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Want to save money on your business power bills? You’re in the right place! It’s easier than you think to cut costs with the right commercial electricity deals. Let’s see how your business can spend less and do more.
What Are Commercial Electricity Deals?
A commercial electricity deal is a contract for power that businesses use. It’s like what you have at home, but made for work needs. These deals are for shops, offices, schools, factories, and more.
When you open a business, you need power. Lights, machines, computers—everything runs on electricity. A commercial electricity deal makes sure your business has the energy it needs, at a good price.
Now here’s the big secret: businesses don’t have to pay what they’re told. You can shop around and pick the best deal. That’s how you save big!
Why Picking the Right Deal Matters
Getting the wrong deal can cost you a lot. Many business owners don’t know that rates change. Some overpay for years without knowing!
According to EnergySage, small businesses in the U.S. spend around $60 billion each year on energy. But many of them waste up to 30% just by being on the wrong plan!
Here’s a quick look:
- A restaurant in Texas switched plans and saved $2,400 a year.
- A printing shop in New York cut costs by 20% after comparing rates.
- A warehouse in Illinois saved $5,100 just by switching providers.
That’s real savings. And it all comes from picking the right deal.
How Much Electricity Does a Business Use?
Let’s break it down:
- A small café might use about 15,000 kilowatt-hours (kWh) a year.
- A mid-size store? Around 50,000 kWh.
- A factory? Well over 100,000 kWh.
Prices vary by state. In California, you may pay 20 cents per kWh. In Texas, maybe 8 cents. That means your bill can be very different based on your deal and location.
If you choose well, you could pay less per kWh. That’s how you save money.
Fixed vs. Variable Rates
Let’s talk about two types of electricity deals:
Fixed Rate
- Your price stays the same.
- Good when prices rise.
- Easy to budget.
Variable Rate
- Your price can go up or down.
- Great if prices drop.
- Risky if they go up fast.
Most business owners like fixed rates. It’s steady and safe. You won’t get a surprise bill when prices rise.
But in some states, variable rates have saved money. In 2020, businesses that picked variable rates in Ohio saved 12% compared to those with fixed plans.
Know your market. Then decide.
Short-Term vs. Long-Term Contracts
Now let’s talk time:
- Short-Term: 6 to 12 months. Good for testing the waters.
- Long-Term: 1 to 3 years. Often cheaper, but you’re locked in.
Many energy providers offer better prices for longer deals. But make sure to ask about exit fees if you need out.
In Pennsylvania, one bakery signed a 2-year deal and paid 15% less each month compared to a 6-month contract. Always ask, “What’s the best price for 24+ months?”
Choosing an Electricity Provider
Now comes the fun part—shopping!
You can compare providers like you compare phone plans. Websites like EnergyBot.com in the US or Uswitch in the UK let you view and compare business energy deals easily.
Things to look for:
- Price per kWh.
- Contract length.
- Green energy options.
- Early exit fees.
- Customer reviews.
Let’s say you run a gym and use 90,000 kWh/year. At 12 cents per kWh, your yearly bill is $10,800. If you find a deal for 10 cents per kWh, your bill drops to $9,000.
That’s $1,800 saved—just by switching!
Can Small Businesses Get Good Deals?
Yes! Small businesses often think they can’t get the good stuff. That’s false.
In 2023, more than 65% of small businesses that switched providers saved money. Providers want small businesses as customers too.
Bundling services (like electricity and gas) can also lower rates. Some providers also give bonuses for signing up or referring others.
One coffee shop in Oregon got a $100 credit just for going green. Another in Georgia got 2 months free after referring five nearby shops.
Network with nearby businesses and compare deals together. More power in numbers!
Should You Go Green?
More companies are choosing clean energy. It helps the planet and can help your brand too.
Some green deals are priced the same or just a bit more. But the benefit is you show customers that you care.
In a 2022 survey, 70% of shoppers said they prefer eco-friendly businesses. So going green might even increase your sales—not just lower your bills.
Plus, some states offer tax breaks if you choose renewable energy. Ask your provider or accountant.
Steps to Get the Best Commercial Electricity Deal
Let’s keep this simple. Here’s what you do:
- Know your usage: Check your last 12 months of bills.
- Compare deals: Use online tools or call providers.
- Ask questions: Check for hidden fees and contract terms.
- Pick your plan: Fixed or variable? Short or long term?
- Lock it in: Sign the contract and start saving!
Final Tips to Lower Your Bill Even More
Getting the best deal isn’t all you can do. You can also:
- Use LED lights to cut usage.
- Turn off machines when not in use.
- Upgrade old equipment to energy-saving models.
Simple steps can lower your bill by 10% to 20% even if your rate stays the same!
Conclusion: Make the Switch, Save Money
Getting a great commercial electricity deal is simple. Don’t overpay another day. Follow these steps:
- Check how much electricity your business uses.
- Shop for the best deal online or with agents.
- Pick a plan and provider that fits your budget.
Start comparing today and watch the savings roll in.