How to Reduce Energy Bills in a Factory: Cost-Cutting Tips for UK Manufacturers
If you run one of the UK’s manufacturing businesses, high energy bills can put pressure on margins quickly. The challenge is reducing energy costs without slowing production, creating unnecessary downtime or compromising productivity.
This guide covers ten practical ways to cut energy waste with limited disruption, alongside how Business Utility Hub (BUH) can help review the price you pay for gas and electricity.
Where are factories wasting energy?
Manufacturing facilities can use energy across production equipment, compressed air systems, heating, cooling, lighting and ventilation. Energy waste can come from idle machinery, air leaks, poorly maintained equipment, heat loss and systems operating when demand is low.
A clearer view of where energy is being used can support better decisions around manufacturing energy efficiency and controlling energy costs.
1. Carry out an energy audit before making changes
Energy audits can show where energy use is concentrated and help identify inefficiencies before money is committed to upgrades.
For larger organisations that qualify, the UK Government's Energy Savings Opportunity Scheme (ESOS) requires periodic assessments of energy used by buildings, industrial processes and transport. Even where ESOS does not apply, an audit can provide useful consumption data and highlight areas with the strongest potential for improvement.
Manufacturers can then weigh possible energy efficiency measures against likely savings, implementation costs and any effect on production.
2. Reduce unnecessary energy use from production equipment
Production equipment can consume more energy than necessary when it is left running between jobs or when performance has declined over time.
Reviewing start-up and shutdown procedures, idle periods and standard operating hours can reveal opportunities to reduce energy consumption. Depending on the process, some manufacturers may also be able to limit unnecessary running time without changing production output.
Regular servicing can help maintain energy performance, while machinery replacement plans can include energy efficient alternatives where they make commercial sense.
3. Check compressed air systems for energy waste
Compressed air systems are common across the manufacturing industry, but leaks, excessive pressure and poor maintenance can create avoidable energy waste.
Routine leak inspections and pressure checks can help reduce energy use without requiring major changes to production processes. Where maintenance is already planned, compressed air checks can be included within that work to support energy saving with minimal additional disruption.
4. Improve machinery efficiency during planned maintenance
Planned maintenance, repairs and equipment replacement can create useful opportunities to improve energy efficiency without introducing a separate shutdown.
Variable speed drives can allow suitable motors, pumps and fans to match output more closely to actual process demand. The government-backed Energy Technology List includes independently assessed energy efficient technologies and can help businesses compare suitable equipment.
For some manufacturing facilities, combining efficiency upgrades with work that is already scheduled can support lower energy costs while keeping downtime to a minimum.
5. Improve heating, cooling and insulation
Heating, ventilation, air conditioning and cooling systems can account for a meaningful share of factory energy use, particularly across larger manufacturing facilities.
Energy consumption may be reduced by identifying unnecessary heating or cooling, improving insulation and addressing heat loss around roofs, doors, pipework and production areas.
Where production processes generate waste heat, some sites may also have opportunities to recover or reuse it elsewhere, depending on the process and site layout.
6. Reduce factory lighting costs
Installing energy efficient LED lighting, adding lighting controls and making better use of natural light can improve energy efficiency and reduce electricity bills.
Lighting projects can often be completed by area rather than across an entire factory at once. Sensors and controls may also reduce artificial lighting in storage areas, corridors or other spaces when they are not being used.
7. Review production schedules and operating hours
Production schedules influence when machinery, cooling systems and supporting equipment consume energy.
Looking at energy usage alongside operating hours can reveal periods of unnecessary start-up, idle running or equipment use outside active production. Some businesses may also find opportunities to consolidate certain processes or adjust equipment schedules without affecting output.
Off-peak hours may be relevant where an electricity contract includes time-based charges. Comparing when energy is used with existing production schedules can show whether there are any practical opportunities to reduce costs.
8. Monitor energy consumption continuously
Energy management systems can help manufacturing businesses see how energy usage changes between shifts, production lines and operating hours.
Monitoring can identify unusual spikes and show whether energy saving measures are having the intended effect. Comparing energy use with production output can also provide a more useful measure of energy performance than looking at consumption alone.
Ongoing energy management makes it easier to identify inefficiencies as production patterns change.
9. Consider renewable energy where it suits the site
Investing in renewable energy can lower energy costs significantly. Some manufacturing facilities have large roof spaces that may make solar panels or other renewable energy options worth assessing.
Potential benefits depend on the site, consumption patterns, investment cost and expected generation. For businesses considering on-site generation, the useful question is how well the technology fits existing operations and the wider energy strategy.
10. Review the price you pay for the energy you still need
Energy efficiency can reduce consumption and lower energy costs, but most factories will still need substantial gas and electricity to keep production running.
That makes the commercial side of the energy supply important too. BUH can help manufacturers compare business gas and electricity contracts, review renewal dates and understand how available deals compare with the current position.
How Business Utility Hub helps manufacturers control energy costs
Reducing energy costs can involve both lowering unnecessary consumption and reviewing what the business pays for the energy it still needs.
BUH focuses on the commercial side and provide information for you to make the right commercial decision for your manufacturing business. We monitor business gas and electricity prices daily, compare suitable contracts from trusted UK suppliers and explain the options clearly. If you choose a new deal, we can manage the switching process and provide a dedicated account manager who understands your sites, usage and contract dates.
We support SMEs reviewing business energy deals as well as larger and energy-intensive businesses managing higher consumption, multiple sites or more complex requirements.
For manufacturing businesses, that means energy efficiency work on site can sit alongside a clear review of the contracts behind the remaining gas and electricity use.
We explain jargon clearly, there is no obligation to switch, and our commission structure can be disclosed so you understand how the service is paid for.
Review your energy contract before you sign elsewhere
Review your business electricity contract before renewal, after expiry or if your manufacturing facility is getting the best rate
