How Much Energy Does A Small Business Use?
Knowing the average energy consumption of a typical business, is a great way for small businesses to estimate their annual energy consumption. This helps when forecasting costs for the year and ensuring everything is budgeted for. Although the average figure will differ slightly depending on the size and type of business, our latest blog is taking a closer look at the average energy consumption of a small business, including figures for business electricity and business gas.
What is considered a small business?
According to the UK government an SME (as they are referred to) are small to medium sized enterprises that have fewer than 250 employees and take in a turnover of less than £50 million. If a company has fewer than 50 employees with a turnover of less than £10 million, this is considered a small business. Those with less than 10 employees and a turnover of £2 million are considered to be micro businesses.
Small businesses in the UK will use between 15,000 kWh and 30,000 kWh of gas each year, and 15,000 kWh and 25,000 kWh of electricity a year when looking at the latest industry figures.
Different types of industries and their energy consumption
Of course, the industry your company is in will make a difference in the amount of energy you consume. For example, those working in manufacturing services will, on average, use more energy in comparison to other industries in the UK. Other high energy consuming industries include construction and agriculture.
According to data from the ONS, the service sector, which includes small businesses such as retail stores and restaurants saw a decrease in energy consumption in the period between 2019 and 2020 by 6%. This could be due to a change in consumer behaviour, with businesses becoming more aware of zero-carbon energy and the impact of fossil fuels on the environment. As part of efforts to go green and reduce business costs, many service-based small businesses will have lowered their energy consumption, reducing their annual usage.
How to monitor your business energy consumption?
If you are concerned you may be using more energy than the average company in your sector, it may be time to consider installing a business energy smart meter.
Smart meters are not just for domestic households! A business energy smart meter will help you monitor your energy usage, reviewing your consumption, giving you a chance to better manage your energy consumption. Plus, all your readings will be automatically sent to your energy supplier, so you don’t have to worry about taking meter readings. This will help you to avoid overestimated energy bills and provide more accurate readings to your supplier.
If you would like to know more about business smart meters, get in touch with our team today!
What to do if your business energy consumption is too high
If you already have a smart meter installed in your small business and have noticed your energy consumption seems too high, here are some quick ways to reduce your usage:
- Carry out a thorough inspection of your business equipment, you may need to upgrade to more economical solutions.
- Switch off electric equipment and tools when not in use! This includes lighting and heating, which will make up a large portion of your energy bills.
- Set a comfortable temperature on the thermostat and keep this regulated.
- Create an energy saving culture amongst your employees.
For other great tips on keeping your business energy consumption low, take a look at another of our great blogs!