K-12 schools across the country are major energy consumers. The reasons for this include the need to power a large amount of office equipment, heat and cool large spaces within school buildings and the overall facility, and maintain proper lighting throughout the facilities, especially in classrooms that require dedicated resources. Compared to other commercial buildings, schools have unique energy usage patterns and operational needs. With many schools already functioning on tight budgets, they need to find ways to cut costs and save money without impacting their resources for teaching. Energy costs and usage can also vary significantly depending on where a school is located, such as in urban versus rural settings or in different climate zones. The median floorspace for a K-12 school building is approximately 39,600 square feet. In total, K-12 schools in the US spend about $8 billion on energy each year.
Fortunately, schools can find savings on their electric bills by working through a detailed energy audit. In this article, we will explore average school electricity costs, the two different types of energy audits, and how schools can reduce spending on energy through an audit.
How Much Do Schools Pay for Electricity?
According to data from the U.S. Energy Information Administration (EIA), K-12 schools in America annually spend an average of $0.67 per square foot on electricity and $0.19 per square foot on natural gas. For example, a typical 1,000 student high school requires around 173,730 square feet to accommodate its students. This means that a school of this size might pay around $149,500 for energy depending on its location, consumption practices, and ratio of electricity to natural gas usage. Energy use intensity (EUI) is a key metric for benchmarking school energy consumption, representing the amount of energy used per square foot and helping schools compare and improve efficiency. In the Midwest, the average K-12 school spends over $30,000 per year on electricity and natural gas. A high school can have a median size of around 71,600 square feet, while an elementary school is closer to 32,400 square feet.
Schools typically use around 10 kilowatt-hours (kWh) of electricity and 50 cubic feet of natural gas per square foot on an annual basis. Furthermore, space heating, lighting, and water heating make up around 74%–86% of their total energy usage depending on a school’s location. In fact, lighting accounts for a significant portion of electricity use in school buildings, alongside other major end uses. For a medium-sized school with approximately 500 students, the annual electricity usage is estimated between 150,000 to 250,000 kWh, translating to an average of 12,500 to 20,833 kWh per month. For a 10,000 square foot school, the average monthly electricity consumption would be approximately 8,300 kWh.
Even though energy spending only represents 2%–4% of a school’s total spending, it’s a great area to find savings without negatively impacting the ability to care for and educate students. Facilities upkeep, which includes energy costs, is the third highest cost in school budgets, following personnel costs.
Energy Use in Commercial Buildings
Commercial buildings, including schools, play a major role in the nation’s overall energy consumption, accounting for nearly 20% of total energy use in the United States. Within these buildings, the largest share of energy is dedicated to space heating, cooling, and lighting, which are essential for maintaining comfortable and productive environments for students and staff. Office equipment, such as computers and printers, also contributes significantly to total energy consumption, especially as technology becomes more integrated into daily operations.
For most schools, space heating and ventilation systems are among the top energy users, particularly in regions with extreme seasonal temperatures. Lighting systems, which must operate for long hours to ensure safe and effective learning environments, also account for a substantial portion of electric bills. The combined energy use from these systems can make up the majority of a school’s monthly energy consumption.
To reduce energy consumption and lower electric bills, schools and other commercial buildings can take several proactive steps. Upgrading to energy-efficient lighting, such as LED fixtures, can dramatically cut lighting-related energy use. Similarly, investing in high-efficiency HVAC systems and improving building insulation can reduce the demand for space heating and cooling. Advanced controls, like programmable thermostats and automated lighting systems, help optimize energy use by ensuring that equipment operates only when needed.
Regular maintenance of equipment and ventilation systems is also crucial for maintaining peak performance and preventing unnecessary energy waste. By monitoring energy use and implementing targeted upgrades, schools can improve efficiency, reduce operating costs, and create more sustainable learning environments. These strategies not only benefit the school’s bottom line but also contribute to broader efforts to conserve resources and reduce the environmental impact of commercial buildings.
