Commercial Electricity for Warehousing & Storage in Texas
What a Texas warehouse pays for power - where high-bay lighting, not machinery, usually leads the bill - plus how demand charges work and how to save.
Get a Free Commercial Energy Quote
20+ Years of Experience
Connect online free in minutes
Over 12,000 company reviews
Texas has over 2,000 warehousing and storage facilities, and a dry (non-refrigerated) warehouse is a surprisingly light electricity user per square foot - the bill is led by high-bay lighting, then HVAC and forklift charging. Below is what warehouses use and pay. See the very different cold storage guide, plus self-storage; browse all commercial electricity guides by business type.
Key Takeaways
- A dry warehouse uses only about 6 kWh per square foot per year - but the big footprint still adds up.
- A mid-size (~50,000 sq ft) facility uses roughly 20,000–35,000 kWh a month (about $1,650–$2,900 at ~8.3¢/kWh).
- High-bay lighting is usually the biggest load, followed by HVAC/ventilation.
- Forklift and EV charging add a growing, schedulable load.
- LED with controls and a competitive fixed rate are the biggest levers.
Warehouse Power Use, by the Numbers
Figures are estimates for a dry warehouse; refrigerated space is 3–4x higher (see the cold-storage guide).
What It Costs to Power a Warehouse
A dry warehouse runs at about 6 kWh per square foot per year - low intensity, but spread across tens or hundreds of thousands of square feet. Lighting and HVAC dominate, and forklift or EV charging is a rising load.
Estimated usage & bill by facility size
| Facility size | Approx. sq ft | Monthly usage | Est. monthly bill* |
|---|---|---|---|
| Small warehouse | ~15,000 | 6,000–12,000 kWh | $500–$1,000 |
| Mid-size warehouse | ~50,000 | 20,000–35,000 kWh | $1,650–$2,900 |
| Large distribution center | 200,000+ | 80,000–150,000+ kWh | $6,600–$12,500+ |
*Electricity portion at Texas's ~8.3¢/kWh average commercial rate for a dry warehouse. Any refrigerated space raises usage sharply.
How does the Texas commercial rate compare?
Texas businesses pay an average of about 8.3¢ per kWh - roughly 38% below the U.S. commercial average of ~13.5¢. Because Texas is deregulated, you can shop the supply portion of your bill across 30+ retail providers and lock in a fixed rate - compare current commercial electricity rates.
High-Bay Lighting Leads the Bill
With no refrigeration, a dry warehouse's electricity goes mostly to lighting a big space and moving air, with forklift charging and dock equipment behind.
| System | Why it draws power | Approx. share | Est. cost / month* |
|---|---|---|---|
| Lighting (high-bay) | Illuminating a large floor and aisles | 40–55% | $740–$1,020 |
| HVAC & ventilation | Cooling, heating, and air movement | 20–30% | $370–$555 |
| Forklift & EV charging | Charging electric lift trucks and fleet | 10–15% | $185–$280 |
| Dock & material handling | Dock doors, conveyors, and equipment | 5–10% | $95–$185 |
| Office & other | Front office, IT, and building systems | 5–10% | $95–$185 |
*Illustrative split of a ~$1,850/month mid-size warehouse bill. Automated facilities with conveyors and robotics shift more toward material handling.
Where a Warehouse's Demand Peak Forms
Most of your bill is energy — the total kilowatt-hours (kWh) you use over the month. But many commercial accounts also carry a demand charge, billed on your single highest peak of power draw, measured in kilowatts (kW), usually over a 15-minute interval. It doesn't matter only how much electricity you use, but how fast you use it at your busiest moment.
How to keep demand charges down
- Schedule forklift and EV charging for off-peak hours (overnight) instead of the afternoon peak.
- Add occupancy and daylight controls so lighting isn't on where nobody's working.
- Stage HVAC and equipment so loads don't stack together.
- Watch your interval data to find the monthly peak.
Demand Response for Distribution Centers
Demand response is a program where businesses agree to reduce their electricity use for short windows when the Texas grid (ERCOT) is under strain — typically late afternoons on the hottest summer days. In exchange, participating businesses earn payments or bill credits.
Where Warehouses Cut Energy Costs
- Lock in a fixed commercial rate. Comparing 30+ Texas providers at the right time is usually the biggest single lever.
- Convert to high-bay LED with controls. LED plus occupancy and daylight sensors is the highest-impact upgrade.
- Shift charging off-peak. Charging forklifts and EVs overnight avoids adding to the demand peak.
- Improve the envelope and HVAC. Insulation, dock seals, and efficient units cut conditioning load.
- Add destratification fans. Large ceiling fans even out temperatures and cut HVAC runtime.
- Review demand and interval data. Knowing your peak kW shows whether a different rate structure would save money.
Related Commercial Electricity Guides
Frequently Asked Questions
How much electricity does a warehouse use in Texas?
A dry (non-refrigerated) Texas warehouse uses only about 6 kWh per square foot per year. A mid-size ~50,000 sq ft facility uses roughly 20,000 to 35,000 kWh per month, or about $1,650 to $2,900 at the state's average commercial rate of about 8.3¢ per kWh. Large distribution centers use much more.
What uses the most electricity in a warehouse?
In a dry warehouse, high-bay lighting is usually the biggest load, followed by HVAC and ventilation, then forklift and EV charging. Refrigerated warehouses are a completely different profile dominated by refrigeration.
What is the average commercial electricity rate in Texas?
Texas businesses pay an average of about 8.3¢ per kWh as of 2026, roughly 38% below the U.S. commercial average of about 13.5¢. Your actual rate depends on your ZIP code, utility (TDU), usage, and when you sign your contract.
How can a warehouse lower its electricity bill?
Convert to high-bay LED with occupancy and daylight controls, shift forklift and EV charging to off-peak hours, improve the building envelope and HVAC, add destratification fans, and lock in a competitive fixed rate.
Do warehouses pay demand charges?
Larger facilities often do. When full lighting, HVAC, and forklift chargers run together on a hot afternoon, the peak in kilowatts is billed by a demand charge across the month; scheduling charging off-peak helps.
What is demand response and can a warehouse earn from it?
Demand response pays businesses to reduce use during short summer grid-peak windows. A warehouse can pause forklift charging, dim non-essential lighting, and ease HVAC for a short window in exchange for bill credits, without affecting shipping.
Compare Commercial Electricity Rates for Your Warehouse
Get a free, no-obligation quote from 30+ Texas suppliers. Our commercial energy experts have helped over 40,000 businesses lower their electricity costs - at no cost to you.
Get a Free Quote Call 866-284-9272Methodology & Sources
Business count: U.S. Census Bureau, County Business Patterns 2023 - 2,003 warehousing and storage businesses (NAICS 4931) in Texas. Average commercial rate: EIA / state commercial averages (Texas ~8.3¢/kWh; U.S. ~13.5¢/kWh, 2026). Usage uses a ~6 kWh/sq ft/yr dry-warehouse benchmark; the energy-user split is illustrative. Bills are electricity-only and exclude taxes, fees, and account-specific demand charges. Refrigerated warehouses are covered separately in the cold-storage guide.
