage and your costs.

Use water efficiently

Heating water accounts for a significant amount of energy usage. Consider low-flow taps and fix any leaks promptly to avoid wasting water and energy. You can also encourage employees to only run any water-using appliances, like dishwashers or washing machines, with full loads and at cooler temperatures. To go one step further, consider investing in water-efficient appliances that run using less energy without compromising performance.

Use fans where possible

Fans use far less electricity than air conditioning. In the UK, the hottest periods don't tend to last long, so fans are often a much cheaper option than buying, installing and running AC.

Floor-level fans circulate cooler air more effectively than ceiling fans, which tend to recirculate the hotter air that rises. Always turn fans off when spaces are empty.
Where you do use AC, try setting thermostats to around 23–25°C rather than much lower. Each extra degree of cooling can noticeably increase running costs. 

What temperature should a UK business set its air conditioning to?

Although there's currently no upper limit on workplace temperatures, the Workplace (Health, Safety and Welfare) Regulations 1992 state that indoor workplace temperatures should normally be at least 16°C, or 13°C where the work involves strenuous physical activity.

A meta-analysis carried out by the Lawrence Berkeley National Laboratory in 2006 examined how temperature affects office performance. 

The findings showed that productivity improves when temperatures are around 21 to 22°C, but declines when temperatures fall below 20°C or rise above 23 to 24°C. Peak productivity occurs at approximately 22°C, while temperatures as high as 30°C can reduce output by up to 9%.

CIBSE Guide A recommends temperature ranges of 21 to 23 °C in winter and 22 to 24 °C in summer.

Keep the hot air out

It may feel natural to crack open a window when the midday heat hits, but this can have the opposite effect. Opening a window or door allows hot air from outside to enter. Instead, try to keep them shut and use curtains or blinds to block out sunlight, which can cause temperatures to rise. 

Simple measures like reflective blinds, external shading and closing south‑facing blinds before the hottest part of the day can dramatically cut heat from the sub and reduce the need for mechanical cooling.

Switch to LED light bulbs

Upgrading to energy-efficient lighting with light-emitting diodes (LEDs) can use up to 80% less energy than traditional fluorescent light bulbs and may last up to 25 times longer. They also emit less heat, which can reduce the need for cooling.

What is an LED light bulb? 

An LED (light-emitting diode) light bulb is a type of energy-efficient lamp that converts electricity into light using a semiconductor, rather than heat. LEDs use significantly less power than fluorescent or halogen alternatives and produce minimal heat output, making them well-suited to workplaces that want to keep cooling costs down.

Unplug anything that’s not being used

Many appliances consume energy if they’re plugged in at the wall but not in use or even turned on: also known as vampire energy or phantom power. A study by British Gas even found that vampire energy can account for up to 23% of an electrical bill. To combat this, you can encourage employees to unplug chargers, turn off computers, and shut down equipment at the end of the day.

Smart plugs and timers are an easy way to automate this. You can programme equipment to cut power completely outside business hours - no more relying on staff to remember.

Replace air filters

If your offices are not optimally insulated or have outdated, inefficient cooling systems, you may be losing energy and, in turn, money. Older air conditioning systems or those not regularly serviced may have to work harder to cool the building, leading to increased energy use. Clean or replace filters at least once every three months during peak usage times to ensure your system operates efficiently.

Use energy-efficient equipment

Whenever possible, opt for equipment and appliances with a high energy-efficiency rating. They may have a higher upfront cost, but they should save you money in the long run through reduced energy consumption.

When upgrading cooling equipment, look for products with a good SEER (Seasonal Energy Efficiency Ratio) rating. The higher the SEER rating, the more efficient the unit. Pairing efficient equipment with smart plugs or timers avoids wasted energy when no one is on site.

Switch business energy suppliers

Market competition means there may be more cost-effective energy deals available. Here at Bionic, we compare business energy suppliers and find a contract that's better tailored to your business's needs and usage patterns.

To find out how much you could save by switching, get in touch with our experts today or find out more about business energy here. Having a recent 12‑month usage profile to hand, ideally from a smart meter, can help ensure any new tariff matches how your business uses energy across summer and winter.

What is a business energy contract?

A business energy contract is a formal agreement between a UK business and an energy supplier that sets the unit rate (price per kWh) and standing charge for gas or electricity over a fixed term, typically one to three years. Fixing your rate means your unit price stays the same for the length of the contract, protecting you from mid-term price rises.

Are energy prices supposed to go down in 2026?

Forecasting energy prices can be difficult, as they depend on many variables, and the recent market volatility makes it nearly impossible to tell what could happen next. 

Despite some levelling off in 2025, short-term price spikes cannot be ruled out. Energy bills overall are still higher than they were before the pandemic. And the way energy is bought and sold means that a fall in wholesale prices won't immediately feed through to what you pay.

