What Do Utilities Cost Small Businesses Per Month?

Key Takeaways

Between everyday operations and long-term planning, utility bills can feel like a fixed cost you just have to accept. In reality, small changes in how you use energy and water can make a noticeable difference, especially once you understand what factors are driving your monthly costs.

Here are some of the helpful insights you’ll learn in this guide:

• Many small businesses spend anywhere from $200 to $1,000+ per month on utilities, depending on building size, location and day-to-day operations.
  
• Heating and cooling are usually the biggest contributors to monthly energy costs.
  
• Local climate, season, and business hours significantly affect monthly energy use, especially during peak summer or winter months.
  
• ENERGY STAR emphasizes that small businesses can often save up to 30% on energy bills through smart operations, maintenance and low-cost upgrades.

Next, we’ll break down what your monthly utility totals usually include, and what falls within the range of “normal” across different types of small businesses.

In everyday budgeting and accounting, the “utilities” bucket typically includes recurring services that keep your building running. Corporate Finance Institute explains that utility expenses are the “costs incurred by using utilities such as electricity, water, waste disposal, heating and sewage.” explains that utility expenses are the “costs incurred by using utilities such as electricity, water, waste disposal, heating and sewage.”

And depending on your business’s needs, many companies and organizations include “connectivity” costs like internet and phone in the utilities bucket, although some companies track those separately under “communications.”

While the exact definitions may vary, most people say “utilities” to mean core services that keep your facilities powered, clean, connected and operational month after month.

Common utility expenses for small businesses:

• Energy: Electricity, natural gas and renewable energy programs
• Water
• Sewer
• Waste Removal: Trash, recycling, compost and brush pickup
• Internet: For more information on this topic, check out EPB’s blog post, “Is the Internet Considered a Utility Bill?”
• Phone service: Cellular data, VoIP, landlines or hosted Private Branch Exchange (PBX) plans

Other recurring services that are similar to utilities (because they’re part of “keeping the lights on” for your business) include:

• Security services: Cameras and alarm systems
• Air filtration or ventilation service: Common in healthcare, salons, gyms and food service
• Extra waste services: Grease disposal or additional pickups
• Exterior or signage lighting: Especially if it’s billed separately or runs overnight

Next, let’s look at the key factors that influence utility costs, including building size, efficiency, business hours, climate and the type of work happening inside your space.

This difference shows up clearly in national data provided by the U.S. Energy Information Administration (EIA): food service buildings are far more energy-intensive than the average commercial building, largely because of cooking equipment, refrigeration and ventilation needs.

2. Your Building’s Size, Insulation and Efficiency: In general, bigger buildings cost more to heat, cool and power, but efficiency can matter just as much as size.

If your building has older HVAC equipment, leaky doors or windows, poor insulation or lighting that runs longer than it needs to, you may be paying for energy that isn’t really helping your business.

The U.S. Department of Energy (DOE) notes that commercial buildings can (and often do) waste up to 30% of the energy they consume, which means many small businesses have room to reduce costs without major renovations.   notes that commercial buildings can (and often do) waste up to 30% of the energy they consume, which means many small businesses have room to reduce costs without major renovations.

3. Your Business’s Hours and How Your Space Is Used: A business that’s open 10 hours a day will almost always use more energy than one that’s open for five hours, especially if the lights, heating and cooling and equipment run the entire time.

Utility costs also rise when:

• You have lots of customers coming and going (doors opening constantly).
• You run high-heat or high-power equipment all day.
• You have large or specialty lighting (signage, displays, security lights).
  

4. Your Local Climate, Seasonal Weather and Geographic Region: Weather matters a lot. A small business in Florida may pay more to keep up with summer cooling, while a business in Minnesota may spend more on winter heating.

According to the EIA, space heating accounts for the largest energy expense in commercial buildings, making up about 32% of total commercial building energy use in 2018.

In other words, if your business is in a colder climate, you’ll likely spend more to keep your building warm during the winter. And if it’s in a hotter climate, you’ll likely spend more to keep it cool in the summer.

