In this article, Canstar Blue shares the average energy usage and costs for Aussie businesses, as well as some tips and tricks to help business owners reduce their energy bills.
For many Australian businesses, power is one of the biggest and most expensive overheads. As such, it’s important that business owners understand what their electricity usage looks like in order to find the best electricity deal for them. In this guide, we reveal the average costs involved with business energy to help companies find ways to lower their power bills.
On this page:
- How much electricity does a business use?
- What uses the most electricity in a business?
- What is the average business electricity bill?
- How does business electricity use change throughout the seasons?
- Reducing how much electricity your business uses
- How to find a good electricity deal for your business
How much electricity does a business use?
While it is difficult to determine an exact amount, according to Energy Consumers Australia’s SME Retail Tariff Tracker, a small business may use between 13,000 and 32,000 kilowatt hours (kWh) of electricity per year, on average, depending on its location, distribution network and the type of tariff. It’s important to note though that electricity usage will fluctuate from business to business depending on a number of factors such as size, hours of operations, energy efficiency and overall power usage needs.
What uses the most electricity in a business?
Depending on the type of business you run, there will be different tools and equipment that used more energy than others. But for a typical office space, you can expect that these items will contribute the most to business energy usage:
- Air conditioning
- Heating
- Lighting
- Computers, laptops and printers
- Internet routers and modems
- Refrigerators and dishwashers
Which industry uses the most electricity?
In Australia, the manufacturing industry typically consumes the most electricity, using around 52,461 giga-watt hours (GWh), according to the Australian Bureau of Statistics (ABS). The mining industry is the second highest energy consumer, using 23,424 GWh, followed by the Electricity, Gas and Water sector with 6,543 GWh. The construction industry is claimed to use the least amount of electricity in Australia, only totalling to 2,138 GWh a year.
What is the average business electricity bill?
Recent Canstar Blue data revealed that the average quarterly electricity spend for Australian small businesses is about $995. Please note, average pricing in your area may differ significantly.
| State or Territory | Average Quarterly Electricity Spend |
|---|---|
| New South Wales | $1,031 |
| Victoria | $1,184 |
| Queensland | $820 |
| South Australia | $1,034 |
| Western Australia | $878 |
| Tasmania | $1,041 |
| Australian Capital Territory | $810 |
| Northern Territory | $450 |
Source: Canstar Blue research, May 2024.
How does business electricity use change throughout the seasons?
One quarter (25%) of the Australian businesses surveyed by Canstar Blue in Mya 2024 noted that they used more electricity during the summer months. Queenslanders reported the highest numbers, with 34% of businesses consuming more electricity throughout summer. Conversely, just under one quarter of participants (23%) revealed that their businesses used more electricity during winter. Tasmanian businesses reported the highest rates, with 43% noting that their businesses increased electricity consumption throughout winter.
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Reducing how much electricity your business uses
With 28% of businesses reporting that they made a conscious effort in the last year to reduce their power usage, it’s clear owners are interested in some handy reduction tips. So, how can a business reduce its electricity use?
- Understand what uses electricity in the business: Determining what equipment or machinery in the business uses electricity will help to gain a rough idea of what your business’ energy usage habits currently look like.
- Monitoring tools and software: Electricity usage monitors, smart meters, digital meters or any other kind of energy monitoring software are great tools to use when keeping track of energy usage. They can be used to set up usage alerts, identify areas of high energy usage and track solar output for solar customers.
- Join a demand response initiative: For larger businesses, it may be worth looking into whether your electricity provider runs a demand response initiative that you can take part in. Through this initiative, business customers essentially reduce their electricity usage in times of high demand to help ease strain on the grid. Not only would this help businesses reduce energy usage, but they will also be financially rewarded by their provider for doing so.
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How to find a good electricity deal for your business
With electricity being a major expense, it’s vital that business owners know what to look out for when picking an electricity deal. According to Canstar Blue’s latest survey, only 25% of Aussie business owners believed they were on a good energy deal. This means that three quarters of business owners in the country are likely looking for a better deal.
So, how can Aussie businesses ensure they are on a good electricity deal?
- Compare business electricity plans: Do your research and compare the usage and supply rates on different plans against each other to ensure you are paying the best price.
- Look for incentives: While sign-up credits and incentives might not be for everyone, there may be something of benefit for your business that could help to lower costs. Be mindful though of checking whether any discounts offered are guaranteed or conditional, as some may require a little legwork on your behalf first.
- Determine whether fixed or variable rates would be better: Some retailers may offer the option of fixed or variable rates on its business electricity deals. While fixed rates offer the security of rates that are locked in for 12 or 24 months, variable rates allow access to cheaper rates should prices change during the duration of your contract.
- Look into solar panels or batteries: Canstar Blue found that around 10% of Aussie businesses said they had installed solar to reduce help their energy costs. With a secondary energy source, like solar, businesses can become less reliant on the grid and potentially offset higher energy costs with solar feed-in tariff payments.
- Switch energy providers: If the energy deal your business is currently on isn’t cutting it, and you’re unable to negotiate a better one, it may be worth considering a switch. Only 12% of Aussie business owners revealed that they had switched providers in the last two years. If you’re looking for a new provider, check out some of Canstar Blue’s best-rated Small Business Electricity Providers.
Compare Business Electricity Providers
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