Energy Efficiency for Businesses: Quick Start Guide

Key Takeaways

If you’re running a business, energy efficiency probably isn’t the first thing on your mind. But small, targeted changes in your operations can help you achieve a more comfortable, productive space while also lowering your business’s energy bills.

• About 30% of the energy used in commercial buildings is wasted through inefficiency—meaning many businesses can cut a significant portion of their energy bills through no-cost actions and smarter operations.
  
• LED lighting, occupancy sensors, and programmable thermostats can reduce energy use by up to 20% without major renovations or large upfront investments.
  
• High-impact upgrades deliver the biggest long-term savings (HVAC systems, water heating, and building envelopes (insulation, air sealing, windows), especially when timed with natural equipment replacement cycles.
  
• Employee habits can sustain and amplify savings from equipment upgrades. Simple practices such as shutting down equipment, turning off lights, and adjusting thermostats.
  
• Federal tax deductions, state programs, and utility rebates can significantly reduce the upfront cost of efficiency projects, shortening payback periods and making upgrades more affordable for businesses of any size.

First, we’ll look at why energy efficiency has become a must-have strategy for businesses of all sizes.

Many of those opportunities can be found with a simple walk-through, but the best way to maximize your savings and qualify for rebates is to schedule a professional energy audit. If your business is in the EPB service area, you can start with a free 30-minute phone call with an EPB Energy Pro℠ for Business to talk about your building’s energy needs and see which energy evaluation services would help you most.

Energy efficiency also supports long-term business goals around sustainability and resilience. According to the U.S. Department of Energy (DOE), investing in energy efficiency is one of the most cost-effective ways to keep up with rising energy prices while reducing your carbon footprint.

Setting sustainability goals can even help your business attract passionate customers and skilled hires. PwC’s 2024 Voice of the Consumer survey reports that consumers are willing to spend about 10% more for sustainably produced or sourced goods. And an IBM study found that about 7 in 10 employees and job seekers say they’d prefer to work for an environmentally sustainable company.

It may help to think of these as quick, practical projects you can tackle in phases. Even if you don’t get to larger upgrades right away, these steps will still improve your energy efficiency and comfort:

• Switch your most used lights to LEDs. Replace older bulbs and fixtures with LEDs in offices, corridors, restrooms, and exterior areas. The DOE says that LEDs use at least 75% less energy and last up to 25 times longer than incandescent bulbs, so they often pay for themselves quickly through lower lighting costs and reduced maintenance.
  
• Install occupancy sensors in spaces that are often empty. Occupancy sensors automatically turn lights off when no one is in the room and back on when people return. It’s a good idea to install them in meeting rooms, restrooms, storage areas, break rooms, or other rooms that are unused for long periods of time. ENERGY STAR reports that occupancy sensors can reduce lighting energy use in these areas by about 15% to 30%.
  
• Sync your team’s schedule with smart or programmable thermostats. Make sure your heating and cooling systems match your actual hours of operation. A programmable or smart thermostat can automatically set back temperatures during evenings, weekends and unoccupied times, so you’re not paying to condition empty space. The DOE notes that adjusting thermostat settings by 7° to 10°F for 8 hours a day can save around 10% a year on heating and cooling costs in typical buildings.
  
• Reduce standby power loads, or “phantom loads,” with power strips and timers. Many electronics, such as computers, printers, coffee makers, vending machines and copiers, draw power even when they’re switched “off.” The DOE estimates that standby power can account for 5% to 10% of electricity use in typical homes, largely from electronics and miscellaneous loads, and offices often have similar equipment. Using advanced or timer-based power strips for noncritical devices can cut this passive energy waste, especially overnight and on weekends.
  
• Enable sleep settings and power management on office equipment. Make sure computers, monitors, printers and copiers are set to automatically go into a low-power “sleep” mode when idle. According to ENERGY STAR, office equipment with power management enabled can use roughly half as much electricity as equipment left running at full power, without affecting performance. This can significantly reduce plug loads in offices with lots of devices.
  
• Add reminders for simple HVAC maintenance tasks to your calendar. Scheduling basic maintenance tasks, like changing filters monthly, tuning up your HVAC system when the seasons change or checking and adjusting your thermostats regularly, can quickly increase your energy savings. ENERGY STAR highlights that regular filter changes, HVAC tune-ups and proper thermostat use are the most important low-cost steps that can help small business offices maintain comfort and avoid unnecessary energy usage.

Together, these quick wins act like mini projects you can knock out over a few weeks. Each one trims a little more wasted energy, and over time those small improvements can add up to meaningful savings on your monthly bill, even if you’re not quite ready to make larger upgrades or schedule a full-scale energy audit.

If you’re not sure which quick wins to tackle first, businesses in the EPB service area can talk to an EPB Energy Pro for Business for personalized recommendations based on your facility, schedule and budget.

