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Posted: Mon 12th Oct 2026
9 min read
Who’s had the heating on already? It’s definitely coming to that time.
With energy consumption and therefore higher bills coming over the colder months, now’s a great time to start thinking about how to keep those costs down.
If you run your business from home, you're probably keeping a close eye on every expense already and understanding what counts as home use vs what’s powering your business.
If you own a shop, workshop or business premises, you’re probably in the same boat, keeping an eye on energy usage and how it’s impacting total costs.
Whether you run your business from home or from dedicated premises, it's easy to view energy costs as a fixed overhead.
In reality, a few simple changes can help reduce energy waste, lower bills and improve the efficiency of your workspace without major investment. Those savings can help improve profit margins, free up cash for growth or even support more competitive pricing for customers.
If your business already qualifies for the reduced 5% VAT rate, VAT on electricity is 0% during the government's temporary zero-rate period (1 October 2026 to 31 March 2027). Most small business customers paying 20% standard VAT are unaffected.
Before making changes, it's worth identifying what's using the most energy in your home office or workspace.
To kick this off, you can download this free energy audit template.
All energy suppliers offer smart meters, and some offer online tools that can help you understand your energy usage and spot opportunities to save. If you own or rent a business premise, it’s worth exploring tools like Helitoec and Perse, which provide audits and low-carbon reports.
Some of the most effective energy-saving measures cost very little to implement.
Consider:
Switching to LED light bulbs
Investing in light sensors
Using smart plugs to turn equipment off automatically
Draught-proofing doors and windows
Turning monitors, printers and chargers off when not in use
Unplug your laptop when it’s fully charged
Heat the rooms or areas that are occupied
Use smart thermostats
Keep radiators clear and bleed them regularly
You can see industry-specific energy efficiency advice here.
Energy efficiency works best when everyone plays a part.
Encourage staff to:
Turn off unused equipment
Take part in energy‑saving challenges
Suggest ideas for reducing waste
Why not turn it into a game? See our energy efficiency bingo game to get everyone engaged.
If you're planning to stay in your current premises for several years, investing in energy-saving technology could help reduce your long-term energy costs while supporting your sustainability goals.
Enterprise Nation and EDF recently closed our small business sustainability grant, and here are some top ways we know small businesses are exploring to become more energy-efficient:
Solar panels generate electricity from sunlight, helping to reduce the amount of energy you need to buy from the grid. While the upfront investment can be significant, they can deliver savings over many years.
Most relevant for:
Home-based businesses that own their property
Manufacturing and agricultural businesses as well as offices with suitable roof space
Workshops, studios and small industrial units with high daytime energy use
Air source heat pumps (ASHP’s) use electricity to extract heat from the air and can provide heating and hot water more efficiently than traditional gas boilers.
Most relevant for:
Home-based business owners looking to replace an ageing boiler
Small offices
Businesses planning to improve the energy efficiency of their premises
Electric vehicles (EVs): If your business relies on regular travel, with diesel prices at an all-time high, switching to an electric vehicle could help reduce fuel costs and lower your carbon footprint.
Most relevant for:
Sole traders and consultants who travel frequently
Mobile services such as beauty therapists, tradespeople and tutors
Businesses operating small vehicle fleets
Already got an EV? Explore EV chargers from Pod.
Battery storage systems allow you to store electricity, often generated from solar panels or off-peak electricity, and use it later when energy demand or prices are higher.
Most relevant for:
Businesses with solar panels
Businesses who can’t shift consumption due to opening hours in peak times
Home-based businesses looking to maximise their self-generated energy, even more beneficial if you have an EV
Premises with higher energy usage during evenings or peak times
Insulation: Improving insulation is often one of the most effective ways to reduce energy waste. Better insulation helps keep buildings warmer in winter and cooler in summer, reducing reliance on heating and cooling systems.
Most relevant for:
Home-based businesses operating from older properties
Offices with high heating costs
Businesses looking for one of the quickest long-term energy efficiency improvements
Top tip: If you're considering investing in larger improvements, it's worth checking the latest government grants, funding schemes, VAT reliefs and eligibility criteria before making a purchase. Certain energy-saving measures may qualify for financial support, helping to reduce the upfront cost of investment.
Many small business owners continue using an energy tariff that no longer suits their needs.
Take time to:
Review how much energy you're currently using
Check whether a fixed-price tariff offers better certainty or if shifting your consumption can help you save with a Time of Use tariff
Compare available options before renewing
Even a small saving on your monthly bill can make a difference over the course of a year.
Improving energy efficiency doesn't have to mean expensive renovations or specialist equipment. For home-based businesses, a combination of smarter habits, efficient technology and available incentives can help reduce costs while supporting sustainability goals.
For business premises – it’s a team effort that can be optimised by smart tech.
Whether you're a freelancer, consultant, online retailer or growing startup, taking control of your energy use is a simple way to strengthen your business and your bottom line.
We're helping small businesses thrive on the high street – through expert support, smart energy advice and practical tools to grow sustainably. Get free support now
