Business Energy Comparison

What Uses the Most Electricity in Commercial Buildings?

Where is your business using the most electricity?

For many UK businesses, electricity is one of the largest ongoing operating costs. But understanding exactly what is consuming the most electricity can be difficult particularly in larger commercial buildings or businesses operating across multiple sites.

Offices, schools, hotels, retail premises, care homes, warehouses and manufacturing facilities all have very different energy profiles. However, there are several areas that consistently account for a significant proportion of commercial electricity consumption.

By identifying where electricity is being used, businesses can target savings without compromising productivity, customer service or working conditions.

What Uses the Most Electricity in a Commercial Building?

The biggest electricity users will vary depending on the type of business, but common sources include:

  • Heating, ventilation and air conditioning (HVAC)

  • Lighting

  • Computers and IT equipment

  • Refrigeration

  • Commercial kitchen equipment

  • Manufacturing machinery

  • Water heating

  • Pumps and fans

  • Servers and data equipment

  • Electric vehicle charging

Let’s look at each in more detail.

1. Heating, Ventilation and Air Conditioning

For many commercial buildings, HVAC systems can be one of the largest energy consumers.

Heating and cooling demand can vary considerably depending on:

  • Building size

  • Insulation

  • Number of occupants

  • Outside temperature

  • Opening hours

  • Type and age of HVAC equipment

Heating and air conditioning can also consume electricity unnecessarily when systems operate outside occupied hours.

How can businesses reduce HVAC costs?

Simple measures include:

  • Use timers and programmable controls

  • Match heating and cooling to occupancy

  • Maintain HVAC equipment regularly

  • Avoid heating and cooling rooms unnecessarily

  • Check thermostats and control settings

  • Keep doors and windows appropriately closed when HVAC is operating

The objective isn’t to make employees or customers uncomfortable it’s to ensure energy is being used when and where it is actually needed.

2. Lighting

Lighting is another significant electricity user, particularly in warehouses, retail premises, schools and large offices.

Older lighting systems can be considerably less efficient than modern LED alternatives.

Businesses can reduce lighting consumption by:

  • Replacing inefficient lighting with LEDs

  • Installing occupancy sensors

  • Using daylight controls

  • Switching off lighting in unoccupied areas

  • Reviewing lighting schedules

LED lighting can also reduce maintenance requirements because lamps generally have a longer operating life.

3. Computers and IT Equipment

Modern businesses rely heavily on technology, and computers, monitors, printers, networking equipment and other devices all consume electricity.

While an individual computer may not use a huge amount of electricity, hundreds of devices operating throughout the working day can add up.

Consider:

  • Computers

  • Monitors

  • Printers

  • Photocopiers

  • Network equipment

  • Chargers

  • Servers

  • Televisions and displays

Simple shutdown policies and automatic power-saving settings can reduce unnecessary consumption without affecting productivity.

4. Refrigeration

For supermarkets, restaurants, hotels, food manufacturers and other businesses handling chilled or frozen products, refrigeration can be a major electricity cost.

Refrigeration equipment often operates 24 hours a day, meaning even relatively small efficiency improvements can produce meaningful savings.

Businesses should regularly check:

  • Door seals

  • Temperature settings

  • Condenser cleanliness

  • Equipment condition

  • Door-opening frequency

  • Refrigeration schedules

Poorly maintained refrigeration equipment may have to work harder to maintain the required temperature.

5. Commercial Kitchen Equipment

Restaurants, hotels, schools, care homes and catering businesses can use substantial amounts of electricity in commercial kitchens.

Equipment may include:

  • Ovens

  • Grills

  • Dishwashers

  • Fryers

  • Extractor fans

  • Refrigerators

  • Freezers

  • Microwaves

  • Food preparation equipment

One of the easiest ways to reduce waste is to make sure equipment is only switched on when required and isn’t left operating unnecessarily.

6. Manufacturing Machinery

For manufacturing businesses, machinery can be one of the biggest sources of electricity consumption.

Depending on the operation, this could include:

  • Motors

  • Compressors

  • Pumps

  • Conveyors

  • Industrial heating

  • CNC machinery

  • Welding equipment

  • Production lines

Energy efficiency in manufacturing requires a more detailed approach because simply reducing operating hours isn’t always possible.

Instead, businesses can look at equipment efficiency, maintenance, production schedules and energy monitoring to identify opportunities.

7. Water Heating

Electric water heating can contribute significantly to electricity consumption in some commercial premises.

This is particularly relevant to:

  • Hotels

  • Care homes

  • Leisure facilities

  • Restaurants

  • Schools

  • Healthcare premises

Reducing unnecessary hot-water demand, improving insulation and ensuring heating controls are correctly programmed can all help reduce consumption.