While upgrading to more efficient models may cost more upfront, these systems use less energy every hour they run. Over time, those savings can help new equipment pay for itself, especially when you factor in rebates or tax incentives.

Here are a few high-impact areas to focus on when upgrading your equipment and systems:

• Prioritize replacing any older or outdated heating and cooling equipment with the latest energy-efficient models. Heating, cooling and ventilation usually account for a large share of your building’s energy use, so it pays to start with the systems that run the most. Look at rooftop units, outdoor condensers and heat pumps, furnaces or boilers in mechanical rooms, and any large air handlers that move air through the building.
  
  If your equipment is more than 10–15 years old, needs frequent repairs or struggles to keep spaces comfortable, it may be a good candidate for replacement. The Whole Building Design Guide says that using high-performance HVAC equipment as part of an efficient system can deliver energy, emissions and cost savings of about 10 to 40%. Replacing an older, inefficient system with a properly sized, high-efficiency model can reduce heating and cooling energy use by up to 40% in some buildings, especially when you upgrade related components like controls and fans at the same time.
  
• Choose ENERGY STAR-certified appliances and office equipment. When it’s time to replace refrigerators, freezers, dishwashers, vending machines, commercial kitchen equipment, printers or copiers, look for options that are ENERGY STAR-certified.

You can use ENERGY STAR’S Product Finder to search for equipment that’s been independently tested to meet strict efficiency criteria and typically uses significantly less energy than standard models while providing the same or better performance. Over the life of the equipment, the lower operating costs can offset much of the initial price difference.

• Upgrade water heating equipment in facilities that use a lot of hot water. In some facilities, especially those with kitchens, showers or process loads, water heating can represent a noticeable portion of energy use. High-efficiency or heat pump water heaters can provide hot water using far less energy than conventional electric resistance or standard gas models. Efficient heat pump water heaters can deliver significant annual bill savings, particularly where hot water usage is high, according to ENERGY STAR.
  
• Evaluate your building envelope: insulation, windows and air sealing. Even the most efficient HVAC system has to work harder if heating and cooling constantly escape through thin walls, leaky windows and gaps around doors. A building’s envelope includes its walls, roof, floors, windows and doors. The envelope’s seal impacts how easily heat moves in and out of your space.

Improving insulation and sealing air leaks helps seal your building’s envelope, which makes it easier for your heating and cooling systems to maintain comfortable temperatures with less energy. ENERGY STAR estimates that air sealing and adding insulation in key areas can save an average of about 15% on heating and cooling costs. And according to the DOE, improving your building’s envelope helps reduce unwanted heat flow, stabilizes indoor temperatures and lowers the load on your HVAC system.

For most businesses, it works best to plan these upgrades around natural replacement cycles. In other words, take a closer look when a unit is near the end of its life, needs a major repair or can no longer keep your space comfortable. Choosing high-efficiency equipment at that point and pairing it with basic envelope improvements and any incentives you qualify for can help you reduce energy use and reduce your operating costs for years to come.

If you operate a larger facility or have complex equipment, EPB’s free Energy Evaluation Services, from Business Energy Checkups and Industrial Energy Reviews to Power Quality and Infrared Assessments, can help you pinpoint which upgrades will deliver the biggest return and uncover issues like power quality problems or hidden heat loss before they turn into costly downtime. Learn more.

• Work with your Marketing or Human Resources team to start an internal energy campaign. Start small with something you can keep up with, like a monthly “Energy Tip” email, short reminders in staff meetings or simple signs near light switches, thermostats and breakroom equipment. You can also share quick snapshots from your utility dashboard or smart meter to show when your usage goes up or down.
  

The IEA’s research on behavior campaigns reports that clear guidance and regular feedback help people change habits and keep those changes over time.

• Nominate an energy champion or create a small green team. Ask one person, or a small group, to coordinate your sustainability efforts. Their role can include collecting ideas from coworkers, posting reminders about seasonal tasks, sharing progress updates, staying in touch with green resources, such as the DOE’s Better Buildings guidance on employee engagement. Having a clear point of contact helps keep projects moving instead of fading after the first few weeks.
  
• Train employees on simple, repeatable best practices. Build a short checklist into onboarding and seasonal training programs so everyone knows what “good energy habits” look like in your space.
  
  Here’s an example of what this checklist could look like:
• Shut down computers, monitors, power strips and nonessential equipment at the end of the day.
• Turn off the lights when you leave the room.
• Keep exterior doors closed when the HVAC system is running.
• Use blinds or shades to block afternoon heat instead of lowering the thermostat.

