You might not always see the energy your business uses, but the evidence is all around you ― every time you drive a business vehicle, run machinery, or turn on office lights. These activities consume energy and cost money.
By understanding your business’s energy use, you can set efficiency goals that improve productivity and boost your bottom line.
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Measure your business’s energy use
Energy efficiency starts with understanding how your business operates and where energy is being used. Begin by reviewing your energy bills, talking to your energy provider, and observing daily operations to identify key patterns. Ask yourself:
- Where is energy being used the most in your business?
- What type of energy do you rely on ― fossil fuels like petrol or diesel, or renewable energy like electricity (which comes from 80-85% renewable sources) or solar?
- Which processes or equipment are the biggest drivers of energy use?
Here are some ways to measure energy use around your business:
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Review your energy bills
Tracking your energy bills and vehicle fuel use is a great starting point for understanding energy use in your business.
Electricity providers generally offer usage reports, making it easy to compare historical usage. These insights can help you identify trends, spot sudden changes, and catch any unexpected charges or discrepancies.
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Use smart meters
Smart meters track real-time energy usage, providing detailed insights into your electricity consumption ― often in 15- to 30-minute increments. This helps you identify peak usage time and patterns linked with specific activities or equipment.
If your business relies on gas, measuring can be more challenging and costly. Talk to your energy provider ― they may offer monitoring options and support to help you track and manage your energy use more effectively.
While around 80-85% of New Zealand’s electricity comes from renewable sources, fossil fuels still power 99% of transportation and 60% of industrial energy use.
Engage your team
Your staff may have valuable insights on optimising energy usage and identifying savings. After all, they’re the ones who will help implement your energy-efficiency plan and drive real change.
By involving staff in the process, you can foster a culture of energy awareness, waste reduction, and improved productivity.
Work with an energy consultant
Around 72% of businesses that prioritise energy efficiency partner with consultancies to support their efforts.*
An energy consultant can pinpoint areas for improvement and identify cost-saving opportunities. Their expert advice is tailored to your business needs and backed by best practice from the energy sector, helping you make smarter energy choices.
*Sustainable Business Network, 2022
Set targets to lower energy use
Once you understand how your business uses energy, you can start identifying ways to save energy and improve efficiency.
Review what you’ve learned from energy bills, smart meters, staff insights, or an energy consultant. These questions can guide your next steps:
- Are there long-standing practices that, if done differently, could reduce energy use?
- When replacing equipment ― like a refrigerator or vehicle ― can you get a more energy-efficient model instead of swapping like-for-like?
- Can any processes be streamlined or eliminated to improve productivity while lowering energy usage?
Set clear, measurable goals
Just like any business goal, your energy-efficiency targets should be specific and trackable. For example, you might aim to reduce peak-hour electricity use by 15% within six months.
Make sure you can measure your progress ― whether by checking energy bills, using smart meters, or keeping an eye on important energy-use trends.
An energy consultant or industry expert can help you set realistic goals and recommend the best ways to measure and achieve them.
When replacing equipment or appliances, it’s tempting to default to the same model you’ve always used. But this could mean missing out on newer, more energy-efficient technologies that can improve productivity and reduce operating costs.
Make an energy management plan
Once you have investigated your current energy use, and set some goals for improvement, it can be helpful to bring it all together in an energy management plan.
An energy management plan is a structured approach to understanding and improving how your business uses energy. It details where energy is being consumed, outlines clear goals for improvement, and sets out strategies to reduce waste, lower costs, and cut emissions.
A well-designed energy management plan includes the following:
- Baseline assessment ― Current energy use and costs provide a starting point for measuring improvements.
- Goals and targets ― Measurable energy-saving objectives help ensure progress is trackable and achievable.
- Action plan ― Specific steps to reduce energy waste make it easier to implement changes.
- Monitoring and reporting ― Tracking progress and making adjustments ensures long-term success.
- Staff engagement ― Involving employees in energy-saving efforts fosters a culture of efficiency and continuous improvement.