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There are 5 key areas where you can reduce energy operating costs in the hospitality industry.

Heating and cooling

Heating and cooling are some of the biggest operating costs for hospitality businesses.

By replacing old air conditioners and heaters with more energy-efficient ones, you can use less energy and make significant savings on your energy bills.

Installing double-glazed windows can also help reduce heat loss or heat gain by almost 30% compared to single-glazed windows, so you don’t need to keep heating and cooling systems on all day.

Rebates and discounts are available to make these energy saving measures more affordable.

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Old incandescent and halogen bulbs use a lot of energy.

You could start saving money almost immediately just by switching to energy-efficient LEDs (light-emitting diodes) and making sure all the lights are switched off at closing time each night.

There is a range of rebates available to businesses for lighting upgrades.

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Induction cooktops use a lot less energy than gas hobs, so consider making the switch.

Being mindful about when you turn your equipment on and off can also save you thousands in the long term. For example, just turning off one sandwich press between the breakfast and lunch rush every day can save you hundreds of dollars a year!

Installing timers on cooking appliances can also ensure appliances are switched off automatically each night.


Refrigeration can be a significant cost for hospitality businesses. Older commercial refrigeration units, powered with inefficient motor-driven fans, use more energy than today’s energy-efficient fans.

You could be eligible to claim a rebate if you upgrade your older commercial refrigeration units to more energy-efficient technology.

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Coffee machines

Coffee machines get a good workout in most cafes and restaurants, but keeping the water in the machine hot enough to steam all day is a huge energy zapper.

By installing a timer and switching off your machine overnight, you can make significant savings.

More information

Page last updated: 09/05/24