Electric Choice

Business Electricity Rates

There are approximately 5.6 million commercial buildings within the United States. As you can imagine, each of these buildings consume electricity to some degree, and in some way, shape or form. Regardless of industry, it’s important for business owners to understand their options when it comes to electric rates and plans, particularly those in deregulated markets.

Business & Commercial Buildings

The Energy Information Administration (EIA) defines business buildings as commercial buildings. In order for a building to be classified as commercial, more than 50% of its square footage must be used for business activities. Based on this definition, commercial buildings can include:

The EIA defines this energy sector as the ‘commercial sector’. Many organizations or businesses can be classified under or within the commercial sector including:

Common consumption sources for electricity within the commercial sector including:

Electricity for Businesses By State

Many states in America have a significant number of commercial buildings, all of which require and consume a significant amount of energy. Some of these states commercial consumption (by percentage for 2014) include:

In many areas of the United States, commercial owners have the option to choose who supplies their electricity. These states or areas within the state are energy deregulated, which provides a lot more flexibility in rates, plans and technologies. Researching energy deregulation in your state will help you to determine the best option for your business and buildings.

Quick Stats on Electricity Use in Businesses

FAQ on Business Electricity

What makes up most of a business? electricity bill?
Overall, half of business electricity bills are made up of heating and lighting. Aside from heating and lighting, on average 8% of a businesses electric bill comes from air conditioning, 8% from water heating, 7% from ventilation, 6% refrigeration, 3% computers/office equipment, and 3% cooking. Many usually find it difficult to believe that only 3% of a business? electricity bill comes from technology, but that?s simply a testament to how efficient computers, printers, copiers, etc. have become over the past couple of decades.

Which types of businesses use the most energy?
As we mentioned before, the term ?commercial? building can encompass a variety of buildings with different purposes. The top five types of commercial buildings use a little less than two-thirds of energy consumed by all commercial buildings.

Out of the different types of commercial buildings, retail and service buildings use the most energy ? they use 20% of all energy consumed by all commercial buildings. Office buildings come in next at 17% of all consumption, followed by education (13%), health care (9%), and lodging (8% of consumption).

What are Energy Choice Programs?
States that are energy deregulated will typically offer energy choice programs or have energy choice organizations (like Electric Choice) that will help businesses to find an energy supplier. It is important to find the energy supplier that best suits the business needs, as in the long run; they can save a company money, time and more.