Once your business has a clear understanding of its energy use and has optimised existing equipment and processes, the next step is upgrading to more efficient technology.

Investing in modern, high-performance systems can further reduce costs and improve reliability. The latest technology — from electric vehicles to industrial heat pumps and building management systems — often run on renewable energy sources like electricity or solar, offering even greater benefits. 

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The business case for investing in efficiency

Switching to efficient technology means adopting equipment that uses less energy to perform the same task — reducing waste and cutting costs. For example, an efficient LED light bulb still lights up the room — but it uses less energy to do so.

The most efficient technology often runs on renewable energy sources like solar, biomass, or renewable electricity. Powering your business with renewables can help your business meet organisational emissions-reduction targets, which can also affect the bottom line.

It pays to plan ahead and think long-term. Instead of simply replacing old equipment with a similar model, consider high-efficiency alternatives that reduce operational costs and improve performance.

Upgrade efficiency in the office

  • Use efficient lighting

    Choosing clever design and technology could shrink your business's lighting costs by up to 90%.

  • Use efficient office equipment

    Better, more efficient technology in your office will use less energy to perform the same function — costing your business less in energy bills.

  • Building management systems

    Consider a building management system (BMS) to monitor energy use and temperatures, and switch off equipment when it's not needed.

Switch to clean vehicles and transport

Invest in more efficient on-site technology

  • Refrigeration

    Keep your temperatures cool while saving energy. A well-maintained refrigeration system will operate more efficiently, use less energy and last longer.

  • Heat recovery

    Recover heat that would otherwise go to waste. Heat recovery is especially cost effective if you use both heating and cooling systems, such as food processing.

  • Hot water heat pumps 

    Increase energy efficiency by using an electric hot water heat pump for space and water heating, or industrial processes.

Create an asset replacement strategy 

To get the most value out of equipment upgrades, it pays to have a clear asset replacement strategy that aligns with your long-term business goals. This means going beyond ad-hoc upgrades and instead developing a long-term plan to replace outdated equipment with smarter alternatives at the right time. 

Key steps in building your strategy 

1. Understand your current assets  

Start by gathering data on your existing equipment, including age, performance, energy use, and maintenance costs. Identify which assets are due for replacement and which are the biggest energy users. 

2. Assess and build your asset management capability 

Evaluate your business’s ability to track and manage asset performance. Do you have the right tools and processes in place to monitor energy use and maintenance needs?  

Develop a structured approach to tracking equipment lifecycles, energy efficiency, and replacement costs. This might involve improving data collection, setting performance benchmarks, or investing in monitoring systems. 

3. Explore replacement options and new technologies 

When it’s time to replace equipment, don’t just opt for a like-for-like replacement. Instead, research high-efficiency alternatives and consider how they fit with your business’s energy and sustainability goals. Look at total cost of ownership, including energy savings, maintenance, and potential integration with renewable energy. 

4. Develop a long-term strategy 

Create a plan that outlines when and how assets will be replaced over time. Factor in budget constraints, energy savings potential, and the feasibility of adopting cleaner technologies such as electric boilers or heat pumps. 

5. Implement and continuously improve 

Once your strategy is in place, track performance and savings from new equipment. Use this data to refine your approach, optimise asset management processes, and identify new opportunities for efficiency improvements. 

Download a detailed how-to guide(external link)

Find support and funding

Whether your business is new to energy efficiency, making progress, or well on its journey, find organisations, programmes, and resources that can help.