How Much Does Commercial Electricity Cost in 2026? Per kWh, Per Sq Ft & by Business Size

"How much does commercial electricity cost?" has three different answers depending on how you measure it: per kilowatt-hour (the rate), per square foot (the intensity), and per month (the bill). Business owners need all three — the rate tells you if you're being charged competitively, the per-square-foot number tells you if your building is efficient, and the monthly bill tells you what it means for your budget. This guide gives real 2026 figures for each.

The Short Answer: Cost per kWh in 2026

The average U.S. business paid 13.51 cents per kWh for electricity in April 2026, per the EIA — up about 4.8% year-over-year. But the range across states is enormous:

Low-cost states: ~7–9¢/kWh (North Dakota 7.05¢, Oklahoma 7.77¢, Texas 8.35¢, Nevada 8.99¢)
Mid-range states: ~11–14¢/kWh (most of the Midwest, Mid-Atlantic, and Southeast)
High-cost states: ~20–26¢/kWh (California, and the New England/Northeast deregulated states like Massachusetts, Connecticut, Maine, New York)
Outlier: Hawaii ~43¢/kWh (island grid on imported oil)

For the full state-by-state breakdown, see commercial electricity rates by state.

Remember that the "rate" you're quoted for supply in a deregulated state is only part of the story. Your all-in cost per kWh also includes delivery, capacity, and demand charges. See delivery vs. supply charges.

Cost per Square Foot by Business Type

Rate alone doesn't tell you if your building is efficient — energy intensity does. Based on U.S. EIA Commercial Buildings Energy Consumption Survey (CBECS) intensity data applied to the 2026 national average rate (~13.5¢/kWh), here's approximately what different building types spend on electricity per square foot per year. These are national averages; your actual cost depends on your climate, hours, equipment, and rate.

Building type	Approx. electricity use (kWh/sq ft/yr)	Approx. cost/sq ft/yr at 13.5¢
Warehouse / storage	6–8	$0.80–$1.10
Religious worship	6–8	$0.80–$1.10
Office (average)	14–16	$1.90–$2.15
Retail / mercantile	12–15	$1.60–$2.00
K-12 school	10–12	$1.35–$1.60
Healthcare / outpatient	18–22	$2.40–$3.00
Lodging / hotel	14–18	$1.90–$2.40
Supermarket / grocery	40–55	$5.40–$7.40
Restaurant / food service	35–50	$4.70–$6.75
Data center	100+	$13.50+

Intensity ranges based on EIA CBECS commercial building electricity intensity; costs are illustrative at the 2026 U.S. average commercial rate. High-cost states can double these figures.

Compare your own building using commercial electricity usage benchmarks and electricity usage per square foot.

What Businesses Pay per Month, by Size

Translating rate and usage into a monthly bill, here are rough ranges for a business in a mid-priced market (~13.5¢/kWh all-in), before demand-charge variation:

Business size	Monthly usage (kWh)	Approx. monthly bill
Small office / shop	2,000–5,000	$270–$675
Mid-size retail / restaurant	8,000–20,000	$1,080–$2,700
Large retail / small manufacturer	30,000–75,000	$4,000–$10,000
Mid-size manufacturer / hotel	100,000–250,000	$13,500–$33,750
Large industrial / data center	500,000+	$67,500+

Larger facilities also carry substantial demand charges ($/kW) on top of these energy costs — often 30–50% of the total bill. Estimate yours with the demand charge calculator.

Is Your Rate Too High? How to Tell

Use these quick checks:

Benchmark your ¢/kWh against your state average (see the rates-by-state table). If your all-in effective rate is well above your state's commercial average, dig into why.
Check whether you're on a variable/holdover rate. An expired fixed contract rolling to variable is the #1 cause of an inflated rate. See contract renewal best practices.
Separate the controllable from the fixed. In a deregulated state, the supply portion is shoppable; delivery is not. Get competitive supply quotes to see your best available rate. See comparing supplier offers.
Look at demand and load factor. A low load factor (peaky usage) inflates demand charges. Improving load factor lowers effective cost per kWh. See commercial energy load profile guide.
Audit for billing errors. See 17 common commercial energy bill errors.

How to Lower Your Commercial Electricity Cost

Shop supply and lock a competitive fixed rate (deregulated states). See switching suppliers step by step.
Cut demand charges with peak shaving, load shifting, and battery storage.
Improve efficiency to reduce the kWh the rate applies to. See ten ways to reduce commercial electricity costs.
Time your procurement to shoulder months. See best time to lock in electricity rates.

Frequently Asked Questions

What is the average commercial electricity cost per kWh in 2026? About 13.51¢/kWh nationally (EIA, April 2026), ranging from ~7¢ in the lowest-cost states to ~26¢ in California and New England, with Hawaii near 43¢.

How much does electricity cost per square foot for a commercial building? For a typical office, roughly $1.90–$2.15 per square foot per year at the 2026 national average rate. Energy-intensive buildings like supermarkets and restaurants can run $5–$7+/sq ft, while warehouses are closer to $1. High-rate states can roughly double these figures.

What's the average monthly electric bill for a small business? A small office or shop using 2,000–5,000 kWh/month typically pays roughly $270–$675 in a mid-priced market, before demand charges. Larger businesses scale up proportionally and add demand charges.

Why is my commercial rate higher than the average? Common reasons: you're in a high-cost state, you're on a variable/holdover rate after a contract expired, you have a low load factor driving high demand charges, or your rate class isn't optimized. A supply-rate review pinpoints which.

Curious what your business could pay with a competitive supplier? Get a free rate comparison or call 833-264-7776.

Sources: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A (April 2026); EIA Commercial Buildings Energy Consumption Survey (CBECS) electricity intensity data.