5. Factors That Influence Your Other Utilities
How much you spend on other utility bills also comes down to the type of business you run. Here are some factors that can increase or decrease common utility costs:

• Water + sewer: Varies based on usage (restrooms, dishwashing, laundry, cleaning, etc).
• Trash + recycling: Depends on bin size, amount of trash generated and pickup frequency.
• Internet: Depends on availability in your region and what kind of internet service you order.
• Business Phone: Varies based on existing infrastructure, number of seats (employees), frequency of calls and type of phone service.
• Industry-Specific Utilities: Varies greatly depending on the service (for example, grease disposal, extra pickups, ventilation service, security monitoring and others).

Overwhelmed? Start by tracking your energy costs first, since it’s the biggest expense with the most potential to save by making small changes.

• Typical Monthly Energy Costs for Small Businesses

To keep things simple, we’ll start with the biggest category for most businesses: energy, which typically includes electricity and natural gas. According to the EIA, U.S. commercial buildings spent about $142 billion on energy in 2018, and electricity and natural gas were the main energy sources.

One of the most helpful ways to estimate energy costs is to look at energy cost per square foot because it lets you scale national averages up or down based on the size of your business.

According to the EIA’s Commercial Buildings Energy Consumption Survey (CBECS), U.S. commercial buildings spent an average of about $1.47 per square foot on energy in 2018.

But that average can change dramatically based on your business type. For example, food service and food sales buildings tend to spend more than $5 per square foot, since they rely on energy-intensive equipment like cooking appliances, refrigeration and ventilation systems.

To help you estimate what your own costs may look like, here are a few simple examples using common small business building sizes:

1. Small Office (example size: around 5,000 square feet)

Energy use in an office is usually driven by heating/cooling, lighting, computers and office equipment.

Estimated total energy costs using the national average:

• About $1.47 per square foot per year
• 5,000 sq ft × $1.47 = $7,350 per year
• Estimated monthly energy cost: about $612 per month
  

2. Small Retail, or “Mercantile” Store (example size: around 5,000 square feet)

Retail spaces may look “simple,” but bills can rise quickly if you have long open hours, bright lighting, signage, heated entryways or lots of foot traffic.

Estimated total energy costs using the national average:

• About $1.47 per square foot per year
• Estimated monthly energy cost: about $612 per month
  

3. Small Restaurant, or “Food Service” (example size: around 3,000 square feet)

Food service is one of the most energy-intensive small business categories because of cooking equipment, refrigeration and ventilation.

Estimated total energy costs using food service benchmarks:

• Often more than $5 per square foot per year
• 3,000 sq ft × $5 = $15,000 per year
• Estimated monthly energy cost: about $1,250+ per month

These examples aren’t meant to predict your exact bill, but they can help you spot whether your monthly energy costs seem within a normal range for your business type and whether it’s worth looking closer for efficiency upgrades.

1. Water and Sewer

Water and sewer costs depend on how much water your business uses for restrooms, cleaning, dishwashing, laundry and food prep, plus how your local utility prices service.

One quick way to estimate water use is to start with “per employee” averages. The U.S. Environmental Protection Agency (EPA) notes that office water use often falls around 20–35 gallons per employee per day for domestic needs (not including kitchen or process water).

For example, if a small office has 10 employees, that’s roughly 200–350 gallons per day, or about 4,000–7,000 gallons per month (depending on business days and occupancy).

The best way to estimate cost is to check your local utility’s water and sewer rate sheet, since pricing varies widely by region and provider.

Estimated benchmark ranges (very location-dependent):

• Small Office: around $75–$250 per month
• Small Retail: around $100–$400 per month
• Small Restaurant or “Food Service”: around $250–$1,000 or more per month (higher due to dishwashing, food prep and cleaning)
  

2. Trash and Recycling (Waste Removal)

Trash and recycling costs depend on your bin size, pickup frequency, the type of waste you generate and whether you need extra services, such as cardboard pickup, composting or grease disposal.

