How to save energy in your commercial kitchen

Learn how to save thousands on energy bills with smart upgrades and habits in your commercial kitchen. Tailored for Australian hospitality venues ready to improve efficiency.

Key takeaways

• Energy costs are rising: Australian commercial kitchens can spend up to 30% of total operational costs on energy, with electricity and gas prices projected to rise another 9–11% in FY25.
• Equipment efficiency matters: Upgrading to high-efficiency appliances can cut energy use by 20–40%, saving thousands annually.
• Refrigeration is a major culprit: It accounts for up to 50% of electricity usage in many Australian hospitality businesses.
• Simple habits help: Practices like regularly cleaning filters, shutting off unused appliances, and loading dishwashers correctly can reduce energy waste by 10–15%.
• Government support is available: The Business Energy Advice Program (BEAP) and various state-based energy efficiency grants can offset upgrade costs.
  

Introduction

Running a commercial kitchen in Australia isn’t cheap, and energy bills are one of your biggest expenses. With electricity and gas prices continuing to rise, many venues are under pressure to maintain margins without compromising quality or compliance. Fortunately, cutting your kitchen’s energy use doesn’t mean a complete overhaul. With the right equipment, smart habits, and targeted upgrades, your business can save thousands per year, while also reducing your environmental footprint. Here’s how.

Understand where your energy goes

Before you can cut usage, you need to know where it’s going. In most commercial kitchens, energy consumption breaks down into:

• Refrigeration: 30–50% of total electricity use
• Cooking equipment: 20–40% (especially ovens, fryers, grills)
• Dishwashing: 10–15%, depending on water heating methods
• Lighting and HVAC: 10–20%, especially if back-of-house areas aren’t optimised
  
  

According to the Australian Government’s Energy.gov.au data, inefficient kitchen equipment can use up to 70% more energy than newer, compliant models.

Upgrade to energy-efficient appliances

Switching out old, inefficient equipment is one of the fastest ways to cut costs.

Look for commercial models with:

• High star ratings under the Commercial Equipment Energy Efficiency Program (CEEEP)
• Induction cooktops, which use 30% less energy than gas burners
• Combination ovens with programmable settings to reduce idle time
• Energy-efficient dishwashers with heat recovery systems
• Refrigeration units with EC (electronically commutated) fans and night blinds

Specific equipment to upgrade for energy efficiency

Not all equipment is created equal when it comes to energy performance. Some older appliances can quietly burn through thousands of dollars a year in wasted energy. Here's where to start if you're serious about cutting your commercial kitchen's energy bill and boosting efficiency.

1. Refrigeration units

Refrigeration is often the single largest source of energy consumption in Australian commercial kitchens.

Upgrade to:

• ENERGY STAR-rated commercial fridges and freezers
• Units with EC (electronically commutated) motors
• Glass door fridges with LED lighting and motion sensors
• Smart controllers that manage defrost cycles and temperature drift
  
  

A typical commercial fridge swap can save around $400–$1,200 annually in power bills, according to Energy.gov.au.

2. Cooking appliances

Inefficient cooktops, fryers, and ovens are major energy hogs — especially if they run continuously during service.

Upgrade to:

• Induction cooktops, which are up to 90% efficient compared to ~60% for gas
• High-efficiency convection ovens with programmable settings
• Rapid-recovery deep fryers that retain heat better and use less oil
• Combi ovens that combine steam and convection for faster cooking with less energy
  
  

An efficient combi oven can cut energy use by 20–30% and reduce cooking time by up to 25%.

3. Dishwashers

Water heating is a hidden energy cost. Outdated dishwashers waste both water and electricity.

Upgrade to:

• Energy-efficient pass-through or under-bench models with heat recovery
• Machines with low water consumption cycles (look for ≤1.5L per rack)
• Booster heating elements powered by renewable electricity (e.g. solar-assisted systems)
• Timers or auto shut-off functions to prevent idle usage
  
  

Modern dishwashers can use up to 50% less water and save $300–$600/year in energy and water combined.

4. Ventilation and exhaust systems

Exhaust fans and HVAC systems often run at full power regardless of real cooking load.

Upgrade to:

• Demand-Controlled Ventilation (DCV) systems that adjust based on activity
• EC motor exhaust fans for better control and lower energy draw
• Grease filter sensors that alert staff when cleaning is needed (to keep airflow efficient)
  
  

Upgrading to DCV can reduce ventilation-related energy use by 30–50% according to Sustainability Victoria.

5. Hot water systems

Water heating for handwashing and dishwashing is another major cost area.

