Energy Efficiency Myths That Cost SMEs Money — Why Insulation Should Come First

Small businesses are constantly bombarded with advice about energy efficiency. From switching to LEDs, installing smart controls to upgrading your boiler or installing solar panels. Whilst these are all good things to do, one project is often overlooked. The quiet, unassuming and unglamourous world of draught-proofing and insulation. I’ve recommended this as a starting point for so many businesses as it can deliver great savings.

The truth is simple: if your building is leaking heat, you are losing money.

Insulation isn’t flashy, but it’s the foundation that makes every other upgrade more effective. And yet, it’s one of the most overlooked opportunities for SMEs.

Let’s look at the myths that hold businesses back — and the practical steps you can take to fix them.

Myth 1: “Insulation is only for old buildings or homes”

It’s easy to see why this misconception persists. Domestic energy advice is everywhere, and many SMEs assume insulation is something for draughty Victorian terraces, not commercial units.

But the physics of heat loss doesn’t care what type of building you operate from. Offices, warehouses, retail units, workshops — they all lose heat through the same mechanisms:

• Conduction: heat passing through walls, floors, roofs

• Convection: warm air escaping through gaps and being replaced by cold air

• Air leakage: uncontrolled draughts around doors, windows, and service penetrations

  
  

Even if you have a new commercial unit, it’s worth checking around windows and doors for draughts.

If your building fabric is poor, your heating system is working overtime just to maintain a baseline temperature. That’s wasted energy, wasted money, and unnecessary carbon emissions.

Myth 2: “Insulation is expensive and disruptive”

Some insulation measures do require investment, but many are surprisingly low cost and low disruption:

• Draught proofing doors and windows

• Pipe and tank lagging

• Sealing gaps around service penetrations

• Insulating suspended ceilings

• Loft or roof insulation

There are so many insulation options available. If you have a suspended ceiling, insulation pads are a great option as they are the same size as the ceiling tile for easy installation with minimal disruption.

There have been grants available for larger interventions, like wall or roof insulation, so it’s worth speaking to your local council’s business support team to see what is available in your area.

A well insulated building needs less heating and cooling, meaning lower bills from day one.

Myth 3: “Solar panels will be more beneficial”

This is a common trap I’ve seen SMEs fall into, especially if they have an electric based heating system such as air conditioners or electric wall heaters. Solar panels can be brilliant – but only if the building fabric is doing its job.

Insulation reduces demand. It stops heat escaping, so you need less energy in the first place.

Insulation allows your heating and cooling systems to run at lower loads, cycle less often, and last longer. Plus, lowering your energy consumption may also mean you need a smaller solar panel system – saving you more money.

Where SMEs Actually Lose Heat (and Money)

Every building is different, but most heat loss comes from a few predictable places:

• Roofs: often the biggest single source of heat loss

• Walls: especially solid walls

• Floors: particularly in older or suspended floor buildings

• Windows and doors: gaps, poor seals, and single glazing

• Air leakage: around vents, pipework, and service penetrations

• Uninsulated pipes, tanks, and ducting: constant, silent heat loss

You don’t need specialist equipment to spot many of these issues — a simple walk round on a cold day can reveal cold spots, draughts, and areas that never quite feel warm.

Photo by Erik Mclean, Pexels.

A Practical Checklist: How SMEs Can Assess Their Insulation Needs

Here’s a simple starting point:

• Walk around the building and note cold areas or draughts

• Check lofts, suspended ceilings, and plant rooms for missing insulation

• Review energy bills for seasonal spikes or unusual patterns

• Ask your landlord for building fabric information

• Prioritise areas with the fastest payback or easiest access

This isn’t about perfection — it’s about identifying the biggest wins with the least disruption.

Case Example: The benefits of increasing loft insulation

One client had recently purchased and beautifully renovated a Victorian property to use as their offices. They were already tracking their energy use and making thoughtful sustainability improvements, but during my visit I checked the loft and found only around 100mm of insulation in place. Modern guidelines recommend a minimum of 270mm.

They topped up the insulation shortly afterwards — a quick, low cost fix — and saw an immediate drop in their gas consumption. A perfect example of how even well intentioned businesses can miss hidden inefficiencies, and how small, targeted actions can deliver instant savings.

The Business Case: Why Insulation Should Come First

When SMEs start with insulation, everything else becomes easier:

• Lower energy bills

• More stable indoor temperatures

• Reduced strain on heating and cooling systems

• Lower carbon footprint

• Better comfort for staff and customers

• A stronger foundation for future upgrades like heat pumps or solar

Insulation isn’t glamorous, but it’s powerful. It’s the quiet, reliable work that makes your building, and your energy strategy, perform at its best.

Closing Thoughts

Energy efficiency isn’t a shopping list of gadgets. It’s a system. And the system only works when the building fabric is sound.

If you’re planning energy upgrades this year, start with insulation. It’s the simplest, smartest, most cost effective step you can take — and it unlocks everything else.

If you’d like help understanding where your biggest energy savings are hiding, I can support you with a practical, easy to understand review of your building and operations.