Healthcare buildings have a higher electricity consumption per square foot, compared with many other types of commercial buildings. Here are some figures from the latest Commercial Building Energy Consumption Survey (CBECS) by the US Energy Information Administration:
- US commercial buildings have an average electricity consumption of 12.6 kilowatt-hours (kWh) per square foot per year. This figure comes from 5,613,000 surveyed buildings with different occupancy classifications.
- Considering only healthcare buildings, the average consumption is 23.8 kWh/sq.ft. per year, almost twice the average consumption of commercial buildings in general. This figure is based on 137,000 surveyed buildings.
The US EIA survey also breaks down the electricity consumption of healthcare buildings by subtype (inpatient or outpatient). As you might expect, inpatient healthcare buildings have a much higher consumption:
| Building Type | Number of Buildings Surveyed* | Average Floor Space per Building* | Average Consumption per Building* | Average Consumption per Square Foot |
| Inpatient facilities, including hospitals | 9,000 | 264,800 sq.ft. | 7,631,000 kWh/year | 28.8 kWh/sq.ft. |
| Outpatient offices and diagnostic facilities | 64,000 | 9,900 sq.ft. | 147,000 kWh/year | 14.9 kWh/sq.ft. |
| Clinics and other outpatient facilities | 64,000 | 17,500 sq.ft. | 330,000 kWh/year | 18.9 kWh/sq.ft. |
| All healthcare buildings | 137,000 | 29,300 sq.ft. | 698,000 kWh/year | 23.8 kWh/sq.ft |
*Note: US EIA published values are rounded to the thousands.
What is the Average Electric Bill for Healthcare Buildings?
Commercial electricity bills can vary widely depending on factors like facility size, climate conditions and local electricity rates. However, we can estimate average electricity costs for healthcare facilities, based on the figures above and commercial electricity rates in the US.
Healthcare Building Electricity Costs, at Nationwide Commercial Rates
As of August 2024, the US EIA reported an average commercial rate of 13.39 cents per kWh based on nationwide data. Here are the estimated electricity costs for different types of medical facilities, based on this figure:
| Building Type | Avg. Annual Consumption | Avg. Monthly Consumption | Avg. Annual Power Bill | Avg. Monthly Power Bill |
| Inpatient, including hospitals | 7,631,000 kWh | 635,917 kWh | $1,021,791 | $85,149 |
| Outpatient offices and diagnostics | 147,000 kWh | 12,250 kWh | $19,683 | $1,640 |
| Clinics and other outpatient | 330,000 kWh | 27,500 kWh | $44,187 | $3,682 |
The estimated electricity costs are significantly higher for inpatient buildings. This can also be explained by the building sizes considered in the US EIA survey: the average facility size was 264,800 sq.ft for inpatient healthcare buildings, but only 13,700 sq.ft for outpatient locations. Additionally, inpatient buildings have a higher consumption per square foot.
Healthcare Building Electricity Costs, at Texas Commercial Rates
The average commercial rate in Texas is 9.14 cents per kWh, which is 32% below the national average rate. Here we estimate electricity costs for healthcare buildings, specifically in Texas:
| Building Type | Avg. Annual Consumption | Avg. Monthly Consumption | Avg. Annual Power Bill | Avg. Monthly Power Bill |
| Inpatient, including hospitals | 7,631,000 kWh | 635,917 kWh | $697,473 | $58,123 |
| Outpatient offices and diagnostics | 147,000 kWh | 12,250 kWh | $13,436 | $1,120 |
| Clinics and other outpatient | 330,000 kWh | 27,500 kWh | $30,612 | $2,514 |
Most of Texas has a deregulated electricity market, where homes and businesses can choose their electricity providers. The average commercial rate is 9.14 cents per kWh, but you can find higher and lower rates in the market.
Choosing an Electricity Plan for a Healthcare Facility in Texas
The selection procedure for commercial electricity plans varies depending on two characteristics of your facility:
- Monthly electricity costs
- Number of power meters
If your monthly electricity costs are not higher than $2,500 and you have less than five power meters, you can choose an electricity plan online. This is very similar to choosing an electricity plan for a home. However, note that you must meet both conditions to be eligible. If you have a medical office or another small outpatient building, it will likely fall in this category.
On the other hand, if your monthly electricity costs exceed $2,500 or you have five or more power meters, you must contact energy providers directly and request customized electricity plans. Hospitals and other large inpatient facilities fall in this category, as well as buildings with multiple medical offices.
Electricity Service Protections for Medical Facilities
A continuous electricity supply is critical for healthcare facilities, especially if there are patients who depend on life-support equipment. The Public Utility Commision of Texas (PUCT) has introduced rules to protect the power supply in critical care facilities such as hospitals and nursing homes.
