Manufacturing electricity costs are eating your margins
When electricity is 5-15% of production costs, every penny per kWh matters. We find industrial rates that match your load profile—not generic commercial plans that ignore how manufacturing works.
Why manufacturing electricity is different
Your facility doesn't use electricity like an office building. You've got motor starting surges that spike demand, production schedules that create predictable load patterns, and process equipment that runs whether rates are high or low.
Most electricity brokers apply the same approach to every commercial account. They miss the opportunities specific to manufacturing: curtailable rate programs, interruptible service discounts, and industrial tariffs designed for your load profile.
We speak manufacturing. We understand what it means when you can't shut down a furnace mid-cycle, why your weekend maintenance runs affect Monday demand charges, and how production planning impacts your electricity costs.
Where your electricity dollars go
Demand Charges
40-60%Based on your highest 15-minute power draw. Starting a 500HP motor without soft-start equipment can spike your demand by 3-4x running load—and you pay for that spike all month.
Energy Charges
30-45%The per-kWh rate for actual consumption. This is where competitive supply contracts make the biggest difference—typically 15-30% savings vs. utility default rates.
Transmission & Distribution
5-15%Regulated charges from your local utility for delivering power. These are the same regardless of supplier, but high load factor can qualify you for better rate classes.
How we reduce your costs
- Load profile analysis
We analyze interval data to identify demand spikes, load factor opportunities, and the rate structures that best match your actual usage patterns.
- Industrial rate procurement
We access industrial tariffs and custom pricing that's not available through standard commercial channels. Suppliers compete for your business with rates matched to your load.
- Demand response programs
If you can curtail load during grid emergencies, you may qualify for capacity payments or reduced rates—turning operational flexibility into revenue.
- Peak shaving recommendations
We identify specific operational changes—staggered motor starts, production scheduling, soft-start equipment—that can reduce demand charges without affecting output.
Manufacturing sectors we serve
Get a Custom Quote
Free consultation, no obligation. We'll analyze your usage and find savings opportunities.
Manufacturing electricity questions
How much can manufacturers typically save on electricity?
Manufacturing facilities typically see 15-30% savings on supply charges when switching from utility default rates. For a facility spending $50,000/month on electricity, that's $7,500-15,000 in monthly savings. Actual results depend on your load profile, production schedule, and ability to shift demand.
What's the biggest electricity cost driver for manufacturers?
Demand charges usually represent 40-60% of a manufacturer's electricity bill. Unlike residential rates based solely on consumption, commercial rates include charges for your peak power draw. A single 15-minute spike from starting multiple motors simultaneously can inflate your bill for the entire month.
Can we still get competitive rates if we run 24/7?
Continuous operations can actually help you negotiate better rates. A flat load profile (consistent power draw around the clock) is attractive to suppliers because it's predictable. You may qualify for base load pricing or industrial rates not available to businesses with variable demand.
How does production scheduling affect electricity costs?
Running heavy equipment during off-peak hours (typically nights and weekends) can reduce costs by 30-50% in time-of-use rate structures. Even shifting your heaviest loads by a few hours can make a significant difference. We analyze your production schedule to identify optimization opportunities.
What about power factor penalties?
Poor power factor from inductive loads (motors, compressors, transformers) can add 10-20% to your bill. Most utilities charge penalties when power factor drops below 0.9. Power factor correction equipment typically pays for itself within 1-2 years through reduced penalties and improved efficiency.
Related resources
Understanding Demand Charges
Why demand charges dominate manufacturing bills and strategies to control them.
Peak Demand Management
Practical strategies for reducing your facility's peak power draw.
Fixed vs Variable Rates
Which rate structure makes sense for your production operations.
Business Energy Solutions
Full overview of our commercial electricity services.