Demand for warehouse space has doubled in the last decade. That’s according to real estate experts CBRE. This is partly driven by our changing consumer behaviour and the popularity of shopping online. This trend is expected to continue. But space doesn’t come cheap.

As sky-high energy costs continue to eat into profits, it’s important that warehouses operate with maximum efficiency and it’s one of the easiest ways to cut costs. With that in mind, GridDuck suggests five ways warehouses can save on energy bills.

1) Be smart on lighting 

The Carbon Trust estimates that warehouses spend the most on lighting, accounting for 65% of energy use, rising to an incredible 95% in some cases. So, the first place to look to make savings should be on your lighting. Before doing anything else, ensure that you are making the most of natural light and switching off any unnecessary lights during the day. 

Similarly, don’t light areas that are unoccupied, and use low-energy LED lights when possible. The Energy Saving Trust estimates that switching from a 100-watt incandescent bulb to an LED can save up to £15 per bulb per year – and that’s likely to be more now. Meanwhile, the Carbon Trust has a case study in which a leading distributor replaced warehouse lighting with a low-energy solution, slashing energy costs by 75% and paying back the investment in 28 months.  

2) Check heating / ventilation / air-conditioning 

Unlike offices where people sit for long periods of time, warehouses don’t need constant heating. It’s worth bearing in mind that heating costs for a business rise by around eight percent for every extra degree a thermostat is turned up. In warehouses, temperatures can be kept to 16°C or as low as 13°C if the work requires a lot of physical activity. Also avoid heating areas such as stairways and corridors. To keep heat from escaping, ensure you have upgraded or at least checked your insulation and that the building is airtight. 

Don’t forget to regularly check any steam boilers – these can cost a business a huge sum of money if they’re leaking. According to the Carbon Trust, the biggest source of heat loss in warehouses stems from air leaks, followed by the floor and roof panels. 

Most warehouses use natural ventilation, such as doors, windows and roof vents, so it’s worth asking if you really need to invest in air-conditioning. A building that has A/C will be using approximately twice as much energy as one that doesn’t. It’s more likely that you’ll need to invest in mechanical ventilation, but cold air will need to be heated and this will push warmer air to the roof. Think about using stratification fans that will redistribute warm air back to floor level and save on heating costs. 

What we see often is that commercial and industrial buildings are lit, heated or cooled outside of working hours - overnight or over the weekend. Make sure to have processes in place to switch off the lights, heating and cooling after the last shifts.  

3) Balance your refrigeration needs 

According to the Cold Chain Federation, about 70% of the total energy use on a site can be going to refrigeration. Because of the recent hike in energy costs, the organisation now considers the need for energy efficiency in the cold chain ‘unprecedented’. Balancing your energy needs is important, which means you need to match capacity with demand. Too much energy can result in waste, while too little can result in system damage and food loss. 

You can try to implement a strategy to run refrigerated systems for fewer hours in the day, avoiding peak periods – but the feasibility of this will vary from business to business. We spoke to one company that specialises in demand-side energy, a business that helps clients maximise their energy flexibility in the UK, with savings made from avoiding expensive peaks. GridDuck, meanwhile, helped one cocktail chain save 35% of their energy by automating drinks fridges, earning a return on investment in just seven months. 

While it’s still relatively uncommon in the UK, refrigeration as a service is increasingly being used as a solution in other parts of the world. In Denmark, for instance, engineering firm Danfoss is responsible for the energy and refrigeration components of some supermarkets and stores, while the client only pays a monthly cooling or heating bill, as one of their business experts told us. 

Need more detailed advice? The Cold Chain Federation has produced a comprehensive guide for cold store operators, available for download. 

4) Invest in solar PV 

This one will require more long-term investment but it's worth considering as the government ramps up the move to net zero and introduces legislation that will force businesses to become more energy efficient. For instance, the Future Building Standard – expected to be introduced in 2025 – requires buildings constructed to this standard to be net-zero carbon ready. Effectively, this means that they will require no retrofitting to reach net zero carbon. 

According to Warehouse UK Magazine, accelerating the growth of rooftop solar on warehouses will double the UK’s solar capacity – a key factor in reaching net zero – and it will meet more rigorous government standards. It will also reduce electricity costs and mitigate against the volatility of supply, both of which will pay back the investment. 

5) Invest in an energy management system (EMS)

You can’t manage what you can’t measure. The biggest savings are likely to come from taking advantage of existing technology and investing in an energy management system (EMS). This will allow you to have an overview of what appliances or areas inside a warehouse are consuming the most energy, including abnormal amounts. GridDuck’s dashboard translates data into easy-to-use charts and graphs that show energy use in real time, 24 hours a day. 

One big advantage for clients is automating certain functions, including lights, heating, air-conditioning, refrigerators, appliances, and other operations. We worked with one refrigerator manufacturer operating a 33,000ft factory in Norfolk, UK. Some of the devices on site included an industrial punching machine, a compressor, large air-con units, and hot glue guns. 

The manufacturer came to us to understand what areas were using the most energy and at what times of the day. GridDuck installed simple CT clamps to monitor just a few machines and appliances. In the first four months, Foster Coldstores benefited from a 58% energy reduction. 

Likewise, we partnered with an online retailer of bar, glassware and catering equipment, to monitor the energy consumption of their warehouse and how much renewable energy was being generated from solar PV panels. Six GridDuck clamps were installed across multiple circuits in the Drinkstuff warehouse, allowing the company to measure energy generation and identify how groups of appliances were consuming energy in real time.

“We have been using the data to highlight where we are using the most energy and checking electrical equipment and lights are switched off when not in use,” said one of Drinkstuff’s warehouse supervisors. Despite introducing an electric vehicle charging scheme on site, the company has seen their energy use drop by 27%.

In summary, effective energy management is crucial to achieving maximum energy efficiency. If you have robust systems in place to measure your energy use, you will be more equipped to come up with achievable and actionable solutions. 

Learn more about GridDuck and energy management by contacting us.