Business Electricity: Compare Commercial Plans & Rates (2026)

New: see commercial electricity rates by state — all 50 states ranked with the latest EIA data.

Business electricity is commercial power service — and in a deregulated state, the supply portion is yours to shop. You cannot change who delivers the power, but you can choose the supplier who sets the rate, and for a business that runs a meaningful monthly load, comparing a fixed-rate commercial plan against the utility default is one of the easiest ways to cut a controllable cost. Rates hinge on your usage, your peak demand, and your location, so the right plan is the one matched to how your business actually uses power.

What is business electricity?

Business electricity is the commercial rate class utilities and suppliers use for offices, shops, restaurants, warehouses, and other non-residential accounts. The power itself is identical to what a home receives, but the pricing structure is built for higher and more variable loads. In the 13 deregulated states plus Washington, D.C., business electricity is split into two parts: delivery, which the local utility handles and you cannot shop, and supply, which you can. That supply half is where a business can actually save, because you are free to buy it from a competitive retail supplier instead of taking the utility default.

For a small storefront the savings might be modest, but for a business with a large or steady load — refrigeration, manufacturing, server rooms, long operating hours — the supply rate is a real line item worth managing rather than ignoring.

Can you shop business electricity in your state?

Only in a deregulated market. Thirteen states and Washington, D.C. let commercial customers choose their electricity supplier: Texas, Ohio, Pennsylvania, Illinois, New Jersey, New York, Massachusetts, Connecticut, Maryland, Maine, New Hampshire, Rhode Island, and Delaware. If your business sits in one of those, you can compare commercial suppliers and lock a rate. In a regulated state, the local utility is the only option and the rate is set by regulators — there is nothing to shop, though efficiency still lowers the bill.

How business electricity rates work

Commercial pricing has more moving parts than a home bill. Alongside the per-kilowatt-hour energy charge, many commercial plans add a demand charge based on your highest 15-minute spike of usage in the month, measured in kilowatts. Two businesses that use the same total energy can pay very different amounts if one has sharp peaks and the other runs steady. That is why the cheapest advertised rate is not always the cheapest bill — the plan has to fit your load shape, your contract length, and how predictable you need your costs to be.

How to lower your business electricity bill

There are two levers: the rate you pay and the power you use. On the rate side, compare commercial suppliers against your utility default and consider a fixed-rate term to protect against seasonal spikes; watch the contract length, early-termination terms, and whether the price includes or excludes delivery. On the usage side, flattening your peaks lowers demand charges — staggering equipment startups, upgrading to efficient lighting and HVAC, and shifting heavy loads off peak hours all help. Together, a better supply rate and a flatter demand curve are where most businesses find real savings.

Business electricity vs. residential electricity

The core difference is scale and structure. Residential plans are simple per-kWh rates; business electricity layers in demand charges, higher usage tiers, and contract terms built for commercial loads. A very small business might look a lot like a home account, but as the load grows the demand component and the supply choice become the two numbers worth managing.

Matching a plan to your load profile

The best plan follows how your business actually draws power. A restaurant or grocery runs steady refrigeration around the clock with sharp cooking-hour spikes, so both the supply rate and demand charges matter. An office has a predictable weekday load and benefits most from a fixed rate that steadies the budget. A warehouse or light-manufacturing site with heavy equipment sees large demand charges, so flattening startup peaks can save as much as the rate itself. Retail sits in between, driven mostly by lighting and HVAC hours.

Once you know your load shape, the choice gets simpler: steady, predictable loads reward a longer fixed-rate term, while spiky loads reward active demand management on top of a competitive rate. The point of comparing commercial suppliers is to find the plan that fits that shape rather than the one with the lowest headline number, since the headline rate rarely tells the whole story on a commercial account.

Frequently asked questions

What is business electricity?

It is commercial power service for non-residential accounts. In deregulated states, the supply portion is yours to shop while the utility handles delivery.

Can I choose my business electricity supplier?

Yes, in the 13 deregulated states plus Washington, D.C. Elsewhere the local utility is the only option.

What is a demand charge?

A fee based on your highest short spike of usage in the month, measured in kilowatts. It is why two businesses with the same total usage can pay different bills.

How can a business lower its electricity bill?

Shop a competitive supply rate, consider a fixed-rate term, and flatten your peak demand through efficiency and off-peak scheduling.

Is fixed or variable better?

Fixed protects your budget from seasonal spikes and is often the safer choice; variable can win in a falling market but carries risk.

Does business electricity have a deposit?

Some suppliers require one depending on the business and its credit; many offer no-deposit commercial plans.

Which states have commercial electricity choice?

Texas, Ohio, Pennsylvania, Illinois, New Jersey, New York, Massachusetts, Connecticut, Maryland, Maine, New Hampshire, Rhode Island, Delaware, and Washington, D.C.

Is it cheaper than residential power?

Not necessarily — the structure differs. Businesses can save by shopping the supply rate and managing demand, but demand charges can raise the effective cost.

Keep going

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• Average electric bill by state and home size
• Columbus electricity rates & price to compare
• No-deposit electricity in Texas
• Green energy plans explained

Commercial electricity price data: U.S. Energy Information Administration.