NFIB today released its Small Business Energy Survey. The report is based on a nationwide survey of small business owners and provides insight into the types of energy they use and how energy costs affect their operations.

It comes as the Virginia General Assembly considers a bill that would expand a carbon trading program for power generation. Under the program, power producers must purchase carbon allowances through state-run auctions. Click here to download NFIB’s Small Business Energy Survey.

“The survey shows that small businesses are deeply impacted by energy use and its costs,” NFIB State Director Julia Hammond said. “This legislation would lead to higher prices for small business owners and other consumers.”

On Tuesday, NFIB launched a statewide digital, print, and radio advertising campaign to raise awareness about several key issues, including energy costs. “Our members don’t think legislators fully understand what’s at stake if they drive up energy costs for small businesses,” Hammond said.

NFIB Research Center Executive Director Holly Wade said, “Small businesses are highly exposed to energy cost increases, have limited flexibility to reduce costs, and experience direct operational and financial impacts as a result.“As owners work to absorb the impact of energy costs into their business, it can often limit their ability to hire, retain talent, and grow.”

Key findings of the nationwide survey include:

• Across all major energy sources, about 80% of small business owners reported that energy costs significantly (very or moderately) impact the business.
• Small businesses owners have few good ways to manage increased energy costs. Lower profits (58%) and higher prices (52%) are the most common ways small business owners are absorbing increased energy prices.
• Just 8% of small owners reported that their costs had not increased in the last three years. These few owners achieved this outcome in a variety of ways:
  • Twenty-six percent reduced overall energy use.
  • Twenty-three percent upgraded to more efficient equipment or lighting.
  • Only 8% switched to less expensive energy sources.
  • Thirty-eight percent said costs stabilized because the energy prices they paid did not increase.

Energy Use and Cost Drivers

• Energy costs related to heating and cooling are the most common primary energy cost, followed by operating equipment and/or processes, and in third place, vehicles.
• All three were the primary source of energy costs for a significant portion of small businesses, illustrating the variety of small business operational realities.

Vehicles and Transportation Costs

• Two-thirds of small business owners report that energy efficiency is at least somewhat important when replacing vehicles. However, adoption of electric and hybrid vehicles remains very limited.
• In addition to investing in more fuel-efficient vehicles, many owners adjust business operations to curb fuel costs.
  • Examples of this include utilizing fewer vehicles (or less frequently), rescheduling or changing driving routes, more frequent maintenance, and negotiating with fuel suppliers.

​​​​​​​Electricity and Grid Reliability

• Grid reliability is a significant operational risk for small businesses.
  • Two-thirds of businesses experienced a power outage in the last year, most often due to equipment failure rather than weather events (55% vs. 15%; 28% were unsure of the cause).
• Small business owners do not believe that local data centers are contributing to higher electricity costs.
  • Just 5% of owners reported that their electricity costs were impacted by nearby data centers compared to 42% of owners saying their costs were not impacted by data centers.
  • 53% of respondents said they were not sure.

Energy Mix and Cost Management

• Most small business owners report they use multiple sources of energy in operating their business, all contributing to high operating costs.
• If a small business uses a fuel source, the cost is likely at least a moderate problem for the owner.
• Electricity is the most used source, and the source that is has the highest percent of users reporting that the cost is at least a moderate problem.

Recycling and Sustainability Practices

• Recycling is a common practice among most small business owners and is mostly voluntary rather than regulation-driven.
• Paper, cardboard, metal, and glass are the primary waste materials that are typically recycled at small businesses.

Methodology

This survey was conducted with a random sample of 20,000 NFIB members from NFIB’s membership database of around 300,000 small business owners. The survey was conducted by email from Nov. 3–Nov. 14, 2025. NFIB collected 775 responses.