Upgrade to:

• High-efficiency gas or electric storage systems
• Instantaneous (tankless) systems that only heat on demand
• Solar hot water systems with electric backup for regional or off-grid venues
  
  

Modern high-efficiency units can save up to 25% on water heating costs annually.

Improve refrigeration practices

Refrigeration is a major energy drain in any kitchen, but small changes make a big difference.

Best practices include:

• Don’t overload fridges or freezers, which blocks airflow and makes compressors work harder
• Check seals and gaskets regularly for wear, even minor leaks can increase energy use by 10–15%
• Clean condenser coils monthly to maintain cooling efficiency
• Install strip curtains or automatic doors for walk-ins
• Set temperatures correctly: -18°C for freezers, 3–5°C for fridges
  
  

The NSW Office of Environment & Heritage estimates poorly maintained refrigeration can increase energy use by 30%.

Optimise cooking equipment use

Energy waste in cooking often comes down to misuse or overuse.

Here’s how to tighten things up:

• Turn equipment off when not in use, especially grills, fryers and ovens
• Use timers and programmable thermostats to preheat only when needed
• Match pot size to burner size to avoid wasted heat
• Keep lids on pots to reduce cooking times and steam loss
• Batch cook where possible to avoid repeated heat-up cycles

Quick-win energy-saving tips under $100

If you’re not ready to overhaul your kitchen with major upgrades just yet, don’t worry — there are plenty of low-cost, high-impact actions you can take today. These quick fixes cost less than $100 and can help reduce your energy usage immediately, especially in smaller cafés, takeaways, or leased kitchens where investment flexibility is limited.

Here are the easiest wins to get started:

• Install tap aerators on kitchen sinks
• Reduces hot water use by controlling flow without affecting water pressure — especially helpful in dish/prep areas.
• Use power boards with timers or master/slave controls
• Automatically shut off appliances overnight or when not in use to eliminate standby power drain (especially from fridges, POS, or benchtop appliances).
• Fit LED strip lighting under benches and shelves
• Replace fluorescent tubes or halogens to save up to 75% in lighting energy. Bonus: improves visibility and safety in prep zones.
• Add digital fridge/freezer thermometers
• Ensure your refrigeration units aren’t running colder than necessary. Even 1–2°C too low can increase energy use by 5–10%.
• Install night blinds on open display fridges
• Minimises heat ingress outside trading hours, reducing compressor workload and saving $100–$300 per year depending on usage.
• Use silicone door seals or magnetic strip replacements\
• Improve insulation on older refrigeration units for minimal cost and big thermal gains.
• Place “switch-off” reminder stickers on idle appliances
• Low-tech but effective for fryers, ovens, pass-throughs, and lighting — particularly for casual or shift-based teams.
  

Use lighting and ventilation wisely

Don’t overlook your kitchen’s environment, your ceiling and walls might be costing you money.

Actions to consider:

• Replace halogens with LED lights, which use 75% less energy
• Use occupancy sensors for storage and prep areas
• Clean grease filters weekly to maintain ventilation efficiency
• Install demand-controlled ventilation (DCV), which adjusts exhaust fan speed based on real-time cooking activity
  
  

Smart ventilation systems can cut exhaust fan energy use by 30–50%, according to Sustainability Victoria.

Train your staff on energy-smart habits

Staff behaviour can have a massive impact, but only if they know what to do.

Incorporate into training:

• Always turn off idle appliances and lights
• Load dishwashers fully and use eco cycles
• Avoid unnecessary door opening on fridges and freezers
• Keep cooktops and equipment clean for maximum heat transfer
• Report equipment faults immediately before they escalate energy use
  
  

A staff-led energy saving program can reduce usage by up to 10% in just a few months.

Tap into rebates and funding support

Australian businesses can access several programs to offset the cost of upgrades.

Federal and state-based options include:

• Business Energy Advice Program (BEAP) – free energy consultations and tailored recommendations for SMEs
• Energy Efficient Communities Program – Food and Beverage Manufacturing – funding for eligible upgrades
• Victorian Energy Upgrades (VEU) and NSW Energy Savings Scheme (ESS) – rebates on lighting, refrigeration, and HVAC improvements
• Clean Energy Finance Corporation (CEFC) – finance solutions for energy-efficiency projects

Final thoughts

Running a commercial kitchen efficiently is no longer just a “nice to have”, it’s essential for long-term profitability and sustainability. Whether you manage a café in Melbourne, a pub in Brisbane, or a hotel kitchen in Perth, energy-saving measures are within reach. The key is to start with the biggest wins, inefficient equipment and poor practices, and build from there. With the right strategy, you’ll reduce costs, meet growing sustainability expectations, and create a more resilient foodservice operation.