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Business Energy Statistics

As the world population grows, the demand for goods and products is also rising. Due to this demand, more industries and businesses are opening up every year. While businesses are great for driving the economy, they also significantly strain energy consumption.

In 2022, the global electricity demand rose by 3% to meet the increasing demand of the population (ember-climate, 2022). With rising energy prices and the current energy crisis, important measures must be taken to reduce energy consumption.

In addition, energy consumption from fossil fuels also cause a detrimental effect on the environment. If you want to start a business or want to switch to clean energy sources, here are some important business energy statistics.

A Look At Business Energy Consumption In The Future

Business energy consumption trends largely rely on how the world uses energy. With a bigger push towards renewable energy sources, it is possible that more businesses will adopt this resource to power their premises. Here is a look at business energy consumption in the future.

Low carbon power and energy efficiency is the top priority for most businesses in the UK. Over 76% of the large businesses in the UK are searching for energy efficient or renewable sources to cut down their carbon emissions in 2023 (themanufacturer, 2019). Many businesses are open to adopting environmentally-friendly power sources; therefore, it is important to supply these companies with renewable energy. Installing solar panels in office buildings is one way of introducing a clean energy solution in a business space.
The worldwide energy demand is expected to grow by around 47% by 2050. Renewable energy is expected to take up 27% of the global energy mix to combat carbon emissions (spglobal, 2018). These statistics highlight the demand for energy in the future; therefore, we can see that businesses will require more energy to meet the demand of the growing population.

Energy Consumption In The UK At A Glance

Before we look at business energy statistics, it is important to look at the overall energy consumption in the UK. These figures will give us a better picture of the state of energy usage in this region.

The electricity demand is increasing every year. In Q3 of 2022, over 77.7 TWh of energy was produced to meet the increasing need for electricity. This was a 14% surge compared to the demand in Q3 of 2021 (GovUK, 2022). This statistic highlights the amount of energy required by the population in the UK. With the demand soaring significantly, experts forecast a bigger strain on the electricity grid system. However, the best way to overcome this demand is by investing in renewable energy on a large scale.
The total energy consumption in the UK increased by 4.6% between 2020 and 2021 from 128 to 134 million tonnes of oil equivalent (GovUK, 2022).
In the business sector, industry energy consumption increased by 4.2% across most industrial areas, with most energy coming from gas. In the service industry, consumption rose by 5.2% as pandemic restrictions were relaxed around the region (Gov, UK). These are two key areas in the business sector that show an increase in demand for energy sources. A great way to meet this demand is by adopting renewable power.
In overall energy consumption, the domestic and transport sectors take the top two spots. The transport sector is responsible for 32.91% of energy consumption, while the domestic sector takes up 23.83% of energy (finder, 2021). The transport sector is also considered a part of the business industry as many manufacturing plants deliver goods and services. Other smaller businesses also use transport to carry out their services therefore, this figure is also representative of business energy consumption.
In terms of energy usage, the transport sector takes up 56,954 ktoe, the commercial sector uses 13,225 ktoe, and other industries use 21,857 ktoe of energy (finder, 2021). The value ktoe stands for a tonne of oil equivalent. This unit of measurement gives a better understanding of how much fuel an entity uses. These figures depict the average fuel consumption of various business sectors.

What Is The Cost Of Running An Average Business In the UK?

Whether you already have a business or want to learn more about starting one, here are some important statistics that highlight the average cost of running a business in the UK.

These figures will help you understand the potential energy consumption of a company and help you allocate your resources accordingly.

An office with 100 employees in a 7,500 to 9,500 sq ft could cost a total of £34,854 per year, with the air-con costing almost £10,000 annually. A mid-sized 30 person company with a 2,250 to 2,850 sq ft office can potentially cost £10,423 per year. For a small company run by 5 people in a 375 to 475 sq ft office, the annual energy bill could cost £3,103. These estimated costs do not reflect any other business expenses. (finder, 2021). This breakdown of costs shows the potential energy bills of various businesses. The actual cost of your business could depend on several other factors however, these figures are a great starting point to help you create a budget.
Every office space contains multiple appliances that contribute to the energy bill. Here is a breakdown of each appliance and its potential contribution to a business’s energy consumption.