PUCT Substantive Rule §25.52 provides specific instructions for electric utility companies in Texas, requiring them to keep a list of critical care facilities and coordinate with them to minimize service interruptions. In case of a power outage, utility companies are required to prioritize these facilities while restoring the electricity service. This priority applies for:
- Hospitals
- Assisted living facilities
- Facilities that provide hospice services
- Nursing facilities
Average Electricity Costs per Square Foot of Healthcare Space
The US EIA survey provides the average square footage of different types of healthcare buildings. Using this data and the estimated electricity costs of each building type, it is possible to estimate an annual electricity cost per square foot:
| Building Type | Annual Consumption per Square Foot | Electricity Cost at Nationwide Rates | Electricity Cost at Texas Rates |
| Inpatient, including hospitals | 28.8 kWh/sq.ft. | $3.86 per sq.ft. | $2.63 per sq.ft. |
| Outpatient offices and diagnostics | 14.9 kWh/sq.ft. | $2.00 per sq.ft. | $1.36 per sq.ft. |
| Clinics and other outpatient | 18.9 kWh/sq.ft. | $2.53 per sq.ft. | $1.73 per sq.ft. |
| Healthcare buildings
(in general) |
23.8 kWh/sq.ft | $3.19 per sq.ft. | $2.18 per sq.ft. |
Note that these are average consumption figures, and actual electricity costs in healthcare facilities can vary widely. Commercial rates vary by state and electricity provider, and energy-efficient healthcare buildings can also expect lower utility costs per square foot.
Energy Incentive Programs for Healthcare Buildings in Texas
Most of Texas has a deregulated electricity market: you can choose your energy provider, and the local utility company charges a delivery fee for bringing its electricity to your home. Houston, Dallas and Fort-Worth are the three largest cities with deregulated electricity in Texas.
There are also some areas of the state with regulated electricity, where the local utility company is also the only electricity provider — with no alternatives available. San Antonio, Austin and El Paso are three cities with regulated electricity.
However, commercial building owners can find energy efficiency incentives from both regulated and deregulated utilities. This includes programs that offer incentives specifically for healthcare buildings. In the table below, we summarize the many energy incentive programs in Texas:
| Program Name | Location | Description |
| Oncor Healthcare Business Incentive Program | Dallas-Fort Worth and surrounding areas | In the healthcare sector, every dollar not spent on energy is a dollar that can be invested in medical equipment and improved patient care. Oncor offers financial incentives for many types of energy upgrades in healthcare buildings, including:
Oncor also provides an “energy concierge” program, where it helps healthcare facilities develop a continuous improvement plan focused on energy savings. Typically, the Oncor incentive program for commercial buildings is available every year from January to November. However, note that the program has annual funding limits. |
| CenterPoint Energy Healthcare Energy Efficiency Program (HEEP) | Greater Houston metropolitan area, excluding areas served by other utility companies | CenterPoint Energy offers several energy incentive programs for commercial buildings, including the HEEP. This program covers small to mid-sized medical facilities, including: hospitals, clinics, assisted living, nursing care, medical laboratories and medical offices.
CenterPoint Energy works with approved contractors to identify energy-saving opportunities in eligible buildings and implement them. The HEEP also offers technical assistance through energy assessments, savings calculations, measurement and verification, and operational recommendations. |
| Austin Energy Commercial Rebates | Austin | This program covers commercial facilities in general, including healthcare buildings. The list of energy upgrades eligible for incentives includes:
On average, commercial energy users that qualify for this program get a $5,000 rebate. Austin Energy also offers rebates for custom measures with demonstrated savings. |
| CPS Energy Small Business Program | San Antonio | CPS Energy does not have a dedicated energy incentive program for healthcare buildings. However, the company has two programs for business customers in general, including the healthcare sector.
Since January 2017, CPS Energy has provided nearly $20 million in small business incentives, and over $37.5 million for large commercial and industrial customers. The list of eligible measures includes lighting, HVAC and refrigeration upgrades. |
Solar Power Systems for Healthcare Buildings
Hospitals and other healthcare facilities often have limited roof space for solar panels, but they can take advantage of their parking areas. The US offers a 30% federal tax credit for residential and commercial solar systems, which is a nationwide incentive.
Commercial-scale solar systems have an average cost of $1.44 per watt in the US, according to the latest SEIA Solar Market Insight Report. Based on this figure, a 500-kW photovoltaic array for a hospital parking lot would have an estimated cost of $720,000. After subtracting the 30% federal tax credit, the net project cost is reduced to $504,000.
- Under favorable sunshine conditions like those found in Texas, a 500-kW solar system can potentially generate over 700,000 kWh per year.
- At the average commercial rate of 9.14 cents per kWh, this electricity output can yield annual savings of $63,980.
- Based on the net system cost of $504,000, the payback period is slightly under 8 years.
The leading solar panel providers offer a guaranteed lifespan of 25 years, which is over three times longer than their estimated payback period in this example. In other words, after the hospital recovers its solar energy investment, it still gets 17 years of guaranteed electricity production.
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