ENERGY STAR’s guidance for small business offices emphasizes that managing lighting, HVAC and equipment use when spaces are unoccupied is one of the most important no-cost ways to cut waste. And the District of Columbia’s Department of Energy & Environment gives similar advice, noting that turning off equipment or setting it to sleep mode and using shades or blinds to control heat gain can significantly reduce office energy use.

By giving your employees clear expectations, basic tools and regular feedback, saving energy becomes a shared habit instead of something that’s only on your to-do list.

For larger buildings or portfolios, tools like the EPA’s free ENERGY STAR Portfolio Manager can help you measure and track your business’s energy usage. You can use this kind of benchmarking to compare your building to similar facilities, identify underperforming sites, and verify improvements after you make upgrades.

If your facility has 1,000 kW or more of contracted energy usage, EPB’s Business Power Tracker can provide detailed, real-time energy data at no cost. You can use it to monitor your load down to the minute and spot peak periods or unexpected spikes more easily.

Here are some practical steps to measure and track your energy use:

• Start by gathering your recent energy bills or meter data.
  Collect at least 12 months of electricity and natural gas bills if you can. Note total usage (such as kWh or therms), demand charges, fuel type, and total cost. ENERGY STAR’s benchmarking resources recommend using your bills plus basic building details as the foundation for tracking and comparison over time.
  
• Create a simple baseline for your facility.
  Use a spreadsheet, your utility dashboard, or a tool like Portfolio Manager to calculate your typical monthly energy use and costs. This “before” picture becomes your baseline. Tracking your energy use over time helps you identify underperforming buildings, set investment priorities, and track improvements as you go.
  
• Set realistic energy-saving targets and timelines.
  Once you have a baseline, choose a specific, achievable goal. For example, you might aim to reduce electricity use by 5–10% over the next 6–12 months by focusing on lighting, programmable thermostats and end-of-day equipment practices. The DOE’s energy management guidance uses similar examples, such as setting an objective to reduce overall energy consumption by 10% over several years, then breaking that into specific targets for lighting, equipment and training.
  
• Review your progress regularly and adjust as needed.
  Check your usage monthly or quarterly and compare it to your baseline and targets. Look for unexpected spikes that might indicate equipment issues, schedule changes or comfort problems. ENERGY STAR’s energy management guidelines emphasize that comparing results to your targets and adjusting your action plan over time is key to sustaining savings.
  
• Use your data to support upgrades and reporting.
  When you can show how much energy you used before and after a project, it’s easier to justify future upgrades, apply for incentives and document progress toward sustainability or ESG goals. According to the EPA, benchmarking a building’s energy performance is a key first step to understanding and reducing consumption, lowering operational costs and improving your carbon footprint.

By taking a little time to measure where you are now and track changes over time, you turn energy efficiency from a one-time project into an ongoing part of how you manage your business.

At the federal level, building owners may be able to use the Energy Efficient Commercial Buildings Deduction under Section 179D of the tax code. This deduction allows eligible commercial building owners to claim a tax deduction for certain energy-efficient lighting, HVAC and building envelope upgrades that reduce overall energy use, as outlined by the DOE’s guidance on the 179D Energy Efficient Commercial Buildings Tax Deduction and the IRS description of the Energy Efficient Commercial Buildings Deduction.

Many utilities and regional program sponsors also offer rebates for efficient lighting and equipment. ENERGY STAR recommends starting with the ENERGY STAR Rebate Finder, where you can enter a ZIP code to find incentives on ENERGY STAR certified products in your area. For commercial equipment that may not have an ENERGY STAR label, EPA also points businesses to the Find Rebates on Efficient Commercial Building Equipment page and the associated map of Energy Efficiency Rebates for Commercial Buildings, which can help you identify utility or state programs that support equipment upgrades, including lighting, HVAC and controls.

To see a broader snapshot of state and local incentives, you can use the Database of State Incentives for Renewables & Efficiency (DSIRE). DSIRE is maintained by the N.C. Clean Energy Technology Center and is widely cited as one of the most comprehensive listings of utility, state and local policies and incentives that support energy efficiency and renewable energy across the United States. You can filter by state, technology type and sector to find programs that match the upgrades you’re planning.

If your business is in the Chattanooga area, it’s also a good idea to review EPB’s rebates, incentives and conservation programs for businesses and talk with an EPB Energy Pro for Business before you start a project. They can help you understand which lighting, HVAC or building improvements may qualify for rebates or other support and how to line up your project timeline with current offers.

By combining available incentives with efficient equipment choices, you can substantially reduce your upfront costs and improve the return on investment for your energy efficiency projects, making it easier to move forward on upgrades that lower your bills and improve comfort over the long term.

What is the first step in improving energy efficiency for a business?

Start by identifying “quick wins” — low-cost, low-disruption actions you can take right away. Examples include switching frequently used bulbs to LED lighting, setting thermostats to match your actual hours of operation, and making sure lights and equipment are turned off in unoccupied spaces.

