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Getting the most out of energy efficiency

The Business Energy Use Team at the Department of Energy and Climate Change has used research from ENWORKS – part of the Growth Hub – to explain why energy efficiency should be on your agenda. Here’s what they had to say…

Energy efficiency represents one of the cheapest ways to reduce your energy bill. Research published by the Department of Energy and Climate Change estimates that SMEs in the UK could on average save 18 to 25 percent on their energy bills by implementing energy efficiency measures.

The energy and bill saving opportunities are significant – up to £2.6 billion a year across the UK as a whole. But that’s not all. Measures are often cheap to install. In many cases, SMEs will be able to start saving energy and money without any investment whatsoever.

Don’t believe us? 41% of the energy efficiency opportunities implemented by companies that received support from ENWORKS – an organisation that helps SMEs reduce their energy use and improve their resource efficiency – required zero capital expenditure. The steps taken and the measures installed are helping save these companies a combined £2.88m a year. And in most cases, all the companies had to do was turn off equipment when it wasn’t in use and fix sources of energy loss, such as leaks.

Still don’t believe us? Danfield Ltd identified four leaks in the factory’s compressed air system. These leaks could be fixed with simple manual adjustments at no cost. Danfield is now saving £667 a year on their energy bill as well as four tonnes of carbon dioxide equivalent.

It’s not just about lowering your energy bills

Not only can improving energy efficiency save you money on your energy bill, it also supports improvements to product quality and output, reduces risks and liabilities, enhances resilience and enables new business opportunities. Energy cost reductions can free up resources that can be directed at more productive activities, including growing your business or developing new product lines or services. 

Research carried out by the Federation of Small Businesses shows that one-third of SMEs cite energy costs as a barrier to their company’s growth. Energy efficiency is not just about energy, it is also about financial efficiency.

The great thing about energy efficiency savings is that they go straight to the bottom line and they stay there, year after year. Whether the return on investment is large or small, it’s worth considering how many extra sales you would need secure to make the same amount of profit.

For more information on how to improve your energy efficiency, read the Government’s guide for SMEs and get in touch with our Green Growth team.

This blog was originally published by the Department of Energy and Climate Change on

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