Save energy and cut costs

Use our tools and guides to help your business reduce costs and increase profit margins

Many businesses could cut energy costs by over 10 per cent through cost-effective measures according to Carbon Trust estimates. Saving energy is one of the easiest ways to save money.

Although these steps may seem individually small, together they could make a real difference. The average annual saving for small companies is around £250, with savings for larger employers rising to £5,000 or more a year

Top tips for cutting your energy bills

• Get staff to turn off equipment when not in use - a single computer and monitor left on for 24 hours a day will cost over £50 a year. Switching off out of hours and enabling standby features during working hours could reduce this to £15 a year. Always switch equipment off at the end of the day, at weekends and bank holidays and do not just leave on standby. You can order stickers and posters to raise employee awareness of the importance of energy efficiency on the Carbon Trust website - Opens in a new window.
• Switch lighting to energy-efficient bulbs and make the most of natural light. Replacing high-wattage filament lamps or tungsten halogen lamps with compact fluorescent lamps or metal halide lamps will give you savings of up to 75 per cent on lighting bills. Remember daylight is free - keep windows clear and clean, and make the most of natural light by positioning workspaces and equipment close to windows. Find advice on reducing lighting costs on the Carbon Trust website - Opens in a new window.
• Control temperatures (hot and cold). Lowering the temperature by just 1 degree can reduce the heating bill for a typical office by up to 8 per cent a year. Find advice on reducing heating costs on the Carbon Trust website - Opens in a new window.
• Shop around between energy suppliers. There are many price comparison websites and good deals available for switching energy suppliers. There can be as much as a 50 per cent variation in cost between the lowest and highest rates offered. Find advice on changing your gas or electricity supplier on the Consumer Focus website - Opens in a new window.
• Talk to your existing energy supplier. Most suppliers have a range of products and services that will aid companies to use energy more efficiently. For example, they may install a smart meter to monitor energy use.
• If you work from home, talk to your energy supplier and explore their energy-efficiency products. Insulating your home is one of the most effective ways to cut bills and could pay for itself in less than two years.
• Look at your energy consumption and any trends. Knowing what you are consuming, why and when will give you a chance to attack the cost.
• Maintain equipment properly. Poorly maintained heating equipment could increase your heating bill by 10 per cent, according to the Carbon Trust.
• Consider investing in new, more efficient equipment, as older equipment may use more energy. Look for the energy-efficiency rating labels on appliances so that you can choose the most efficient. Find guidance on the energy labels on the Department for Environment Food and Rural Affairs website - Opens in a new window.
• Energy-Efficiency Loans from the Carbon Trust are a cost-effective way to replace or upgrade your existing equipment with a more energy-efficient version. Find out how to apply for a loan online at the Carbon Trust website - Opens in a new window.
• Use premises efficiently:
  • don't heat or light unoccupied space - cut your lighting costs by as much as 15 per cent, just by making sure you turn lights off in rooms and corridors that aren't being used
  • consider opportunities for working from home
  • offering flexible hours so staff can work from home will reduce their carbon footprint and can often improve productivity and motivation
• Save on paper and printing costs. Encourage staff to minimise the amount of printing they do. Change default printer settings so that the quality is always 'draft' and print on both sides.

Top tips for cutting travel and vehicle costs

• If you have drivers in your business, train them in fuel-efficient driving techniques. For example, heavy goods vehicle drivers who have been through a Safe and Fuel Efficient Driving (SAFED) training course use on average 18 per cent less fuel, which is a £500 saving for every driver each year. Read about the SAFED standard and find an instructor in your area on the SAFED website - Opens in a new window.
• Driving at low, constant speeds requires very little fuel or power - almost all the fuel consumed in urban driving is used to accelerate the vehicle. Read about fuel-saving driving on the Department for Transport website - Opens in a new window.
• Make sure that all deliveries or sales team routes are carefully planned to keep mileage as low as possible. If you run a fleet of more than 50 vehicles, find out about getting a free "green review" at the Energy Saving Trust (EST) website - Opens in a new window.
• Keep tyres inflated correctly. A reduction in tyre pressure of 10 per cent uses 1 per cent more fuel.

Finally, it is important to involve your staff - share these tips with all staff and ask them for more ideas.

Use our interactive tool to identify where you can save money by going green.

You can also take advantage of tax incentives if you invest in energy-saving technologies and products. You can find information about saving money and reducing energy costs by cutting the amount of climate change levy you pay, and benefitting from enhanced capital allowances in our guide on environmental tax obligations and breaks.

Your local Business Link adviser can help you identify opportunities to improve your business performance and point you in the direction of available sources of support.

You can contact the Business Link Helpline on Tel 0845 600 9 006.

Sources of support include the Carbon Trust and the EST. Find out about saving money by reducing energy wastage on the Carbon Trust website - Opens in a new window and read about how to reduce your CO2 emissions on the EST website - Opens in a new window.

For more information on saving money and cutting costs by reducing energy usage, you can see our guides on how to save money by using energy more efficiently, reduce the environmental impact of your business transport and use your resources more efficiently - an overview.