Energy Saving Tips for Small Businesses [2026 Guide]

Key Takeaways

Energy costs can sneak up on businesses of all sizes. The good news? A few smart changes can make a big difference when it comes to lowering bills, improving comfort, and boosting efficiency.

• HVAC is your biggest target. Heating and cooling account for 35–40% of total energy use. Sealing air leaks, scheduling regular maintenance, and upgrading to smart thermostats can cut HVAC costs by 10–20% or more.
  
• LED lighting is the fastest win. Switching to LEDs can reduce lighting energy use by up to 75%, and adding smart controls (motion sensors, dimmers, daylight harvesting) can save an additional 10–90% depending on the space.
  
• Employee behavior drives real savings. Simple habits—turning off lights, unplugging idle electronics, adjusting thermostats—can reduce energy use by 5–10%. Building a culture around energy awareness multiplies the impact of any equipment upgrades.
  
• Smart technology pays for itself. Real-time monitoring tools, smart plugs, and building management systems help you spot waste, automate shutoffs, and make data-driven decisions that compound savings over time.
  
• Rebates and incentives reduce upfront costs. Federal programs (IRA, DOE) and local utilities offer tax credits, rebates, and grants for qualified upgrades like efficient HVAC, LED retrofits, and insulation improvements—making it easier to invest without large capital outlays.

First, we’ll show you why energy efficiency matters more than ever in 2026 and how it’s shaping the future of small businesses.

Combined with growing concerns about grid reliability and sustainability elsewhere, energy efficiency has become a key part of running a resilient, future-ready business in Chattanooga — and staying ahead of the competition.

Improving energy efficiency isn’t just about being environmentally conscious — it’s about protecting your bottom line. Every kilowatt-hour you don’t waste translates directly into lower operating costs, longer equipment life and a more comfortable environment for employees and customers. Plus, reducing your overall energy demand can help buffer your business against future rate hikes or supply disruptions.

In 2026, more incentives than ever are available to help small businesses save. Programs funded through the Inflation Reduction Act of 2022 (IRA), the U.S. Department of Energy (DOE), and local utility providers (including EPB) offer rebates and tax credits for qualified upgrades like high-efficiency HVAC systems, LED lighting and building weatherization. Many states are also expanding clean energy funding and small business grants that make it easier to invest in sustainable improvements without large upfront costs.

At the same time, customer expectations are evolving. Consumers increasingly prefer to support companies that demonstrate environmental responsibility, but that doesn’t mean you need to overhaul your entire operation. By improving your energy efficiency, you’re not just reducing emissions; you’re building a smarter, more resilient business that can adapt to future demands and stay competitive in a changing marketplace.

For businesses that run lights for long hours, such as storefronts, hotels or warehouses, those savings add up fast. If lighting represents about 20% of your total energy bill, cutting that portion by 75% could mean lowering overall utility costs by 10–15% or more.

2. Add smart lighting controls to reduce energy waste.

Once your fixtures are upgraded, you can save even more with smart lighting controls. According to the DOE, these systems can deliver an additional 10–90% reduction in lighting energy use, depending on the space and occupancy pattern:

• Motion sensors: These detect movement and automatically turn lights on when someone enters a room and off when the space is empty. They’re ideal for areas like restrooms, storage rooms, or hallways where lights don’t need to stay on constantly. By ensuring lights only run when needed, motion sensors eliminate wasted energy and extend bulb life.
• Timers: Timers allow you to program lights to turn on or off at set times. This is especially useful for exterior lighting, signage, or common areas that follow predictable schedules. Automated timers prevent lights from being left on overnight or during off-hours, reducing unnecessary energy use.
• Daylight harvesting systems: These systems use sensors to measure natural light levels and automatically dim or switch off electric lights when daylight is sufficient. For example, if sunlight brightens a conference room, the system lowers artificial light output to maintain consistent brightness without wasting electricity.
• Dimmers: Dimmers let you manually or automatically adjust light levels based on time of day, activity or mood. Lowering brightness by just 20% can significantly reduce energy use while still maintaining comfortable illumination. Dimmers are great for restaurants, meeting rooms, and customer-facing spaces where ambiance matters as much as efficiency.

