100,000 sq ft costs more to light than it should
High-bay lighting. Loading dock operations. Material handling equipment. Cold storage refrigeration. Warehouse electricity is a volume game—and small rate differences add up fast at scale.
Why warehouse electricity adds up fast
A 100,000 sq ft warehouse can easily spend $5,000-15,000/month on electricity. That's the reality of lighting massive spaces, running material handling equipment, and—for cold storage—keeping refrigeration running around the clock.
The good news? Warehouse electricity use is often predictable and consistent. That predictability is valuable to suppliers, which means you have negotiating leverage that most commercial customers don't.
We understand warehouse operations—loading dock schedules, inventory cycles, refrigeration loads—and we find rates that reward your consistent, high-volume consumption instead of penalizing it.
Where your electricity dollars go
Lighting
40-60%High-bay lighting for vast floor spaces, plus loading dock, office, and exterior lighting. LED retrofits can cut this by 50-70% while improving light quality.
Material Handling
15-25%Electric forklifts, conveyors, sortation systems, and dock levelers. Equipment startup creates demand spikes—staggered operation can reduce peaks significantly.
HVAC
10-20%Office areas, break rooms, and climate-controlled zones. Basic warehouses need minimal HVAC; climate-controlled facilities require more sophisticated systems.
Refrigeration (Cold Storage Only)
60-70%For cold storage facilities, refrigeration dominates everything else. 24/7 operation with large compressors means huge base load—but also excellent load factor for rate negotiations.
How we reduce your electricity costs
- Leverage your volume
High-volume, predictable consumption is valuable to suppliers. We negotiate rates that reflect your buying power—not generic commercial pricing.
- Optimize for load factor
Warehouses often have excellent load factors (consistent power draw). We find rate structures that reward steady consumption instead of penalizing it.
- Manage demand spikes
Loading dock operations and equipment startup create demand peaks. We identify operational changes that reduce spikes without affecting throughput.
- Cold storage specialization
Temperature-controlled facilities have unique needs. We work with suppliers who understand refrigeration loads and price accordingly.
Facility types we serve
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Warehouse electricity questions
How much can warehouses typically save on electricity?
Warehouses typically see 15-30% savings on supply charges by switching from utility default rates. For a warehouse spending $5,000/month on electricity, that's $750-1,500 in monthly savings. Cold storage facilities with 24/7 refrigeration often see the highest savings potential.
What uses the most electricity in a warehouse?
Lighting is the biggest cost for standard warehouses (40-60%), followed by material handling equipment like forklifts and conveyors (15-25%), and HVAC if climate-controlled (10-20%). For cold storage facilities, refrigeration dominates at 60-70% of electricity use.
Do warehouses pay demand charges?
Yes, and they can be significant. Loading dock operations, conveyor systems starting up, and refrigeration compressor cycles all create demand spikes. Staggering equipment startup and using demand controllers can reduce these peaks by 20-30%.
Should warehouses use time-of-use rates?
It depends on your operations. Warehouses that can shift major operations to off-peak hours (nights and weekends) can save 15-25% with time-of-use rates. 24/7 operations with flat load profiles often do better with consistent flat rates or load factor pricing.
How does cold storage affect electricity rates?
Cold storage changes everything. Your base load is much higher (refrigeration runs 24/7), your load factor improves (which can qualify you for better rates), but your total consumption skyrockets. We specialize in finding rates optimized for temperature-controlled facilities.
Related resources
Understanding Demand Charges
How demand charges affect warehouse operations and strategies to manage them.
Peak Demand Management
Strategies for reducing demand spikes from equipment startup.
Manufacturing Electricity
Similar industrial-scale electricity challenges.
Business Energy Solutions
Full overview of our commercial electricity services.