Factors Affecting Energy Bills
Managing energy costs is an important aspect of running a school efficiently. Several key factors contribute to the average school’s electric bill, with natural gas for space heating and electricity for lighting and office equipment making up a significant portion of total energy consumption. In fact, lighting alone can account for a substantial share of energy use, averaging about 10 kilowatt-hours (kWh) of electricity per square foot each year. As schools strive to reduce energy consumption and lower electric bills, understanding these factors is the first step toward meaningful cost savings. In some districts, electricity and water costs can equate to a teacher’s salary every month.
Some of the main contributors to high energy bills in schools include:
Space heating and cooling systems: Heating and cooling large spaces require considerable amounts of energy, especially in regions with extreme temperatures. Natural gas is often used for space heating, which can drive up total energy consumption. Space heating accounts for approximately 42% of end-use consumption in education buildings.
Lighting systems: The type, number, and efficiency of lights used throughout the building have a direct impact on electricity costs. Outdated lighting can waste energy and increase bills.
Office equipment: Computers, vending machines, and other electronic devices are essential for daily operations but can consume a lot of power, especially if not upgraded to energy-efficient models.
Water heating systems: Providing hot water for kitchens, bathrooms, and other facilities adds to overall energy use, particularly if older, less efficient systems are in place.
Food service operations: Preparing and cooking food in school kitchens requires significant energy, especially for operating refrigerators, freezers, ovens, and other food equipment. Inefficient food service practices and equipment can increase both food and energy costs.
Maintenance costs: Inefficient or poorly maintained equipment can lead to higher energy consumption and increased costs. Regular maintenance is crucial for keeping systems running efficiently.
Energy use patterns: How and when energy is used throughout the school day can affect overall consumption. Monitoring and optimizing these patterns can help reduce waste and improve efficiency.
By addressing these factors, schools can achieve significant energy savings and cost reductions. Here are some effective strategies to consider:
Upgrade to energy-efficient lighting: Switching to LED lights can reduce lighting-related energy consumption by up to 50%, lowering electric bills and maintenance costs.
Implement energy-efficient HVAC systems: Upgrading heating, ventilation, and air conditioning systems can cut energy use for space heating and cooling by up to 30%.
Use power strips for office equipment: Plugging computers, vending machines, and other devices into power strips can help eliminate standby power consumption when equipment is not in use.
Install occupancy sensors: Automated controls can turn off lights and equipment in unoccupied rooms, reducing unnecessary energy use.
Maintain equipment regularly: A proactive maintenance schedule ensures that all systems operate at peak efficiency, minimizing waste and extending equipment life. Schools can also set operational limits on equipment use and kitchen appliances to further reduce energy consumption.
Upgrading to energy-efficient refrigerators and maintaining them properly—such as ensuring doors seal tightly and preventing cold air leakage—can help save on food service energy costs.
Use programmable thermostats: Schools can achieve significant energy savings by using programmable thermostats to manage HVAC systems.
Adopt low-flow fixtures and high-efficiency appliances: Schools can save energy by using low-flow fixtures and high-efficiency appliances in kitchens and cafeterias.
Promoting energy-aware behaviors among students and teachers is another important aspect of reducing energy consumption. Simple actions, like turning off lights when leaving a room or shutting down computers at the end of the day, can add up to significant savings over time.
Schools can also leverage other resources, such as grants and government programs, to support energy-saving upgrades and initiatives. By using tools and data to monitor and calculate energy consumption, schools can complete comprehensive energy audits and identify additional opportunities to save energy, reduce costs, and improve the overall performance of their facilities.
By taking these steps, schools not only lower their electric bills but also create a more sustainable and efficient environment for students and staff, allowing more resources to be directed toward educational priorities.
