Your commercial utility bill just arrived. The cooling charges are double or triple what they were in the spring. You look at the kilowatt-hour usage and wonder if there is an error. How can cooling the building possibly cost that much?
Summer cooling costs are shockingly high for commercial buildings because of the extreme demands placed on HVAC systems during peak season. But those high costs are not inevitable. There are legitimate reasons why bills spike, and there are concrete steps you can take to bring them down without sacrificing occupant comfort.
In this article, we explain why commercial AC costs soar in summer and show you how to cut them by 10 to 25 percent without major capital investments.
The reasons are straightforward but significant.
Utility companies charge higher rates during peak demand hours. In summer, peak hours are typically 1 PM to 9 PM when the entire region is cooling buildings. Your AC runs during these expensive hours, which drives up your bill substantially.
When outdoor temperatures exceed 95 degrees, your AC runs almost continuously. The temperature difference between inside and outside is so large that the system never gets a break. A system that runs 16 to 20 hours per day uses far more energy than one that cycles on and off.
An older commercial HVAC system that has not been properly maintained operates at reduced efficiency. Dirty coils, low refrigerant charge, leaking ducts, and worn components all force the system to use more energy to achieve the same cooling effect.
Heat enters the building through the roof, windows, walls, and any gaps in the building envelope. In summer, this heat gain is substantial. Poor insulation, old windows, and air leaks mean more heat enters the building, forcing the AC to work harder.
Buildings that are cooled aggressively below necessary temperatures or cooled during unoccupied hours waste enormous amounts of energy. If a 70-degree setting would be sufficient, but the building is set to 70 degrees, running the AC all night, you are paying for unnecessary cooling.
Cooling costs vary depending on building size, system efficiency, local utility rates, and outdoor temperatures. However, here are benchmarks to help you understand if your bill is normal.
For a typical 10,000 to 20,000 square foot commercial building with modern, efficient HVAC equipment, summer cooling costs range from $500 to $1,500 per month. Larger buildings, older systems, or less efficient equipment will cost more. If your bill is significantly higher than this range, efficiency improvements or system service should be a priority.
A well-maintained system operates at peak efficiency. Regular maintenance that includes coil cleaning, refrigerant checks, filter changes, and component inspection can improve efficiency by 5 to 15 percent.
Program thermostats to raise temperature after business hours, on weekends, and during holidays. A building does not need to be cooled to 75 degrees when no one is there. Raising it to 80 to 82 degrees saves enormous amounts of energy.
If your building is set to 72 degrees, try 76 degrees. Most occupants adjust to the change within a few days. Every degree you raise can save 1 to 3 percent on cooling costs. A 4-degree increase (72 to 76) could save 4 to 12 percent.
Work with your HVAC contractor to ensure supply air temperature is set appropriately. Too cold, and you are overcooling. Too warm, and occupants are uncomfortable. The right setting balances comfort and efficiency.
Cool air leaking out of the building forces the system to work harder. Seal gaps around doors, windows, roof penetrations, and loading docks. Repair damaged door seals and weatherstripping. These low-cost fixes can reduce energy loss noticeably.
If portions of your building have poor insulation (especially the roof), adding insulation can significantly reduce cooling demand. Focus on areas that lose the most heat.
Traditional lighting generates significant heat that adds to cooling load. LED lighting generates far less heat and uses much less energy. The conversion pays for itself in lighting savings alone and reduces AC costs as a bonus.
Solar heat coming through windows adds to cooling load, especially on south and west-facing walls. Reflective window film, external shading, or improved blinds can reduce solar heat gain by 20 to 30 percent.
Dirty condenser coils, obstructed units, and debris reduce efficiency. Monthly cleaning of outdoor HVAC equipment ensures it operates at peak performance.
A professional energy audit or TAB service can identify inefficiencies that you cannot see. The cost of these services is recovered quickly through energy savings and can highlight upgrades that make the most financial sense.
The most cost-effective improvements depend on your specific building and situation. Here is a rough guide:
Quick wins (free or very low cost, immediate savings): Raise thermostat settings, implement occupancy-based scheduling, clean outdoor equipment, seal obvious air leaks.
Medium-term investments (moderate cost, significant savings): LED lighting upgrades, window treatments, preventive maintenance plans, thermostats optimization.
Long-term upgrades (higher cost, substantial long-term savings): Building insulation improvements, window replacements, major HVAC system upgrades, comprehensive weatherization.
Summer cooling bills are high, but they do not have to be as high as you are paying. Simple operational changes can cut costs by 10 to 15 percent immediately. Medium-term improvements can cut another 10 to 15 percent. Together, you could reduce your summer cooling costs by 20 to 25 percent without major capital investments.
At ABS Heating and Air, we help commercial building owners understand their cooling costs and identify the most effective improvements. Contact us to discuss an efficiency plan for your building.
Roughly 3 to 9 percent of your cooling costs. For a building spending $3,000 per month on cooling, that is $90 to $270 in monthly savings, or $270 to $810 over a three-month summer.
Absolutely. Regular maintenance improves efficiency by 5 to 15 percent, prevents costly emergency repairs, extends system lifespan, and often includes discounts on repair work. The cost is recovered quickly through energy savings.
For a typical 10,000 to 20,000 square foot building, $500 to $1,500 per month for cooling. Larger or less efficient buildings will be higher. If your bill significantly exceeds this, an efficiency audit is warranted.
No. Turn the system off completely, and the building gets extremely hot and humid. When you return, the system will have to work much harder to cool it back down, using more energy than simply raising the temperature would have. Raise, do not turn off.
LED upgrades typically pay for themselves in 3 to 5 years through energy savings alone. The fact that they also reduce cooling load and improve AC efficiency means ROI is often even faster.