How can your UK business cut energy use and bills?

Start with meter data, then tackle unnecessary lighting, heating and equipment running hours before sizing solar or batteries. Government guidance suggests office heating at 19°C, adjusted for your premises and users [S2]. Calculate each measure's avoided energy cost and payback using your own bills, rather than a headline saving percentage. Checked October 2026.

Last checked 17 October 2026

How can you reduce business energy bills without guessing?

Give someone responsibility for an energy log and an action list. Government guidance puts an assessment and simple operating changes ahead of larger investments [S2]. Use our cut energy costs hub to organise the project.

Start with bills, meter readings and opening hours. Kilowatts (kW) measure power; kilowatt-hours (kWh) measure energy consumed over time [S4]. Request half-hourly consumption data and compare working days, closed periods and seasonal patterns. The Carbon Trust recommends using detailed meter data to investigate unexplained use [S1].

Keep energy and price effects separate. Compare consumption per opening hour, occupied room or unit produced. Record weather and changes in activity. A lower bill after a quiet month does not establish an efficiency saving.

Use DESNZ business electricity prices as a benchmark, with its period and tax basis. DESNZ publishes non-domestic fuel price tables; they are not a quotation for your premises [S3]. Calculate avoided expenditure from your own contract’s applicable unit charges.

Which lighting, heating and equipment measures should come first?

Walk the premises while operating and after closing. Check controls before replacing equipment. The Carbon Trust covers lighting, heating, compressed air and factory equipment [S1]; the government SME guide adds a structured approach to assessing opportunities [S4]. The sizing methods below are proposed calculations, not saving rates.

Turn off unnecessary lighting and appliances where safe. Set heating schedules around occupancy and review draughts [S2]. Preserve ventilation, food safety, security and necessary overnight processes. Ask the responsible engineer before changing process temperatures or control settings.

What could an efficiency project save, and when does it pay back?

For an office lighting project, assume the circuit demand falls by 2 kW, electricity costs £0.25/kWh, installed capital is £3,000–£5,000 and extra annual maintenance is £100. These are assumptions: an illustration, not a quote. Low, mid and high cases represent different annual operating hours, not promised performance.

Simple return on investment (ROI) = annual net benefit ÷ capital × 100. Payback = capital ÷ annual net benefit. These calculations exclude tax, financing and replacement. Recalculate using measured power and quoted costs. Do not add a control saving to a lighting saving if both remove the same operating hours.

Should solar, batteries and charging follow the efficiency work?

Reassess the remaining demand first. Solar can supply daytime consumption; batteries can shift generation to later use [S5]. Ask for a model using your revised half-hourly load, including export, battery losses and operating costs. Avoid counting the same solar electricity as both avoided imports and export income.

Read solar panels for business and solar and battery cost reduction. Use the commercial solar cost data to prepare questions about installed scope. Our site check can organise roof and energy information.

Charging adds a separate demand and income case. For context, workplace AC (alternating current) charger cost guides indicate £1,400–£2,500 per 7 kW unit. Groundworks, cable runs and connection are extra [S6], [S7].

For a charging illustration, assume two units cost £2,800–£5,000 before those extras. Assume total site use of 1/2/3 sessions daily, 10 kWh per session, 365 days, driver price £0.45/kWh, energy £0.25/kWh and software/maintenance £200 yearly. All operating inputs and shares below are assumptions; no grant is included.

Annual sales = sessions × 10 × 365 × £0.45. Operating net = sessions × 10 × 365 × (£0.45 − £0.25) − £200.

In this illustration the fully funded provider pays operating costs. Part funded splits capital and operating net equally. Add all site extras to host capital before relying on payback. Figures exclude VAT, tax, financing and replacement. Use the charging cost tool to explore energy costs separately.

What should you check before committing money?

Ask for itemised costs, commissioning measurements and a method for tracking results. Identify lease consent, parking loss, supply capacity, planning, insurance, maintenance liability and removal costs in the proposal. Have your solicitor review access rights, agreement length and exit terms before signing.

Separate unit-based savings from fixed charges in your budget. Read standing charges, Climate Change Levy and electricity contracts. For relief eligibility, use our energy grants guide and check with your accountant.

What is your next step?

Gather your consumption profile, opening hours, tenure and priority measures. Then get matched with an installer that covers your area.

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