Air conditioning and heating: 29.15%
Lighting fixtures: 26.12%
Computers: 10.91%
Water cooler and vending machines: 6.05%
Kettles: 4.66%
Fridge: 3.33%
Printers: 3.02%
Hand dryers: 2.59%
Microwaves: 1.73%
TV screens and systems: 1.71%
Laptops: 1.27%
Dishwater: 1.04%
Coffee machine: 0.86%
Desk fans: 0.48%

This list gives a general breakdown of certain costs associated with running a business; however, certain variables should be considered when calculating your budget. The frequency of usage could increase or decrease the cost of certain appliances.

Another important factor is specialised equipment that could add to your business's energy cost. Some workspaces use heavy machinery and equipment, which could greatly increase your average business energy consumption.

Energy Intensity Of Businesses In The UK

Another great way of analysing business energy consumption is by looking at their energy intensity. Energy intensity refers to the amount of energy used to produce a certain level of activity or output.

Using low levels of energy to provide a service or produce a product leads to reduced energy intensity. Energy intensity is the best way to determine the energy efficiency of a business therefore if a business is using more energy than it needs, you can make changes for better efficiency.

Here are some important statistics highlighting the energy intensity of businesses in the UK.

According to national business surveys, the most energy intensive industries include:

Air transport
Water transport
Electricity, gas, air conditioning
Land and pipeline transport
Sewage

These sectors are responsible for using the most energy to meet their desired output (ONS, 2022).

In 2019, the three most energy intensive industries were the transport sectors. These include sea and coastal freight water transportation (38%), passenger air transportation (36%), and freight transport by road and removal services (31%) (ONS, 2022). With this statistic, we can see that transportation services are more intensive as they have a higher output than other businesses. Apart from electricity, these businesses also use fuel and other resources to provide services driving up their energy intensity and consumption.
In general, small and micro businesses with 0 to 9 employees tend to have a higher energy intensity of over 20% than large businesses. Larger organisations with more than 250 employees tend to have an energy intensity rating between 0% to 2% (ONS, 2022).

Business Energy Consumption In The UK

Now that you know about the general state of energy consumption, here is a look at the energy usage of the business sector. It is important to note that the size and operation of the business significantly impact how much energy it consumes.

Larger businesses with a higher output consume more energy, while smaller up-and-coming organisations have a lower energy demand. Here are some key business energy consumption statistics.

In 2022, the price rose several times in the UK, affecting the total energy consumption of a business. The Energy Price Guarantee increased prices by 27% in October and is set to increase the energy price further by 20% in April 202 (commonslibrary, 2023.). The rising energy price is an important factor to consider when evaluating a businesses’ energy consumption. A company could have an even level of consumption throughout the year but pay different prices due to the fluctuating energy prices.
The average energy usage for a micro business is between 5,000 kWh and 15,000 kWh from gas and electrical resources (bionic, 2023). This statistic highlights the general consumption of a micro business. A micro business is a company that operates on a small scale with few or fewer than 10 employees. These entities often don’t have high energy consumption and can operate well with renewable energy for a clean operation.
An average business consumes between 15,000 to 25,000 kWh of energy per year (bionic, 2023). As mentioned, this reflects the average consumption; however, the actual value varies from business to business, depending on the size.
The average energy consumption for a gas powered small business is between 15,000 kWh and 30,000 kWh. For electricity users, the average energy consumption lies between 15,000 kWh and 25,000 kWh. (bionic, 2023).
Gas powered medium-sized businesses consume an average of 30,000 kWh to 65,000 kWh of energy. Electricity powered businesses have an energy usage between 25,000 kWh and 50,000 kWh. (bionic, 2023).
Large businesses have the highest energy consumption, with gas powered companies using more than 65,000 kWh and electrical-run companies using more than 50,00 kWh. (bionic, 2023). Large or industrial-sized businesses often have high expenditures due to their energy consumption. Companies that rely on traditional energy sources could benefit from investing in renewable energy sources to cut unnecessary costs and carbon emissions.
Organisations that rely on electricity use slightly less energy. The low-end usage of an average UK business lies between 5,000 kWh and 25,000 kWh. High-end usage for electricity-run businesses is between 25,000 kWh to 50,000 kWh. Large businesses that use electricity consume more than 55,000 kWh. Suppliers will handle your consumption differently if your business consumes more than 100,000 kWh of power annually. (bionic, 2022).
The low-end usage for most gas-powered businesses is between 5,000 to 15,000 kWh. The high-end usage for such businesses is between 30,000 to 65,000 kWh. Large or industrial businesses often consume more than 65,000 kWh. (bionic, 2022). Since gas-powered energy is more expensive, it is better for businesses with high-end energy consumption to switch to renewable energy sources.
Different levels of energy consumption produce varying energy bills. Here’s how much energy consumption affects the gas energy bill in various types of businesses (bionic, 2023) :

Micro business: £2,233 per year
Small Business: £4,862 per year
Medium Business: £9,823 per year
Large Business: £11,333 per year

The type of energy meter and your geographical location may also affect a business’ energy consumption bill.

