Energy Tips

5 ways to reduce the energy costs of your business

A business owner checks their energy bill

If you own or manage a business you’ll know that energy demand weighs heavily on your outgoing costs and with prices increasing consistently across Australia (and with prices expected to spike again) now is a great time for your business to implement these 5 easy ways to decrease your energy costs.

1. Upgrade your lights to LED and save 65-85% of your lighting costs.

Depending on the type of lights you have installed in your business will effect how much savings are available but lighting can be a huge drain on energy needs. An incandescent bulb uses more than 85% of its energy use in just heating the globe, with the rest of the energy used on lighting it.

LED technology is newer and better. LEDs provide a higher quality of light, in most cases, with much less energy use.
– Upgrade from fluorescent tubes to LED and you could reduce your lighting costs by 66%
– Upgrade from halogen downlights to LED and you could reduce your lighting costs by 85%
– Upgrade from meta halide highbays to LED and you could reduce your lighting costs by 60%+ (here’s a fantastic infographic on the difference between metal halide and LED highbays)

Get a quote on commercial LEDs or Call us

2. Install solar

(and write off the costs as a small business! – Find out more here)

Solar energy enables your business (or home) to create its own energy supply. It’s safe, renewable, environmentally friendly and free energy.

The size of solar energy system you’ll need will depend on your business, the size of roof space you have available and whether you want to just reduce your grid-energy needs or make your business independent of grid supply.

Typical payback periods for commercial solar energy systems are about 4.5 years.

Grab your business’ energy bill and give us a call – we can help you assess if your business could benefit from a solar energy system, what size would be best and whether or not a battery would be a good idea.

Get a quote on commercial solar or Call us

3. Use an energy comparison site like Make it Cheaper.

According to Make it Cheaper “…on average businesses pay $1000 too much for their electricity per year.” Try a comparison engine and see if your business can save money on the energy you’re already using by simply switching your energy provider.

4. Install light sensors

While it may be obvious to encourage your employees to turn off the lights (and the heating/air conditioning) at the end of the day when your business is empty all too often this request can go ignored or forgotten and the lights stay on.

Light sensors can help reduce the strain on your lighting costs in conjunction with LEDs.

5. Check your demand charges – refresh your energy contract

Below is an example of a commercial energy bill for an Energy Makeovers client interested in reducing their energy costs. We’ve highlighted the part of the bill that includes a ‘demand charge.

Over the years of working with businesses and managers customers have advised our team they didn’t even know they were paying a ‘demand charge’.

A demand charge is a charge the energy retailer includes in a bill that quantifies the demand that the customer puts on the network. For example, if you have an engineering business that uses large machinery from 9-5 your highest demand rates are the strongest peaks of that day.

And the demand charge can be a significant portion of energy bill.

This example below shows that almost half of the energy bill is made up of the demand charge.

Did you know: If you’ve moved into a business property than was previously used by another company you’ll probably be covering the demand charges applicable to that previous business. For example, if you have moved into a space that was previously used by a manufacturing company and you’re using the space for storage, your demand charges may be much higher than they should be.

Demand charges are something you can discuss with your energy retailer. But be careful – if you’re a business using more energy than the previous tenants you might end up paying more!

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