8. Pumps, Fans and Motors

Pumps, fans and motors can operate continuously in some commercial and industrial environments.

Examples include:

  • Ventilation systems

  • Water pumps

  • Heating circulation pumps

  • Extraction systems

  • Industrial fans

Because these systems can run for long periods, relatively small improvements in efficiency can result in substantial annual savings.

9. Servers and Data Equipment

Businesses with on-site servers or significant IT infrastructure can have a constant electricity demand.

Servers also generate heat, which can increase cooling requirements.

Businesses should consider:

  • Server efficiency

  • Cooling requirements

  • Equipment utilisation

  • Automatic power management

  • Whether older equipment needs replacing

For larger organisations, specialist energy monitoring can help identify the true cost of IT infrastructure.

10. Electric Vehicle Charging

As more businesses introduce electric vehicles, EV charging can become a noticeable addition to electricity consumption.

Businesses operating fleets may have multiple vehicles charging throughout the day or overnight.

Managing when and how vehicles charge can help businesses understand and control the additional electricity demand.

Which Businesses Use the Most Electricity?

Electricity consumption varies dramatically between industries.

Offices

Typical major electricity users include:

  • Lighting

  • HVAC

  • Computers and IT

  • Kitchen equipment

  • Servers

Retail

Retail businesses often have significant consumption from:

  • Lighting

  • Heating and cooling

  • Refrigeration

  • IT and payment systems

  • Signage

Hospitality

Hotels, restaurants and pubs can have high electricity consumption from:

  • Kitchens

  • Refrigeration

  • HVAC

  • Lighting

  • Laundry equipment

  • Hot water

Manufacturing

Manufacturing businesses may have particularly high electricity demand from:

  • Machinery

  • Motors

  • Compressors

  • Pumps

  • Industrial heating

  • Ventilation

Schools

Schools typically use electricity for:

  • Lighting

  • Heating

  • IT equipment

  • Catering

  • Ventilation

Understanding the individual site’s consumption profile is essential before deciding where savings can be made.

Don’t Guess Where Your Energy Is Going

One of the biggest mistakes businesses make is assuming they know what uses the most electricity.

Without good energy data, it can be difficult to identify where the biggest opportunities are.

Energy monitoring can help businesses:

  • Identify unusual consumption

  • Compare sites

  • Spot equipment operating outside normal hours

  • Track seasonal changes

  • Identify potential faults

  • Measure the impact of energy-saving projects

For multi-site businesses, comparing energy consumption across locations can be particularly useful.

If two similar sites have significantly different electricity consumption, it may indicate an opportunity to investigate.

How Can Businesses Reduce Electricity Consumption?

Once the major sources of consumption have been identified, businesses can focus on practical improvements.

These could include:

  • Upgrading inefficient equipment

  • Improving lighting controls

  • Optimising HVAC schedules

  • Eliminating out-of-hours consumption

  • Maintaining equipment properly

  • Monitoring energy usage

  • Reviewing building controls

  • Training staff to reduce unnecessary energy waste

  • Reviewing energy procurement and contracts

Importantly, energy efficiency doesn’t mean simply using less electricity.

It’s about using electricity more efficiently.

Don’t Forget the Cost of the Electricity You Buy

Reducing consumption is only one side of managing business energy costs.

Businesses should also regularly review:

  • Electricity unit rates

  • Standing charges

  • Contract terms

  • Renewal dates

  • Meter information

  • Billing accuracy

  • Procurement strategy

A business can reduce its electricity consumption and still pay more than necessary if it is on an unsuitable contract.

For larger organisations and multi-site businesses, combining energy efficiency with effective procurement can provide a much greater opportunity to reduce overall costs.

Final Thoughts

There is no single answer to the question “What uses the most electricity in a commercial building?”

It depends on the type of business, the building, operating hours, equipment and energy requirements.

However, HVAC, lighting, IT equipment, refrigeration, commercial kitchens, machinery and other electrical systems are often among the biggest areas to investigate.

The first step is understanding where your electricity is going. Once you have that information, you can focus investment and efficiency measures where they are most likely to deliver results.

Need Help Managing Your Business Energy Costs?

At Utilinet Ltd, we help UK businesses understand and manage their gas and electricity costs through energy procurement, contract management and ongoing utility support.

Whether you operate a single commercial property or a multi-site portfolio, we can help you identify opportunities to reduce costs and improve control over your energy spend.

Contact our Business Energy Team to discuss your energy requirements, email dawn@utilinet-yorkshire.co.uk or call 07810717304 for a no obligation chat.

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