Last updated: 23/07/2020 | Estimated Reading Time: 3 minutes
The benefits of smart energy for business
The energy regulator, Ofgem, continues to ramp up its efforts to get energy suppliers to roll out nationwide smart meters, both for commercial and domestic use. Smart energy largely relies on the use of smart meters, which essentially replace the need for gas and electricity meters and take automatic readings that are sent to the energy supplier. The data collected from smart meters can not only help businesses track their energy consumption, but business owners don’t have to worry about being overcharged due to old or estimated readings.
Here we explain how smart energy technology can benefit your business.
In This Guide:
- How will a smart meter affect my business’s energy consumption?
- How will smart energy help my business financially?
- Will switching to smart energy help the environment?
How will a smart meter affect my business’s energy consumption?
One of the best benefits from using smart energy is that you will become more aware of how much energy you consume and when it is consumed. This means you can learn more easily what areas of consumption you should or are able to cut back on. Keep in mind that nothing will change automatically, as smart meters are simply better at collecting and delivering data and will not cut your energy usage itself.
However, businesses that use and keep tabs on their smart meter have the ability to save upwards of £190 on their energy bills by 2020. The savings are set to rise to £200 every year by 2030. Market experts believe that if you are a more diligent business owner or manager, your savings will greatly exceed these targets.
The Carbon Trust estimates that the average business actually wastes roughly 20% of the energy it purchases. With a smart meter, this waste can be dramatically alleviated.
You might have heard concerns that the data smart meters collect could be forfeited and used for marketing purposes. However, you can rest assured that the government has put in regulations concerning how this data is used so that information about your business is protected. You can even take extra steps to limit how much information is given to your energy supplier.
How will smart energy help my business financially?
Alongside the savings noted above, using a smart meter ensures that you always receive accurate energy bills. Without a smart meter, you might end up overpaying or underpaying, both of which can be financially detrimental. While underpaying might not sound like much of a problem, it can leave you with an unexpectedly high bill later on that you weren’t prepared for. This can be a big problem if you have a strict budget or financial plan to adhere to.
If you are concerned that you are still paying too much for your energy, consider switching to a cheap business energy deal. It’s a good idea to compare business energy deals online or by getting quotes directly from suppliers in order to find one that is better suited to your energy needs.
Will switching to smart energy help the environment?
Research and studies have found that when customers have the technology to track their energy consumption, they are more likely to turn off or unplug devices they aren’t using. This can lead to a noticeable reduction in electricity consumption. Over time, domestic households and businesses that track energy usage also begin to use their thermostats and electricity more strategically, which cuts down on wasted energy.
Many utility services, such as meter readings and connections or disconnections, will no longer be required from energy suppliers, which means a reduction in service vehicles. While change like this is incremental, it will make a big impact going forward.