3. Estimate your return on investment (ROI).

Not sure which lighting solutions will be worth the investment? Follow these steps to find an estimate:

1. Add up the total wattage of the lights you plan to replace and how many hours they run each day.
2. Multiply that by your local electricity rate to find your current lighting cost.
3. Subtract the projected cost of the new LED or smart lighting system using its wattage and operating hours.
4. Divide your upfront cost by the annual savings to discover your payback period.

In many cases, businesses see payback within one to three years, especially when combined with utility rebates or federal incentives.

👩‍🔧EPB Energy Pros for Business Tip: If you’re upgrading lighting for your business in the Chattanooga area, check with the EPB Energy ProsSM for Business to find out which incentives you qualify for. We can help you calculate your expected savings and choose the right LED or smart control setup for your space. Learn More.

If possible, use programmable or smart thermostats to automate these settings based on your operating hours. Schedule temperature setbacks when your building is empty, and program comfort settings to resume before staff or customers arrive. This approach saves energy while keeping your space consistently comfortable.

2. Seal air leaks and improve insulation. 

When conditioned air escapes through cracks, gaps or poor insulation, HVAC systems have no choice but to demand more energy to keep your building comfortable. The DOE reports that air leaks can increase heating and cooling costs by up to 30%.

Follow these tips to save energy and improve comfort, maintain consistent indoor temperatures and reduce strain on your HVAC system:

• Inspect windows, doors, and vents for drafts.
• Seal gaps that you find with caulk or weatherstripping.
• Add or upgrade insulation, especially in attics, basements or around ductwork.

3. Schedule regular HVAC maintenance.

Routine maintenance is one of the most effective ways to ensure your HVAC system operates efficiently. Dirty filters, clogged coils or low refrigerant levels make your system work harder than necessary, increasing both energy use and wear.

Prioritize these maintenance tasks when possible:

• Replace or clean air filters every one to three months, depending on your environment. If you work with lots of allergens, such as grass pollen or pet dander, change your air filters monthly.
• Hire a professional technician to service your system at least twice a year: once before cooling season and once before heating season. Regular tune-ups help identify potential problems early to prevent costly repairs later. Plus, they can extend the lifespan of your equipment.

4. Upgrade to smart thermostats or zone-based systems.

If you have the means to invest a little more in energy efficiency improvements, consider upgrading to a smart thermostat or zone-based HVAC system:

• Smart thermostats: These WiFi-connected thermostats automatically learn your building’s patterns and adjust temperature settings for maximum comfort and savings. Many allow you to monitor and control them remotely from an app on your phone, making it easy to manage energy use when you’re away.
• Zone-based systems: These energy-efficient HVAC systems divide your building into separate temperature zones, so you’re only heating or cooling the areas in use. This is especially helpful in multi-room offices, restaurants, or warehouses where occupancy levels vary throughout the day.

Together, these upgrades can cut HVAC energy use by 10–20% or more, depending on your building layout and occupancy schedule.

5. Upgrade windows for better temperature control.

Windows play a major role in how well your building retains conditioned air. Older or single-pane windows allow heat to escape in winter and enter in summer, forcing your HVAC system to work harder.

Upgrade to double- or triple-pane windows with low-emissivity (low-e) coatings. These windows help maintain indoor temperatures by reflecting heat into your space during winter and blocking it during summer.

If window replacement isn’t in your budget, add weatherstripping or thermal window film for an affordable boost in insulation.

👨‍🔧 EPB Energy Pros for Business Tip: Leaky air ducts and outdated thermostats can quietly waste more energy than you realize. Our EPB Energy Pros for Business can help. We’ll inspect your HVAC setup, spot inefficiencies, and recommend upgrades that can lower your monthly costs year-round. We’ll also help you qualify for incentives and rebates to take your savings even further. Schedule a free consultation.

1. Choose ENERGY STAR®-rated equipment.

When it’s time to replace or upgrade office equipment, look for the blue ENERGY STAR label. ENERGY STAR-certified computers, monitors, printers, refrigerators and kitchen appliances are designed to use significantly less energy without sacrificing performance.

