8 Ways to Cut Business Utility Costs

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Business utility costs make up a considerable part of a company’s expenses. Entrepreneurs may need to implement cost-saving measures to reduce business utility costs. However, at the back of your mind, you might worry that your actions may disrupt your operations.

Thankfully, there are simple ways to cut business utility costs without negatively affecting your business operations. To know what they are, continue reading this short and sweet guide.

  • Use Renewable Energy Sources

Renewable energy sources include solar panels and wind turbines. You can use them to reduce your business’s reliance on the power grid and save money on utility bills. However, installing these renewable power generators isn’t like changing light bulbs or unplugging appliances when they’re not used.

Remember that this step may require massive consideration as it can cost your business a lot. Nonetheless, it’s a novel idea you shouldn’t ignore as it can provide long-term savings on utility bills and be a good backup power source during an outage.

Just like saving water usage, going green with solar and using other renewable energy sources can also reduce your business’s environmental impact—it also helps the community achieve a sustainable future.

  • Conduct An Energy Audit

Assess your business’s electricity usage through an energy audit. For those unfamiliar, an energy audit comprehensively assesses your electricity consumption patterns. It can help identify areas where you can reduce the energy waste you incur and save money on your utility bills. 

During an energy audit, a professional auditor will examine your business’s energy usage and recommend cutting energy costs. Once they’re done, your next step is to implement the recommendations together with other cost-saving options you have in store for your business. 

  • Install Energy-Efficient Lighting

Energy-efficient lighting options include light-emitting diode (LED) bulbs, compact fluorescent lights (CFLs), and halogen incandescent bulbs. They only use less energy and may last longer than traditional lighting, so replace your old bulbs or traditional lighting with them.

  • Upgrade To Energy-Efficient Appliances

Upgrading to energy-efficient appliances can save money on utility bills. They use less energy and water, resulting in lower utility bills. To know if your appliances are energy-efficient, check if they have an Energy Star label. This label indicates that the appliance or equipment meets strict energy efficiency guidelines.

The only concern you may have in this step is that upgrading can cost money. After all, investing in energy-efficient appliances may require a high upfront cost. However, the long-term savings on utility bills make it a worthwhile investment.

  • Implement A Power Management System

Install a power management system to reduce energy consumption. A power management system can help control the energy your business consumes by turning off devices when not in use. It can also help identify energy waste and recommend cutting energy costs.

By implementing a power management system, your business can save money on its utility bills and reduce its environmental impact. Implement a power management system to help control your business’s energy usage.

  • Adjust Thermostat Settings

Adjust your business’s thermostat settings to save money on heating and cooling costs. It’s one of the most basic things you can do that can return a lot of savings, if ever. However, be sure to optimize your thermostat settings to balance your bills and the comfort of your employees.

Note that the recommended temperature settings for a business are between 68-72 degrees Fahrenheit (°F) in the winter and 74-78 °F in the summer. Adjusting the thermostat by just a few degrees can save significant energy but know that many people can feel the changes even if the change is a degree lower or higher.

  • Optimize Water Usage

Optimize your business’s water usage to save money on water bills. Fix leaks and install water-efficient fixtures to reduce water waste and consider using recycled water for non-potable purposes such as landscape irrigation or industrial processes. Reducing your business’s water usage not only can save money on water bills but can reduce your environmental impact as well.

  • Consider Outsourcing Your Energy Management

Energy management companies can provide comprehensive solutions to help your business reduce energy waste and save money on utility bills. They can conduct energy audits, install energy-efficient lighting and appliances, implement power management systems, optimize water usage, provide carbon offsetting programs, and even install renewable energy sources.

If you can, consider outsourcing your energy management to experts in the field. Aside from getting practical advice and customized solutions, these energy management companies can also free up your time and resources to focus on your core business operations. 


These are the ways you can cut your business utility costs. As you can see, most of them may require massive changes in your business. Even if you aggressively implement them, they have minimal impact on your day-to-day operations. In any case, you can cut business utility costs in other ways. As mentioned, consider outsourcing your energy management if any of these steps aren’t providing the savings you want.


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