Here are a few examples of service costs from published local government rate schedules:

• Springfield, Tennessee, lists small commercial trash service collected “like residential” at $19.50/month (once per week) or $26 per month (twice per week).
• Bartlett, Tennessee, lists weekly commercial cart service at $30–$40 per month, depending on how many carts you use.
• Johnson City, Tennessee, lists a 6-yard commercial dumpster at $90 per month per weekly collection.
• Manchester, Georgia, lists commercial dumpster service starting at $90 per month for a 4-yard dumpster collected once per week, and costs increase with pickup frequency (e.g., $180 per month for twice per week)

Estimated benchmark ranges (based on typical service levels):

• Small Office: around $20–$250 per month (small cart service or a low-frequency dumpster)
• Small Retail: around $90–$400 per month (often dumpster-based or higher volume)
• Small Restaurant, or “Food Service”: around $180–$800+ per month (more waste + more frequent pickups)

Rates vary by city and can change year to year, so check your municipality’s current rate schedule for exact pricing.

3. Internet Service (Fiber Optic, Cable, 5G)

Internet costs depend on what’s available in your area (fiber vs. cable), whether you need a static IP, how many devices you support and how critical uptime is for your business.

Estimated benchmark ranges:

• Most small businesses:  about $50–$250+ per month
• Higher-performance setups (faster speeds, service guarantees, etc.): about $150–$500+ per month

If your business is located in EPB’s service territory, you can power your connectivity with the area’s only 100% fiber optic internet for small businesses with speeds starting at 300 Mbps ($75 per month) up to 1 Gig ($155 per month) and beyond. Learn more and compare plans.

4. Business Phone Service

Phone costs vary based on whether you’re using VoIP (cloud-based systems), landlines or mobile business lines. Pricing often depends on the number of seats (employees) and what call features you need.

Estimated benchmark ranges:

• Small teams: around $20–$150 or more per month
• Larger teams or call-heavy setups: around $150–$600 or more per month

Own a business in Chattanooga, Tennessee? Explore EPB’s scalable Voice Flex plans for small businesses, starting at $35.99 per month per line with unlimited local and long-distance calling, backed by local, around-the-clock EPB Tech ProsSM support. Learn more.

5. Industry-Specific Utility Costs 

Depending on your business type, you may also have recurring monthly services that behave like utilities because they’re required to stay operational, such as:

• Grease disposal (common in food service)
• Ventilation or air filtration service (common in healthcare, gyms, salons and restaurants)
• Security monitoring (alarms, cameras, emergency response)
• Extra waste pickup or specialty recycling services

Because these services vary widely by provider and service frequency, it’s best to treat them as “operational overhead” and get quotes directly from local vendors.

Now that you’ve seen what “typical” utility costs can look like by category, the next step is figuring out how much your business‘ utilities should cost based on your square footage, your business hours and the equipment you rely on every day.

1. Check if your utility provider has an online portal or app 

Many utilities offer online tools that let you track usage trends without doing the math yourself. If your provider has a portal or mobile app, you may be able to view your energy use by day, week or month, and spot unusual spikes before your bill arrives.

Check with your service provider to see if they provide tools that can help you find ways to save. For example, EPB customers can use the MyEPB mobile app or log in to your online portal to track your energy usage in real-time, view detailed historical usage charts and identify opportunities to save.

2. Estimate costs by square footage

If you’re opening a new location or don’t have a full year of bills yet, a square-foot estimate is a good starting point.

ENERGY STAR recommends starting with energy use intensity (EUI), a common method for comparing building energy use by size to estimate the total energy a building uses per square foot per year. You can also use tools like the EIA’s CBECS, which includes energy costs per square foot by business type.

4. Adjust for business hours and “what’s inside” the building

Two businesses can be the same size and still have very different bills, so ask yourself:

• Are you open 5 hours a day or 12 hours a day?
• Are you running high-heat equipment (ovens, dryers, laundromats, sterilization)?
• Do you have large refrigeration loads (coolers, ice machines, freezers)?
• Do customers constantly open doors, especially during extreme weather?

Even small policy shifts, like setting thermostat limits or powering down equipment after close, can decrease your monthly total and add up over time.

5. Use a calculator or benchmarking tool

If you want an easier way to compare your building to similar properties, ENERGY STAR’s Portfolio Manager lets you benchmark energy use across building types. And for a faster “quick estimate” option, ENERGY STAR’s Target Finder can help you compare estimated energy performance to typical buildings.

