Reduce your Energy Costs


The UK Government has launched a campaign to help businesses reduce their energy consumption – reducing their costs whilst also helping the UK in its drive towards net zero carbon emissions.

According to Government calculations, for many companies, a 20% cut in energy costs represents the same bottom-line benefit as a 5% increase in sales.  The Government has worked with SMEs across the UK to highlight how small steps can deliver substantial savings, examples include:

  • Marlec Engineering, a wind turbine manufacturer in Corby, who switched to energy-saving lighting as part of a range of measures to make its business premises more energy efficient. They replaced T8 fluorescent lamps with new energy-saving LED tubes. The lighting did not reduce light levels in the office and achieved a 60% saving on lighting costs.
  • Gennaro Organic Hair & Beauty in Bedfordshire upgraded their salon, introducing LED lightbulbs, installing heating and air conditioning timers and reviewing their energy tariff. This saved an estimated 30-50% on their bills.


Step 1 – Don’t use what you don’t need

Turn off lights in unoccupied areas and when you are not in the premises. Nearly half of business electricity usage occurs outside of standard operating hours. Reducing out-of-hours energy use could save your business significant amounts of money. A longer-term investment is lighting timers, which reduce non-essential lighting when employees are not in the area.

In addition, as well as lighting, turn off other sources of energy when you leave the office, such as monitors, vending machines, and kitchen equipment where safe to do so.

Step 2 – Stop draughts and insulate doors and windows

Draught-proofing is one of the most effective actions you can take to stop or prevent heat escaping and reduce your energy bills. Block unwanted gaps around windows, doors and floors that let the cold air in and warm air out.  Window film is a form of temporary secondary glazing which helps stop heat escaping through glass. It can be bought at hardware shops and online and installed yourself or with the help of a professional.

Step 3 – Adjust your heating

Set the heating in offices to 19°C and cooling at 24°C or higher to ensure a comfortable but low-cost temperature on your premises.  Use timers so the heating/cooling is on when your staff and customers are in your business premises.  Switch off office heating at weekends and bank holidays and adjust as the clocks change for Daylight Saving.  As a longer-term investment, consider upgrading to smart thermostats, which offer greater flexibility and control over your energy use.

Step 4 – Review your energy tariff

Make sure you’re on the best energy tariff for your business. Get in touch with your energy supplier to understand what tariffs they provide and compare what they offer with other providers before agreeing a contract.  You can also use a comparison website or consider using a specialist energy broker to negotiate a better long-term rate.

Step 5 – Upgrade your lightbulbs

Lightbulbs can be responsible for a significant percentage of a building’s electricity use.  Compared to halogen bulbs, LED bulbs use very little energy and are long-lasting. Upgrading to LED bulbs could deliver significant cost savings, on average in under 3 years.

Check your office for any fluorescent lamps that can be replaced. T12 fluorescent lamps can be cheaply replaced with T8 energy-saving lamps, and further significant energy savings can be made with LED tubes for further savings.

Step 6 – Ensure your boiler is properly operated and maintained

Well-maintained boilers are significantly more efficient to run, so maintaining the boiler can save you money in the long run. Some boilers also require a yearly service in order to remain under warranty.

Turn down your boiler flow temperature – flow temperature is the temperature of the water that your boiler sends to radiators. Reducing flow temperature isn’t the same as lowering your thermostat and won’t noticeably reduce the temperature of your premises but may increase the time it takes to reach the target temperature on your thermostat.

Step 7 – Replace your boiler with a heat pump with the help of a government grant

Heat pumps use cleaner electricity and are significantly more efficient than traditional boilers so can reduce your energy usage. The Government is offering grants of up to £7,500 off the cost of a heat pump to properties across England and Wales.  Check if you’re eligible for a heat pump grant by clicking here.

Castletons Accountants

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