8 Tips to Lower Your Commercial Utility Bill

That monthly commercial utility bill can be a real shocker, right? All that heating, cooling, and refrigeration adds up quickly, often becoming one of the largest operating expenses you face. But what if you could cut your energy use significantly with a few smart moves? Many business owners resign themselves to paying whatever the bill says, feeling like it’s a cost they can’t control. The truth is, you have more power than you think. By understanding where your energy is going and implementing some targeted strategies, you can make a serious dent in your monthly costs and put that money back into growing your business.

That monthly commercial utility bill can be a real shocker, right? All that heating, cooling, and refrigeration adds up. But what if you could cut your energy use by up to 30% with a few smart moves?

You may not need to reduce your energy costs, but who wouldn’t want to?! Check out our simple tips for reducing your commercial utility bill and putting a few extra Benjamins in your pocket today!

First, Let’s Understand Your Bill

Before you can start cutting costs, you need to know what you’re actually paying for. A commercial utility bill can look like a jumble of numbers and jargon, but it’s simpler than it seems once you break it down. Think of it as a report card for your building’s energy performance. Taking a few minutes to understand the key components will show you exactly where your money is going and highlight the best opportunities for savings. It’s the essential first step in creating a smart energy reduction plan for your business and getting control over your operational expenses.

The Two Main Parts: Delivery and Supply Charges

Your electricity bill has two main parts. First are the Delivery Charges, which are what your local utility company charges to bring electricity to your business. This covers the cost of maintaining the power lines, poles, and all the infrastructure needed to get the energy from the power plant to your front door. The second part is the Supply Charges, which are for the actual electricity your business uses. This is the cost of the energy itself, measured in kilowatt-hours. While you can’t change the delivery charges, you have significant control over the supply charges by managing how much energy you consume.

Key Information to Analyze

Once you’ve separated the delivery and supply charges, it’s time to look closer at the details that really impact your bottom line. Hidden within the fine print are the clues to how your business uses energy and where you can make the most effective changes. Focusing on a few key metrics will give you a much clearer picture of your usage patterns. This information is crucial for identifying inefficiencies, especially with high-consumption equipment like your HVAC and refrigeration systems, which are often the biggest contributors to your monthly bill and the best places to find potential savings.

Rate and Billing Unit

Your “rate” is what you pay for electricity, but it’s not always a single, flat number. You need to understand how your demand and usage rates change based on the time of day and season. Many utility companies charge more during “peak hours” when energy use is highest across the grid—typically on hot summer afternoons. By knowing when your rates are highest, you can strategize ways to reduce consumption during those expensive periods. For example, you could pre-cool your building before peak hours begin, letting your commercial HVAC system work less when electricity is most expensive.

Demand (kW) vs. Consumption (kWh)

Demand charges are a big part of most commercial energy bills and are measured in kilowatts (kW). It’s important to know how much of your bill comes from these charges. Demand (kW) refers to the highest amount of power your facility draws at any single moment during the billing cycle. Consumption (kWh), on the other hand, is the total amount of electricity you use over the entire month. Even a brief spike in demand—like when all your large equipment kicks on at once—can set a high peak for the month and dramatically increase your bill, even if your overall consumption is low.

Available Programs

Your bill might also list special programs, like “demand response,” that can help you save money if used correctly. These are often incentive-based programs offered by utility companies to encourage businesses to reduce their energy use during periods of high grid-wide demand. Participating might mean you agree to temporarily lower your thermostat or scale back on certain operations in exchange for a credit on your bill. It’s worth checking with your utility provider to see what programs are available in your area, as they can offer a direct path to lower costs without requiring major equipment changes.

What Are Average Costs and What Influences Them?

It’s helpful to have a benchmark to know if your energy costs are in a typical range. While every business is unique, understanding the averages and the factors that push those numbers up or down can provide valuable context. For many businesses, especially in North Carolina where air conditioning is a must, HVAC and refrigeration are the primary drivers of energy use. The size of your space, the efficiency of your equipment, and your daily operations all play a significant role in determining your final bill. Let’s look at what you can generally expect to pay and what causes that number to fluctuate.

Typical Utility Costs for Businesses

Generally speaking, small businesses can expect to spend between $500 and $2,000 on electricity each month. Of course, this is a broad range. A small retail shop will have a very different bill than a large warehouse or a restaurant with extensive refrigeration needs. If your operations rely on walk-in coolers, freezers, or industrial ice machines, you’ll likely find yourself on the higher end of that spectrum. The key is to compare your bills month-over-month and year-over-year to spot trends and identify any sudden increases that might signal an issue with your equipment’s efficiency.

