Manufacturing facilities and office buildings have fundamentally different electricity cost profiles — different load shapes, demand characteristics, rate classes, and procurement opportunities. Understanding how they compare helps each sector benchmark its procurement approach.
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Side-by-Side Comparison
| Factor | Option A | Option B |
|---|---|---|
| Typical usage | 500K–10M+ kWh/year | 200K–2M kWh/year |
| Dominant load | Industrial motors, process loads | HVAC, lighting, plug loads |
| Load factor | Often high (70%+, multi-shift) | Moderate (30–50%) |
| Peak demand timing | Production-driven | Business hours, summer cooling |
| Rate class | Industrial/Large Power | General Commercial/LGS |
| Demand charge sensitivity | High — motors set peaks | Moderate — HVAC peaks |
| Supplier competition | High (large load) | Moderate to high |
Manufacturing Energy Profile
Industrial motors consuming 64% of manufacturing electricity (DOE data) drive high demand charges through motor startup events. Multi-shift operations maintain high load factors — predictable load that suppliers price favorably. PJM-territory manufacturers face capacity charges that non-deregulated states don't. Natural gas for process heat is often as significant as electricity.
Office Building Energy Profile
Office buildings have business-hours consumption patterns with significant summer HVAC-driven peaks. Load factor is moderate — peak demand during hot summer afternoons is significantly higher than overnight or weekend consumption. The supply rate competition is active for accounts in the 200K+ kWh/month range.
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Which Sector Gets Better Rates?
All else equal, manufacturing gets better supply rates due to higher and more predictable load. Suppliers price high-load-factor accounts more favorably because they can model the load reliably. But both sectors benefit substantially from competitive procurement — running a broker process is the primary driver of savings regardless of sector.
Frequently Asked Questions
Do manufacturers pay lower electricity rates than offices?
Generally yes — higher load volume and more predictable load profiles attract more aggressive supplier pricing. But the absolute rate per kWh depends heavily on market, contract term, and procurement approach.
Do offices or manufacturers have higher demand charges?
It depends on load factor. An office building with high summer peaks and very low overnight usage has a poor load factor — meaning demand charges are large relative to total consumption. A 24/7 manufacturer has a better load factor, so demand charges are proportionately smaller relative to the total bill.
Should manufacturers and office buildings use the same broker?
Yes. A broker serving commercial accounts handles both sectors. The load data, supplier submission, and contract review process is identical — only the load profile inputs differ.