In 2019 Greater Manchester declared a climate emergency and established a mission to become carbon-neutral by 2038. If we are to achieve this goal all businesses, large and small, must play their part and innovation is an integral element.

Energy innovation helps businesses cut costs, strengthen competitiveness, and improve sustainability, making it one of the most strategic investments a company can make today. Energy innovation can sound complex or even risky, but much of today’s innovation isn’t experimental, it’s proven technologies and approaches already delivering benefits for businesses across the UK.

From smarter controls to low-carbon systems, these solutions are increasingly accessible, cost-effective, and designed to work in real-world environments. The key is knowing where to focus and taking practical steps that deliver value from the outset.

Here are ten ways to start using energy innovation to reduce costs and improve efficiency.

1. Start with Better Visibility of Your Energy Use

Many businesses are surprised by where their energy is actually going. Even simple monitoring tools can reveal patterns, peak usage periods, and avoidable waste, giving you a clear and informed starting point for action.

2. Upgrade to Energy Efficient Lighting

LED lighting is now a standard, proven upgrade that can significantly cut energy use while improving reliability and light quality. It’s often one of the quickest and most cost-effective ways to reduce consumption.

3. Use Smart Controls to Reduce Waste

Smart energy management such as IoT sensors, AI‑driven analytics, and smart meters optimise energy use in real time, reducing waste and improving operational efficiency.

Technologies such as smart plug sockets, isolator switches and smart thermostats, supported by software platforms help ensure energy is only used when it’s needed. These solutions are easy to integrate into existing building and business systems, are widely used and can deliver immediate savings with minimal disruption.

4. Identify and Eliminate ‘Invisible’ Energy Use

Out-of-hours energy use is a common and often overlooked issue. Monitoring tools and automated energy management controls can help identify where energy is being used unnecessarily and stop it from continuing unnoticed.

5. Optimise Existing Systems Before Replacing Them

You don’t always need to invest in entirely new equipment. Existing heating, cooling, or operational systems can often be fine-tuned using proven optimisation approaches to improve performance and reduce energy demand.

6. Improve Building Energy Performance with Targeted Upgrades

Improving glazing or building fabric insulation can reduce heat loss while technologies such as smart radiators, intelligent controls and smart hot water cylinders allow businesses to heat spaces and water more efficiently, ensuring energy is only used where and when it’s needed.

7. Explore On-Site Renewable Energy and Storage

Technologies such as solar PV are now widely used by SMEs to generate their own energy, but innovation can make more areas accessible for energy generation and offers leasing options for landlords. When combined with battery storage, businesses can make better use of the energy they produce, storing excess power for use later and reducing reliance on the grid during peak times. These solutions are increasingly accessible and can offer both immediate savings and greater long-term resilience.

8. Make the Most of Smart Energy Tariffs

Energy tariffs are becoming more flexible, with options that reflect when energy is used, not just how much. Smart tariffs use dynamic pricing – such as time‑of‑use, peak/off‑peak, or real‑time rates – to reward businesses for shifting or reducing consumption when electricity is expensive or carbon‑intensive and can help businesses shift certain activities to cheaper periods, reducing overall costs without changing operations significantly. When combined with technologies like smart controls or battery storage, these tariffs can unlock even greater savings.

9. Engage Staff Using Real Insights

People play a key role in energy use. Sharing simple, relevant data helps staff understand the impact of their actions and encourages small behavioural changes that can add up to meaningful savings over time. Carbon reduction & energy management courses are a cost-effective way of improving staff engagement and understanding of energy challenges.

10. Take a Step-by-Step Approach

Energy innovation doesn’t require a complete transformation overnight. Starting with a few practical actions and building on what works helps deliver early savings while creating a clear path for future improvements, with many innovations able to provide very short payback periods.

Energy innovation doesn’t have to be complex or uncertain, many of the most effective solutions are already in use today, helping SMEs cut costs, improve efficiency, and build resilience for the future.