5 min. read
by Andy Brzezinksi, SitelogIQ Vice President, Sales
Across the country, utilities are implementing unprecedented increases for commercial and industrial customer electricity rates. In the first half of 2025 alone, filings for new hikes topped $29 billion, more than double the pace of increases last year.
Recent headlines make it clear rate increases have no sign of slowing:
- “Edison electric bills set to rise 10% under state plan. More hikes coming soon”
- “Energy prices are rising, Duke Energy rate payers could see another rate hike in the near future”
- “ComEd customers seeing bills double amid rising electric cost”
These rate increases represent millions of dollars in additional operating costs across commercial and industrial businesses. While energy costs used to be an inevitable part of business operations, they are quickly becoming a major risk factor that can impact asset value, competitiveness, profitability, and long-term growth.
Where Are Energy Costs Increasing?
The short answer: Energy costs are rising in most regions across the U.S. According to data from the U.S. Energy Information Administration, the average price of electricity has increased by nearly 21% for commercial customers and about 18% for industrial customers over the last decade.
For many regions, some of the steepest increases have been felt in the last 5 years:
All data above courtesy of EIA.
Why Energy Rates Are Rising
Energy rates are rising across the country for a variety of reasons:
- Utilities are investing in protecting the grid and building resiliency against extreme weather such as storms, floods, heatwaves, and wildfires. These costs are often passed directly to customers.
- Peak demand curves are being reshaped by data centers, EV charging networks, and industrial expansions, forcing utilities to expand capacity and replace aging infrastructure.
- Older power plants are retiring, making it more costly to meet today’s demand and generate enough back-up power.
- Despite recent federal rollbacks, some state-level clean energy standards still require utilities to add renewables and upgrade the grid.
While there is not a single reason that energy costs are rising, commercial and industrial customers are feeling the brunt from grid modernization and resiliency, new energy-heavy loads, and managing the loss of older assets.
4 Key Markets Feeling the Impact of Increasing Energy Costs
Any industry or business that relies heavily on energy will continue to feel the impact of rising costs. However, there are several that are greatly feeling the pressures, including:
| Industry | Challenge | Solution |
| Commercial Real Estate Portfolios | Rising energy costs reduce NOI and can pressure tenant retention or building values. | Invest in efficiency upgrades, smart building automation, and on-site generation to protect margins and strengthen tenant relationships. |
| Healthcare Systems / Hospitals | Hospitals run 24/7 with energy-intensive equipment, adding potential for millions of dollars in annual energy costs and the risk of impacting patient care. | Solar power and distributed generation projects combined with targeted energy efficiency upgrades help to reduce utility expenses and strengthen reliability for critical facilities. |
| Auto Dealerships | Long operating hours, bright showrooms, and new EV charging requirements add significant energy use and demand charges. | Install solar on unused rooftops, integrate energy storage, and use smart controls to reduce costs and protect slim margins. |
| Industrial, Distribution, and Manufacturing Facilities | Electricity is a direct input to production. Rising rates lead to unplanned downtime, and can negatively impact competitiveness, shift production, or investment decisions. | Solar installations and energy efficiency upgrades across facilities help reduce operating costs, stabilize long-term energy expenses, and protect competitiveness. |
Why Businesses Should Act Right Now As Energy Rates Continue to Increase
Energy costs are moving in one direction, and it isn’t trending down. The infrastructure investments, rising demand, and plant retirements behind today’s increases will keep pushing rates higher in the years ahead. For businesses, standing still means absorbing those costs as they grow, month after month.
But there is a window of opportunity right now. Federal incentives remain in place to lower the cost of projects like solar and energy storage but recent legislation is quickly phasing these programs out. That means the same project could cost more if it’s delayed. State programs can also shift quickly, with limited funding pools and deadlines that make timing critical.
The path forward is clear: Businesses that act now can capture incentives while they last, reduce exposure to future rate hikes, and lock in predictable energy costs for years to come. Waiting only narrows the options and raises the price of action later.
SitelogIQ is your one-stop partner to help you assess, design, and install energy upgrade projects. We have a dedicated team to help you navigate changes and qualify for tax credits before the impending deadlines.
We support all project phases of energy efficiency, electrification, and renewable solutions. One partner, one source of accountability, one comprehensive strategy—across all properties or locations.
With the new legislation, time is of the essence. Let’s chat about your energy upgrade goals and how you can take advantage of incentives that are still available today.
