Energy storage lowers costs for buildings, as electricity prices rise

Commercial building electricity costs in the U.S. have increased by about 20.5% from April 2019 to April 2024, according to data from the U.S. Energy Information Administration, with costs varying substantially by geographic region.

For commercial buildings and other large power consumers, however, focusing solely on the average price of electricity can lead to missed opportunities for potential savings. Energy bills today can be more influenced by when the electricity is consumed rather than the amount used.

The gap between peak and off-peak prices is widening much faster than average prices are growing. For example, California’s electricity costs for some peak hours are projected to rise nearly 50% from 2024 to 2044, according to the California Public Utilities Commission’s 2022 Avoided Cost Calculator. Meanwhile, electricity costs for some off-peak hours are projected to fall more than 50% in that time. That means the intraday difference in pricing will grow almost threefold in the next 20 years. Therefore, when making decisions about energy use, buildings can save money by shifting their consumption as much as possible to lower-cost hours. Read more