Some strategies to reduce energy consumption are obvious—turn off the lights, lower the thermostat, buy efficient appliances. But those only scratch the surface. The real shift happens when businesses rethink how energy is managed across operations, not just what gets turned off.
From small businesses trying to cut costs, to large enterprises juggling sustainability targets and skyrocketing power bills, the question isn’t if energy savings are possible—it’s how much you’re leaving on the table by not starting sooner.
This guide walks through smart, psychology-backed and scalable strategies to reduce energy consumption—without sacrificing productivity or comfort.
To reduce energy consumption:
Automate systems where possible (HVAC, lighting, equipment)
Monitor and benchmark energy data
Involve employees and create behavioural nudges
Maintain and upgrade inefficient infrastructure
Choose renewable contracts or on-site solar
Design with efficiency in mind from the start
Let’s break these down.
You can’t fix what you don’t measure. Most Australian businesses don’t realise that up to 30% of their energy use is wasted—from equipment left running to poor insulation. The first step is knowing where the bleed happens.
HVAC inefficiencies: Heating and cooling can account for 40–60% of total building energy use.
Lighting: Outdated or poorly controlled lighting systems add up fast.
Idle machinery and appliances: Even in standby mode, devices can consume significant power.
Building envelope flaws: Poor insulation, drafty windows, and old seals leak energy.
Just one data centre in Melbourne was found to be running cooling systems at full tilt—even during winter—simply because no one had reconfigured default settings. Fixing it saved over $45,000 annually.
Behavioural science tip: Default bias means people stick to pre-set options. That’s why outdated “always-on” settings are rarely questioned unless systems are audited.
Energy automation isn’t just about tech—it’s about removing human error from the equation. When HVAC, lighting, and equipment use are scheduled or occupancy-driven, energy use adapts to real needs—not habits or guesses.
Smart automation tools include:
Occupancy sensors for lighting and HVAC
Time-of-use controls for machinery and processes
Building management systems (BMS) with learning capabilities
Remote energy dashboards for real-time insights
Businesses that automate energy savings for large businesses often see 10–25% reductions in consumption, even before behavioural changes kick in.
This isn’t just a tech trend—it’s consistency as a competitive edge. Automated systems align with Cialdini’s principle of Commitment & Consistency by locking in efficient behaviours through system defaults.
A lot more than you might think.
You can install the most sophisticated system in the world, but if Karen from finance keeps overriding the auto-shutdown or someone props open the cool room door, you're still bleeding watts.
Visual reminders (e.g., red/green lights on equipment)
Energy dashboards in shared spaces
Team challenges (like “energy-free Friday”)
Gamified reductions with small rewards
The principle of Social Proof kicks in here—when staff see that others are making the effort, they’re more likely to follow. Better still, tie changes to shared values: “We’re reducing our footprint as a team.”
Real example: A Sydney coworking space saved $1,200/month just by assigning “energy monitors” in each team and showing usage graphs in the kitchen.
Both. But start with low-hanging fruit.
Retrofit LED lighting
Seal leaks and gaps
Adjust HVAC zones and recalibrate thermostats
Service motors, chillers, and compressors
Smart thermostats and variable speed drives (VSDs)
Energy-efficient windows and insulation
Solar panels or battery storage
High-efficiency HVAC systems
If you’re building or renovating, design energy into the blueprint—positioning windows for daylight, using thermal mass, and zoning spaces can halve future costs.
As Energy.gov.au notes, even small upgrades can deliver returns in under two years.
Without metrics, you’re just guessing.
kWh usage per area or team
Energy use per unit of output (for manufacturers)
Peak demand charges and when they occur
Energy intensity vs benchmarks in your industry
Many companies are surprised to learn their “night load” (energy use after hours) is 20–40% of daytime use—mostly due to forgotten servers, lighting, or vending machines.
Use platforms like NABERS or Green Star to benchmark your performance against similar businesses.
Framing bias tip: Instead of saying “We’re using 250,000 kWh/month,” reframe as “We’re using 50% more energy than peers our size.” Context triggers change.
Absolutely. In fact, if your business isn’t linking energy to environmental strategy and brand positioning, you’re missing a major competitive lever.
Consumers increasingly judge brands by their actions, not their ads. Energy use—and waste—is visible in carbon reporting, employee engagement, and investor decks.
Companies who lead in sustainability aren’t just “doing good”—they’re building resilience and brand equity.
Authority principle in action: Referencing clear ESG commitments or third-party certifications (like Climate Active) adds credibility to your energy strategy.
Some of the highest ROI actions aren’t the flashiest.
Align maintenance with energy audits—so systems stay efficient.
Use load shifting—run heavy equipment at off-peak times.
Lease vs own—involve landlords in shared savings models.
Cloud-based energy reporting—lets teams see and respond quickly.
And here’s the kicker: energy use often reflects organisational culture. Businesses that proactively manage consumption tend to also run tighter operations across the board.
What’s the easiest way to start saving energy?
Install smart timers and sensors on lighting and HVAC. It’s a quick win and pays off fast.
How much can I save with simple changes?
Up to 20% reduction is common from basic behavioural and scheduling changes alone.
Is solar worth it for businesses?
Yes, especially with current Australian incentives and battery cost drops—but always do a payback analysis first.
Reducing energy use isn’t a one-off project—it’s a shift in how a business thinks and operates. From automated systems to cultural cues, the smartest strategies aren’t just efficient—they’re invisible. They work in the background, saving you money and carbon while you focus on growth.
For businesses ready to go deeper, there's growing momentum to automate energy savings for large businesses - especially those managing multiple sites or high-load processes.
Because at the end of the day, saving energy isn’t just smart. It’s the new normal.