Energy Efficiency Policy Toolkit

Small and Medium Enterprises

Policy Package – Small and Medium Enterprises

Immediate opportunities
An average SME has the potential to save up to 30% of its energy bill through proven energy efficiency measures with short payback times.

SMEs typically pay more for their energy than larger businesses - but can gain 1.5 times as much in savings from energy efficiency improvements.





SMEs account for 90% of all businesses, 60% of jobs and over 50% value added globally, highlighting their economic importance. Increasing energy efficiency can help SMEs reduce costs, boost profits and productivity, and strengthen long-term resilience.

Regulation

  • Building energy codes for commercial buildings set efficiency requirements for new and/or existing buildings, embedding efficient use of energy in SME operations and reducing long‑term running costs.
  • Minimum Energy Performance Standards raise the overall quality of products on the market and guide users toward more efficient, reliable technologies. For SMEs, this delivers more efficient operations, lower energy bills, and more reliable equipment
  • Regulating energy efficiency related services, such as audits, installations, and energy management, helps ensure SMEs receive reliable, effective efficiency support. Including SME‑specific actions in these regulatory areas and in national energy plans accelerates energy‑efficiency progress for SMEs

Information

  • Creating sector-specific technical guidance materials, accompanied by capacity‑building and advisory support services, allows SMEs to compare their energy performance with that of their peers and provides the support SMEs may need to implement energy efficiency measures.
  • Approved energy technology lists, often linked to incentives such as audits or finance, allow SMEs to easily compare and select high‑performing, energy‑efficient products.
  • Sharing information on energy efficiency best practice by partnering with trusted intermediaries such as business associations, networks and service providers helps raise awareness and break down barriers to energy efficiency implementation in SMEs.

Incentives

  • Partnering with lending institutions to integrate financial support with administrative and technical assistance enhances SMEs’ capacity to invest in energy efficiency and facilitates effective implementation.
  • Policies to foster Energy Service Companies expand SMEs’ access to specialised external energy expertise and to financial arrangements structured to support efficiency investments.
  • Free or subsidised energy audits targeted at SMEs can help rapidly increase energy efficiency.
  • Support for digitalisation and AI to adopt smart metering, smart controls, and AI‑based management systems that provide real‑time visibility, enable flexible demand response, and unlock efficiency and cost‑saving opportunities with minimal time and resource investment.

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