6. Compare notes with similar businesses

If your numbers feel way off, you don’t have to guess alone. Reach out to your community for help:

• Compare your bills to similar businesses in your area.
• Ask your local business association what’s typical for your building type.
• Call your utility provider and ask if anything looks unusual (rate plan, usage pattern, billing period, etc.).
  

Once you have a good estimate of what your utilities should cost, the next step is finding easy ways to lower that number, without sacrificing comfort, productivity or customer experience.

• Keep doors closed during extreme weather, especially in areas with lots of traffic.
• Use night and weekend settings for HVAC and lighting if your building isn’t occupied.
• Unplug or power down idle devices like space heaters, printers, breakroom appliances and display screens.

2. Upgrade lighting first

Lighting is one of the easiest upgrades because it doesn’t interrupt operations.

• Switch to LEDs in your most-used areas (front-of-house, restrooms, parking, signage). LEDs use at least 75% less energy than incandescent lighting and can last up to 25 times longer, according to the DOE.
• Install occupancy (or motion) sensors. Prioritize spaces like storage rooms, bathrooms and breakrooms.
• Automate exterior or signage lighting so that it’s not running longer than needed.

3. Adjust your heating and cooling strategy

Heating and cooling are often the biggest drivers of energy use, so even small adjustments can help.

• Set temperatures back during unoccupied hours. Turning your thermostat back 7°–10°F for 8 hours a day can save as much as 10% a year on heating and cooling, according to the DOE.
• Install a programmable or smart thermostat. Use it to automate your heating and cooling system to avoid energy waste.
• Check for these energy-waste culprits:
• Make sure your HVAC system doesn’t run overnight in unused spaces.
• Check doors or windows for air leaks and seal any gaps with caulk or weatherstripping.
• If you have more than one thermostat, make sure their settings aren’t “fighting each other” (for instance, if one is set to heating while the other is set to cooling, they can make each other work overtime).

4. Use smart plugs and power strips for better control

Some of the easiest “automation wins” come from controlling when your equipment uses energy.

• Install smart plugs to prevent standby power waste. Use them to automatically power down the following equipment when it’s not in use:
  
• breakroom appliances
• printers
• scanners
• lobby TVs
• music systems
• non-essential chargers
• displays
  
• Use smart power strips that automatically stop devices from demanding power when they’re not in use.

5. Track usage so you don’t have to guess

You don’t need to track every watt. Just look for patterns and spikes that need to be addressed.

• Compare your usage to find opportunities for savings. Check with your utility provider to see if they offer an online portal or app you can use to view usage trends over time.
  
• For example, EPB business customers can use their MyEPB portal to track energy usage and view detailed charts that show how habits and weather affect costs.
  

6. Consider an energy audit and incentives (especially before big upgrades)

If you’ve already knocked out the easy wins (LEDs, thermostat settings, turning things off after hours) and your bill still feels higher than it should, an energy audit can help you find what’s really driving the cost.

ENERGY STAR recommends asking your utility provider whether they offer free or low-cost energy audits. An energy audit is basically a professional “checkup” for your building’s energy use. It can point out hidden waste like inefficient HVAC settings, air leaks, outdated equipment, and scheduling problems that quietly increase your monthly costs.

• Ask your utility provider if they offer free or low-cost audits. Energy audits can also help you prioritize upgrades, so if you do invest money, you’re investing in changes that actually move the needle. EPB customers can schedule a range of energy-saving services with the EPB Energy ProsSM for Business. Learn More.
• Check with your state’s energy office. Some states offer free or discounted audits.
• Use benchmarking tools like the ENERGY STAR Portfolio Manager. Compare your building’s energy use to similar buildings and track improvements over time.

7. Check eligibility for rebates, grants or local efficiency programs

Before you pay full price for upgrades like LED lighting, HVAC improvements, insulation or energy-efficient equipment, take a few minutes to check whether you qualify for rebates or incentives. Many utilities and state programs offer discounts that can lower your upfront costs and help energy-saving upgrades pay for themselves faster.

