Florida Warehouse Electricity Costs (2025)Cut $0.80-$1.50/sqft Costs by 25-40%
📦 Warehouse Energy Quick Facts
- • Typical cost: $0.80-$1.50 per sqft annually (lowest among commercial)
- • Biggest expenses: Lighting (50%), HVAC (25%), material handling (15%)
- • Advantage: Flexible operations = easy to shift loads to off-peak
- • Savings potential: 25-40% through LED high-bay + TOU rates + controls
- • Quick win: LED high-bay retrofit = 60-75% lighting savings
- • Rebates available: $8k-$40k from Duke/FPL/TECO
Florida warehouses have the lowest energy cost per square foot of any commercial building type—typically $0.80-$1.50/sqft annually. However, with massive square footage (50,000-500,000+ sqft), total bills can still reach $40,000-$750,000 per year.
The great news: Warehouses are the easiest commercial buildings to optimize. With lighting dominating costs (50%), high ceilings perfect for LED high-bay fixtures, and flexible operations that can shift to off-peak hours, 25-40% savings is standard with 1-2 year paybacks.
💰 Real Example: Tampa Distribution Center
Warehouse: 120,000 sqft distribution, Tampa (TECO)
Annual electricity: 780,000 kWh
Annual cost: $93,600 ($0.78/sqft)
Breakdown:
- • Lighting (250 high-bay fixtures): $46,800 (50%)
- • HVAC (minimal cooling): $23,400 (25%)
- • Material handling (forklifts, conveyors): $14,040 (15%)
- • Office area: $5,616 (6%)
- • Other: $3,744 (4%)
After optimization:
LED high-bay retrofit: -$28,080/year (lighting: -60%)
Switched to TOU rates: -$9,360/year (shifted loads to off-peak)
Smart HVAC controls: -$4,680/year
Total savings: $42,120/year (45% reduction!)
TECO rebates: $18,750
Net investment: $26,250
Payback: 7 months
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1. Lighting (50%) - The Big Opportunity
Why so high: High ceilings require powerful high-bay fixtures running 8-24 hours/day.
LED High-Bay Comparison
| Type | Watts | Annual Cost | Savings |
|---|---|---|---|
| Metal Halide (old) | 400W | $187/fixture | - |
| LED High-Bay (new) | 150W | $70/fixture | -63% |
100,000 sqft warehouse: 200 fixtures × $117 savings = $23,400/year
Optimization Strategies:
- • LED high-bay retrofit (60-75% savings)
- • Add occupancy sensors (5-15% additional)
- • Daylight harvesting (skylights/windows)
- • Task lighting in office areas
ROI:
- • Investment: $200-$400 per fixture
- • Duke/FPL/TECO rebates: $75-$150 per
- • Net cost: $125-$250 per fixture
- • Payback: 12-18 months
2. HVAC (25%)
Good news: Warehouses need minimal cooling (no occupancy comfort requirements)
Strategies:
- • High-velocity fans (reduce AC needs)
- • Smart controls (only cool when needed)
- • Insulated roof/walls
- • Spot cooling (not full building)
Savings: 20-35%
3. Material Handling (15%)
Includes: Forklifts, conveyors, pallet jacks, dock doors
Strategies:
- • Electric forklifts (vs propane)
- • Variable speed conveyors
- • Insulated dock doors
- • Schedule heavy ops off-peak
Savings: 15-25%
Why Warehouses LOVE Time-of-Use Rates
Perfect Fit for Flexible Operations
Challenge: Most commercial buildings operate during peak TOU hours (12pm-9pm). Warehouses don't have to.
Opportunity: Shift receiving, picking, packing, and loading operations to nights/weekends when electricity is 60-70% cheaper.
❌ Standard Rate
Operations: 8am-5pm (peak hours)
Rate: $0.10-0.12/kWh all day
Annual cost: $93,600
✅ TOU Rate
Operations: 6pm-3am (off-peak)
Rate: $0.04-0.05/kWh off-peak
Annual cost: $62,400
Save $31,200/year!
Florida Warehouse Success Stories
Jacksonville E-Commerce Fulfillment (200k sqft)
Size: 200,000 sqft, 24/7 operations
Before: $240,000/year
Actions: LED retrofit + TOU rate switch + night shift optimization
After: $144,000/year
Savings: $96,000/year (40%!)
FPL rebates: $36,000
Payback: 9 months
Orlando Cold Storage (80k sqft)
Size: 80,000 sqft refrigerated
Before: $156,000/year
Actions: LED + high-efficiency chillers + TOU pre-cooling
After: $108,680/year
Savings: $47,320/year (30%)
Duke rebates: $28,400
Payback: 1.2 years
FAQ
What's the #1 energy savings opportunity for warehouses?
LED high-bay lighting retrofit. With lighting representing 50% of warehouse costs and LED reducing that by 60-75%, a 100,000 sqft warehouse saves $20k-$30k/year. Combined with rebates covering 30-50% of costs, payback is typically under 18 months.
Should warehouses switch to Time-of-Use rates?
Usually YES! Warehouses are the best candidates for TOU rates because operations can shift to off-peak hours (nights/weekends) when electricity costs 60-70% less. 24/7 operations, e-commerce fulfillment, and cold storage facilities see massive savings (20-35%+) by switching to TOU.
How much do warehouse LED upgrades cost?
$200-$400 per fixture for LED high-bay lights. Duke/FPL/TECO rebates cover $75-$150 per fixture, reducing net cost to $125-$250. With annual savings of $100-$150 per fixture, payback is 12-18 months. For a 100,000 sqft warehouse (200 fixtures), total investment is $25k-$50k after rebates.
Related Resources
TOU Rates Guide
Warehouses are perfect for TOU rates. Learn how to save 20-35% by shifting operations.
Read Guide →RebatesDuke Energy Rebates
Get $8k-$40k in rebates for LED high-bay fixtures, HVAC, and controls.
View Rebates →Complete GuideReduce Costs 15-40%
5 proven strategies warehouses use to dramatically cut electricity costs.
See Strategies →Cut Your Warehouse Energy Costs
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