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How to reduce office energy use and save money on energy bills

Last updated on 1 December 2025

Reducing office energy usage is one of the simplest ways for businesses to cut costs while also supporting environmental sustainability. With energy prices remaining high and corporate net-zero targets becoming increasingly important, UK offices are paying closer attention to their electricity and gas consumption. From lighting and heating to servers, IT and employee behaviour, offices can substantially lower their energy bills by making targeted improvements. Our guide explains average office energy consumption, highlights key sources of waste, and outlines the most effective strategies for saving money.

Average office energy consumption in the UK

Office buildings primarily use electricity for lighting, IT, air conditioning and appliances, and gas for heating and hot water. Typical usage varies depending on size, occupancy, operating hours and equipment.

Office typeEmployeesTypical monthly electricity use (kWh)Typical monthly gas use (kWh)Average monthly energy bill (£)
Small (up to 10 staff)1–10900–1,8001,200–2,500£280–£550
Medium (10–50 staff)10–502,500–6,0003,000–7,500£800–£1,800
Large (50–200 staff)50–2006,500–15,0007,500–18,000£2,000–£4,200
Enterprise (200+ staff)200+15,000+18,000+£4,500+

Energy usage can be 15–25% higher in offices that run HVAC, servers or extended lighting hours.

Where offices waste the most energy

Understanding where energy is wasted is the first step to reducing consumption. Common areas include:

  • Lighting – 30–40% of office electricity usage, with up to 50% wasted through outdated bulbs or lights left on.
  • Heating and air conditioning – 35–55% of total energy in office buildings, often wasted when settings are too high or systems are poorly maintained.
  • Computers and IT equipment – Can account for 20–30% of electricity usage, especially when not set to sleep mode or left powered overnight.
  • Kitchen appliances – Fridges, kettles, dishwashers and microwaves can consume 500–1,000 kWh per year.
  • Standby power (vampire energy) – Up to 10% of usage comes from unused devices still plugged in.

Best ways to reduce office energy usage

Upgrade lighting systems

  • Switch from halogen or fluorescent to LED lighting – up to 80% more efficient.
  • Use motion sensors in meeting rooms, toilets and corridors.
  • Install smart lighting timers to reduce lighting by up to 25% during off-hours.

Optimise heating and cooling

  • Adjust thermostat by just 1°C – reduces heating costs by up to 8%.
  • Install smart thermostats to automatically regulate temperatures.
  • Service boilers and HVAC systems annually to improve efficiency by 15–20%.

Improve insulation and glazing

  • Draught-proof windows, doors and vents – can cut heating leakage by up to 30%.
  • Install double or triple glazing for better heat retention.
  • Fit thermal blinds or window films for heat management.

Reduce equipment energy waste

  • Enable sleep mode on computers after 10 minutes of inactivity.
  • Encourage staff to shut down PCs, monitors and printers overnight.
  • Replace old monitors with energy-efficient LCD or LED screens.

Smart power management

  • Use smart plugs to remotely control and schedule devices.
  • Plug energy-intensive appliances into monitoring sockets to track usage.
  • Disconnect servers and hardware no longer in use.
  • Consider an energy management system.

Promote employee engagement

  • Introduce an office energy-saving policy.
  • Appoint “energy champions” to monitor usage.
  • Run monthly energy challenges or provide incentives.

Potential money savings from energy efficiency office improvements

Energy-saving measureTypical reduction in energy usagePotential annual saving (£) for a medium office
Switching to LED lighting60–80% lighting energy£400–£1,200
Smart heating controls15–25% of heating usage£500–£1,600
IT equipment management20–30% of equipment usage£300–£900
Insulation and draught-proofing15–30% of heating use£350–£1,200
Employee energy awareness5–15% overall usage£200–£600

Combined improvements can lead to total savings of £1,500–£5,000 per year for medium-sized offices, depending on current energy efficiency levels.

