Depending on your business size and activities, energy costs can take up a large part of your budget. By making some changes, you can use energy more efficiently and be more sustainable. There are low-cost steps you can take to start saving energy now, as well as bigger changes over time.

1. Know your energy use

Knowing how your business uses energy can help you make smarter decisions. It can lead to real savings and support your long-term goals.

You can:

  • lower your operating costs by finding and fixing energy waste
  • better plan to buy equipment or expand your business
  • improve your efficiency by using energy where it matters most
  • access some grants or rebates that need energy data.

How to find out how much energy you use:

  • Check your electricity and gas bills for usage data.
  • Use a smart meter or energy monitoring system.
  • Ask your energy company for a usage report.
  • Get a professional energy audit.

2. Compare energy contracts

One way to reduce your electricity and gas costs is to review your current energy plan to make sure you’re getting the best value.

Types of energy plans

The type of plan you have will depend on the size and location of your business:

  • Standard retail plans (or standing offers) are basic plans with prices, terms and conditions set by law. The retailer can’t change these.
  • Market retail plans are more flexible than standard retail contracts, but they still have minimum terms and conditions set by law. Prices can change at any time.
  • Negotiated market contracts are individual energy plans that businesses with high energy use can negotiate with an energy retailer.

Get a better deal

Shop around and compare your current contract with plans from different energy retailers. You might get a better deal with your current retailer or a new one.

You can:

  • talk directly with an energy retailer
  • compare energy plans online
  • engage an energy broker.

Embedded networks

If your business is in a shopping centre, office building or industrial park, you might be in an embedded network. This means the site owner buys energy for the whole site and sells it to each tenant. You don't buy your energy directly from a retailer.

In some states and territories, you can choose to buy your energy from an authorised energy retailer instead. This might save you money. To find out if this applies to you, ask an energy retailer or check with your state or territory government.

Resources to help you compare energy plans

There are free, independent government resources that can help you compare plans.

If your business is in Victoria, you can use Victorian Energy Compare.

Use Energy Made Easy if your business is in:

  • New South Wales
  • Queensland
  • South Australia
  • Tasmania Australian
  • Capital Territory.

Businesses in Western Australia and the Northern Territory need to contact energy retailers directly to compare plans.

Switch to a greener plan

Consider buying GreenPower. It reduces your emissions and can help you become certified carbon neutral, among other business benefits.

Many energy retailers in Australia have a GreenPower accredited product. This lets you buy between 10% and 100% of your electricity from a renewable source.

3. Use energy-efficient equipment

Choose the right appliances and technology and use them more efficiently. This helps you reduce your energy use and emissions. It can also save you money.

Check energy ratings

Energy ratings are an easy way to compare the energy efficiency and running costs of appliances.

Before you buy an appliance:

Switch to energy-efficient lights

Use energy-efficient lights. It’s one of the easiest and most cost-effective ways to reduce your energy use.

Before you choose new lights, check what they need to do. For example, lights in a hotel reception area might need to be brighter than the ones in guest rooms.

If you can’t afford to switch all your lights at once, change them when your current ones stop working. With planning, you can transition smoothly over time.

Choose energy-efficient vehicles

Choose a fuel-efficient vehicle. It can save you money and reduce air pollution and emissions. Some fuel-efficient cars also have a higher luxury car tax threshold.

Consider buying or leasing a hybrid or electric vehicle (EV). EV technology has advanced rapidly, with modern EVs able to go much further on a single charge.

As well as fuel efficiency, calculate the car’s service and repair costs to choose the right one for your needs.

4. Make your building energy efficient

Whether you own or lease your space, improving its energy efficiency can save you money and lower your emissions. In some cases, it can boost productivity and reduce sick days.

For example, a building management system (BMS) monitors and controls your lighting, heating, ventilation and air conditioning. Installing one can make your workplace healthier and more comfortable as well as save you money.

Tips to help you get started

Plan for energy efficiency from the start

If you're building a new commercial space, include energy-saving features in the design. It's easier and more cost-effective to build them in early.

Upgrade existing buildings

There are many affordable ways to reduce energy use in older buildings. Some architects, builders and trades offer services and materials that help improve energy efficiency.

Choose your workplace wisely

If you rent your workplace, you can still cut energy costs and reduce your environmental impact.

Use comparison tools to assess buildings before you sign a lease and choose an energy-efficient building where possible.

Consider a green lease

A green lease (or best-practice lease) helps tenants and building owners work together to reduce energy use. It often leads to savings for both sides.

For example, switching to light emitting diodes (LED) can lower power bills for tenants and improve the building's energy rating for owners. 

4. Generate your own energy

You may be able to generate your own renewable energy. This type of energy uses abundant natural resources that constantly renew, such as:

  • sun
  • wind
  • water.

Compared to energy from the grid, renewable energy can save you money and protect you from volatile energy prices.

Rooftop solar is a good option for many urban businesses because it generally doesn’t need any extra space.

You might also get a rebate or help to set up your renewable energy system. See what’s available in your state or territory.

6. Get tips for your industry

The industry you're in will affect your energy use. Knowing this can help you find ways to become more energy efficient.

Some tips for all businesses:

  • Train your staff to be energy efficient.
  • Turn off lights and air conditioning in rooms not in use.
  • Set your heating to between 18 °C and 20 °C and cooling to between 25 °C and 27 °C.
  • Turn off computers and monitors at the end of the workday.
  • When you need to replace equipment, buy ones with better energy ratings.

7. Fund your energy improvements

If you’re not able to pay up-front, there are other ways to fund your energy improvements. These are some options:

  • Lease new equipment and lower the up-front cost of switching to energy-efficient equipment.
  • Arrange on-bill financing with your retailer. They pay for the energy efficiency equipment up-front, and you repay them over time through your energy bill.
  • Set up an energy performance contract with an energy service company. They’ll find ways to reduce your energy bills, upgrade your building and use the savings to cover the upgrade costs.
  • Apply for an energy grant. There are many available for businesses to improve their energy efficiency.

Search for grants and support

Find grants, funding or assistance programs to support your energy-saving measures.

Search now

8. Get help to resolve an issue with your energy provider

Ombudsmen are independent services that help resolve disputes and complaints.

Contact the energy ombudsman in your state or territory to find out:

  • the types of complaints they handle
  • their complaints process
  • how to submit a complaint.

State and territory ombudsman

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