Energy efficiency is one of the fastest and lowest-risk ways for Australian businesses to reduce operating costs. It means producing the same output, comfort, safety and service levels while using less electricity or gas. For most sites, the biggest wins come from a mix of simple operational changes, targeted equipment upgrades, and getting the right energy tariff and contract for how you actually use energy.
This guide explains how energy efficiency works in an Australian business context, where the savings typically are, what programs and rules you should be aware of, and a practical action plan you can implement across offices, retail, hospitality and light industrial sites.
What energy efficiency means for Australian businesses
In plain terms, energy efficiency is about reducing wasted energy. It is different to “energy saving” via cutting production, reducing opening hours, or lowering service levels. The aim is to remove waste while maintaining performance.
- Efficiency: same outcome, less energy (for example, LED lighting provides the same or better brightness with far lower kWh use).
- Demand management: shifting when you use energy to avoid peak demand charges (for example, running dishwashers or charging equipment outside peak times).
- Electrification: switching from gas to efficient electric equipment (for example, high-efficiency heat pumps) where it makes financial and operational sense.
In Australia, efficiency also helps reduce exposure to wholesale price volatility, network charges and peak demand, which are often major contributors to business energy bills.
Why energy efficiency matters more in 2026 than it did a few years ago
Three trends have made efficiency more valuable:
- Higher and more volatile energy prices: many businesses are seeing bills rise even when usage is flat.
- Stronger sustainability expectations: customers, staff and investors increasingly expect measurable emissions reduction, not just policies.
- Compliance and reporting pressure: large organisations are facing tighter climate disclosure and emissions obligations, and efficiency projects are often the easiest first step.
Where businesses typically waste energy
Across most Australian sites, a handful of categories drive the majority of avoidable cost:
Heating, ventilation and air conditioning (HVAC)
HVAC is often the biggest load in offices, healthcare, education, gyms, hospitality and many retail formats. Common waste includes poor setpoints, out-of-hours operation, blocked filters, leaky ducts and simultaneous heating and cooling in different zones.
Lighting
Older fluorescent, halogen and metal-halide fittings can be replaced with modern LED and controls. Lighting often offers a quick payback, especially when you also add sensors and scheduling.
Refrigeration and cold rooms
Critical in hospitality, supermarkets and food processing. Typical issues include degraded door seals, poor defrost settings, dirty coils, incorrect head pressure, and heat loads from adjacent cooking or poorly ventilated plant rooms.
Compressed air and motors (industrial sites)
Compressed air is one of the most expensive forms of energy. Leaks, inappropriate pressure settings and running compressors when production is idle are common. Motor-driven systems also benefit from variable speed drives (VSDs) and maintenance that reduces friction and losses.
Hot water and process heat
From laundries to cafes, hot water can be a hidden cost. Heat pumps, better insulation, timers and correct temperature settings can reduce both energy use and equipment wear.
“Always on” plug loads
IT equipment, monitors, chargers, vending machines and AV systems can draw power 24/7. Smart power boards and shutdown policies are simple wins.
Quick wins you can implement this month
If you want immediate savings with minimal capital spend, start here:
- Tighten HVAC scheduling: ensure units are not running early, late or on closed days. Confirm holiday schedules.
- Set realistic temperature setpoints: small changes can materially reduce energy use, particularly in summer.
- Service and clean: HVAC filters, refrigeration coils, condenser units and exhaust systems.
- Fix air leaks: doors, dock seals, curtains, ductwork and insulation gaps.
- Eliminate out-of-hours lighting: use timers, sensors, or simple switch-off routines.
- Target vampire loads: power down POS terminals, screens and non-essential equipment overnight.
For a more detailed list of practical actions, see Zembl’s energy saving tips for businesses.
High-impact upgrades with strong payback
Once the basics are controlled, the best next step is targeted upgrades that usually have a clear business case.
LED lighting and lighting controls
LED upgrades reduce kWh and maintenance. Add occupancy sensors in bathrooms, stockrooms and back-of-house areas, and daylight controls near windows and skylights.
Smart controls and building automation
Smart thermostats, zone controls and building management systems (BMS) help you align energy use with occupancy. They also make it easier to maintain improvements over time, which is where many efficiency projects fail.
Heat pumps for space conditioning and hot water
High-efficiency heat pumps can deliver significant reductions compared to older electric resistance systems and, in many cases, gas equipment, depending on your site and operating profile. They also align with broader electrification strategies.
