Looking for the latest in business energy? You are in the right place!

A recent survey found that more than 50% of business owners are concerned about the impact of energy prices on their companies. This, paired with an increase in electricity prices of more than 171% compared to costs from 10 years ago, suggests that exploring the current business energy market is more critical than ever.

From electricity and gas to renewable energy and heating, we have compiled every business energy statistic you need to know about the current energy market. We also have a range of expert tips on reducing business energy usage.

10 things you need to know about the current business energy market

1. The most recent selling value figures for gas (£46.8 billion) and electricity (£59.8 billion) are the highest in over ten years.

2. The production industry is spending more on energy than any other, exceeding £499 billion in 2022.

3. 22% of small businesses reported that energy costs are affecting their company’s growth-related activities.

4. Almost half of UK businesses use one supplier for both gas and electricity.

5. 68% of businesses are on a fixed-rate contract for their business energy.

6. More than a quarter of businesses have switched energy suppliers or contracts in the last year (this was more common for small (41%) and medium-sized (45%) businesses).

7. Three in ten businesses reported using an energy broker when choosing their current business energy contract.

8. Nearly half of businesses find switching energy suppliers a ‘very easy’ process.

9. Businesses would save an average of 2.7% by switching suppliers.

10. UK businesses are using 3% less energy and are paying 6% less per quarter.

How much energy do UK businesses use?

Business insights from 2024 show that companies are consuming 15% less energy than in 2023, with average usage across businesses totalling around 23 MWh per year – enough to toast more than 2 million slices of bread!

It’s no secret that energy prices have shot up in recent years, affecting business energy consumption. Nearly 80% of businesses are trying to reduce electricity or gas bills by reducing consumption.

The military and emergency services use their fair share of energy. Still, they are more efficient than most by optimising portable energy sources and prioritising energy use for critical operations.

The service encompassing community, arts, and leisure saw a more than 6% reduction in energy use between 2022 and 2023, with figures dropping from 3,321 ktoe to 3,099 ktoe, respectively. The most recent business statistics make this service the third-lowest energy consumer in the UK.

Average energy consumption by business size

1. Small businesses have the lowest electricity unit price in 2025

Many factors are involved in calculating the unit price of business electricity, from the cost of generation to environmental impacts and market demand. When comparing the unit price of businesses, small-sized companies have the cheapest average tariff (25.6p per kWh), followed closely by medium businesses (26.1p per kWh).

If you are a micro-business using up to 15,000 kWh of electricity per year, your unit price will be the most expensive of any size business, at 26.6p per kWh.

2. Daily standing charges in 2025 are higher for small businesses than any other

Whether you are a big or small energy consumer, most businesses must pay a daily standing charge for electricity. This cost covers all the behind-the-scenes work that goes on to supply energy to you.

On average, micro-businesses use much less energy than larger businesses, meaning the cost of keeping electricity available is spread over a smaller energy consumption. Because of this, micro businesses have the lowest average daily standing charge (64.5p).

Having said this, small businesses have a higher daily standing charge (83p) than medium (65.5p) and large (68.5p) companies on average as of February 2025. This could be the case for several reasons, such as having more expensive metering and infrastructure, whereas large-scale companies have more optimised facilities.  

3. Small businesses should expect to pay around £5,300 in 2025 for electricity

Fixed-term contracts are a popular choice for businesses, offering a stable price and opportunities for planning and budgeting. Despite differences in unit prices and standing charges across business sizes, the annual cost of a one-year fixed contract is relative to yearly usage.

1. Small businesses consume the least electricity in buildings

Unsurprisingly, buildings occupied by ‘very large’ businesses have the most considerable average electricity consumption, but business energy statistics show that small businesses (8 TWh) consume less than micro businesses (10 TWh).

While consumption varies massively depending on the service offered, the surprising difference in usage could result from energy efficiency and better energy-saving management.

2. Micro businesses consume more electricity than large businesses

Interestingly, 2022 data suggests that micro businesses consume more electricity than large businesses. Micro businesses likely operate multiple pieces of equipment at more regular intervals, which could account for their high energy consumption compared to large businesses, which are more optimised in terms of electricity usage.

Which industries use the least electricity?

1. Commercial electricity consumption in Great Britain is highest in London

In 2023, Great Britain accumulated more than 152,000 GWh of electricity across non-domestic categories. As the UK’s capital, it may be unsurprising that London is home to the most businesses of any region, and this area is also the largest consumer of electricity in the country, using almost 23,000 GWh in 2023.

2. North East England’s commercial electricity consumption makes up less than 5% of all usage in England

According to the most recent figures, County Durham has the highest commercial electricity consumption of all local authorities in the North East, totalling 1,039.7 GWh.

1. A fifth of all businesses attribute 10% of their total costs to their gas bill

Gas can produce more energy at a lower cost than electricity, which makes it a major contributor to business consumption rates. Despite having lower expenses than electricity, 20% of businesses say that more than 10% of their total costs are spent on their gas bills.

2. Building-related business gas consumption is the lowest it’s been since 2012

Between 2012 and 2022, peak gas consumption in non-domestic buildings was in 2020, when usage reached 168 TWh. On the other hand, the most recent figures on non-domestic building gas consumption are the lowest since 2012, totalling 156 TWh.

