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Hotels – how to reduce energy consumption and your rising power bill

Hotel dining and pool area

Rising energy costs are having a massive impact on hotel businesses and the travel industry across the world. A significant part of hotel operations management falls outside of filling beds and high electricity costs are a major contributor to soaring operating expenses. In addition to a price spotlight on energy there is also an important focus, and certainly customer pressure, to transition to energy supply from renewable resources. So, what can you do while the pressure is on?

Generating your own power through renewables sounds like a sensible idea but onsite renewable energy can be challenging to implement for many hotel sites, solar panels and batteries require significant investment and significant space.  It is challenging because in a post covid world priorities are changing and customers want to know hotels and restaurants are following sustainable practices, it influences their choices and this trend is continuing to grow. Millennials are particularly conscious consumers, and they are now the biggest market of all consumer age groups.

With all this in mind, “greenwashing” is not always the right path, and if generating your own power doesn’t make economic sense for your business then there are many other avenues you can take that will improve your sustainability rating, save energy and therefore reduce your hotel electricity costs.

So, what can hotels do to save on electricity?

Advances in technology now mean that there are several other solutions that can significantly reduce hotel energy outlay. In addition, energy brokers can help you buy energy more competitively. Not only can they negotiate on your behalf and buy at wholesale rates, but they can also build a power purchase portfolio that can support your sustainability goals as well as save you money.

A good place to start is to make sure that you have data on the energy use in your hotel. Keeping track of average energy usage, tracking peak times and patterns that lead to high energy bills is the most useful data you can have. Understanding your impacts will help you prioritise so you can take action in the areas which will have the highest impact. A hotel can cut its overall energy expenses 20 percent by using basic energy efficient measures, this is good for you and for the planet.

10 energy saving tips to bring electricity bills down:

  1. Tracking and processes, remembering the old saying of what is measured gets managed. Work with your team and encourage them to be aware, turn off lights, close fridges etc.
  2. Nudge your occupants to be more aware of energy consumption, even just with simple messaging. There’s an interesting study on this HERE
  3. Use LED light bulbs, they use less than a quarter of the energy of traditional bulbs and they last longer.
  4. Install smart climate and lighting control thermostats and sensors. These are real-time sensors that can adjust and detect changes in occupancy on a room-by-room basis. Clever technology that can save you money on lighting, ventilation, air conditioning and heating.
  5. Consider keycard managed power switches if you don’t already have them.
  6. Look at your equipment – modernising equipment can save. e.g., ventilation and extraction system in kitchens, refrigeration, dishwashing, your HVAC systems, pool equipment etc. There are some very interesting figures from Sustainability Victoria on equipment in the hospitality industry HERE.
  7. Retro-fit existing west (sun) facing windows with energy-saving furnishings or film.
  8. Regularly clean and service your air conditioning and ventilation systems and service your heating/hot water boilers, this can reduce the monthly energy costs by 10%.
  9. Plants and green walls help modify temperature and naturally purify the air.
  10. Definitely consider solar if it could be suitable for your premises.

Save money and the planet

With energy prices continuing to rise and customer opinion paramount, becoming energy efficient is now a necessity. Going green is no longer just a trend. 2030 and indeed 2050 is fast approaching, and we are all (thankfully!) becoming more environmentally conscious. You can reduce your operating costs and your carbon footprint with commitment and focus. Maximpact Ecosystems (a UK based advisory) estimate that in hotels:

“Energy costs amount to 5-8% of overall operational costs, and while this number might seem low or insignificant, the truth is that energy is often the second highest controllable portion of costs after labour. Energy efficient practices can provide energy savings of 20-35%, which over time can make a big impact on the bottom line.”


Hotel sign

The team Edge Utilities are passionate about renewables and sustainability, we are energy brokers with an eye on the planet. Our customers’ most common goals are savings and sustainability, we are pragmatic in our approach and would love to help you reach your goals.
 If you feel you need more control of your hotel’s energy spend, please reach out to discuss joining our Edge Utilities Power Portfolio (EUPP) where we use the power of bulk purchasing to help Australian businesses of all sizes save on their energy bills. We’ll conduct a free no obligation comparison to show you how you can save. Read more: or call us on 1800 334 336 to discuss.