Business energy monitoring: Systems, software and how it works

Business energy monitoring tracks gas and electricity usage, turning data from smart and advanced meters into useful insights and alerts that a standard energy bill does not show.

This guide explains how it works, how it relates to energy and building management systems, the types of systems available, what they cost and who provides them, and how to use monitoring to optimise energy usage.

What is business energy monitoring?

Business energy monitoring is the process of tracking gas and electricity usage across an organisation’s sites, using smart meters at smaller sites, and half-hourly meters and sub-meters at larger ones.

These record usage at least every 30 minutes and send it to an online portal or monitoring platform, often with charts, dashboards and alerts that help spot unusual usage, identify waste and track the impact of any changes.

This gives a more detailed and frequent view of business energy consumption than a business electricity bill, which is only issued periodically and does not show the insights that can help cut energy costs.

How does a business energy monitoring system work?

Most business energy monitoring is straightforward, using data that meters already record, and presenting it in an online portal. It typically works as follows.

1. Energy usage is recorded

A smart or half-hourly meter records how much gas and electricity the premises use, usually every 30 minutes. Businesses wanting more detail add sub-meters to measure individual circuits, areas or equipment.

2. Readings are sent automatically

The meter sends its readings to the supplier without anyone needing to read it, keeping the data up to date.

3. Usage is shown in a portal

The readings appear in the supplier’s online portal or app, or a third-party platform, such as Consultiv Connect, typically as charts by day, week or month.

4. The business reviews and acts on the data

The data helps spot issues such as high overnight usage or unexpected spikes, with some platforms sending alerts when usage moves outside expected levels.

5. Integration with an EMS or BMS (optional)

Monitoring data is also a building block for a wider energy management system (EMS), which combines it with information such as weather and emissions data to set reduction targets, manage maximum demand and support reporting.

It can also feed into a building management system (BMS), which uses it to adjust heating, cooling and lighting automatically.

What can a business energy monitoring system measure?

Depending on the meters and sensors installed, a business energy monitoring system can measure:

• Electricity consumption: Total usage in kWh, down to each half hour or less.
• Gas consumption: Total usage measured in volume and converted into kWh by the monitoring software.
• Energy demand: The rate of power drawn at any point, including the site’s maximum demand in kW or kVA.
• Power factor and reactive power: How efficiently the site uses the power it draws, helping to avoid reactive power charges.
• Power quality: Voltage, current and imbalances between phases, which can indicate faults or equipment problems.
• Usage by area or equipment: Consumption of individual circuits, floors, departments or machines, measured through sub-meters.
• On-site generation and storage: Output from solar panels or generators, energy exported to the grid, and battery charge and discharge.

Types of business energy monitoring systems

Energy monitoring systems range from simple monitors to multi-site third-party platforms. The main types, ordered from least to most complex, are:

Supplier and smart meter portals

Used by: Small businesses wanting a basic view of whole-site consumption.

Free online tools provided by business energy suppliers showing usage recorded by the main meter. They’re usually free, but offer limited detail and don’t show where energy is being used on site.

Standalone monitors

Used by: Small sites, or businesses investigating specific equipment.

Clamp-on sensors or plug-in devices that measure the electricity used by a single circuit or piece of equipment, displayed on a local screen or app.

They’re low-cost and quick to install, making them suited to small sites or short-term investigations.

Sub-metering systems

Used by: Larger sites, multi-tenant buildings and businesses needing to allocate costs.

Permanently installed meters on individual circuits, areas or equipment, connected to a monitoring platform. They show exactly where energy is being used, and allow costs to be recharged to tenants or departments.

Find out more in our full guide to commercial sub-metering systems.

Third-party monitoring platforms

Used by: Multi-site businesses and those with regular reporting requirements.

Third-party, cloud-based software that brings together data from main meters, sub-meters and sensors across one or more sites, with dashboards, reports and alerts. It is typically used to provide a single view of consumption across the whole organisation.

Commercial energy monitoring solutions

Commercial energy monitoring is usually provided as a package, combining the hardware, software and support needed to turn data into savings. A typical solution includes:

• Metering and sensors: Main meters, sub-meters, clamp-on sensors and data loggers installed at the main supply and key equipment.
• A monitoring platform: Software with dashboards, reports and alerts, usually accessed online.
• Installation and setup: Fitting the hardware, connecting it to the platform, and configuring it for the site.
• Analysis and support: Ongoing review of the data, with recommendations on where savings can be made.