• Search ENERGY STAR’s Rebate Finder. Look up rebates and special offers by ZIP code for ENERGY STAR certified products.
  
• Check your utility provider’s website for business rebates, upgrade programs or energy efficiency incentives (many utilities run their own). EPB customers can check for rebates on energy-saving improvements here.
  
• Look for statewide incentive programs that help businesses reduce energy waste through discounted upgrades or technical support.

8. Use educational resources as a guide

For most utilities, there’s no shortage of guidance available to help businesses reduce waste and manage costs. Here are a few guides from reputable sources:

• Water Conservation Tips for Businesses from the EPA
• Energy Efficiency Toolkit for Small Businesses from ENERGY STAR.
• Managing and Reducing Wastes: A Guide for Commercial Buildings from the EPA

You can also find in-depth energy-saving guides in our blog, Get Connected.

A few small changes can lower monthly bills without sacrificing comfort, productivity or customer experience. After you have a handle on the basics, it becomes much easier to keep costs under control long-term.

2. What kinds of policy changes would be a dealbreaker for you?

Some changes can be dealbreakers even if your costs don’t increase. For example, if you selected a utility service that generates energy using solar panels, and that company begins using coal, it makes sense to consider switching.

Here are a few examples of policy changes you could include on your list, depending on the utility:

• Policy changes that could happen anywhere:
• Contract changes that lock you in longer.
• New contract terms that your business can’t meet.
• Reduced service quality (more downtime, fewer features)
• Changes in ethical practices or sustainability that matter to your business.
• Increased outsourcing.
• Additional hidden fees that are misleading.
  
• Policy changes related to internet or mobile data plans:
• Your data becomes capped.
• Your speeds are reduced.
• Your data is no longer kept private.
• The provider begins throttling your speeds.

This is also where you can connect back to your cost limit: if pricing goes up and the service worsens, it’s probably time to shop for a new provider.

3. What problems would make you say, “This isn’t worth it?”

Next, define your tolerance level for day-to-day headaches. Even a “reasonable” bill becomes unreasonable if it creates constant friction.

Here are a few examples:

• Frequent outages or service interruptions.
• Slow speeds that interrupt sales, appointments or operations.
• Billing errors that keep happening.
• Customer support that’s hard to reach, takes up hours of your time or doesn’t resolve issues.
• Service that impacts your team’s productivity or your customer experience.

If you’re paying premium pricing, your expectations should be premium reliability.

4. Which services have more than one option in your area?

Not every utility is something you can “shop around” for. Many essential services, like electricity delivery, water and sewer, are tied to a service territory. That means your provider is automatically assigned to your business based on your location (often through a municipal utility or local utility district).

But even if you can’t switch the provider for a core utility, you can still look for ways to improve the plan, pricing or experience. Plus, you may have more options than you think in other categories.

Services that often have limited choice (territory-based):

• Electricity (energy) delivery and sometimes natural gas delivery)
• Water and sewer
• Some municipal trash services
  

Services that often have multiple options (depending on your region):

• Internet (fiber optic internet, cable, fixed wireless or 5G)
• Business phone service (VoIP, traditional lines)
• Waste removal (private haulers, dumpster service, composting or recycling add-ons)
• Security monitoring
• HVAC maintenance plans or service providers
  

If it’s an essential service delivered through local infrastructure (pipes, lines, grid), you may be locked into one provider. But if it’s a service that can be layered on top of others (internet, phone, hauling, monitoring), you usually have more flexibility.

5. When do your contracts end? How often will you review them?

A lot of overspending happens quietly because contracts renew automatically, promos expire or terms change and nobody has time to track it.

To make it easier, choose a specific check-in point:

• 30–60 days before renewal.
• Once per year during budgeting season.
• Whenever pricing increases beyond your limit from Question 1.

Once you pick a check-in point, set a reminder on your phone so you don’t have to remember later.

6. What discounts, bundles or business perks do you hope to take advantage of?

Before switching, it’s worth checking whether you can lower costs by adjusting what you already have.

Ask about:

• New-customer or renewal discounts
• Business-specific pricing
• Bundles (internet + phone, service + monitoring, etc.)
• Multi-location deals
• Upgrades that cost the same as your current plan

Sometimes you don’t need a new provider — you just need a better plan.

