Connection research

Australian Small and Medium Enterprises want to be energy efficient, but most don't know how to do it. That is one of the key findings of Business Energy Consumption in Australia 2010, a new market analysis report based on a detailed survey of over 1,000 Australian SMEs.

The 150 page report, based on a detailed online survey, investigates what Australian SMEs are doing to reduce energy consumption. It shows that although energy efficiency is a high priority, as the price of electricity continues to rise, nearly half of all SMEs would be willing to pay more for energy if they knew that it was lowering overall carbon emissions.

"This provides an enormous opportunity for environmental and sustainability consultants to assist with the implementation of energy efficiency strategies and plans for SMEs," says Cassandra Phillips, Connection Research's Sustainability Portfolio Manager. "The report clearly shows that Australian SMEs are ready and willing to be educated on best practice policies and procedures".

Incentives, rebates and grants are important mechanisms to assist business to invest in becoming more energy efficient. But few businesses have even heard of the incentives that are currently available. The greatest inhibitor to change, cited by 40% of respondents, is the cost of changing to new energy efficient equipment.

The evolving energy market impacts consumers, utilities, state and federal governments and consultants in the field. The consumer now has a choice of retailer - and a choice in what kind of electricity they use. With all these choices you would think that SME consumers are better off - but are they?

A significant proportion of business owners remain ignorant about critical climate change and energy issues, and around 20% are climate change deniers. Awareness and knowledge of building rating schemes is very low, with the majority of respondents unaware of the many energy efficiency rebate schemes being offered by government.

Business owners want help and assistance to become more energy efficient. One third say that a lack of time and knowledge are inhibiting factors, 60% say they want more information about how to use energy more efficiently, and 20% say they don't know what to change but would like to receive an energy efficiency audit.

"Business owners' knowledge needs to improve," says Ms Phillips. "The government needs to further promote energy efficiency rebates, and utilities toned to provide better services before Australian businesses can effectively measure and mitigate their use of energy and become more energy efficient."

This is just some of the many insights into the market detailed in the Business Energy Consumption in Australia 2010 report, based on a comprehensive survey of over 1000 Australian businesses.