How Much Electricity Do Businesses Use?


Although most businesses are estimated to use between 15,000 to 25,000 kilowatt-hours of energy per annum, the actual use of electricity is different from business to business. Some businesses that seem identical on the surface might have different demands of electricity based on their location, the number of employees, and work hours. Let’s take a look at some of these things in detail.

Physical factors that affect usage amount

There are actually several factors that can affect the amount of electricity that a business consumes to remain functioning. These things can be from as small as the number of bulbs used for lighting the offices, to the number of computers that are operational, the work hours and the number of shifts that the employees work in, and even the brand of machinery and equipment that is used.

The size of the business also matters a lot when it comes to estimating the amount of electricity consumed in a given time period. Plans about expansions can also have an impact. The political state of the country the business is based in may also force the business to use less electricity.

Costs that may be associated with electricity usage

There are several informational things that can be found on an electricity bill for a business that you wouldn’t find on a regular household electricity bill. These include things like VAT (value-added tax), Unit Cost, and Standing Charges. All these things are usually based on where the business is located.

So if, for example, the unit cost and standing charges of a certain place are too high, a business will have to take into account how much electricity they can use to remain sustainable, in other words, not to break the bank over electricity bills. So these things are very important to take into account when setting up a business and deciding a base location for it.

Average figures based on business size

As mentioned above, the size of a business is something that can be classified when we compare business electricity usage to other businesses. A micro business is expected to have a low-end usage of 5,000 kWh to a high-end usage of 15,000 kWh. Small businesses which are larger than micro-businesses are seen to use around 15,000 kWh on the low-end and 25,000 kWh on the high-end.

A medium-sized business may use 30,000 kWh on the low-end and 50,000 kWh on the high end. If a business uses more than 100,000 kWh, it is classified, in the UK, as a large business, and that business gets its supply differently.

How can energy usage be lowered

It is important to manage and improve your businesses’ efficiency when it comes to energy usage, specifically in terms of electricity. It can have a major impact on your annual turnover as you can save a lot of money on the electricity bills alone. With the world starting to take into consideration the carbon footprint that businesses have on the environment, it might be a good time to start doing things like carrying out energy audits, using energy-efficient lighting, using energy-efficient computers, and, if possible, generating electricity yourself using renewable resources.


Although the argument still remains that based on the type of business that you are running, the steps you can take to lower your carbon footprint or energy usage, in general, may be limited. These small steps ensure a good future for not only your business & planet as well.


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