Business Energy

Funding to reduce business energy costs

24 Nov 2022

When it comes to reducing your business emissions and saving money on bills, there are several greener finance options that could help. As SMEs make up 25% of the UK’s emissions, it’s important for smaller business owners to make changes to their energy consumptions. Our blog explores some of the types of funding available to help reduce energy costs for good.

reducing your business energy costs

How to operate more energy-efficiently  

You can reduce your energy consumption by making your business operations greener and more energy efficient. There are several ways you can do this: the ones we’ve chosen to hone in on could have a direct and positive impact on your energy bills. Others could help you drive down your business’ Scope 3 carbon emissions

1. Upgrade your equipment

When it comes to equipment – including technology and machinery – newer models are often more energy efficient and could save you money in the long-term. 

If you run a warehouse, for example, you might want to consider transitioning to electricity-powered forklifts. If you run an office-based company, you could investigate the benefits of energy saving printers and scanners. 

Of course, there’s the capital expenditure to consider. If you don’t have the budget to invest in new equipment you could spread the cost by leasing it. There are a few options to choose from – check out our equipment leasing guide to find out more. 

The government’s Energy Technology List (ETL) is a useful resource for finding energy-efficient plant and machinery manufacturers. 

2. Turn off equipment

Turning equipment off at the end of the day seems like a no-brainer, but it’s a healthy habit that can easily fall by the wayside. Yes, some equipment may need to stay on, but try to switch off air con, computers and lights outside of working hours. 

If you run a manufacturing business you could label the switches on machinery that can be switched off at the end of the day, and train your team on how to do this safely. 

3. Get smart with lighting

 Lighting can consume a lot of energy, especially if it’s inefficient. 

If you haven’t already done so, make the switch to LED bulbs which are up to 80% more efficient than their fluorescent counterparts. Use occupancy sensors to avoid empty rooms being lit and use daylight sensors to adjust light levels accordingly. 

Another good way to save on electricity bills is to pick a premises that lets in an abundance of natural light. Natural light can have a positive impact on your employees’ wellbeing, as well as the financial wellbeing of your business. 

4. Get smart with heating and cooling

 Could you be heating and cooling your premises in a more efficient way? Heating and cooling forms a large part of your overall energy expenditure. While there’s no quick fix to cover the costs associated with the energy crisis, these tips could help:

  • Heat your building to the recommended temperature

  • Consider zoning your building where areas may not need to be heated to a comfortable office temperature

  • Place thermostats away from radiators and windows

  • Insulate the building where necessary to keep cold air out

  • Replace old air conditioners

  • Make sure ain con filters are dust-free to allow for easy airflow

 Funding to help reduce energy costs

The government’s Business Energy Relief Scheme is providing automatic discounts on business’ energy bills until March 2023. If you’ve been told you’re going to be disconnected, get in contact with Citizens Advice

If you think you might not be able to afford your business energy bill, get in touch with your supplier because they may be able to offer a payment plan. Some suppliers also offer hardship funds and subsidies for energy-efficient equipment. 

If you’re thinking of kickstarting a ‘sustainable’ business or project, it can be worth checking to see if your local council is offering funding or grants to business. 

Applying for loans with green lenders

Green finance is a type of business funding specifically designed to help businesses reduce their emissions and make environmentally-friendly changes. 

So, if you’re looking to invest in some solar panels or energy-efficient technology for your business, you could be eligible for a green loan from one of our green lenders. 

Green lenders are lenders with an appetite to lend to business owners who want to become more environmentally friendly. They may also be looking to reduce their own carbon emissions and the carbon emissions associated with their supply chain. 

If you want to explore funding that could help you reduce your energy consumption and save money on business energy, see what you could be eligible for today.

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