How Many kW Does My Small Business Need?

How Many kW Does My Small Business Need?

Small business owners manage several things on their own, including their energy usage and electricity bills. However, by estimating the average kW consumption in advance, they can prepare themselves for the expected bill amount and even try to lower it by making smart decisions.

This article explains how many kW a small business needs and how you can calculate your kW consumption through a simple calculation.

How many kW does a small business need?

On average, businesses in the USA, having 100,000 square feet of offices, consume around 15,000 kWh of electricity per year. The energy consumption can vary depending on your industry type, location, the type of devices you use, the number of workers you have, and some other factors. Regardless of your business type, the majority of energy consumption typically comes from the heating or cooling system.

Calculate energy consumption in three simple steps

Do you want to learn how much energy your small business will use per month or year? Follow these simple steps to find out.

1. Calculate the number of watt-hours you use every day

Multiply the wattage of the appliance you use in the office with the number of hours it stays on. It will give you the watt-hours value of the device. The wattage value of a device is usually written on its label, which is pasted on its back or bottom.

2. Find kilowatt-hours

Since your monthly electricity bill comes in kilowatt-hours (kWh) units, you need to convert watt-hour into kilowatt-hour. To do this, divide the value obtained in the first step by 1,000.

3. Calculate your monthly consumption

Now, multiply the value obtained in the second step by 30 to get the average energy value you may use in 30 days. You can multiply the kWh value by 365 to learn how much energy your small business will use in a year. So, let’s say you use a 10 W LED bulb 24 hours a day. According to the above calculation, the bulb uses 240 watt-hours every day. Now, divide 240 by 1,000 to convert it into kWh. It shows that the bulb uses 0.24 kWh energy. Now, multiply this value by 30 if you keep the bulb on for 30 days. The bulb will use 7.2 kWh every month. You can calculate the electricity usage of other devices using the same method.

Which devices need the most energy?

Every business has its own energy needs depending on which devices it needs to operate to produce products. However, the basic electrical appliances that consume the most energy in small businesses include:

  • Heating or cooling system
  • Indoor and outdoor lighting
  • Printers
  • Photocopy machine
  • Laptops and computers
  • Fridges and freezers
  • Security systems


Different factors govern the kW needs of a small as well as a large business. If you run a manufacturing business, your energy consumption will probably be more than of a small departmental store that does not use heavy machinery. Still, you can lower your electricity bill by installing energy-efficient appliances in your office and making smart energy choices.