5 Tips to Reduce Energy Consumption for Businesses

A massive chunk of the business expense comes from its energy consumption pattern. Reducing energy bills is one of the most efficient ways to bring down business expenses. Especially for small and medium enterprises, it’s essential to look for ways to lessen energy consumption to scale up in the industry.  So, here are 5 tips to reduce energy consumption for businesses: 

1. Lighting Setup- Upgrade to LED

You are still using your outdated incandescent lights and wondering why is your energy bill so high! Let me give you a brief explanation of how incandescent bulbs work so that it makes more sense. Essentially, 95% of the energy required by an incandescent bulb is used to heat the components inside (tungsten filament) the bulb, which then emits light. So, there is a considerable loss of power to produce heat instead of producing light, meaning these inefficient bulbs wastes energy. 

That is where LEDs are different. LED stands for Light Emitting Diode, meaning visible light is produced when an electrical current flows through a microchip and ignites the tiny light sources known as LEDs. As LEDs have heat sinks to absorb and better manage produced warmth, they even last longer while giving you a brighter lighting setup.  

By switching to LEDs, you save on electric bills in two ways –  

  • Using less electricity because of how LEDs work  
  • They have a tremendous lifespans meaning you don’t need replace them as often  

Also, it goes without saying that turning off the lights if you have the luck of an office space that gets plenty of sunshine is an obvious way to save on power bills.  

energy saving tips

2. Peak Demand Reduction

As you may already know, you are not charged the same amount for consuming electricity at all hours of the day. In the peak hours, when the energy demand is the highest, the electricity price per unit is also the highest. If you can manage your operations accordingly to reduce electricity usage during peak hours, surely you can save a big chunk in the long run.  

Peak hours for the financial year 2022-23 are 2 pm to 8 pm on working weekdays in the summertime. For winter, it is 5 pm to 9 pm. Here are more details on the exact timing and pricing of energy units- Click here 

The recent introduction of the Peak Demand Reduction Scheme for New South Wales is more reason why you should look into reducing your demands on peak hours because this scheme is set in place to incentivize those who comply with it.  

The question remains how you can actually minimize your needs during peak hours. Here are some ideas to implement-  

  • Plan to utilize appliances and equipment at intervals throughout the day, preferably during off-peak hours  
  • Moving heavy operations on the off-peak hours if manageable by separating work hours in shifts 
  • Energy audit to track usage and see what can be shifted or turned off.  

The key here is to manage everything on a note which makes sense for your business. Not necessarily every move will make sense for you per se. Keep in mind what shifts/ changes will result in maximum ROI.  

3. Switch to Renewables- Solar Panels or Wind Energy

There is no doubt that switching to renewables would considerably lower your electric bills. As you will not be consuming energy from the grid, rather you will produce and consume electricity on site, making this an exciting shift of power management.  

For businesses of any size, it makes sense to adopt solar panels. Whether a small business or giant, anyone can comfortably accommodate solar panels without hassle. Solar panels can save you up to 100% on power bills. Also, getting solar panels can enable many governments’ rebate schemes for you, which can set you up for enormous savings on installation.  

Solar energy is basically free as it requires little to no maintenance. Also, going green lowers your carbon footprint, which meets the demand for businesses’ corporate social responsibility. It’s like killing two birds with one stone!  

business savings

4. Use Your Surroundings Wisely

How your place is designed plays a huge role in your energy consumption. Tactful design with clever placement and layout of your office can be a game changer. Use proper insulation, to begin with so that you don’t spend a fortune on winter days to warm up the place and vice versa.  

Skylights are amazing for introducing more natural light at a fraction of the cost. Also, there are a lot more design advantages, like installing a cool roof and having shading from trees in appropriate places has the potential to save you thousands of dollars on power bills.  

5. It's a Collaborative Effort

 All the members in your office have to make an active and conscious effort in this regard. It has to be a collaborative effort toward a significant change; otherwise, the ultimate goal cannot be achieved.  

If each and every employee around the office pitch in to turn off the light after they leave or the air conditioner of a particular room when done, or even the coffee machine. Every small act of conscious effort counts. So, encourage and motivate your employees to adopt to these behaviors to benefit in the long run.  

So, those were the 5 tips to reduce energy consumption for businesses. Bottom line is there are many more ways to achieve your goal, but these are the most optimum ones for businesses of any size. The best way to implement changes and know what to expect is to self-educate on the topic. Head over to our blog page to learn more on the topic.  

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