Commercial Energy Cost Reduction

commercial electricity cost reduction

Energy is an essential pillar in today’s commercial workforce. Energy is required in practically every aspect in order for a business to function well. While we may not notice when energy is being used in the workplace, one of the unintended consequences is the rise of one’s electric bill. As the business sector continues to grow, paired with general inflation, electric bills can easily become one of the larger than average.

In order to curb a growing electric bill, the positive side is that there are actions you can take for commercial electricity savings. By implementing some of the strategies examined in this article, you can decrease the cost of your electricity bill.

Minimize Your AC Usage

Your AC is a significant contributor to your overall utility bill. In order to decrease the use of your AC, but still maintain a cool environment, consider using table and ceiling fans. When the weather is cool, you can use fans instead of AC; while, when the weather is hot, use fans in addition to AC but increase your AC to a higher than normal temperature. By so doing, you can ensure you’re minimizing the amount of AC you use in your business. Additionally, turn off your AC unit whenever you leave work for the day. This way, your AC unit will not constantly run and cost you money when no one is there.

When purchasing a new AC unit, make sure you are purchasing the right sized unit. Energy Star, the US government-backed symbol for energy efficiency, explained, “[o]versizing . . . can shorten the life of the equipment by causing it to cycle on and off more frequently than a properly sized unit. However, undersized equipment can reduce the efficiency and accelerate wear on system components, leading to early failure.”

Minimize Your Use of Lights

Lighting accounts for a decent portion of a monthly electric bill. Minimizing the time your lights are turned on will help you decrease your overall electricity bill as well. You can also consider purchasing automatic timers to turn off the lights as well. In order to reduce your electricity bill, start by simply turning off a light when you are not using it. If you do not wish to turn off your lights, consider purchasing energy-efficient light bulbs. LED lights additionally use 90% less energy than traditional incandescent light bulbs. As less energy is used on your lighting, your energy bill will lower as well.

Additionally, the U.S. Department of Energy recommends you consider purchasing dimmers. Although dimmer will produce lower light levels, they will decrease the overall energy use. Some dimmers also offer features such as motion or daylight sensors. The use of dimmers, all in all, will lower your overall energy bill.

If you are in the process of purchasing a new building but also want to save money on a future electric bill, look for buildings that incorporate more daylight throughout the building. By having more sunshine around the building, not only will you minimize the amount of time your lights are turned on, but also you will get some wonderful Vitamin D and boost customer and employee morale due to the natural lighting.

Learn Your Electricity Rate

Learning your electricity rate can help you minimize the overall electricity bill you will receive at the end of the month. An energy data analyst associated with the North Carolina State University’s Energy Management, Lib Reid McGowan, wrote that “[k]nowing your electricity rate is the key first step in your cost-saving plan.” McGowan explained there are two different types of rates: A standard residential rate, and a time of use rate. In order to determine which rate you have, you need to check with your utility provider.

With standard residential rates, you are charged the same fixed cost per kilowatt hour at all hours of the day. McGowan goes on to explain that a time of use rate, on the other hand, charges different costs depending on the time of day the energy is used. A time of use rate adjusts the rate you pay for your electricity throughout the date. When the demand for energy and the cost of generating said energy is low, the time of use rate is also low. Conversely, when the demand for energy is high, and the cost of creating said energy is also high, the time of use rate will be high as well.

If you have a standard residential rate, then the method explained below will not help you save money. However, if you have a time of use rate, then, as McGowan explained, “timing is key to curbing your energy costs. Depending upon your electricity provider, your electricity costs during on-peak hours may be three-times as high as in off-peak hours.” For instance, the Pacific Gas and Electric Company’s springtime time of use rate is off-peak, and thus a low energy cost from 9:00 pm to 9:00 am and 2:00 pm to 4:00 pm.

The time of use rate from 9:00 am to 2:00 pm is super off peak and, therefore, the lowest energy cost. However, the time of use rate from 4:00 pm to 9:00 pm is peak with a higher energy cost. In order to determine what the peak hours are for your provider, you can contact your provider directly or look to see if any information has been provided online.

As such, if you have a time use rate, maximizing your energy use when your utility providers are in the “off peak” time zone will help lower your utility bill.

Energy is a paramount necessity for operating a successful business. In order to decrease your electric bills, you can turn off your lights more, install energy efficient light bulbs, utilize natural lighting, turn off your AC when you leave, and, if your energy provider utilizes time of use rates, maximize your energy use during the off peak hours.

Get Lower Electric Rates with Green Line Rates


At Green Line Rates, we are ready to be your partner in reducing your commercial utility costs. Working on a contingency basis, we don’t require any upfront payment to save your company money. Instead, if we find utility cost reduction opportunities that will cut your annual expenses, we simply earn a percentage of those savings. If there aren’t any opportunities found, you don’t pay a thing.

If you’d like to get started on your risk-free energy audit, please contact our team today and get started on the next steps within 10 minutes.