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Building the Business Case for Energy Management

Energy management is fast becoming an important aspect for many businesses. Good energy management should reduce energy consumption, save money on energy bills, improve sustainability, ensure compliance with regulations, and improve reputation.

The problem is, many businesses lack a clear energy management strategy, and in order to get management or leadership buy-in, making the business case for energy management is often where you need to start.

So, if you’re someone who believes that your business can benefit from good energy management, now is the time to take action. This article will outline all the ‘upsides’ that you should consider when building the business case for energy management in your workplace.

Cost Savings

Highlighting the cost savings associated with reducing energy consumption can help to get the attention of key decision-makers such as the CEO, CFO, and Board of Directors. In the end, energy is a significant expense for most businesses, and even small changes in energy usage can result in considerable cost savings. Investing in energy-efficient technologies such as LED lighting and efficient HVAC systems can lower energy costs and improve the bottom-line. As a result, when making the business case for energy management, demonstrate how the business can save money by reducing its energy consumption.

Improved Sustainability

Businesses are realising the role they play in climate change and the need to reduce their carbon footprint. When making your case for energy management, it’s important to address how a clear strategy can help support sustainability initiatives. Things to reference would include implementing emissions targets, reducing energy usage, and exploring Solar, CHP and Biomass opportunities.


Reputation is often closely linked to sustainability. Now, consumers and other stakeholders are more environmentally conscious and look for companies that align with their values. Implementing an energy management strategy can significantly enhance a business’ reputation and strengthen its brand image by showcasing its commitment to sustainability and social responsibility. This is something to factor into your business case.

Employee Morale and Productivity

This may seem out of place to some, but a company can create a more comfortable and effective working environment by implementing an energy management strategy that looks at ways to improve operational processes and make improvements to buildings. This, in turn, can help improve employee morale and productivity. A comfortable and efficient workplace can also help attract and retain employees, reducing staff turnover and the associated costs. 

Our latest EnergyIntel explains the 4 reasons to involve employees with your energy management programme.

Compliance and Regulations

Finally, energy management can also help businesses comply with relevant regulations and standards. The UK has a number of legislations aimed at reducing energy usage and eliminating the country’s carbon emissions. By making the case for energy management, the business can ensure it remains compliant with these regulations, avoiding potential penalties or fines.

Read more about keeping on top of energy compliance.

When Building Your Business Case

Before writing your business case, you should conduct as much analysis of your energy usage as your systems allow. We recommend starting with the following:

  1. Conduct your own site audit. Take the time to walk around your facility to identify any obvious areas of improvement. Check out our Site Audit Checklist to help you get started.
  2. Monitoring your energy usage. If you do not have any monitoring currently in place, reviewing your energy invoices is a good place to start. Read our 5 benefits of energy monitoring.
  3. Evaluating the effectiveness of any energy management initiatives currently in place. Identify any projects, their progress and results.

This background will help inform what needs should be included. The business case should also include the indicative costs associated with implementing an energy management strategy. This would include any investment in new technology and equipment, as well as clearly explaining the benefits and cost savings associated with them. Energy Management as a Service (EMaaS) provides hardware, software and consultancy under a single monthly subscription, making it easy to understand what the cost of implementing an energy management strategy would be. 

By reviewing each of the sections above, you can make a compelling business case for energy management and get the needed management buy-in. To help make the process of building a business case easier, we’ve created an Energy Management Business Case Template for you to use as a guide.

Download the Business Case for Energy Management template.

  • Author: Robyn Miller, Marketing Manager

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