Tracking rising energy prices. What do they mean for US businesses?
Rising energy prices have become a familiar reality for US businesses in recent years, and the upward trend shows no immediate signs of ending. What does this mean for US businesses? Read on.
The numbers provide a helpful starting point for this blog. According to the US Energy Information Administration (EIA)[1]:
- The average US commercial energy price expressed in cents per kilowatt hour has risen nationally from $0.106/kWh to $0.129/kWh since 2020 (a stunning increase of just under 22%).
- Regional increases since over the same period can also help provide some additional context to the impact on your specific business.
- Pacific: +39.2%
- Middle Atlantic: +26.2%
- New England: +24.5%
- West South Central: +21.6%
- South Atlantic: +19.2%
- East North Central: +17.8%
- Mountain: +16.1%
- East South Central: +15.0%
- West North Central: +7.9%
These increases are seen across all sectors of usage: residential, industrial, commercial, and transportation and the trend shows no sign of stopping.
A way out?
While it’s true that rising energy costs will significantly affect U.S. businesses there are several strategies companies can employ to mitigate their impact. The purpose of this blog isn’t to provide a detailed investigation of these (we’ll do that another time), but it is worth noting the key steps that are available.
- Businesses can improve energy efficiency by upgrading equipment, implementing energy management systems (EMS/BMS) like NexRev’s Freedom, and HVAC energy reduction technologies such as DrivePak.
- Using EMS/BMS, companies can optimize operation efficiency by running energy-intensive operations during off-peak hours when rates are lower. They can also participate in programs that offer incentives for reducing energy use during peak demand times.
Other strategies include implementing energy audits, using rebates, negotiating energy contracts, adopting energy storage solutions, and utilizing technology and data analytics (including Artificial Intelligence) can all play a significant role in helping businesses reduce energy costs and improve their overall energy resilience.
About NexRev
NexRev is the leading provider of cloud-based, multi-site energy management systems, backed by AI and delivered by SaaS models, that help businesses eliminate energy waste and reduce costs.
Our innovative Freedom™ EMS/BMS solution brings process-driven intelligence and AI to facilities management, providing complete remote control and centralized visibility of your energy-consuming devices across complex, nationwide property portfolios for leading brands in retail, theaters, restaurants, commercial, and industrial facilities.
With NexRev Freedom, our customers reduce waste, optimize energy management, and generate permanent cost savings by making the right decisions. To begin a discussion on how we can help you to reduce energy costs and waste please email us at
[1] U.S. Energy Information Administration - Short-Term Energy Outlook Data Browser