These changes don’t require a major project plan, but they can immediately start reducing wasted energy and give you a clearer sense of where your biggest opportunities are. From there, you can decide whether to move on to larger upgrades like HVAC or building envelope improvements.

How can small businesses afford energy-efficient upgrades?

For many small businesses, the key is to combine three things: efficiency improvements, planned replacements and incentives. Start with no-cost or low-cost measures (like LEDs and better controls), then plan larger upgrades to line up with natural replacement cycles, such as when equipment is nearing the end of its life or already needs major repairs.

Over time, more efficient equipment uses less energy every hour it runs, so the savings help pay back the upfront cost. Federal tax deductions, state programs and utility rebates (such as those offered by EPB) can further reduce what you pay out of pocket, making projects more manageable for smaller budgets.

What are the best tools to track energy use?

The best tools are usually the ones you’ll actually use consistently. For many businesses, that starts with online usage dashboards or smart meter tools from your utility, which let you see how much energy you’re using by month, day or even hour. You can export that data into a simple spreadsheet to compare usage and costs over time.

Larger facilities or multi-site businesses may benefit from using a benchmarking tool like EPA’s ENERGY STAR Portfolio Manager to track energy, water and costs across multiple buildings in one place. The goal is to create a clear “before and after” picture so you can see whether your efficiency efforts are working.

Are there any legal requirements for businesses to be energy efficient?

Requirements vary by location and building type. In many areas, energy performance is addressed through building codes, equipment efficiency standards, and rules for things like lighting or HVAC installations in new construction and major renovations. Some cities or states also have benchmarking or transparency laws that require certain commercial buildings to track and report their energy use.

Even if you’re not currently subject to a specific law, keeping an eye on your building’s performance now can make it easier to comply with future requirements and take advantage of incentives tied to energy savings or emissions reductions.

Can employees really make a difference in energy efficiency?

Yes — day-to-day habits from your team can make a surprisingly large difference. Simple actions such as shutting down computers and printers at the end of the day, turning off lights in empty rooms, keeping doors closed when heating or cooling is on and using blinds to manage heat and glare can all reduce unnecessary run time for your systems.

When you pair those habits with clear expectations, quick training, and regular feedback (for example, sharing usage trends from your utility dashboard), employees can help lock in and sustain the savings from your equipment upgrades.

When you combine practical projects with clear communication and simple tracking, energy efficiency becomes less of a one-time task and more of an ongoing part of how your business operates.

1. Start with a walk-through of your facility. Take a lap through your building during normal business hours and again after hours, if possible. Make note of anything that could be wasteful or uncomfortable: lights left on in empty spaces, equipment running when no one is using it, drafts near doors and windows, blocked vents, space heaters under desks or thermostats that don’t match how the space feels. Snap a few photos or jot down quick notes so you don’t have to remember everything later.
2. Group what you find into “quick fixes” and longer-term projects. Sort your notes into simple categories: no-cost behavior changes (like turning things off), low-cost adjustments or tune-ups (like changing filters, switching to LEDs or adding power strips) and larger capital upgrades (like smart thermostats, HVAC replacements or new windows). This makes it easier to see what you can tackle right away and what should be planned around future budgets or equipment replacement cycles.
3. Prioritize based on impact, cost and effort. Give each item a rough score for the following:

• Potential savings or impact on comfort
• Upfront cost
• Ease of implementation

Focus first on actions that have a meaningful impact, low cost and minimal disruption, such as LED upgrades, thermostat scheduling, or basic maintenance. Then identify which bigger projects, like HVAC or building envelope improvements, should be considered when equipment is due for replacement or when you’re planning other building work.

1. Put your plan in writing, even if it’s just one page. Create a simple document that lists your goals, action items, responsibilities, and timelines.

For example:

• Goal: Reduce electricity use by 10% over the next 12 months.
• Actions: LED retrofit in office and hallway lighting, adjust thermostat schedules, add occupancy sensors in meeting rooms, create end-of-day shutdown checklist.
• Responsibilities: Who will coordinate each action and who needs to be involved.
• Timeline: Target dates for completing each step and when you’ll review results.

Keep this plan somewhere visible and revisit it at least a few times a year to update progress and add new ideas.

1. Ask for help when you need it. If you’re not sure which projects to prioritize or how to estimate savings, it can help to talk with an energy expert or your local utility. For businesses in the Chattanooga area, the EPB Energy Pros for Business can support you in a few different ways, from a free 30-minute call to talk through your questions to more in-depth Industrial Energy Reviews for larger operations. Learn more about EPB’s Business Energy Solutions.

By starting with a simple walk-through, organizing what you find and capturing a short, realistic plan, you turn energy efficiency from an overwhelming idea into a series of practical steps your business can take over time.