The most practical approach is to review your energy contract regularly, compare options, and make everyday changes to bring your usage down.

Checking your renewal window, avoiding out-of-contract rates and considering a longer fix when prices dip can all help soften the impact of future summer spikes. If you're struggling to cover the cost of your energy bills, it's worth knowing what help is available and what the disconnection rules say.

What support is available for small businesses? 

Looking for alternative ways to support your business while energy bills continue to cost a substantial amount of money can reduce pressure on your cash flow. Here are some things you can do:

Energy efficiency grants and loans

There is no price cap on business energy and no explicit government support for business energy bills. To help mitigate costs, it's worth checking your eligibility for small business grants.

Support schemes change regularly. Always check the current position on the Government website or speak to an adviser before making plans based on a specific scheme, as eligibility rules and funding levels may have changed.

Energy audits

Many utility companies offer free energy audits to business customers. An audit identifies where energy is being wasted and suggests practical improvements. If your provider doesn't offer this, independent auditors can step in. Or you can conduct a basic audit yourself.

Training and resources

Free and low-cost resources can help you get to grips with your energy use. The Energy Efficiency for Businesses site on GOV.UK offers practical tips. The UK Business Climate Hub provides details on how businesses can work towards net zero. Find out more about net zero for small businesses.

Green certification

Green business certifications confirm that a company meets verified sustainable standards — whether that's producing eco-friendly products, carbon-neutral delivery or actively reducing environmental impact.

Certifying bodies include the UN Global Compact, Green Mark and B Corp. Each has its own criteria.

While certification won't directly cut your energy costs, it can boost your reputation, attract customers and support ESG reporting. It also helps protect you against accusations of greenwashing.

Demonstrating active management of summer energy use, through monitoring, targets and upgrades, can strengthen future funding applications and help you stand out to environmentally conscious customers and partners.

Cut your business energy bills with Bionic

Whether you’re a start-up or a growing business, getting stung by increasing energy bills can cause significant setbacks for your future. From understanding how to lower your electrical usage to knowing how you can seek help, our guide can help.

Get in touch with the Bionic team to talk through your business energy options. We're here to help you find a deal that works. 

FAQs on how your small business can save energy and money during summer

Here’s an at-a-glance guide to some of the most frequently asked questions on how businesses can save energy and money during summer.

Why are my UK business energy bills higher in summer than winter?

Summer bills can be higher if your business relies on air conditioning, refrigeration or cooling equipment. These systems can use more electricity than winter heating in some workplaces. This is especially true for shops, salons, offices and hospitality businesses that run AC for long periods during warm spells.

How much does air conditioning cost a small UK business to run in summer?

Running office air conditioning in the UK can cost tens of pounds a month during warm weather if the unit is used for long hours or set very low. The exact cost depends on system size, efficiency rating and your current unit rate. Setting your thermostat to 23 to 25°C rather than 18 to 20°C could make a meaningful difference to your monthly bill.

What is the cheapest way to keep my UK office cool in summer?

Using fans, improving natural ventilation, fitting reflective blinds and keeping doors closed during the hottest part of the day is usually cheaper than relying on air conditioning alone. Combining these steps with sensible thermostat settings and well-maintained AC filters gives you the most cost-effective approach overall.

How can a UK shop or salon cut summer energy usage without making customers uncomfortable?

Shops and salons can use external shading, keep doors closed, switch to LED lighting and run AC at moderate temperatures. Scheduling AC to switch off 30 minutes before closing and using programmable thermostats helps avoid unnecessary overnight or early-morning running — without affecting customer comfort during trading hours.

Do UK businesses save money by switching to LED lighting in summer?

Yes. LEDs use far less electricity than fluorescent or halogen bulbs and emit much less heat. That means lower lighting costs and less work for your cooling system — a double saving during summer. The upfront cost of switching is often recovered quickly through reduced electricity bills.

Are there any UK grants to help small businesses improve energy efficiency?

Small businesses in the UK may be able to access grants, loans or discount schemes for energy-efficiency upgrades. Availability changes regularly, so it's worth checking GOV.UK and your local authority's business support pages for the most up-to-date options. Speaking to an energy adviser can also help you identify what's currently open to you.

What is a smart meter, and how does it help with summer energy bills?

A smart meter is a type of energy meter that automatically sends your actual electricity and gas readings to your supplier, removing the need for manual meter reads. For small businesses, smart meters provide detailed usage data that can highlight when and where summer consumption spikes — making it much easier to target the right changes and get an accurate tariff match when you switch.]

How can Bionic help my UK small business cut summer energy bills?

Bionic compares business energy deals from trusted UK suppliers and can help you find a tariff that fits your usage pattern and budget. When you get a quote with Bionic, our team handles the comparison and switching process for you — so you can focus on running your business. You can compare energy deals, broadband and other services in one place at bionic.co.uk.