Running a small business comes with enough surprises — your electricity bill shouldn’t be one of them. Yet for many business owners, those monthly or quarterly charges feel like they arrive with a shrug and a sigh: “Well, it is what it is.”
But it doesn’t have to be.
Quick answer? You can cut electricity costs in your small business by switching to LED lighting, managing air conditioning more efficiently, automating power-down routines, and encouraging small behavioural changes among staff. These practical strategies can significantly reduce retail store energy bills and keep your bottom line healthier.
Here’s how to do it without sacrificing comfort, presentation, or productivity.
What’s driving high power bills in small businesses?
Let’s start with the basics: most small business electricity usage comes from a handful of key culprits. These include:
- Lighting (especially older halogen or fluorescent systems)
- Heating and cooling (often running too long or set too low/high)
- Fridges, display units, and cooking appliances
- Office equipment (computers, printers, EFTPOS terminals left on 24/7)
- Water heating
Individually, they don’t seem like much — but together, they account for a significant chunk of your bill. In fact, Energy.gov.au estimates lighting and HVAC alone can make up 60% of a small retail or hospitality business’s electricity use.
What are the fastest, most effective electricity-saving tactics?
If you’re looking for impact with minimal fuss, start here:
- Swap to LEDs – They use 75–85% less power and produce less heat.
- Set HVAC to sensible limits – 24–26°C in summer, 20–22°C in winter.
- Use timers or smart plugs – Schedule signage, displays, and kitchen gear.
- Turn off devices at the wall – Standby mode still uses power.
- Get a power monitor – Understand where your money’s actually going.
A florist in Wagga Wagga dropped their electricity bill by 22% just by replacing halogen lights and unplugging their backup till overnight. Nothing radical — just better habits.
How can lighting upgrades help cut power use?
Lighting is low-hanging fruit. It’s used all day, often in areas that don’t need constant illumination. A few upgrades can yield significant savings:
- Replace old halogens with LEDs (less energy, less heat, longer life)
- Use motion sensors in storage rooms, kitchens, and bathrooms
- Install daylight sensors that dim lights when natural light is enough
- Reposition displays near windows to make better use of daylight
- Zone your lighting system — not every bulb needs to be on at once
One boutique owner in Brisbane cut $100/month simply by zoning her lighting system and adding daylight sensors to the front window display.
Is it worth automating electricity usage?
In a word: yes. Automation isn’t just for giant buildings or tech startups. Plenty of small businesses are already reaping the rewards.
Automation options include:
- Smart plugs that cut off power overnight
- Programmable thermostats that align with trading hours
- Scheduled signage or outdoor lighting
- Smart monitors that track daily usage in real-time
A small café in Fremantle automated their coffee machine and signage with $150 worth of smart plugs. Their barista loved not having to remember to turn it off — and the owner noticed a 14% reduction in electricity costs.
What role does air conditioning play in your electricity bill?
Air conditioning is essential in most Aussie businesses — especially those with customer-facing spaces. But misuse or neglect leads to big bills.
Tips to trim HVAC costs:
- Set limits: Don’t go lower than 24°C in summer — every degree counts.
- Maintain filters and units regularly — dirty systems work harder.
- Seal doors and windows — cool air leaks = wasted money.
- Use ceiling fans to improve airflow before lowering the thermostat.
- Install door closers to prevent constant warm air inflow.
A dental clinic in Parramatta discovered that one consultation room had a faulty duct, pushing cold air even when empty. Fixing it saved $500 per quarter.
How do you engage staff in saving electricity?
Staff can make or break your energy-saving efforts. But getting them on board doesn’t need to be a big production.
Here’s what works:
- Create a simple end-of-day shutdown checklist
- Put friendly reminder signs near switches and plugs
- Share results — if you save $300 in a quarter, show them!
- Offer small rewards or shout-outs for energy-conscious behaviour
- Appoint a weekly “energy captain” — even as a joke, it builds consistency
A suburban hair salon introduced a “Power-Off Friday” ritual. Everyone checked devices and lights before the weekend. After three months, they’d saved over $700 and built stronger staff habits in the process.
FAQ: Cutting Electricity Costs in Your Small Business
Q: What’s the easiest first step for any small business?
A: Change to LED lighting and turn off devices at the wall overnight.
Q: How do I know what’s costing the most?
A: Use a plug-in power meter or get an energy audit through your provider.
Q: Should I unplug my EFTPOS, modem, or printer every day?
A: Only if it won’t disrupt operations — but if not used overnight, yes.
Final thought
Electricity bills don’t have to feel like a mystery — or a punch in the wallet. With a few smart tweaks, a dash of consistency, and a little buy-in from your team, you can turn energy savings into an everyday habit.
Cutting costs doesn’t mean cutting corners. It means running a smarter, leaner business that invests every dollar where it matters — not into wasted watts and blinking standby lights.
If your business includes retail space, now might also be the perfect time to explore how to reduce retail store energy bills with energy insights and tailored solutions that go beyond guesswork.