Government incentives and grants for office energy upgrades

Businesses investing in greener offices may be eligible for:

SchemeBenefitEligibility
Enhanced Capital Allowance (ECA)Full tax relief on energy-efficient equipmentSMEs and large businesses
Boiler Upgrade SchemeGrants of £5,000–£7,500 for heat pumpsUK commercial properties
Workplace Charging SchemeUp to £350 per EV charge point installationLimited to 40 sockets per business
Local enterprise partnerships (LEPs)Grants for energy improvementsSME projects and carbon reduction initiatives

How to switch to a cheaper office energy tariff

Switching business energy suppliers often produces instant savings without physical upgrades. Businesses can:

  1. Compare office electricity and gas tariffs on our website.
  2. Check for cheaper fixed and flexible contracts.
  3. Consider green and renewable energy tariffs.
  4. Use a broker or comparison service to manage the switch.
  5. Review consumption patterns using a smart meter.

Most UK businesses save 10–25% by switching suppliers when their contract ends.

Summary

Reducing office energy usage is not just about cutting costs; it is also about improving workspace productivity, maintaining equipment, and building a greener brand reputation. By combining practical upgrades with staff engagement and smarter tariff choices, UK offices can significantly reduce consumption, improve carbon performance and shrink monthly energy bills.

Suitable for small offices, large corporate buildings and shared workspaces, energy efficiency is one of the simplest and most cost-effective ways to improve overall business performance.

FAQ

How much energy does an office typically use?

A small UK office may use around 1,000–3,000 kWh of electricity and 1,500–5,000 kWh of gas per month, costing between £280 and £1,800. Usage increases with more employees, older equipment, heating inefficiencies, and long operating hours. Larger offices with over 50 staff can exceed £4,000 monthly.

What wastes the most energy in offices?

Heating and air conditioning account for around 35–55% of total office energy consumption, making them the biggest source of waste. Lighting typically contributes 30–40%, while computer equipment and standby power can add another 20–30% if not properly managed or switched off.

How can office lighting energy be reduced?

Switching to LED bulbs can cut lighting costs by up to 80%. Installing motion sensors in corridors or meeting rooms reduces waste, and setting timers helps prevent lights being left on overnight. Combining these measures can lower office lighting energy by 25–45% annually.

What temperature should an office be?

The recommended winter office temperature is 19°C to 21°C. For every 1°C reduction, heating costs can fall by around 8%. Smart thermostats help maintain comfortable and efficient settings automatically, avoiding unnecessary energy use during evenings and weekends.

Can office equipment waste energy?

Yes, computers, monitors, printers and chargers left on standby can waste up to 10% of office electricity. Enabling sleep mode after 10 minutes of inactivity, unplugging unused devices and switching off equipment overnight can save hundreds of pounds annually.

How can office heating costs be lowered?

Installing smart heating controls can reduce energy usage by 15–25%. Draught-proofing windows and doors, improving insulation, and servicing boilers annually help maintain efficiency. Even simple actions like closing doors and adjusting radiators can significantly cut heating costs.

What are smart plugs useful for?

Smart plugs allow businesses to schedule office devices to turn off automatically outside working hours. They help avoid waste from kitchen appliances, chargers and printers that often stay powered overnight. Some models even show real-time energy usage to identify energy drains.

Are office energy-saving grants available?

Yes, schemes such as the Boiler Upgrade Scheme, Enhanced Capital Allowance and local enterprise grants can help offices fund energy-efficient upgrades. Grant values range from a few hundred pounds for equipment to £7,500 for low-carbon heating systems like heat pumps.

How much can an office save annually?

A medium-sized office can save between £1,500 and £5,000 annually by combining LED lighting, efficient heating, insulation, IT management and employee awareness. Larger offices can often save £10,000+ by applying similar improvements across multiple departments and buildings.

Can switching suppliers lower office energy bills?

Yes, switching to a more competitive business tariff can reduce energy bills by 10–25% without making any physical changes to your building. Using a comparison service or broker helps ensure you secure the best fixed or flexible contract for your office size.

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