Understanding Energy Consumption Patterns
Understanding energy consumption patterns is a crucial step for schools aiming to reduce energy consumption, lower electric bills, and improve overall efficiency. Most schools spend a significant portion of their budget on energy, with space heating, cooling, and lighting making up the majority of total energy consumption. By taking a closer look at how and where energy is used throughout the school, administrators can identify opportunities to save energy and money while maintaining a comfortable environment for students and staff.
A key starting point is to monitor energy use and analyze electric bills regularly. By tracking data on energy consumption, schools can pinpoint which areas or equipment are using the most power and target those for improvement. For example, classrooms, offices, and common areas often have high lighting and office equipment usage, while kitchens and science labs may have additional demands from cooking equipment and fume hoods. Schools can negotiate better energy rates during energy billing audits by comparing current pricing with nationwide data.
Upgrading to energy-efficient technology is one of the most effective ways to reduce energy consumption. Switching to LED lighting, installing energy-efficient vending machines, and upgrading office equipment can significantly cut down on electricity use. These upgrades not only save energy but also reduce maintenance costs and extend the lifespan of equipment. Additionally, implementing controls such as occupancy sensors and programmable thermostats can help ensure that lights, heating, and cooling systems are only in use when needed, further reducing waste.
Regular maintenance is another important aspect of energy management. Maintaining heating and cooling systems, cleaning or replacing air filters, and ensuring that doors and windows are properly sealed can all help improve efficiency and prevent unnecessary energy loss. Well-maintained equipment operates more efficiently, leading to lower energy bills and reduced maintenance costs over time.
Behavioral changes also play a vital role in reducing energy consumption. Encouraging students and staff to turn off lights and equipment when not in use, adjust thermostat settings to use less energy for space heating and cooling, and take an active role in energy conservation can lead to significant savings. Providing education and training on energy efficiency helps build a culture of sustainability within the school community.
Some specialized equipment, such as fume hoods in science labs, can be major sources of energy use. Schools can reduce the energy impact of these systems by installing variable-speed controls and using energy-efficient lighting. Similarly, using natural gas for space heating and cooking can be more cost-effective and energy-efficient in certain regions, helping to further reduce total energy consumption. HVAC systems, lighting, and plug loads are the primary influences on monthly electricity usage in schools.
To maximize energy savings, schools should take advantage of other resources such as energy audits, energy management programs, and grants. These tools can help identify additional areas for improvement, support the implementation of new technologies, and provide funding for energy-efficient upgrades.
Types of School Energy Audits
Schools can work through two different types of audits: an energy billing audit and a consumption-based energy audit. Many schools also participate in an energy efficiency program offered by utilities or government agencies, which can provide incentives, rebates, or specialized services to help implement upgrades. Since most schools are looking for ways to reduce spending without the need for additional investment, the information below will mostly highlight the details and benefits of an energy billing audit.
Energy billing audits are a risk-free process, whereas consumption-based audits typically require some form of capital expenditure to see the benefits. Using benchmarking tools and analyzing utility data is supported by research, which shows that energy audits can lead to significant cost savings and improved building performance.
School Energy Billing Audit
An energy billing audit serves as a way for schools to find savings that are hidden within their energy invoices and contracts. During an energy billing audit, a team of experts will take an in-depth look at a school’s invoices to uncover a variety of errors, overcharges, and other opportunities for savings that most schools wouldn’t be able to find on their own. Expert auditors will also analyze the energy tariffs to make sure that spending is optimized in this cost category.
An energy billing audit is not used to find ways to reduce consumption or to implement energy-efficient technology solutions, such as building automation, demand-controlled ventilation, or smart thermostats, that can improve energy efficiency. Rather, the team of auditors is strictly looking for financial savings found in the energy invoices and contracts.
Below, we highlight the benefits of working through an energy billing audit and how P3 Cost Analysts find savings due to overcharges or errors on electric bills.
