The Most Common Uses Of Business Electricity

What are the top uses of electricity in business?

Business electricity usage comes from a wide variety of sources. While the specific breakdown will differ depending on the type of company, most businesses rely heavily on the following:

• Air conditioning units
• Computers, laptops, and printers
• Fridges and dishwashers
• Heating equipment
• Lighting
• Telephones, routers and modems
• TVs and display screens

Office environments

In office-based environments, lighting, IT equipment and heating or cooling systems tend to account for the largest share of electricity consumption. Computers, monitors and networking equipment are often left running for long periods, particularly in businesses that operate long hours or hybrid working patterns.

Retail & hospitality

Retail and hospitality businesses may consume more electricity through refrigeration, cooking equipment, display lighting and climate control systems. Manufacturing and industrial operations, on the other hand, can see a significant proportion of their electricity usage come from machinery, production lines and specialist equipment.

It’s essential to keep on top of your business electricity usage. By understanding which systems and appliances contribute most to your energy costs, you can identify inefficiencies and ensure you are accessing the most suitable and cost-effective business energy tariff for your needs.

What are the hidden electricity costs in a business?

Even when businesses monitor their main sources of electricity usage, hidden costs often go unnoticed.

Standby power usage

Many appliances continue to draw power even when they are not actively in use. This is commonly referred to as standby power. Computers, printers, kitchen appliances and even televisions consume electricity overnight (known as vampire devices) or during weekends if not properly switched off. Over the course of a year, background usage can add a surprising amount to your overall electricity bill.

Inefficient equipment

Older equipment is often less efficient than modern alternatives. Outdated lighting systems, ageing heating units and inefficient refrigeration can all consume significantly more electricity than necessary. While replacing equipment involves upfront costs, long-term savings on electricity bills can make this worthwhile.

Peak time tariffs

Some business electricity contracts charge higher rates during peak demand hours. If your company operates primarily during these periods, your energy costs could be considerably higher. Reviewing your tariff structure and adjusting operational hours can help reduce exposure to expensive peak rates.

What is the average electricity use per year for businesses?

Every business is different, so electricity usage can vary widely depending on size, sector, and operating hours. However, general estimates provide a helpful benchmark.

• Micro businesses typically use around 7,500 kWh per year, with unit prices ranging from approximately 14.4p to 15.9p per kWh.

• Small businesses often consume around 20,000 kWh annually, with unit prices generally between 14.3p and 15.1p per kWh.

• Medium-sized businesses may use approximately 35,000 kWh per year, with unit prices commonly ranging from 14.3p to 14.7p per kWh.

The total cost of electricity will depend on several factors, including:

• Location
• How much electricity you consume
• Length of contract
• The tariff you are on

Businesses located in different regions may face variations in distribution charges. Similarly, companies with higher annual consumption may be able to negotiate more competitive rates. The length and type of contract can also influence pricing, with fixed-term agreements often providing more stability than variable tariffs.

Understanding these elements allows businesses to better forecast their energy costs and identify opportunities to switch to cheaper business electricity suppliers when appropriate.

How can you reduce the amount of electricity your business uses?

There are many practical steps businesses can take to reduce electricity consumption, beyond simply checking that they are on the right tariff.

• Switch business energy suppliers to one that can beat your current costs.
• Replace traditional light bulbs with energy-saving LED alternatives and ensure lights are switched off when not in use.
• Never leave electrical equipment in standby mode and ensure all non-essential devices are switched off at the end of each day.
• Use inkjet printers rather than laser printers where suitable, as they typically consume less energy.
• Draft proof windows and doors to maintain a stable indoor temperature and reduce heating and cooling demand.

In addition, consider installing motion sensors for lighting in less-used areas such as storage rooms and corridors. Encouraging employees to adopt energy-conscious habits can also make a measurable difference. Simple actions such as shutting down computers overnight and reducing unnecessary printing contribute to lower overall consumption.

Carrying out a data-driven energy audit can provide a clearer picture of where electricity is being used inefficiently. 

What role does renewable energy play in business electricity?

As sustainability becomes a growing priority, renewable energy is playing an increasingly important role in business electricity strategies.

Solar panels and on-site generation

Installing solar panels allows businesses to generate electricity on-site. This can significantly reduce reliance on grid electricity and protect against energy rate increases. While the initial installation cost can be substantial, long-term savings and potential government incentives often make solar energy attractive.

Green energy tariffs

Many suppliers now offer green energy tariffs, where electricity is sourced from renewable generation such as wind, solar or hydro power. Switching to a green tariff allows businesses to reduce their carbon footprint without installing their own generation systems.

Benefits for sustainability and branding

Using renewable electricity can enhance a company’s sustainability credentials. Customers and clients are increasingly drawn to businesses that demonstrate environmental responsibility. Highlighting the use of green energy in marketing and corporate reporting can strengthen brand reputation and support long-term growth.

Conclusion

By understanding your main areas of electricity usage, addressing hidden costs and exploring renewable options, you can reduce expenses, improve efficiency and secure more competitive business electricity rates. For more information on business electricity usage in the form of guides like this or tailored advice, visit D-ENERGi today. We’re one of the most competitive energy providers in the industry, as well as offering plenty of resources for people trying to navigate their industry.