Rising energy bills continue to be a concern for businesses, from small offices to large industrial operations. With energy prices remaining volatile and sustainability becoming a greater priority, reducing energy consumption isn’t just about saving money—it’s about futureproofing your business.
Here are the top 10 practical ways to reduce business energy costs in 2025:
1. Conduct an energy audit
An energy audit is the first step to identifying where your business is using the most energy—and wasting it. Many energy suppliers offer audits or assessments either free or at low cost. The insights can help you prioritise high-impact changes such as upgrading outdated equipment or addressing heat loss.
2. Switch to LED lighting
Lighting can account for up to 40% of a commercial building’s electricity usage. Switching to LED lights across your premises can cut lighting energy use by up to 80%. They also last significantly longer than traditional bulbs, reducing replacement and maintenance costs.
3. Invest in smart meters and energy monitoring
Smart meters provide real-time data on your energy use, helping you identify inefficiencies and reduce waste. Coupling a smart meter with an energy monitoring platform lets you track trends, compare usage across departments or locations, and make informed changes.
4. Improve insulation and heating efficiency
Poor insulation leads to energy being wasted through walls, windows and roofs. For offices, shops and warehouses, simple measures such as draft-proofing, upgrading glazing, and insulating roof spaces can make a noticeable difference. Programmable thermostats and efficient heating controls also help avoid unnecessary energy consumption.
5. Review your energy tariff and supplier
If you haven’t switched business energy suppliers in the last 12–24 months, you could be overpaying. Use comparison sites to explore fixed-rate deals or green tariffs. Many businesses save hundreds—or even thousands—per year simply by renegotiating contracts.
6. Use occupancy sensors and timers
Installing motion sensors in infrequently used areas like meeting rooms, toilets and storage areas ensures lights and equipment are only on when needed. Timers on heating systems, signage lighting, and appliances can also ensure they switch off outside working hours.
7. Maintain and upgrade appliances
Outdated office equipment, refrigeration units or machinery can be energy-hungry. Replacing older devices with energy-efficient models that meet current standards (such as Energy Saving Trust-endorsed products) can result in substantial savings over time.
8. Encourage behavioural change among staff
Getting your team on board can amplify your efforts. Encourage simple habits like switching off unused monitors, using blinds to reduce heating or cooling demand, and reporting maintenance issues. Running internal campaigns or energy-saving challenges can keep awareness high.
9. Adopt renewable energy sources
For businesses that own their premises, installing solar panels or air-source heat pumps can cut long-term energy costs and reduce reliance on the grid. While the upfront cost can be significant, government incentives such as the Smart Export Guarantee (SEG) or capital allowance schemes can make the investment more affordable.
10. Consider energy-efficient business practices
Re-evaluate how and when energy-intensive tasks are performed. For example, shifting production runs to off-peak hours (if on a time-of-use tariff), using digital communications instead of printed materials, or implementing hybrid working policies to reduce building occupancy.
Final thoughts
Reducing business energy costs isn’t about cutting corners—it’s about working smarter. Whether it’s investing in technology, switching tariffs, or promoting sustainable habits among staff, even small changes can have a big impact. Start by understanding your current usage, and take action from there.