Business Energy for Retail
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Retail establishments often face substantial energy bills, sometimes amounting to hundreds of pounds weekly.
As one of the most significant recurring expenses, optimising energy consumption can directly influence profitability. However, one immediate solution is to ensure you’re availing the best rates from your business energy supplier.
What are the energy costs associated with a retail store?
Energy expenses form a considerable chunk of a retail store’s operational costs. This encompasses the energy required for lighting, electronic displays, and other devices that showcase products, offer information to visitors, and ensure employee safety.
Additionally, illuminating indoor and outdoor signage also contributes to these costs. Significant expenses arise from the store’s HVAC systems, refrigeration, and other energy-intensive operations.
Moreover, business gas, essential for heating and cooling, is another major cost factor.
The energy consumed for heating retail stores varies with the climate. For instance, in colder regions, heating can constitute up to 60% of the total energy consumption. However, in milder climates, it’s closer to 30%.
According to the British Retail Consortium, space heating alone accounts for 32% of the total energy demand in the retail sector.
How much gas & electricity does a retail store use each year?
How much gas and electricity a store uses depends upon the size and efficiency of its building and the types and number of energy-intensive appliances it uses.
To get an accurate usage assessment, auditors typically conduct a site survey to determine exactly how you use each appliance throughout the day. These audits may also analyse current energy use at different times of day and during different seasons.
Once auditors have determined consumption in the store, they may calculate energy use for a full year and compare it to industry and regional average energy-use statistics to determine whether the store saves on business electricity.
Typically, auditors determine business electricity and gas usage by multiplying usage per square foot by the size of the store in square feet. For example, if a business uses 10 kilowatt hours (kWh) of electricity per square foot each year and is 5,000 square feet in size, its energy use would equal 50,000 kWh per year.
How can stores cut back on their energy usage?
Retail businesses can adopt various strategies to effectively reduce their energy bills. Here are some key recommendations:
Transition to LED lighting
LED lighting presents a multitude of advantages over conventional lighting methods:
- Cost Efficiency: LED lights can lead to savings of up to 80% on energy bills.
- Durability: They have a longer lifespan, which translates to reduced maintenance costs.
- Enhanced Display: LED lights can accentuate specific products in a store, making them more appealing.
- Energy Efficiency: An LED bulb can produce the same luminosity as a 60-watt tungsten bulb while consuming only 24 watts. In comparison, a tungsten bulb would need 40 watts for similar brightness. LEDs also have a lower heat output, reducing heat leakage by up to 90%, and making them safer and more energy efficient.
Implement heating timers
Heating timers allow businesses to program heating systems to operate only during specific hours.
For instance, during closed hours, there’s minimal need for heating as the store is unoccupied. By setting the heating to lower temperatures or turning it off during these times, stores can achieve significant energy savings.
Cultivate energy awareness among employees
Encouraging employees to switch off unused electronic equipment can lead to substantial energy savings.
Introducing software that displays energy consumption metrics can further educate employees about energy-intensive devices and the potential savings from turning them off. Such tools can instil a culture of energy conservation, making it a standard practice in commercial establishments.
Promote the use of electric vehicles (EVs)
The rise in popularity of EVs offers an opportunity for retail businesses. Stores with ample parking spaces can install EV charging stations, promoting energy conservation among customers, suppliers, and employees.
EVs operate on efficient batteries, which can be charged at these stations or even at home. By endorsing EV use, stores can play a pivotal role in promoting sustainable transportation.
Why compare retail business energy deals with Utility Saving Expert?
Choosing the right energy supplier for your retail business is crucial, and comparing business electricity prices is the first step.
Suppliers often tailor their rates based on factors like location and energy consumption patterns. Hence, a thorough comparison is essential to identify the supplier offering the most competitive business energy deals.
Utility Saving Expert stands out as a trusted comparison platform, backed by seasoned industry professionals. We guide retail businesses towards informed decisions, ensuring maximum savings.
Research indicates that comparison sites offer a convenient way for businesses to engage with their energy supply and identify better deals.
Frequently Asked Questions (FAQs)
What’s the best way for a retail store to reduce energy consumption?
The most effective method for a retail store to decrease its energy consumption is by training its employees in energy-saving techniques. This includes promoting the use of energy-efficient devices, such as LED light bulbs.
Implementing energy management software can further educate the team on the store’s energy consumption patterns and the savings achieved from turning off electronics when they’re not needed. By taking these measures, a retail store can significantly enhance its energy efficiency, leading to reduced costs.
How much do retail businesses pay for energy?
Retail businesses typically incur higher energy costs than other sectors due to their extensive need for heating, cooling, and lighting, which enhances product appeal during shopping hours. While a small retail business might spend between £3,000 to £4,000 annually on energy, a larger establishment could see expenses closer to £11,000.