7. What upgrades would save you money long-term, even if they cost more upfront?

Sometimes the best move is to focus on improving your efficiency. Put another way, sometimes all you can do is find new ways to use your service less (through habits, policies or upgrades) without sacrificing convenience or comfort.

For example, sometimes it’s impossible to switch to a new energy provider, but you can still save money by making energy-efficiency improvements, including:

• LED lighting upgrades
• Smart thermostats or scheduling controls
• HVAC replacement or maintenance improvements
• Insulation and air sealing
• Efficient equipment upgrades

If your monthly costs are consistently above your “limit,” upgrades like these can help bring the number down permanently.

If you want the most accurate “average” for your business, use your last 12 months of bills as your benchmark, and compare your energy use to similar building types using national data like the EIA’s Commercial Buildings Energy Consumption Survey (CBECS).

Q. How can I lower my utility bills for my business?

Start with changes that reduce waste without disrupting operations. For example, most businesses see the fastest improvements on their energy bills from small upgrades and consistent habits, such as:

• Switch to LED lighting. LEDs use at least 75% less energy than incandescents and last up to 25 times longer. Prioritize the fixtures that get the most usage.
  
• Set clear thermostat limits. Use programmable schedules or a smart thermostat.
  
• Turn off equipment after hours. Automate the process with smart plugs or timed power strips.
  
• Seal air leaks. Add caulk or weatherstripping around doors and windows.
  
• Maintain HVAC systems. Schedule regular tune-ups and set reminders to change your air filters regularly so that your system doesn’t work harder than necessary.

Here are a few guides from reputable sources that may also help:

• Water Conservation Tips for Businesses from the EPA
• Energy Efficiency Toolkit for Small Businesses from ENERGY STAR.
• Managing and Reducing Wastes: A Guide for Commercial Buildings from the EPA

Q. Do small businesses pay more for utilities than residential users?

Often, yes, and it’s not just because businesses use more.

Commercial customers may face different pricing structures, such as higher base charges, different rate tiers and demand charges (based on your highest peak usage during a billing period).

That said, whether commercial rates are “higher” depends on your local utility and how your rates are structured. Check your provider’s rate sheet and compare your usage patterns over time.

Q. Are utility costs tax-deductible for small businesses?

In many cases, yes. Most utilities you pay to operate your business (like electricity, gas, water, trash, internet and phone in some cases) can count as ordinary operating expenses.

Because tax rules vary depending on how your business is structured (and whether you work from home, own the building, share spaces, etc.), the safest move is to track your expenses clearly and confirm details with a tax pro. The IRS includes utilities as part of eligible business expenses in its guidance for business use of a home, which can be helpful as a general reference.

Q. Should I consider solar or other renewable energy options?

It can be a smart long-term move if your building and budget support it.

Solar may be worth considering if you:

• plan to stay in your location for several years
  
• have strong sun exposure and usable roof space
  
• want more predictable long-term energy costs
  
• can take advantage of available incentives

Depending on your situation, some renewable upgrades may qualify for federal credits and programs, but the details can get technical quickly, so it’s worth talking with your tax advisor or installer before you commit. EPB customers can learn more about energy solutions for local businesses here.

• Keep an eye on rate changes and policy updates. Utility pricing and plan details can change over time. Checking your bills and contracts once or twice a year helps you catch changes early and reassess before you’re locked into higher costs. Set a reminder on your phone so you don’t have to think about it.
  
• Take action when costs hit your limit. If your bills are consistently above your target range, that’s your sign to do something, whether it’s scheduling an energy audit, upgrading equipment or shopping around for other services.

Is your business located in EPB’s service territory? EPB’s Energy Experts are here to help you find all the ways to save. Learn how to qualify for rebates and incentives on energy improvements. Choose from energy-saving services like air compressor testing and energy management evaluation. Or, keep tabs on your energy usage and savings with EPB’s Business Energy Tracker. Ready to take the next step toward lowering your business’s monthly energy costs? Schedule a free consultation with our local energy experts: Chat to Schedule or Ask Us to Call You.