How do I get a commercial energy monitoring system?

These solutions are available from a few types of provider, including:

• Business energy suppliers: Some offer monitoring tools or upgraded portals alongside their supply contracts, usually focused on whole-site data.
• Specialist monitoring providers: Companies that supply and install metering hardware and their own monitoring platforms, often on a subscription basis.
• Energy consultants, brokers, and building management firms: Providers offering monitoring as part of a wider energy management solutions and smart buildings services that support businesses looking to implement EMS or BMS.

Consultiv customers can access Consultiv Connect, a platform that brings their meter data together in one place, with half-hourly reporting, daily and hourly consumption breakdowns and analysis by meter.

What features should business energy monitoring software have?

The features worth looking for depend on the size of the business and what it wants to achieve, but most effective monitoring software includes:

• Data frequency and accuracy: Readings at least every half hour, ideally closer to real time, so issues can be spotted as they happen.
• Clear dashboards: Visual breakdowns of usage over time, by site, area or equipment, that are easy to interpret without technical knowledge.
• Alerts: Notifications when usage moves outside expected levels, such as a sudden spike, out-of-hours consumption or a drop in power factor.
• Cost and carbon tracking: Conversion of usage into costs and emissions, using the business’s actual tariff rates and recognised carbon factors.
• Benchmarking and normalisation: Comparisons between sites or periods, adjusted for factors such as weather and operating hours, so like-for-like changes can be identified.
• User access and permissions: Separate logins and access levels, so only authorised users can change settings or alerts.
• Integration capabilities: Connections with building management systems or other business software, allowing data to be shared and acted on automatically.

Can businesses monitor electricity and gas together?

Yes, most business energy monitoring platforms can combine electricity and gas data from the site’s meters and sub-meters in one place, alongside other utilities such as water and heat where suitable meters are installed.

Because gas is converted into kWh, both fuels can be shown and compared in the same unit, making it easier to compare their efficiency for similar functions.

How to monitor energy across multiple business sites

Monitoring several sites requires data from the various sites to feed into one system, and the data must be measured consistently across for comparison. The general advice is to:

1. Use a single monitoring platform: Bring every site’s data into one centralised platform, rather than relying on separate supplier portals for each location.
2. Organise the data consistently: Group sites by region, type or business unit, using the same naming and structure throughout, so data is easy to compare and report on.
3. Normalise data: Adjust for differences in floor area, operating hours and weather, for example by comparing usage per square metre, so sites of different sizes can be benchmarked fairly.
4. Identify outliers: Use the comparisons to spot sites using noticeably more than similar ones, which often points to faults, inefficient equipment or poor practices.
5. Assign responsibility: Give site managers access to their own data and alerts, so issues can be investigated locally, while central teams retain an overview of the whole portfolio.

How businesses can use energy monitoring to reduce consumption

Energy monitoring produces insights into where savings can be made and whether changes are working. Here is how to use it effectively:

1. Set a baseline: Record typical usage over a representative period, so later readings can be judged against a reliable reference point.
2. Identify the largest consumers: Use sub-metering data to find which equipment or areas use the most energy, and prioritise improvements there.
3. Cut out-of-hours waste: Check usage overnight and at weekends, when it should be at its lowest. Consumption that stays high usually means equipment or heating is being left on unnecessarily.
4. Reduce peaks: Identify the half hours that set the site’s maximum demand, and reschedule or stagger heavy loads to lower it.
5. Catch faults early: Act on alerts for sudden spikes or gradual increases, which often point to failing equipment or faulty controls before they become costly.
6. Engage staff: Share site or department usage with the people responsible for it, so they can see the effect of their own actions.
7. Measure the impact of changes: Compare usage before and after any improvement, such as new lighting or adjusted heating schedules, to confirm the saving is real.

How much does commercial energy monitoring cost?

Commercial energy monitoring costs can range from free by using the supplier’s portal or cost tens of thousands of pounds for large multi-site businesses.

