Energy bills can eat up a big chunk of your business budget. Want to lower those costs? Let’s break down commercial energy rates in a simple way so you can save more every month.
What Are Commercial Energy Rates?
Commercial energy rates are the prices businesses pay for electricity and gas. These rates are different from what homes pay, and they can change often. In simple words, it’s the cost to keep your lights on, machines running, and buildings warm or cool.
Unlike residential rates, commercial rates are based on more things. These include how much energy your business uses, when you use it, and even where your business is located.
Knowing how these rates work can help your business save money.
Why Do Businesses Get Charged Differently?
Businesses use more power than houses. Because of that, energy companies often give them special prices. But that doesn’t always mean cheaper prices. Sometimes, the more your business uses, the higher your rate! Sounds strange, right?
That’s because energy companies also look at:
- Peak demand: When you use the most energy.
- Time of use: Energy costs more during busy times of the day.
- Load factor: This tells how steady your energy use is over time.
All of these help set your commercial energy rate.
Real-World Example: A Bakery Saved $12,000 a Year
Let’s take a bakery in Chicago. They baked bread all day and used ovens that ran non-stop during lunch hours. Their energy bills were sky-high.
After checking their rate plan, they noticed they were being charged extra for using power during peak hours. They switched to baking earlier in the morning when rates were cheaper. They also switched energy suppliers.
By the end of the year, the bakery saved around $12,000. That’s enough to hire another baker or upgrade kitchen equipment!
Types of Commercial Energy Plans
Choosing the right energy plan matters. Here are the most common ones:
Fixed Rate Plans
You pay the same rate each month, no matter what. This is good if you want to avoid surprises.
Variable Rate Plans
Your bill changes depending on the market. Sometimes it’s cheaper, but sometimes it’s not. It’s a gamble.
Time-of-Use Plans
Energy is cheaper during certain times, like late at night. This plan works well for businesses that run 24/7 or can shift their work hours.
Important Stats You Should Know
- Energy costs account for about 19% of total expenses for small manufacturers.
- Businesses in Texas can save up to 30% yearly by switching providers.
- Studies show that 40% of companies overpay because they don’t track their rates.
So if you haven’t checked your commercial energy rate in a while, you might be losing money.
Can You Choose Your Energy Provider?
Yes, in many states you can! Thanks to energy deregulation in places like Texas, Illinois, Ohio, and Pennsylvania, businesses there can pick their energy provider.
This means you can shop for better rates just like you shop for office supplies or internet plans.
How to Compare Commercial Energy Rates
It’s easier than it sounds. Start with these steps:
- Look up your current bill. Find out your rate and how much you use.
- Search online for energy providers in your area.
- Ask for quotes. Make sure to check fees and contract terms.
- Don’t forget to look at customer reviews. Good service matters too.
There are even tools like EnergyBot, ChooseEnergy, and SaveOnEnergy that help compare providers in minutes.
Tips to Pay Less on Energy Bills
1. Smart Energy Upgrade
Install LED lights. Use energy-saving machines. Add smart thermostats. These simple upgrades can cut your usage by 10–30%.
2. Use Energy at Off-Peak Times
As we saw with the bakery, shifting your work hours can lower your rate.
3. Get an Energy Audit
Many utility firms offer free or low-cost energy checkups. They’ll tell you where you’re wasting power and what to fix.
4. Train Your Team
Teach employees to turn off lights or machines when not in use. Small habits can lead to big savings.
Let’s Break It Down: Why This Matters
Here’s why you should care about commercial energy rates:
- You can save thousands each year.
- You avoid overpaying because you know what to look for.
- You get control over when and how your business uses power.
Just like you wouldn’t pay more for rent than needed, don’t pay more for power.
Actionable Steps to Save Right Now
- Check your current rate on your next energy bill.
- Compare offers from at least three energy providers.
- Change habits—save energy and cut waste.
Switching to a better rate or making small changes doesn’t take a lot of time—but the savings can be huge.
Your business works hard every day. Make your money work hard too—starting with your energy bill.