For businesses that use electricity as their energy source, here is an approximation of the energy bills according to business size (bionic, 2023) :

Micro Business: £6,767 per year
Small Business: £13,450 per year
Medium Business: £26,736 per year
Large Business: £37,793 per year

Business Energy Consumption Statistics By Sector/Industry

Not all business sectors consume an equal amount of energy in the UK. Here is a statistical breakdown of business energy consumption in the UK across various sectors.

The commercial and miscellaneous service sector will have the highest energy consumption in 2022. This sector consumed approximately 14,615 ktoe of energy. (sefeenergy, 2022).
Other top energy consuming sectors include:

Manufacturing and industrial services: 5,579 ktoe
Chemical manufacturing: 3,502 ktoe
Food, drink, and tobacco manufacturing: 2,967 ktoe
Mineral products manufacturing: 2,582 ktoe
Printing and publishing: 1,831 ktoe
Mechanical engineering: 1,513 ktoe
Agriculture: 1,505 ktoe
Iron, steel, and metal manufacturing: 1,497 ktoe

This data highlight that the UK's manufacturing sector has the highest energy consumption rates. (sefeenergy, 2021). Most of this energy comes from either gas or electrical sources.

Governments should implement renewable energy in these sectors to maintain a cleaner operation the reduced carbon emissions from the environment.

The Goods and Services business accounts for a major portion of total business energy consumption. (sefeenergy, 2021). Out of this organisation, the following consume the most energy:

Commercial and miscellaneous services: 67%
Public administration: 26%
Agriculture: 7%

Each of these sectors uses a combination of fuels to power their office and workspaces. (sefeenergy, 2021). These are the various fuels each business uses:

Commercial and miscellaneous services

Electricity: 43%
Natural gas: 34%
Other fuels: 23%

Public Administration

Electricity: 27%
Natural gas: 57%
Other fuels: 16%

Agriculture

Electricity: 24%
Natural gas: 6%
Other fuels: 70%

The manufacturing and industrial sector was the next biggest area for business energy consumption in the UK, taking up 16% of the total energy usage. (sefeenergy, 2021). Here is the fuel breakdown for this sector:

Electricity: 35%
Natural gas: 39%
Other fuels: 26%

How To Use Green Power For Business Energy Consumption?

With rising awareness about climate change, many businesses are adopting green initiatives to use clean and renewable power. One of the best ways to make your business green is by investing in renewable energy sources.

Solar power is quickly emerging as one of the most popular ways to power businesses. Here are some important statistics that highlight the need for renewable energy for businesses.

While there are multiple renewable energy sources, solar and wind take the lead in this category. Between 2006 and 2030, the demand for solar energy is expected to grow 30 times more. On the other hand, the demand for wind power is projected to be 4 times higher than the demand in 2006 (mckinsey, 2021).
Commercial-grade solar panels reached a capacity of approximately 350 MW, while ground-mounted solar panels amounted to almost 700 MW of solar energy (solarenergyuk, 2022). With this statistic, we can see that there was major growth in solar panel installations. This makes solar panels a highly accessible renewable energy source that works well in multiple buildings and locations. Consumers can add these panels to their homes or businesses to enjoy their benefits.
In the UK, 2020 marked a significant year for renewable energy. This year, the country’s electricity predominantly comes from renewable energy sources, with 43% of the power coming from a combination of solar, wind, bioenergy, and hydroelectric sources (nationalgrid, 2021). With this statistic, we can see that the UK is making great progress on its goal towards a net zero future. 43% of the power coming from renewable signifies a promising path towards a 100% zero carbon future.

There are some important statistics that highlight energy consumption and the intensity of the business sector. With rising energy prices and environmental awareness, it is best to invest in renewables for a cleaner, greener business operation.