According to ENERGY STAR, certified models typically use 10–50% less energy than standard products, depending on the device. That means less wasted electricity, lower utility costs, and a smaller environmental footprint — all benefits that add up over the lifespan of your equipment.

Before purchasing, compare the estimated annual energy use listed on the product’s EnergyGuide label to help you choose the most efficient model for your budget and business needs.

2. Eliminate “phantom energy” waste with smart power strips.

Even when powered off, many electronics continue drawing electricity in standby mode, a phenomenon known as phantom load or vampire power. According to the DOE, these idle devices can account for 5–10% of total energy use.

The easiest way to reduce phantom load energy waste is by investing in smart power strips. These affordable devices automatically cut power to equipment that’s not in use, such as monitors, printers, coffee makers, or chargers. Some models include motion or time-based controls that power down outlets after business hours and reactivate them when you return. Installing just a few throughout your office can reduce unnecessary energy use without requiring anyone to remember to unplug devices manually.

3. Enable built-in energy-saving modes.

Most modern office devices already include power management settings — they just need to be enabled. Adjust your computers, monitors and copiers to automatically enter sleep mode or power down after periods of inactivity.

For example, ENERGY STAR reports that enabling sleep settings on computers and monitors can save up to $50 per device each year. If your business has dozens of workstations, this small change can add up to hundreds or even thousands in annual savings.

4. Consolidate and right-size your equipment.

Over time, it’s easy for offices to accumulate redundant or oversized equipment. You may be able to consolidate some of these devices by replacing single-function printers, scanners, and fax machines with one multi-function printer-copier machine.

This has the potential to reduce energy use and maintenance costs. In break rooms, replacing full-sized refrigerators or vending machines with smaller, high-efficiency models can also lower energy consumption.

Conducting a quick equipment inventory once or twice a year can help identify which devices are worth keeping, upgrading, or removing altogether.

1. Build an energy-aware workplace culture. 

Start by making energy efficiency part of your company’s values and everyday conversation with these simple actions:

• Post friendly reminder signs near light switches or breakroom appliances.
• Incorporate short energy-saving tips into staff meetings or newsletters to keep awareness high.
• Host brief training sessions or “lunch and learn” events led by local energy experts or utility representatives. These can help employees understand how small changes, like shutting down computers or adjusting thermostats, impact overall costs and comfort.

2. Make turning things off second nature.

The simplest energy savings often come from what’s not running. Encourage staff to turn off lights, monitors and equipment when they leave a room or finish for the day. This habit may sound small, but across dozens of devices and hours each week, it adds up quickly.

To make it even easier, assign “energy champions” in each department who help remind coworkers and ensure systems are powered down after hours. You can also set automatic schedules for lighting and equipment to reduce reliance on manual shutoffs.

3. Motivate with friendly competition.

Friendly energy challenges are an engaging way to get everyone involved. Create monthly or quarterly competitions between departments. For example, the team that reduces its energy usage the most wins a prize.

Use a shared leaderboard to display progress and celebrate milestones publicly. Offer simple incentives, such as a team lunch, recognition in company communications, an extra hour of PTO or a casual dress day for the winners.

4. Share success stories and lessons learned.

After each challenge, have the winning team create a short presentation, funny video or email summary about what worked for them. This not only spreads effective ideas but also helps employees take pride in their contributions. When staff see that their collective efforts lead to measurable results, like lower utility bills or improved comfort, they’re more likely to keep up the momentum.

A culture of efficiency starts with participation. Recognize your employees’ efforts and make energy savings a team goal. That way, they can take pride in what they’ve learned and incorporate sustainability into their career.

For example, you might notice that your energy use stays high after hours or during weekends, indicating equipment that’s left on unnecessarily. By adjusting schedules or turning off devices during those times, you can reduce waste immediately.

Some advanced energy monitoring systems even send alerts when your usage suddenly increases, helping you catch issues early before they become costly. For example, you might be notified that your HVAC system is malfunctioning or that your lights were left on overnight. Over time, these devices and the data they collect can help you prevent energy waste, benchmark progress, and measure the success of your energy-saving initiatives.

