- Category:
Small Business Energy Savings - Published:
January 29, 2025
What Small Businesses Use the Most Electricity?
When considering small businesses that use a lot of electricity, you will find tremendous variation from industry to industry. Government agencies don’t specifically track what small businesses use the most electricity, but by looking at Department of Energy numbers for industries in general, you can assume small businesses will track along industry lines.
Overall commercial consumption accounts for 35.4%, industrial use accounts for 26% and transportation accounts for 0.2% of total energy usage.
To further break it down, industrial companies in chemicals, iron and steel, food and beverages, cement and concrete and forest products account for 80% of industrial energy usage, according to the Department of Energy. And healthcare consumes 10% of commercial energy usage.
Your small business can reduce your carbon footprint and consumption—with positive impacts on your budget and reputation—through Constellation’s sustainable solution offerings. Our Efficiency Made Easy® (EME) program can help you reduce your electricity costs.
7 types of small businesses that use a lot of electricity
Here are the details of which industries consume the most electricity. When you know which types of businesses use the most electricity, you can benchmark how your small business energy consumption rates against similar companies.
Even if your company is not in the most energy-intensive businesses category, increasing your efficiency can have a positive effect on your financial performance and on the environment.
Below are energy-saving tips specific to each industry. If yours is one of the small businesses that uses a lot of electricity, the results of implementing them could be substantial.
1. Retail stores
If your retail company operates a large, free-standing facility, you may fall into the category of types of businesses that use the most electricity. A smaller store inside a mall won’t use as much power.
The main drivers of energy usage in retail are HVAC and lighting. In regions that are very hot or very cold, the costs are higher. The types of products you sell, such as energy-hungry televisions, electronics and gaming systems, could also affect your energy usage.
To limit consumption, start by conducting a small business energy audit to find out where you use the most energy. Invest in servicing your HVAC and use modern, energy-efficient units. You can also switch to energy-efficient lighting. Find additional retail-specific tips on our retail industry page.
2. Restaurants and food service businesses
Utility costs are a major line item on the budgets of food service companies. Food preparation, refrigeration, HVAC and lighting contribute to high energy use, as do cleaning activities. These factors add to restaurants being among the small businesses that use a lot of electricity.
Some restaurant and food service energy-saving tips include figuring out where you are using the most electricity. Upgrade food prep appliances to energy-efficient models. Also use energy-efficient lighting and invest in servicing your HVAC regularly.
3. Medical facilities
When asking what small businesses use the most electricity, healthcare businesses often top the list. Medical facilities could save $5.4 billion over five years, with more efficient energy usage. Looking specifically at assisted living and nursing homes, costs are driven by heating and cooling, washing, commercial refrigerators and computers.
Energy-saving tips in healthcare include adopting an energy management system to identify, track and control energy usage. Prioritize an energy-efficient HVAC system and upgrade appliances. Smart systems that automate and optimize energy use are also worth considering.
4. Service-providing businesses
Which small businesses use the most electricity can vary even more in the service sector. Here, you find auto repair shops, hair salons, laundromats and even museums and art galleries. Each has its own energy usage profile.
To improve efficiency, you can upgrade to high-performance equipment and conduct regular HVAC maintenance. Because people are constantly going in and out, you lose energy trying to maintain a constant temperature. LED lighting can provide effective task lighting and even mood lighting, at a reduced cost. See more energy-saving ideas for service providers.
5. Hotels and motels
Hotels, motels and other hospitality businesses can consume a lot of electricity. Ensuring rooms are comfortable means heating and cooling them all day, even when not occupied. Utilities cost hotels $2,478 per room every year, 60% of which is for electricity.
Using an energy management system to adjust HVAC based on room occupancy can help control energy usage. Making changes in lighting by switching to LED can trim 20–30% of hotel energy usage. Your small boutique hotel can also switch to renewables and let guests know that you are reducing your carbon footprint.
6. Agriculture and construction businesses
Though different industries, agriculture and construction share traits like reliance on machinery and transportation, to move inputs or products—or both. In agriculture, 20% of energy consumed is in field operations and another 50% is for fertilizing. Construction consumes 11% of the world’s energy.
In both cases, using the most efficient machinery is vital in controlling energy use. Other energy-saving tips include spending more on maintenance so that all equipment runs efficiently.
7. Factories and manufacturing plants
What industry consumes the most electricity? The answer is often manufacturing businesses. They consume 80% of the energy used in the U.S.
Controlling manufacturing expenses in your business begins with an energy audit. You will find where upgrading equipment, adding smart controls and switching to energy-efficient lighting can make a major difference. You may benefit from getting a contract with special energy rates. Explore more tips on cutting energy consumption in your manufacturing business.
Ways to reduce electricity consumption in energy-intensive businesses
If yours is one of the small businesses that uses a lot of electricity, it’s worth learning more about how to lower your small business electricity bill.
Understanding what factors influence your small business’s energy costs will help you focus on the particular dynamics of your industry and your company. In general, many of the ways to improve energy efficiency in your business are universal. These include:
- Getting an energy audit to determine where you should invest time and money
- Investing in energy-efficient equipment
- Switching out inefficient lighting for LED bulbs
- Considering smart controls in your building
- Providing employee training and getting them engaged in cutting waste
- Exploring energy plans that help you control energy expenses in your business
The energy efficiency of your business matters to Constellation. In addition to offering choices in energy plans, we have initiatives like the Efficiency Made Easy® (EME) program that help you reduce your small business’s electricity costs and operate more efficiently.
