How to Understand Your Commercial Electric Bill and Reduce Your Costs

Your electric bill can be a complex document, but it’s important to understand it so that you can make informed decisions about your energy usage. This post will break down your commercial electric bill & give you some tips on how you can reduce your energy cost.

Here are a few tips for understanding your commercial electric bill: 

  • Understand the components of your bill. Your bill will have a number of different components, including energy charges, demand charges, and other charges like taxes and fees. 
  • Track your usage. It’s important to track your electricity usage so that you can see where you’re using the most energy.  
  • Identify your peak usage. Your peak usage is the highest amount of electricity you use in a given period of time. This is usually during the hottest or coldest days of the year. 
  • Take steps to reduce your peak usage. There are a number of things you can do to reduce your peak usage, such as: 
    • Schedule your energy-intensive activities for off-peak hours. 
    • Use energy-efficient appliances and equipment. 
    • The heating and cooling system is usually the number one factor in racking up demand charges so upgrading your insulation can be a great way to lower demand. 
    • Seal up any air leaks. 

Demand Charges On Your Commercial Electric Bill 

Demand charges are a type of utility bill charge that is based on the peak demand of your electricity usage. This means that you are charged more for using more electricity at the same time. Demand charges are designed to encourage businesses to use energy more efficiently and to reduce their peak usage. 

There are a few things to keep in mind about demand charges: 

  • They are typically calculated as a percentage of your peak demand. 
  • They are usually billed separately from your energy charges. 
  • They can be a significant portion of your overall utility bill. 

Solar Energy 

Solar energy is a clean, renewable source of energy that can help you save money on your electric bill. Solar panels can generate electricity on-site, which can help you reduce your reliance on the volatile prices and lower your energy costs.  Solar Energy can help you directly offset energy charges, and batteries can be a great way to lower demand charges.   

If you are interested in learning more about how solar energy can benefit your business, contact Solar Works Energy. We would be happy to answer any of your questions and help you get started on your solar journey. 

Click here to learn more about federal solar incentives for businesses.

How to Understand Your Commercial Electric Bill and Reduce Your Costs


Interested in getting solar for your business? Email us at info@solarworksenergy.comClick here to see why Solar Works is a great match for your business.

Ready to find out how much you can save?