NFIB has released its Small Business Energy Survey, which examines how energy costs affect small business operations across the United States. The survey arrives as Virginia lawmakers are considering a bill that could expand the state’s carbon trading program for power generation. Under this program, power producers would be required to buy carbon allowances through auctions managed by the state.
Julia Hammond, NFIB State Director, commented on the survey results and the proposed legislation: “The survey shows that small businesses are deeply impacted by energy use and its costs. This legislation would lead to higher prices for small business owners and other consumers.”
Earlier this week, NFIB began a statewide advertising campaign in Virginia to highlight issues such as rising energy costs. Hammond said, “Our members don’t think legislators fully understand what’s at stake if they drive up energy costs for small businesses.”
Holly Wade, Executive Director of the NFIB Research Center, addressed how increased energy expenses affect business operations: “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 from the nationwide survey indicate that about 80% of small business owners say energy costs have a significant impact on their business. Many have few options for managing these increases; most commonly they report accepting lower profits or raising prices for customers. Only 8% of respondents saw no increase in their energy costs over the past three years. Of those who did not see an increase, some reduced overall usage or upgraded equipment for better efficiency.
Heating and cooling represent the most common source of high energy costs for small businesses, followed by operating equipment or processes and vehicle use. While two-thirds of respondents consider vehicle efficiency important when replacing vehicles, adoption rates for electric or hybrid vehicles remain low.
Power reliability also poses challenges: two-thirds of surveyed businesses experienced a power outage in the past year—most due to equipment failures rather than weather events.
Regarding electricity pricing concerns related to local data centers, only 5% reported an impact on their electricity bills from nearby data centers; 42% said there was no impact while more than half were unsure.
Most small businesses rely on multiple sources of energy in their operations, with electricity being both the most used and most likely to present cost challenges.
Recycling is widely practiced among respondents and is typically done voluntarily rather than because of regulations. Paper products and metals are among the materials most frequently recycled by these businesses.
The survey gathered responses from 775 participants out of a random sample of 20,000 NFIB members between November 3–14, 2025.
