Did you know that the average cost of SMEs’ electricity consumption in the UK this autumn ranges from £2,895 and £12,636? As a small business ourselves, we appreciate how much this impacts finances, especially as there is no sign of electricity or gas prices reducing any time soon.
These days understanding energy consumption needs to be part of your business growth strategy – not least because it is so expensive, and you need to manage those outgoings carefully. And, as we all know, energy bills spike during the colder months, particularly for commercial properties where heating and lighting are crucial to generating an income.
For small business owners in London, who rent or own commercial properties, focusing on energy efficiency not only reduces costs but also helps with long-term goals such as reducing carbon footprints and maintaining competitiveness in an increasingly eco-conscious market.
As we understand the challenges posed by high energy costs, we have written some practical tips to help you make your small business premises as energy efficient as possible this winter:
1. Conduct an energy audit
A professional energy audit is the first step in identifying energy inefficiencies. Auditors detect problems such as areas of heat loss and inefficient equipment, and they can recommend tweaks, upgrades or repairs. For instance, they might recommend insulating windows, upgrading heating systems, or adding energy-efficient lighting. By knowing where you lose energy, you can prioritise improvements that offer the best return on investment.
2. Upgrade to energy-efficient lighting
Lighting accounts for a significant portion of energy use in business premises. Consider switching to LED lights, which use up to 75% less energy than traditional bulbs and last significantly longer. Installing motion sensors and timers for lights for less frequently used areas, like store rooms or bathrooms, can further cut down on unnecessary energy consumption.
3. Install smart thermostats
A smart thermostat optimises heating by allowing precise control over temperature settings based on occupancy patterns. You can set lower temperatures during non-business hours and warm up the space before employees arrive, ensuring no energy is wasted.
4. Improve insulation
Proper insulation can significantly reduce heating costs, which are often one of the largest energy expenses during winter. Check for draughty doors and windows, which can account for a large percentage of heat loss. Sealing these leaks or installing double-glazed windows can make a noticeable difference. Additionally, insulating walls and roofs can maintain heat inside, reducing the need for continuous heating.
5. Switch to energy-efficient heating systems
If your current heating system is outdated, it may be time for an upgrade. Modern systems, such as energy-efficient boilers or heat pumps, use far less energy to produce the same amount of heat. These systems often qualify for government incentives or tax breaks, making the investment more affordable in the long run. Also, research grants for SMEs which may be available nationally or locally to help you make the changes. And don’t forget to discuss this with your landlord who may be willing to pay for a full upgrade.
6. Encourage employees
Employees play a key role in managing energy efficiency. Encourage your team to switch off lights, computers, and other equipment when not in use. Introducing a “last to leave, lights off” policy or training staff to make conscious energy-saving decisions can help reduce waste too. You can even introduce a fun ‘penalty’ for anyone who forgets (but make sure it doesn’t involve them spending money or a lot of time)!
7. Monitor energy use
Use smart meters to track your premises’ energy consumption. These systems offer real-time insights, helping you understand when and where the most energy is being used. This data can be invaluable for making future adjustments and continuously improving efficiency. It’s often surprising what requires the most energy, and you’ll also spot spikes at certain times of the day.
8. Renewable energy options
Consider integrating renewable energy sources like solar panels into your premises. While the upfront costs can be significant, renewable energy systems can drastically reduce energy bills over time and contribute to your business’s sustainability goals. In some areas, you may also qualify for government grants or incentives to offset the initial investment.
9. Understanding Energy Efficiency Regulations
Many commercial tenants remain unaware of the regulations regarding energy performance standards. For instance, in the UK, the Minimum Energy Efficiency Standards (MEES) require commercial properties to have an Energy Performance Certificate (EPC) rating of at least “E” when a lease is first created or subsequently renewed. Non-compliance can lead to financial penalties for landlords, so understanding these regulations is vital. Landlords and tenants should collaborate on making energy-efficient upgrades to avoid breaching MEES regulations. Find out more in our blog here.
10. The bottom line
For small business owners, energy efficiency is no longer optional; it’s a vital component of staying competitive. Implementing simple changes ahead of this winter can lead to substantial energy savings and a smaller environmental footprint. By understanding and adhering to energy efficiency regulations, businesses can also avoid penalties and ensure long-term success.
Focusing on energy efficiency is an investment in the future of your business, your customers, and the planet. If you need more guidance about this and other matters, we can offer free business advice. Simply register for the free Property Advice Service today to attend our expert-led webinars and one-to-one sessions.