2. Automate with smart plugs and building management systems (BMS).

Automation tools like smart plugs and power strips, connected thermostats, and building management systems take manual work out of the equation. These technologies allow you to schedule when specific devices power on and off or adjust their output based on occupancy, time of day or even weather conditions:

• Smart plugs: These devices are simple and inexpensive. They connect to WiFi and can be controlled from your phone or computer. With a few taps on your phone, you can set coffee makers, displays or office electronics to power down automatically at night.
• Smart thermostats: WiFi-connected thermostats manage heating and cooling patterns based on occupancy and temperature trends, preventing unnecessary runtime.
• BMS or energy management systems: These tools integrate multiple building functions, including lighting, HVAC and even security, under one centralized platform. They also use automation and sensors to optimize energy usage across the building.
  

Even small businesses can benefit from a little automation. For instance, scheduling your HVAC system to power on 30 minutes before you open and power off after you close can prevent hours of wasted operation each week. It also eliminates the possibility of human error so your employees can focus on other tasks.

3. Analyze usage trends to uncover hidden savings.

Smart systems don’t just show you where energy is going — they help you understand why. Reviewing historical data can reveal patterns you might not notice otherwise, such as unnecessary peak-hour usage or inefficient equipment cycling.

For example, if your energy use spikes every day at 2 p.m., you can use that insight to reschedule certain processes or stagger equipment use to avoid higher demand charges. Over time, trend analysis helps you make targeted improvements that deliver measurable savings.

Retail Stores:

• Upgrade to LED display lighting. Retail lighting can account for roughly 17% of total electricity use in commercial buildings, according to the EIA. Switching to LEDs reduces energy use, maintenance, and cooling demand.
• Use occupancy sensors in fitting rooms and stock areas. These can cut lighting energy by 30–50% in spaces not used continuously, according to the DOE.
• Install smart thermostats and zone controls. Maintain comfort during store hours and automatically adjust temperatures after closing.
• Manage storefront windows. Use window film or solar shades to block heat gain and lower air conditioning demand.
• Encourage off-peak cleaning and restocking. Shifting high-energy tasks to off-peak hours can reduce utility costs in time-of-use energy rate plans.

Restaurants and Food Service:

• Tune refrigeration systems regularly. In restaurant facilities, refrigeration accounts for about 15% of total energy use while cooking represents around 40%, according to the EIA. Clean coils, inspect seals, and maintain compressors to prevent waste.
• Set freezers and coolers to optimal temperatures. Keep refrigerators at 38°F and freezers at -3°F for both safety and efficiency.
• Install low-flow pre-rinse spray valves. Since 2019, all pre-rinse spray valves sold in the U.S. must meet federal efficiency standards established by the DOE. According to the U.S. Environmental Protection Agency (EPA), commercial kitchens that replace a standard pre-rinse spray valve with a DOE-compliant model can save more than $110 per year in energy and water costs and reduce more than 7,000 gallons of water annually.
• Turn off or idle cooking equipment between rush periods. Ovens, fryers, and grills often run unnecessarily during downtime.
• Switch to LED kitchen and dining lighting. As mentioned previously in this guide, LEDs use up to 75% less energy and last much longer, even in heat-prone environments.
• Know your energy profile. ENERGY STAR reports that restaurants use 5–7× more energy per square foot than other commercial buildings, so even small upgrades have a big impact.

Warehouses and Manufacturing:

• Use high-efficiency LED or linear lighting with motion sensors. In warehouse and storage buildings, lighting accounts for about 15% of energy end use, according to the EIA. Motion sensors ensure lights are only on when needed.
• Install destratification fans. These circulate warm air trapped near the ceiling, cutting heating costs by redistributing heat evenly.
• Seal loading dock doors and gaps. Air leaks can waste up to 30% of heating and cooling energy in large spaces.
• Upgrade to variable frequency drives (VFDs). These control motor speed and can reduce motor energy use by 20–50% according to the DOE.
• Benchmark your facility. Use ENERGY STAR’s Portfolio Manager® to measure performance against similar operations nationwide.