Factors That Drive Your Energy Bill

Your monthly energy bill depends on three main things: your energy consumption, the energy price, and the size of your space. Consumption is how much energy your business uses, measured in kilowatt-hours, and it’s heavily influenced by your equipment. Outdated industrial HVAC units or inefficient commercial freezers are notorious energy hogs. The price is the rate you pay based on your energy contract, while the size of your space determines how much area you need to heat, cool, and light. Managing your consumption is the most direct way to control your costs, and it starts with ensuring your systems are running efficiently.

Strategies for Reducing Your Commercial Utility Bill

Now for the good part: how to actually lower that bill. The great news is that you have more control than you might think. By taking a proactive approach to energy management, you can make a significant dent in your monthly operating costs. It doesn’t have to involve a massive, expensive overhaul either. Many of the most effective strategies are simple, common-sense adjustments and investments in regular preventative maintenance that pay for themselves over time. The first step is often to get an energy audit; you can ask your electricity company if they offer free checks to find out where your business uses the most power.

Check your HVAC economizer.

First of all, your HVAC economizer is a controlled vent damper. This means it pulls in cool outside air, when it’s available, and integrates it into the HVAC system. This makes it’s job easier so it doesn’t have to mechanically cool air if it’s not necessary. It’s great and that alone will save you some money and wear on your system, but not if you don’t routinely check it! It’s possible for the linkage of the damper to break or seize up if you don’t maintain it. And when that happens, the economizer stays open and can increase your commercial utility bill by as much as 50 percent! How do you do it? Call QRC today and we’ll send out a licensed commercial HVAC technician to check on the economizer for you. It should be cleaned and lubricated at least once a year. And if you have a technician checking on it often enough, you can completely avoid unexpected breakdowns because we’ll see any signs of problems before they have time to get worse.

Choose alternative, energy-efficient options for your lighting, HVAC system, and refrigeration.

If you’re working with an established building, you may need to retrofit energy-efficient options, but it will lower your commercial utility bill so you can thank us in the future! If your business uses refrigeration systems, like a walk-in refrigerator or freezer, they account for 40 – 60 percent of your building’s energy consumption. That’s crazy, right? Finding a way to reduce the commercial refrigeration energy consumption in your building will make a dent in your bill! A great way to reduce the energy consumption of your refrigeration is to choose more energy-efficient options when you’re installing a system. With the trend in just about any industry going toward the “green” and “better for the earth” options, it’s easy to find an energy-efficient system for your specific needs. How do you do it? Give us a call. We can help you find the perfect, energy-efficient system for your building, restaurant, or coffee shop which will reduce your carbon footprint in addition to your commercial utility bill. You can also find some more energy saving tips for building owners here.

Scheduling routine, preventative maintenance for your commercial refrigeration systems and HVAC units.

If you’ve read any of our other articles, you know we highly advocate for routine, preventative maintenance. And do you know why? When you have your systems checked seasonally, or at the very least annually, then a professional technician can see how your system is operating and can keep an eye out for red flags. If you let your system work and work without checking it, a problem could arise which you won’t notice, until it gets worse. When you let your system continue running with a minor malfunction, it only creates a bigger problem. One which can cost you extra on your monthly bills and one which will definitely cost you a lump sum when you need a major repair. Not to mention, a quick clean up of your belts and hoses will increase your system’s efficiency. How do you do it? Easy! Schedule your routine, preventative maintenance appointments for your commercial refrigeration and your commercial HVAC system with us. We’ll send a licensed and experienced technician out to your building, restaurant or school to check on your system and ensure everything is running properly. They look for potential problems and can fix them while they’re manageable, before they ruin your entire system.

Get a Professional Utility Bill Audit

It’s easy to assume your utility bills are always accurate, but billing errors are more common than you might think. A professional utility bill audit can be a game-changer. Experts will review several years of your past electricity bills to hunt for mistakes, overcharges, or incorrect rate classifications. According to energy consulting firm Diversegy, this process can uncover discrepancies that lead to a refund for past overpayments and lower your bills moving forward. Think of it as a financial health check-up for your energy spending. Finding and correcting these errors ensures you’re only paying for the energy you actually use, freeing up capital that can be reinvested into your business.

Time Your Energy Use to Avoid Peak Hours

Did you know that the time of day you use electricity can significantly impact your bill? Many utility providers charge higher rates during “peak demand” hours—typically on hot summer afternoons or cold winter mornings when energy consumption is at its highest across the grid. By making a conscious effort to shift heavy energy usage to off-peak hours, you can see a noticeable drop in your costs. For example, you could run large equipment or schedule energy-intensive tasks for earlier in the morning or later in the evening. This strategy doesn’t require any new equipment, just a bit of planning to work around the most expensive times of the day.

