Hairdressers: Business Energy Bills Too High?
Are the bills for your hair salon too high? There are simple ways you can reduce your gas and electricity bills so these don’t drive down your profit. Read on for the best ways to reduce the cost of business energy for hairdressers.
Hair salons and energy bills
Business energy for hairdressers can quickly become very expensive. If you’re just starting out as a sole trader in the salon business, the last thing you want to do is worry about high energy bills.
It will come as no surprise that most business energy for hairdressers is made up of electricity. Thanks to the high number of electrical appliances in a salon - hairdryers, curlers, straighteners etc.- being constantly used, a small hair salon can easily use 7,000 kWh of electricity every year. That’s more than double the average UK household’s consumption rates and works out as more than £1,000 a year on electricity alone!
Gas is cheaper than electricity, but it is still easy to use a lot. If your salon has a gas boiler and other gas appliances, gas costs can also quickly add up.
So, how do you reduce the electricity and gas costs for your salon? It starts with taking control of your energy usage, being more energy-efficient and finding the best energy tariff for your business.
Business energy for hairdressers: how to lower your bills
Let’s look into the best business energy-saving tips for hairdressers.
1. Switch energy suppliers
The easiest and fastest way to reduce your salon bills is to find a better energy deal! Compare suppliers and tariffs to find a business plan that suits your energy usage and will bring down your electricity and gas bills.
Here at Selectra, we work to find you the best energy deals out there. Give us a call on 020 3936 0059 for free to compare prices, switch to a cheaper business energy tariff and start saving today!
2. Fix the length of your tariff
Fixed-rate tariffs, where your unit rates are fixed for a set period of time, are cheaper than variable-rate tariffs. These can range from 12-month plans to 24 plus plans.
While it can be tempting to opt for a variable-rate plan as it does not tie you into a contract for a set amount of time, you can save a lot of money by opting for a fixed-rate deal. You are protected against price increases for the duration of your contract and, as the unit rates are fixed, you are better able to calculate how much your bills will be and budget for it.
When your fixed-rate tariff comes to an end, you can renew your contract with your current supplier or switch to a cheaper fixed-rate deal with a new provider.
3. Avoid the Climate Change Levy
The Climate Change Levy is a tax imposed on businesses to encourage them to be more energy efficient. The good news is it can be easily avoided, which will help save the costs of business energy for your hairdresser salon.
There are two ways to avoid the tax. Firstly, you can ensure you use less energy from each fuel outlined in the table below. This can be a bit hard if you rely on certain fuel sources for your gas and electricity.
|Fuel||Amount is less than or equal to...|
|coal or coke||1 tonne held out for sale as domestic fuel|
|piped gas||4,397 kWhm (kilowatt hours per month)|
|metered electricity||1,000 kWhm|
|unmetered electricity||1,000 kWhm|
|LPG in cylinders||50kgs (net weight)|
|LPG in bulk||2 tonnes (of tank capacity)|
The easiest way to avoid the levy is to use 100% renewable electricity and carbon offset your gas. Some energy suppliers offer 100% green tariffs. Switch to one of these to avoid the tax whilst also helping to reduce your salon’s carbon footprint.
4. Be more energy efficient
The final way the cost of business energy for hairdressers can be reduced is by using less energy. This sounds really obvious, but you will be surprised to know how much unnecessary energy you are using every day.
The good news is there are some simple, cheap changes you can make to your salon that can make it more energy efficient and reduce your bills.
Six energy efficiency tips for salons
To reduce the cost of business energy for your hairdressers, try implementing a few (or even all!) of the following save energy efficiency tips.
1. Upgrade your lighting
Did you know that up to 40% of your hairdresser’s electrical use comes from lighting? Remove your halogen bulbs, throw them away and replace them with eco-friendly LEDs.
That also goes for your T8 fluorescent tubes. Chuck them out in the recycle bin and replace them with T5s or LEDs. Not only will you save hundreds of pounds each year, but you’ll also give your salon a trendier image.
2. Turn off equipment
Make sure you and your staff turn off all electrical appliances at the end of the day and don’t leave them on standby. Devices in standby mode can use up to 70% of the energy they use when they are on, so simply making sure these are switched off can make a big difference to your energy usage and costs.
3. Heating and air conditioning
Is it a surprise that heating and hot water can total 60% of your total energy use? With so many heat-emitting appliances being used at the same time, your salon heats up very quickly. Turn down the temperature of your salon’s central heating by just 1°C to see significant savings.
Also, don’t heat areas of your establishment that don’t need it, such as storerooms and toilets. You’ll save thousands of pounds and can inject that money back into your business. Your customers won’t even notice the difference!
Air conditioning can increase your salon’s energy consumption by up to 100%! Instead of having it on all day in the summer, set it to switch off and on when the salon reaches a certain temperature. Electric fans are also a great alternative to and cost only a few pence an hour to run.
4. Maintain your boiler
Has your boiler been regularly maintained? If not, it could cause your energy consumption to skyrocket. Get yours regularly serviced to ensure it’s working efficiently. You could see up to 10% off your company’s annual heating bill.
Make sure you take our boiler cover so your boiler is insured against repairs and replacement.
5. Use smart technology
Smart technology, like smart meters and smart thermostats, are a great way to be more energy efficient. By making you more aware of how much energy you use, they help you to only use energy when you need it.
Connecting these smart devices to your smartphone, or even an Amazon Alexa, also allows you to switch them on and off when you are busy or out of the salon. Moreover, using IFTTT (if this then that) apps, you can set up triggers so the devices turn on and off when certain conditions are met, e.g. when the salon reaches 24 degrees, the air conditioning automatically turns off.
These apps are particularly useful if you have a time of use tariff so you can maximise energy usage when prices are cheap. The table below gives examples of some triggers you could set up.
|IF...the price of electricity in the wholesale market falls below £55/MHh||THEN...switch the heating on|
|IF... the price of electricity in the wholesale market exceeds £65/MHh||THEN...switch off the ring lights|
|IF..the time is after 06:00 am||THEN...set the hot water to heat|
6. Switch to Easydry towels
Stop using cotton towels which you have to keep throwing into the washing machine and tumble dryer. This will drive up your energy bills. Instead, switch to Easydry towels.
Made from a super-absorbent fabric, they dry fast without a dryer and also offer high levels of hygiene. This eco-friendly measure can also soften your salon’s carbon footprint.