Benefits of a School Energy Billing Audit
Negotiating Better Energy Rates
During an energy billing audit, your team of experts will be able to compare your current energy pricing with nationwide pricing data to see if your rates are consistent with similar types of schools. This data is updated frequently but the average customer won’t know how to find or truly understand this information.
If your team of auditors thinks that you’re overspending for the level of service you receive, they can negotiate directly with your energy supplier in order to deliver you better pricing. It should be noted that these types of negotiations typically take place in deregulated energy markets where you have the chance to choose your energy supplier.
Correcting Overcharges and Billing Errors
When working through an energy billing audit, your team of auditors will thoroughly analyze your current and past invoices to find many types of overcharges, errors, or additional fees that you weren’t aware of. After these discrepancies have been identified, your auditing team will bring these findings directly to your energy supplier. From there, they will work on your behalf to bring you the relevant refunds or credits that your school can receive.
Qualifying for the Correct Energy Tariffs
For any school to optimize their spending on energy, they need to function under the proper energy tariffs. Since energy tariffs are almost impossible for the average customer to understand, it’s vital to work with a team of energy tariff experts. With their knowledge, they will be able to look at the appropriate tariff documents, understand which tariffs you do and don’t qualify for, and assist you in functioning under the tariffs that serve you best.
School Energy Consumption Audit
The other type of audit is a consumption-based energy audit which is used to help schools better understand their consumption practices and find ways to upgrade their energy technologies to improve efficiency.
There are numerous companies that conduct consumption-based energy audits and they typically recommend a wide range of different technologies used to reduce energy consumption.
Though reducing energy consumption is a good goal, implementing energy-efficient solutions is often capital intensive. For schools where budgets are already tight, working through an energy billing audit instead of a consumption-based one may be a better option.
P3 Cost Analysts' Audit Process
Step 1: Engagement
The engagement phase is used to explain our shared savings agreement and to communicate the details of the audit process moving forward. We also use this time to describe all the materials we will need to begin the audit including invoices, authorization documents, and contracts.
Step 2: Onboarding
During the onboarding phase, we will collect past and present invoices, typically ranging from 12–36 months. To decide how far back we can go, we have to follow your state’s statute of limitations. Once these are known, we will go back as far as we can to find your savings.
Step 3: Audit
During our thorough energy billing audit, we dive into your invoices looking for any unnecessary fees, errors, and/or overcharges. We keep you consistently updated about the discrepancies we uncover so that we can deliver savings during the process instead of having to wait till the end of the audit. In most cases, it will take 4–6 weeks to release our findings and then another 4–6 weeks to implement the savings.
Step 4: Ongoing Auditing
To make sure that your savings stay intact and no new overcharges present themselves, we will monitor your invoices on an ongoing monthly basis.
School Energy Billing Audit Case Study
We worked with a medium-sized school district that had significant utility expenses. Since reducing these expenses would be a key factor for improving their overall operations, they wanted to have third-party experts review their invoices and contracts to see where there might be savings.
During our risk-free expense audit, we were able to find multiple errors and overcharges on their utility invoices. Through our audit, we were able to generate over $200,000 in refunds on utility expenses alone.
Reduce Your School's Energy Bill Today
For schools wanting to uncover a variety of savings within their invoices and contracts, an energy billing audit is required. During an energy billing audit, a team of experts will find overcharges, errors, and other opportunities for savings in this cost category. An energy billing audit will also tell you if your school is functioning under the right tariffs, which is an important aspect of cost savings.
Schools can also conduct a consumption-based energy audit to better understand their consumption practices. But, since the solutions found within consumption-based energy audits are capital intensive, we recommend working through an energy billing audit to find savings without capital expenditure.
If you’re interested in conducting an energy billing audit for your school, our team at P3 Cost Analysts is ready and able to help. If you’d like to learn more about becoming a part of our team and helping businesses save money, check out our cost savings & expense reduction franchise opportunity. To schedule your free expense audit, contact us today!