Refrigeration optimisation
Controls tuning, night blinds, EC fans, high-efficiency compressors, door management and heat recovery can all reduce energy while improving temperature stability.
Power factor correction and electrical optimisation
Some sites pay penalties or incur avoidable losses due to poor power factor, harmonics, or mismatched equipment. Fixing these issues can reduce total cost and improve equipment life, particularly in sites with significant motor loads.
How to measure energy efficiency properly
Measurement is what turns an “energy initiative” into an ongoing cost reduction program.
Start with a baseline
- Collect the last 12 months of electricity and gas bills.
- Capture key drivers: hours of operation, production volumes, occupancy, and seasonal factors.
- Note tariffs: peak, shoulder and off-peak, and any demand charges.
Track the right metrics
- kWh: total energy consumption.
- kW demand: your peak load, often tied to demand charges for larger customers.
- Energy intensity: kWh per unit of output (for example, kWh per meal served, per occupied room, per tonne produced).
- Cost per unit: cents per kWh is not the full story if demand and network charges are high.
Use interval data where possible
For many businesses, interval data is the difference between guessing and knowing. It helps identify after-hours load, peak demand drivers, and the specific equipment that needs attention.
Australian incentives and programs you should check
Efficiency upgrades may be eligible for rebates, certificates or support depending on your state, technology type and installation method. Common examples include:
- State-based energy savings schemes: many states have programs that support upgrades like LED lighting and some HVAC improvements.
- Small-scale renewable energy: solar PV may reduce grid consumption and exposure to peak pricing.
- Commercial building requirements: building standards and disclosure requirements can influence upgrade priorities, particularly for owners and property managers.
Incentives change over time and eligibility can be technical. It is worth checking current conditions before committing to a project, especially if you are planning a large roll-out across multiple sites.
A practical step-by-step plan to improve energy efficiency
Step 1: Confirm you are on a competitive rate
There is no point upgrading equipment if your rate and tariff are uncompetitive for your load profile. Start by reviewing your bill structure and comparing options. Zembl can help you understand whether you are paying more than you should and whether your tariff matches your usage pattern.
Use this as a starting point: contact Zembl and share a recent bill for a quick review.
Step 2: Run a simple site walk-through
- Identify lighting types, operating hours and areas that are frequently unoccupied.
- Check HVAC schedules and setpoints.
- Look for compressed air leaks, door gaps, and equipment running unnecessarily.
Step 3: Prioritise by payback and operational risk
Focus first on projects that are low-risk and easy to implement, then move to higher-capex upgrades.
Step 4: Implement, then lock it in with controls and policy
Many efficiency wins erode over time as staff change or sites get busy. Keep the improvements by adding automation where possible and building an “energy efficient culture”. This approach is especially effective in multi-site operations.
If you need a framework for staff engagement, see how to educate your staff to be energy efficient.
Step 5: Review results monthly and refine
Use bills and interval data to confirm savings are real, then iterate. Efficiency is not a one-off project, it is an ongoing operational discipline.
Energy efficiency by industry: where to look first
Retail and hospitality
Lighting, HVAC schedules, refrigeration, kitchen equipment maintenance and staff practices are the biggest levers. For a sector-specific checklist, use Zembl’s practical checklist for retail and hospitality.
Manufacturing and processing
Focus on motors, compressed air, process heat recovery, maintenance and demand peaks. Energy efficiency can also reduce downtime and improve quality by stabilising process conditions.
Offices and professional services
HVAC controls, lighting upgrades, and plug-load management are typically the best starting points, especially if your building systems are older or poorly scheduled.
Common mistakes to avoid
- Chasing technology before fixing controls: schedule and setpoints often deliver savings faster than equipment replacement.
- Ignoring tariffs and demand: the cheapest kWh upgrade is not always the biggest bill reduction if demand charges dominate.
- No measurement plan: if you cannot track results, savings tend to disappear.
- One-size-fits-all roll-outs: multi-site businesses should standardise, but still account for site differences like hours, climate zone and equipment age.
How Zembl can help
Zembl helps Australian businesses reduce energy costs by combining a competitive energy deal with practical efficiency actions. We can:
- Compare your current plan or contract against available market options
- Check whether your tariff and bill structure suits your usage profile
- Support larger businesses with procurement, reporting and data-led recommendations
If you want to reduce costs without spending weeks benchmarking retailers and decoding tariffs, start with a bill review via the Zembl contact page.
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