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Industry

Commercial electricity for warehouse and distribution

Large floor area, high-bay lighting and material handling equipment, often with low occupancy density.

  • Expected load factorlow to moderate
  • Usually dominated byDemand and tariff fit
  • Federal survey data712 buildings surveyed

Warehouse and distribution typically run a low to moderate load factor, which means demand charges and rate schedule fit usually matter more than the supply rate. Large floor area, high-bay lighting and material handling equipment, often with low occupancy density.

When a warehouse draws power Peak around 5pm · base load about 24% of peak
peak base 12am6am12pm6pm11pm

Shift-shaped, with a spike where forklift charging begins at shift end. That spike is frequently avoidable — it is a scheduling decision, not a load requirement.

Illustrative shape, not measured data. It shows the pattern this kind of operation tends to follow, which is why its bill behaves the way it does. Your real profile comes from your own interval data, and it is the only version that can produce a number.

What the federal building survey says

In 2018 the U.S. Energy Information Administration surveyed 6,436 commercial buildings and recorded the electricity each used. These are the surveyed buildings that match warehouse and distribution, in kWh per square foot per year. Each is a whole building classed by what fills the most of it, so a single tenant space inside a larger building can use more or less.

Warehouse or distribution centre

3.3kWh per sq ft a year, median

The middle half of surveyed buildings used 1.6 to 7.8. Nearly all fell between 1.0 and 10.8.

A typical one is 6,700 sq ft. At the median that is about 22,378 kWh a year, roughly $280 a month at the US average commercial price.

712 surveyed buildings Solid

Estimate your building

Survey year 2018, so this is the usage pattern, not a forecast. Prices here are today's: the US average commercial price for the 12 months to the latest EIA month. The cost estimator does the same for your own floor area and state.

What drives the load

  • High-bay lighting
  • Dock equipment and levellers
  • Forklift charging
  • Ventilation and unit heaters
  • Conveyor and sortation where present

The trap this industry falls into

Forklift charging is commonly scheduled to begin the moment a shift ends, which stacks a large simultaneous load onto the tail of the day’s existing peak. Shifting charging by a couple of hours can move billed demand without changing a single operational outcome.

What to actually do

  1. Move forklift charging outside the facility’s existing peak window
  2. Confirm high-bay lighting controls and occupancy sensing are commissioned, not just installed
  3. Check the demand ratchet clause and whether a past peak is still setting the floor
  4. Review whether the account outgrew its original rate schedule

Which half of the bill to attack

A commercial bill splits into supply, which a competitive supplier can price where a competitive market exists, and delivery, demand, fixed charges and riders, which stay regulated whichever supplier you use. Load factor decides which half is worth your attention, and for warehouse and distribution the answer is usually clear.

At a low to moderate load factor, the peak is doing disproportionate damage relative to total consumption. Demand charges and rate schedule fit therefore usually matter more than the supply rate, and an operator who switches supplier to chase a lower supply price has left the growing part of the bill untouched.

This is also why a supply quote alone is a misleading answer for this industry. It is priced against the half of the bill that is not the problem.

The mechanics behind this: load factor, demand charges and rate schedule fit.

What we need to give you a real answer

  • 12 months of bills with peak kW
  • Shift schedule
  • Forklift fleet size and charging schedule
  • Whether the site has interval data available

The item that most often turns a vague conversation into a specific finding is twelve months of peak kW. A single bill shows what you paid; twelve months of demand readings show the shape that caused it, and the shape is where the recoverable money is.

Get a free bill check

Send one recent bill. We compute the supply, delivery and demand split for your account and tell you which of the levers above is actually worth your time.