June 21, 2024

Business Energy Consumption 101

Business Energy Consumption 101

The amount of energy a business uses depends on a number of factors. From business size, energy usage, to energy rates, there are several factors that come into play. Understanding these factors will help you manage energy usage better and lower the bills. Read through this guide to understand these factors and how they can affect the energy consumption in your business. You will also learn how to make your business more energy efficient.

Business Energy Consumption

Each business has its own explicit energy demands. This is because each business uses different buildings, has different lighting requirements, and uses different appliances. Thus, the energy use in your company will depend on several factors. These factors include:


Larger businesses tend to consume more power than their smaller counterparts.

Lighting Levels

If your business uses lights a lot, it will consume more energy. However, you can replace all bulbs with LEDs and lower this energy use by more than 80 percent.

Electrical Appliances

The electrical appliances you use can also influence the amount you pay. Energy-efficient appliances will result in lower bills.

Supplier’s Tariff

What’s your tariff? Is it expensive? If so, consider looking for another tariff.

Average Usage

Evaluate the number of kilowatts other businesses are using. Ensure that you are analyzing businesses similar to yours. This will help you determine whether your business is energy efficient. Generally, the size of your business will determine the amount of gas or electricity you use. Also, the nature of your business will play a key role. For instance, energy-intensive businesses will automatically use more energy than labor-intensive ones. Most businesses consume business gas as follows:


On average, a micro-business should use 10,00 kWh of gas per year.

Small Businesses

On the other hand, a small business shouldn’t use more than 25,000 kW of gas in a year.

Medium Business

45,000 kWh per year is enough for a medium business.

Average Electricity Usage

Electricity usage in the UK differs from one company to another. The size of a business influences the amount a company uses. The following figures will help you understand electricity consumption in the United Kingdom:

Micro Businesses

On the lower end usage, a micro-business should use around 5,000 kWh of electricity in a year. On the other hand, a microbusiness is categorized as a high-end user if it consumes up to 15,000kWh.

Small Businesses

While lower-end usage for small businesses starts at 15,000 kWh, their high-end counterparts use up to 25,000 kWh.

Medium Businesses

A medium business will use 30,000 and 50,000 kWh for lower-end usage and high-end usage respectively.

Large Scale Users

If your annual consumption is more than 100,000, you will be considered a large-scale business. Here, you will be handled differently.

The Bottom-Line

On average, a business can use something from 15,000 to 25,000kWh energy. However, these figures can fall or rise. It depends on a number of factors. This guide above highlights the factors that affect the amount of energy used in a business setting. 

Avatar for Radhe Gupta

Radhe Gupta

Hello, I am Radhe. I am absolutely in love with writing and by working with News Whizz, I have developed a passion for it. It helps me to stay updated and know what is happening around the globe.

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