Annual business gas prices by business size

To understand more about what your gas bill could look like in 2025, we have broken costs down by business size based on a one-year fixed-term contract:

Similar to electricity costs, the annual prices for business gas are relative to your business’s size. Micro businesses, with a consumption of 5,000 – 15,000 kWh per year, could expect to pay just over £900 for a one-year fixed-term contract for gas, compared to large-scale operations (using more than 65,000 kWh) whose annual bill is an average of £52,200.

Despite having a higher annual cost for gas than small businesses, medium and large businesses have a lower unit price per kWh because of economies of scale. Companies with a higher production level can benefit from reduced costs because production is spread over more units.

Renewable energy statistics

The UK aims to be net zero by 2050, which seems a distant target, but the country is marching towards this goal. The UK’s renewable electricity generation share in 2023 was 46.4%, a new record. But what does this mean in terms of business energy statistics?

We know how much renewable energy can save the environment, but as businesses we also need to think about money – so how much can it save us?

Average saved by switching to renewable sources

It has already been revealed how beneficial renewable energy sources are and why your business should invest, but how much does it cost to switch to solar energy?

1. Small businesses

If your business operates in a small building, such as a hair salon or small coffee shop, a 10kW solar system could set you back between £13,000 – £15,000. However, if your small business requires lots of energy-using facilities, like fridges, freezers, and lighting, then a 50kW system may be more suitable. A bigger system may bump your initial costs to £33,000 – £60,000, but these generally have a shorter break-even time than smaller systems, depending on usage and sunlight.

2. Medium-sized businesses

As with small businesses, medium-scale operations can vary in cost depending on a company’s needs. For offices, a medium-sized business could expect to pay £16,000 – £30,000 for a 20kW solar system.

For medium-sized businesses with more significant energy consumption, like gyms and fast food restaurants, this purchase could be between £39,000 – £75,000 in price range, providing you with a solar system that can produce up to 60kW per year.

3. Large businesses

Unsurprisingly, large solar systems are the priciest. If you run a supermarket or small hotel, 80kW is your best option, costing around £50,000 – £100,000. But say you run an even larger-scale business, how much will that set you back? For a 100kW system, expect to invest between £60,000 – £120,000. This price may sound high, but in the right circumstances, large businesses could break even on solar purchases in as little as two years.

1. The commercial boiler market is predicted to be worth £4.16 billion by 2032

As of 2022, the commercial boiler market was worth £3.13 billion, and this shows no signs of slowing down. With a predicted average annual revenue growth rate of 4.9%, the business heating market is expected to be worth more than £4 billion by 2032.

This increase is due, among other things, to more businesses switching to more energy-efficient systems and the uptake of renewable heat sources.

2. Heating is responsible for over a third of UK carbon emissions

As mentioned above, the UK aims to be net zero by 2050, and heating is a big focus. Recent figures indicate that heating is responsible for more than a third of the country’s carbon emissions across homes and businesses.

More specifically, the heating of non-domestic buildings in the UK accounts for 12% of greenhouse gas emissions.

3. 77% of businesses turned heating to a lower temperature in order to reduce their gas/ electricity use

Businesses continue to struggle with rising energy costs, which is impacting usage. In 2023, over three-quarters of all companies surveyed said they had been sacrificing a warm temperature to reduce their gas and electricity bills.

4. Size matters (when it comes to boilers)

From operation costs to comfort and efficiency, there are many reasons why finding the right boiler size for your business is essential. The average boiler size for a small commercial property is between 15-25 kW, covering property heating and hot water production. Boiler sizes can increase to 25-50kW for a medium business; if you are a large business, consider a 50+kW system.

However, it is worth noting that all businesses are different, and these are just rough guides.

5. A heat pump can reduce carbon emissions by up to 70% compared with a gas boiler

The UK government is urging homes and businesses to convert to heat pumps to reduce carbon emissions from heating. Heat pumps can reduce emissions by over two-thirds compared to traditional gas boilers by transferring heat from the surrounding environment instead of generating heat directly.

1. Switch to renewable energy sources

As previously revealed, renewable energy sources are an excellent business investment. From solar panels to wind turbines, green business energy can reduce your bills by thousands of pounds per year, depending on your business size. 

2. Optimise heat

While some businesses naturally have higher heating bills due to the nature of their service, there are still ways to reduce energy usage. Regularly checking your heating system’s performance can help ensure it is as efficient as possible. Also, spending extra cash to ensure that buildings are properly insulated and windows are sealed can help keep heat in, reducing energy loss. 

3. Convert to energy-efficient equipment

Advances in technology have been used to provide more efficient versions of traditional energy sources. From small changes like replacing incandescent bulbs with LED lighting to replacing entire appliances like fridges and freezers, upgrading your business energy equipment’s efficiency can help save money on your electric bills.  

4. Teach your employees about energy-saving habits

No matter the size of your business, your employees can make many small behavioural changes to save on energy use and help make your business more eco-friendly.

Setting company-wide energy-saving goals can encourage employees to reduce energy habits, whether turning lights and appliances off when not in use or unplugging electronics when charged. 

5. Control energy use

There are many ways that businesses can control energy consumption. Smart meters are a simple way to monitor energy use and understand daily peak usage times. From this, companies can alter their energy consumption and find ways to increase energy efficiency.