Small and medium-sized enterprises (SMEs) play a crucial role in the global economy, and their energy consumption can have a significant impact on the environment and their operating costs. In this article, we will discuss the importance of energy saving for SMEs and provide detailed tips to help them reduce energy consumption and lower their energy bills.

On average, how much energy does the average small business consume?

Energy usage in SMEs varies depending on the nature of the business, but on average, small businesses consume around 15,000 kWh of electricity per year, while medium-sized businesses consume approximately 50,000 kWh. This energy usage contributes to high energy bills and carbon emissions, making energy saving and efficiency crucial for SMEs.

Why is Energy Saving Important for SMEs?

Energy saving is of paramount importance for small and medium-sized enterprises (SMEs) for several compelling reasons. Firstly, SMEs often operate on tight budgets, and energy costs can make up a significant portion of their operating expenses. By implementing energy-saving measures, SMEs can reduce their energy consumption and subsequently lower their energy bills, resulting in substantial cost savings over time. These savings can be redirected towards other critical areas of the business, such as investment in growth, product development, or employee training.

Secondly, energy saving aligns with environmental sustainability goals. As the world becomes increasingly aware of the environmental impact of human activities, consumers and stakeholders are placing greater emphasis on supporting businesses that demonstrate a commitment to sustainability. By actively reducing energy consumption, SMEs can reduce their carbon footprint and contribute to mitigating climate change. This not only helps preserve the environment for future generations but also enhances the reputation and credibility of SMEs, attracting environmentally conscious customers and investors.

Thirdly, energy-saving practices can provide SMEs with a competitive advantage in the market. With sustainability becoming a mainstream concern, businesses that prioritize energy efficiency are more likely to appeal to customers who value environmentally responsible products and services. Additionally, adopting energy-saving measures can open doors to incentives, grants, and partnerships with organizations that support sustainable initiatives. Such collaborations can offer SMEs access to new markets, networks, and resources that can further drive business growth and success.

What energy efficiency support can businesses get?

In the UK, small businesses can access various energy efficiency support programs and initiatives to help them improve their energy performance and reduce energy consumption. Here are some examples:

1. Energy Saving Trust: The Energy Saving Trust provides free and impartial advice to businesses on energy efficiency measures. They offer resources, guidance, and tools to help small businesses identify energy-saving opportunities and implement energy efficiency measures.
2. Carbon Trust: The Carbon Trust offers a range of support programs and funding options for small businesses to improve energy efficiency. They provide expert advice, energy assessments, and financial support to implement energy-saving measures.
3. Green Business Fund: The Green Business Fund, provided by the Carbon Trust, offers energy assessments and financial support to small and medium-sized businesses in England, Scotland, and Wales. It provides grants of up to £10,000 to help businesses implement energy-saving measures.
4. SME Energy Efficiency Loans: The UK government, in collaboration with selected lenders, offers SME Energy Efficiency Loans. These loans provide financial assistance to small businesses for implementing energy-saving projects, such as upgrading equipment or improving insulation. The loans come with favorable interest rates and flexible repayment terms.
5. Local Authority Support: Local authorities often offer support and advice on energy efficiency to businesses in their areas. They may provide grants, incentives, or access to local programs aimed at improving energy efficiency. Contact your local authority to inquire about available support.
6. Enhanced Capital Allowances (ECA): The ECA scheme allows businesses to claim 100% first-year capital allowances on investments in energy-saving equipment and technologies. This helps businesses offset the costs of purchasing energy-efficient assets against taxable profits.
7. Business Energy Efficiency Programme (BEEP): BEEP is a program offered by some local authorities in England to support small businesses in improving energy efficiency. It provides free energy assessments, expert advice, and grants to implement energy-saving measures.
8. Energy Supplier Support: Many energy suppliers offer energy efficiency support programs for their business customers. These programs may include free energy audits, advice on energy-saving measures, and financial incentives for implementing energy-efficient technologies.

Tips to Help SMEs Save Energy and Reduce Energy Bills

1. Conduct an Energy Audit: Hire a professional energy auditor or use online tools to assess your energy usage. The audit will provide a comprehensive overview of your energy consumption, identify areas of inefficiency, and suggest targeted improvements. It may include analyzing energy bills, inspecting equipment, and conducting thermal imaging to detect energy leaks.
2. Upgrade to Energy-Efficient Equipment: When replacing appliances and equipment, look for energy-efficient models with high Energy Star ratings. Consider factors such as energy consumption, standby power usage, and lifecycle costs. Energy-efficient equipment, such as HVAC systems, refrigeration units, and office electronics, can significantly reduce energy usage without compromising functionality.
3. Optimize Lighting: Take advantage of natural light by positioning workstations near windows and using skylights or light tubes to bring in more daylight. When artificial lighting is necessary, switch to energy-saving LED or CFL bulbs. These bulbs last longer and use up to 75% less energy than incandescent bulbs. Install occupancy sensors or timers to automatically turn off lights in unoccupied areas like conference rooms and restrooms.
4. Control Heating and Cooling: Programmable thermostats allow you to set temperature schedules based on occupancy patterns. Adjust the temperature to conserve energy during non-business hours or when areas are unoccupied. Proper insulation, weatherstripping, and blinds on windows minimize heat transfer and reduce the load on heating and cooling systems, resulting in energy savings.
5. Power Management for Electronics: Encourage employees to power down computers, monitors, printers, and other electronic devices when not in use. Activate power-saving features such as sleep or hibernation mode to reduce energy consumption during periods of inactivity. Consider utilizing centralized power management tools that allow IT administrators to control and schedule energy-saving settings across multiple devices.
6. Manage Standby Power: Standby power, also known as vampire power, can account for a significant portion of energy consumption. Use power strips with switches to completely cut off power supply to devices when not in use. This eliminates standby power and simplifies the process of turning off multiple devices simultaneously, especially at the end of the workday.
7. Optimize Water Usage: Monitor water usage and promptly repair any leaks or drips. Encourage employees to adopt water-saving practices, such as turning off taps when not in use, using low-flow fixtures, and reporting any water-related issues promptly. Consider implementing smart water meters or sensors to track consumption and identify areas for improvement.
8. Educate and Involve Employees: Conduct regular energy-saving awareness campaigns and provide training to employees. Educate them about the importance of energy conservation and provide practical tips for reducing energy usage in their daily work routines. Encourage employees to suggest energy-saving ideas and recognize their efforts by implementing an employee-led energy-saving program or rewards system.
9. Choose an Energy-Efficient Supplier: Regularly review energy prices and contracts from different suppliers to ensure you are getting the best deals. Consider switching to renewable energy sources or opting for green tariffs provided by energy suppliers. Collaborate with energy consultants or brokers who can help you navigate the energy market and find the most cost-effective and sustainable energy solutions for your business.
10. Invest in Energy Monitoring and Control Systems: Install energy monitoring devices and sensors to track real-time energy usage. This data provides insights into peak usage times, identifies energy-intensive areas, and helps you make informed decisions about optimizing energy consumption. Consider implementing automated controls for lighting, heating, and cooling systems based on occupancy or time schedules. Integration with building management systems allows for centralized control and further energy optimization.

Want to read more? Well here is an information-packed article from Energy Brokers on smart meters for SMEs.