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How a manufacturing plant cut its kWh bill 18 percent in 90 days

Commercial

A 380,000 sqft Ohio plant ran the audit + supplier switch + load shift. Result: 18 percent lower kWh bill, 14 percent lower demand. The full case study.

Harry Parker

Energy Consultant, Seenra Inc

Commercial11 min readPublished

Featured infographic

Manufacturing plant savings breakdown

Supplier switch 52 percent of savings. Load shift 28 percent. Compressed-air repair 20 percent. Total $186,000 annual.

Open graph image · /og/savings-stack.png

An Ohio manufacturing plant (380,000 sqft, 8 MW peak demand) cut its kWh bill 18 percent and demand charges 14 percent in 90 days. Three moves stacked: supplier switch to a 24-month locked rate, load shift to off-peak hours for batch operations, compressed-air leak audit and repair. Total annual savings: $186,000 against a $1.1 million annual electric spend. ROI on the audit and switch: 4 to 6 months. Estimated, not guaranteed.

The three moves that stacked

Move 1: supplier switch from the utility default to a 24-month locked rate via the August lock window. Estimated annual savings: $96,000 on the supply portion.

Move 2: shift Friday and weekend batch operations to overnight hours. Reduced peak demand allocation. Estimated annual savings: $52,000 on demand charges.

Move 3: compressed-air leak audit (industry standard for manufacturing). Repaired 18 leaks across the facility. Reduced baseload kWh by 6 percent. Estimated annual savings: $38,000.

Replicable to other plants

The supplier-switch move works in any deregulated state for any commercial customer above 100 kW peak demand. Estimated savings: 8 to 18 percent on the supply portion.

Compressed-air leak audit is industry-standard for any plant with significant compressed-air systems. Typical leak repair saves 4 to 12 percent on baseload kWh. Payback under 6 months.

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Common questions

Quick answers from the editorial desk

What was the payback period?
4 to 6 months across all three moves. Supplier switch had immediate payback. Load shift required scheduling changes. Compressed-air audit cost roughly $18,000 and saved $38,000 in year one.
Was capex required?
Minimal. Compressed-air repair required $12,000 in parts and $6,000 in labor. Supplier switch and load shift required zero capex. The win came from operational changes.
What did not change?
Production output, employee headcount, product quality, customer delivery times. The 18 percent kWh reduction was pure efficiency improvement.
Is this replicable to a small plant?
Yes scaled appropriately. A 50,000 sqft plant with 1 MW peak demand could expect $15,000 to $35,000 annual savings from the same three moves.

Further reading

Pillar guide, cluster siblings, and state pages cited above

Sources

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