Medical and Dental Offices

• Optimize HVAC and ventilation systems. Zoning and occupancy sensors can maintain strict air quality while cutting waste in unused exam rooms.
• Switch to LED task and examination lights. LEDs emit less heat and provide consistent, bright illumination ideal for medical tasks.
• Use smart power strips for diagnostic and office equipment. Medical devices often draw standby power even when idle.
• Schedule sterilizers and autoclaves efficiently. Run them only when full and during off-peak hours.
• Maintain refrigeration and lab equipment. Tight door seals and regular maintenance prevent costly temperature loss.

Offices and Professional Services

• Enable computer sleep settings. Automatic power management can cut computer energy use by up to 50% according to the DOE.
• Consolidate printers and copiers. Replace multiple devices with one ENERGY STAR-rated multifunction unit.
• Use daylight and dimming controls. Combining natural light with dimmable LEDs can reduce lighting energy use by 20–60% according to the DOE.
• Install smart thermostats. Adjust building temperatures automatically during non-work hours to avoid waste.
• Host periodic “power-down days.” Encourage employees to unplug nonessential electronics before weekends or holidays.

Additional Ways to Save

• Schedule a professional energy audit. Many utilities, including EPB, offer free or discounted energy assessments to help you identify your top savings opportunities.
• Explore industry-specific incentives. Restaurants, clinics, manufacturers, and retail shops may qualify for specialized rebates or grants. EPB Business customers may be able to qualify for rebates on commercial energy upgrades. Talk to an EPB Energy Expert to learn more.
• Track and compare your results. Use your utility’s dashboard, such as EPB’s Business Power Tracker, or ENERGY STAR Portfolio Manager® to monitor trends and identify new ways to save.
  

Upgrading your energy efficiency is a worthwhile investment for almost any type of business. Plus, you can strategically reinvest your savings into bigger upgrades to continue the cycle of saving more and more energy every year.

Q. Are energy-saving upgrades expensive?

Not necessarily. While some improvements, like HVAC replacements or new windows, require upfront investment, many upgrades are affordable and pay off quickly. Switching to LED lighting, installing smart thermostats or sealing air leaks can deliver noticeable results within months. Many utilities and federal programs also offer rebates, grants and low-interest financing to offset costs, making upgrades easier on your budget.

Talk to EPB’s Energy Experts to learn how Chattanooga businesses can qualify for rebates on energy improvements.

Q. Can employee behavior really impact energy bills?

Absolutely. Behavior changes often lead to some of the most immediate savings. Simple habits like turning off unused lights, unplugging idle electronics, and adjusting thermostats during off-hours can reduce energy use by 5–10% or more. Encouraging staff participation through reminders or friendly competitions helps make energy efficiency part of your daily routine.

Q. How do I know which energy-saving tips are best for my business?

Start with a professional energy audit or a quick review of your utility bills to identify your biggest energy users. Look for consistent patterns, such as spikes during certain hours or seasons, that point to improvement opportunities. From there, focus on upgrades with short payback periods, like lighting retrofits or smart controls, before moving on to larger projects.

Schedule a free energy audit with EPB’s energy experts to start building your energy-saving strategy today. Learn More.

Q. Are there tax credits or incentives for energy-efficient improvements?

Yes. Programs funded through the DOE, the Inflation Reduction Act of 2022, and local utilities (including EPB — learn more) offer rebates, tax credits and incentives for qualified upgrades such as LED lighting, smart thermostats, high-efficiency HVAC systems and insulation improvements. These benefits can substantially reduce the cost of upgrades while helping your business operate more sustainably.

Energy efficiency doesn’t have to be complicated or costly. With a few smart changes and support from local energy programs, your small business can lower operating costs, boost comfort and create a more sustainable future.

Remember, energy efficiency isn’t just about lowering your utility bills. It’s about creating a more comfortable workspace, protecting your equipment and building a resilient, future-ready business that customers are proud to support.

Ready to see where your Chattanooga business can save through energy-saving upgrades? Schedule your free on-site energy assessment with the EPB energy experts. We’ll evaluate your building, recommend cost-effective upgrades and connect you with available rebates to help you get the most out of every dollar. Learn More.