Use Programmable Thermostats

One of the easiest ways to manage your heating and cooling costs is to automate them. Programmable or smart thermostats allow you to create a temperature schedule based on your business’s operating hours. You can set the system to use less energy when the building is empty—like overnight, on weekends, or during holidays—and have it return to a comfortable temperature just before your team arrives. This “set it and forget it” approach eliminates the guesswork and ensures you aren’t paying to heat or cool an empty space. Upgrading is a simple, high-impact step, and the team at QRC can help you select and install the right commercial HVAC controls for your facility.

Turn Off Unused Devices and Equipment

It sounds simple, but the energy wasted by devices left running when not in use adds up quickly. This “phantom load” from computers, monitors, printers, and other office equipment can be a silent drain on your budget. Encourage a company-wide culture of turning things off at the end of the day. An easy way to simplify this is by plugging multiple devices into a single power strip, allowing employees to shut everything down with one flip of a switch. Creating a simple shutdown checklist for the last person to leave can help make this an ingrained habit and an effortless way to cut down on unnecessary energy consumption.

Consider Sub-Metering for Larger Properties

If you manage a multi-tenant commercial building or a large industrial facility, understanding precisely where energy is being used can be a challenge. Sub-metering is a solution that involves installing individual meters on specific areas, tenant spaces, or even large pieces of equipment. This gives you granular data on consumption, allowing you to bill tenants accurately for their actual usage rather than splitting a single bill. It also helps pinpoint which systems, like specific industrial HVAC units or refrigeration banks, are the least efficient. This information is invaluable for making targeted upgrades and managing utility costs more effectively across your property.

Ready to Lower Your Commercial Utility Bill for Good?

Frequently Asked Questions

What’s the single most impactful first step I can take to lower my utility bill? Start by getting a clear picture of where your energy is going. Before you invest in new equipment, schedule a professional maintenance check for your existing HVAC and refrigeration systems. A technician can spot inefficiencies, like a malfunctioning economizer or dirty coils, that could be secretly driving up your costs. This simple step often reveals quick fixes that provide immediate savings and gives you a solid baseline for planning any larger changes.

My HVAC and refrigeration systems seem to work fine. Why is regular maintenance so important for my energy bill? Even when your systems appear to be running smoothly, they can lose efficiency over time. Think of it like a car that needs regular oil changes to perform its best. Routine maintenance ensures that all components are clean, lubricated, and functioning correctly, which allows the unit to use less energy to do its job. This preventative care not only lowers your monthly bill but also helps you avoid sudden, costly breakdowns during peak seasons.

Is it really worth the upfront cost to upgrade to energy-efficient equipment? It’s a significant investment, but the long-term savings are often substantial. Modern, energy-efficient HVAC and refrigeration systems use far less electricity to operate, which can dramatically reduce your monthly supply charges. The key is to view it not as an expense, but as an investment in your business’s operational costs. We can help you calculate the potential return on investment to see how quickly a new system could pay for itself through energy savings.

How can I reduce energy use during peak hours if my business has to be fully operational all day? If you can’t shift major operations, focus on optimizing your environment. Installing programmable thermostats is a great way to pre-cool your space before peak rates kick in, allowing your system to work less when electricity is most expensive. You can also make smaller adjustments, like dimming lights in less-used areas or ensuring all unused office equipment is powered down. Every little bit helps offset the higher costs during those peak demand windows.

I’m not an energy expert. How can I tell if my utility bill is actually wrong? Billing errors are more common than you’d think, but they can be hard to spot. The best approach is to look for inconsistencies. Compare your current bill to the same month from the previous year. If you see a major spike in demand (kW) or consumption (kWh) without a clear reason, it might be worth investigating. For a thorough check, a professional utility bill audit can review years of statements to find any discrepancies or incorrect rate classifications you might have missed.

Key Takeaways

Treat your utility bill like a report card: Take a few minutes to understand the difference between your demand (kW) and consumption (kWh) charges. Knowing when your rates are highest during peak hours shows you exactly where to focus your energy-saving efforts for the biggest impact.
Focus on your biggest energy users: Your HVAC and refrigeration systems often account for the largest chunk of your energy expenses. Investing in routine preventative maintenance and considering energy-efficient upgrades are the most direct ways to control these major operational costs.
Make small changes for big results: You don’t need a massive overhaul to see a difference. Simple actions like using programmable thermostats, shifting tasks to off-peak hours, and turning off unused equipment create consistent savings that add up over time.