Call for Details: 888-286-3091


What’s in your Wallet…
(and Electric Bill)?

I am sure you have heard the phrase many times, What’s in your Wallet? If you run commercial refrigeration, your wallet may be empty with the Stone Age equipment that you are running 24/7/365!

Have you ever been hit with an electric bill that took you by surprise? Many just do not fully understand the components of their bill and how they work together to create the amount that is due each month.

Even worse, a lack of understanding of the line items of your electric bill can cause you to miss opportunities to save energy or more importantly money. For many large commercial facilities, restaurants, or hotels, the electric bill is one of their biggest expenses, often running into the tens of thousands or higher. Trimming down your power-related expenses can therefore have a major impact on your bottom line thus putting money back in your pocket.

Let us look at how a deeper understanding of your electric bill can result in lower monthly payments and more chances to save money.


Depending on your facility’s location and your energy provider, your bill may include several different charges, including (but not limited to) consumption (Generation), demand, time of use, delivery (Distribution), and billing fees. These charges may have different names across different providers, but they basically mean the same things. Of these, consumption and demand make up most of your power costs.

The consumption charge is probably the easiest to understand. It takes the energy your facility has used during that billing period (measured in kWh or kilowatt-hours) and multiplies it by the rate you pay for that energy. So, if your local rate is $0.15/kWh and your facility used 10,000 kWh during the last billing period, your consumption charge will be $1,500. Not so bad, right?

Unfortunately, the consumption charge is usually overshadowed by the demand charge.  “To the electric utility, demand represents the amount of electrical power that has to be generated at any given time.” When demand is higher, the utility company must work harder to supply that demand, and this cost is passed on to the consumer in the form of demand charges. Demand charges are usually measured as the average amount of power you use in a given 15 minute period, and the “peak demand” (the highest average 15-minute interval) is used to calculate your demand charges for that billing cycle. Therefore, “to the consumer, demand represents how fast you use energy and how efficiently you use it.”

For most commercial energy consumers, demand charges make up the largest portion of their bill – sometimes comprising nearly 70 percent of the total amount. That means lowering your demand charge is a surefire way to make a major dent in your monthly energy costs. But how?


To understand how to lower demand charges, it helps to take a closer look at where your commercial energy usage really comes from. While most people assume that heating and cooling make up the largest percentage of a commercial facility’s power draw (as they do for residential buildings), this is not true. In fact, the U.S. Energy Information Administration reports that in 2017 space cooling represented 10.6 percent of commercial energy usage on average. Lighting and ventilation averaged closer to 11 percent BUT “Refrigeration was the largest single use of electricity in the commercial sector” at 14 percent of monthly consumption.

Cooling costs fluctuate through the changing seasons, making them a prime opportunity to reduce demand charges during the hotter months, while refrigeration costs tend to remain more even, making them a great opportunity to limit consumption (and substantially impact demand charges as well).


Reducing refrigeration and cooling costs is the best way to reduce consumption and demand charges and save money on your commercial electric bill. While many commercial facilities consider adding alternative energy sources or battery storage solutions, they become overwhelmed with the up-front costs and logistical questions.  I am here to tell you that There IS a Better Way to save Energy and Money .. you just need to pick up the phone and Dial 888-286-3091 and schedule one of our No-Obligation FREE Energy Audits and we will show you HOW!!

At Refrigeration Technologies’, we save our clients’ money while reducing their carbon footprint by manufacturing and selling smart innovation retrofit refrigeration energy-efficient technology. Our products pay for themselves within 24 months in most cases and the resulting savings can cut your energy bill by up to 30 % or more! As utility rates continue to climb, there has never been a better time to invest in cutting-edge technology and see massive savings as a result.

Are you ready to reduce your consumption and demand charges and benefit from major energy savings? Contact Refrigeration Technologies’ today to schedule a FREE No Obligation Energy Audit at 888-286-3091 or visit our website at to learn more.

Are you ready to reduce your consumption and demand charges and benefit from major energy savings?
Contact Refrigeration Technologies’ today to schedule a FREE No Obligation Energy Audit.

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