The cost depends on the scale and complexity of the system, and how it’s supplied. The main factors are:

• Type of system: Supplier portals are often free, standalone monitors are relatively inexpensive, while sub-metering systems and integrated platforms involve significantly more hardware and setup.
• Number of sites and meters: Each additional site, sub-meter or sensor adds hardware, installation and often software costs.
• Hardware: Meters, sensors, data loggers and communication devices, with costs varying by type and the size of the circuits being measured.
• Installation: Fitting sub-meters requires a qualified electrician and, on some sites, a planned shutdown of the supply, while clamp-on sensors are quicker and less disruptive to install.
• Existing metering: Sites that already have smart or half-hourly meters can often feed data into a platform with little extra hardware, reducing the upfront cost.
• Software subscription: Monitoring platforms are usually charged monthly or annually, often per site or per meter, with the price rising for more advanced features.
• Analysis and support: Some providers include ongoing data review and recommendations, while others charge separately or leave analysis to the business.
• Contract structure: Some providers bundle hardware, installation and software into a single ongoing fee, spreading the cost rather than paying upfront.

Does every business need an energy monitoring system?

No, a monitoring system involves an upfront and ongoing cost, so it’s only worthwhile where the savings it helps deliver outweigh that cost over time.

For small businesses with modest bills, a smart meter and the supplier’s free online portal are usually enough to track consumption and check bills. A dedicated system becomes more worthwhile as energy costs and complexity increase, typically for businesses with:

• High energy costs: Where even a small percentage saving represents a meaningful amount, such as manufacturing, hospitality or warehouses with refrigeration.
• Multiple sites: Where comparing and managing several locations is difficult without a centralised solution.
• Half-hourly metering: Where managing maximum demand and power factor can directly reduce costs.
• Energy-intensive industries: Those with large refrigeration, compressors or production machinery, where faults or inefficiencies can quickly add up.
• Reporting obligations: Such as ESOS compliance and Streamlined Energy and Carbon Reporting, which require accurate, well-organised consumption data.
• Tenants or departments to recharge: Where usage needs to be measured separately and billed accurately, monitoring can be hugely beneficial.
• Sustainability targets: Where progress towards carbon reduction goals needs to be tracked and evidenced.

How to choose a business energy monitoring system

Choosing the right system depends on what the business requires. Follow these steps to help narrow down the options:

1. Define the objective: Decide what the system is for. This could be for understanding energy usage, managing maximum demand, recharging tenants, meeting reporting obligations, tracking carbon targets, etc.
2. Review existing metering: Check whether each site already has smart or half-hourly meters. Where it does, a software platform using that data may be enough, without additional hardware.
3. Decide on the level of detail: Whole-site data suits basic tracking, while identifying where energy is used requires sub-metering of key areas or equipment, covered in the types of system above.
4. Consider the scale: Analyse the number of sites and meters now and in future, and choose a system that can expand without needing to be replaced.
5. Check compatibility and data access: Make sure the system works with a range of meters and sensors, and the integration with any Building Management Systems currently used by your business.
6. Assess ease of use and support: Look for clear dashboards that staff will actually use, and check whether analysis and recommendations are included or charged separately.
7. Compare the full cost: Weigh the upfront hardware and installation costs against ongoing subscription fees, contract length and any exit terms.

Business energy monitoring FAQs

Our energy experts answer commonly asked questions regarding commercial energy monitoring:

How often should a business review its energy monitoring data?

It depends on the size of the business and how much it spends on energy, but a regular routine matters more than the exact frequency. As a general guide:

• Daily or weekly: For larger or energy-intensive sites, a quick check of recent usage and any alerts catches faults and waste early.
• Monthly: A review of overall usage against the baseline and the same month last year, alongside the bill, to spot trends and check charges.
• Annually: A wider review of performance, progress against targets, and whether metering or Available Supply Capacity arrangements still suit the business.

What can’t an energy monitoring system tell you?

Monitoring gives insights into a business’ energy use, but it has limitations:

• Why usage has changed: It can highlight a spike or increase, but identifying the cause often still requires investigation.
• Where energy goes without sub-metering: Whole-site data shows total usage, but not which equipment or area is responsible.
• Whether the tariff is competitive: It tracks consumption, but doesn’t show the best business electricity prices and business gas prices available. This requires businesses to compare business energy quotes from different suppliers.
• What will happen next: It records past and current usage, but can’t reliably predict future consumption or prices.
• Savings on its own: It identifies opportunities, but savings only come from acting on what the data shows.