---
title: What Drives Energy Use in Commercial Buildings
description: Commercial Building Energy Consumption constitutes a major fixed expense for most businesses. But where do commercial property owners spend most energy?
image: https://blog.budderfly.com/hubfs/Blog-CommercialBuildingEnergyConsumption.png
---
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# How Much Energy Is Consumed By U.S. Buildings?
Commercial building energy consumption constitutes a major fixed expense for most businesses. But where do commercial property owners spend most of their energy?
In this blog, we explore average building energy consumption, where the most energy is spent, and the opportunities for commercial operators to reduce energy usage by implementing energy efficiency upgrades.
## **How Much Energy Is Used in U.S. Buildings?**
U.S. residential and commercial buildings account for approximately 39% of total U.S. energy consumption. According to data published by the [US Energy Information Administration](https://www.eia.gov/tools/faqs/faq.php?id=86&t=1) (EIA) in 2026, commercial buildings consume approximately 9.9 quadrillion BTUs annually, representing about 12% of all energy used in the United States.
The EIA reports that the four primary end-use sectors consumed a combined 76.6 quadrillion BTUs of energy in 2026.
- Transportation 28.2 quads
- Industrial 26.6 quads
- Residential 11.9 quads
- Commercial 9.9 quads
The total energy expenditures of commercial buildings in the U.S. reached $142 billion at $23,900 per building and $1.47 energy use per square foot. This expenditure data is from 2018, but it is the most recent Commercial Buildings Energy Consumption Survey they have released.
## **Building Energy Consumption Breakdown**
Residential buildings consumed 11.9 quadrillions Btu of energy, with the following types being the most used in 2025:
- Natural gas - 42%
- Petroleum - 8%
- Renewable energy sources (geothermal energy, solar energy, and wood fuels) - 6%
Whereas commercial buildings consumed 9.9 quads with natural gas also the primary type of energy used.
- Natural gas - 38%
- Petroleum - 8%
- Renewable sources – 3%
It is also important to note that the building energy requirements stated above include not only the end-use consumption but also the energy losses brought about by the inefficient use of energy. The residential and commercial sectors ended with a combined energy consumption of [39% of total U.S. energy consumption](https://www.eia.gov/tools/faqs/faq.php?id=86&t=1) in the U.S. in 2025.
## **Commercial Energy Consumption by Industry**
The EIA reports the commercial building energy consumption breakdown and identifies the [five types of commercial buildings that use the most energy](https://www.eia.gov/energyexplained/use-of-energy/commercial-buildings.php#) (ranked by the % of total energy consumed by commercial buildings they use).
- Mercantile and service warehouse (15%)
- Office buildings (14%)
- Education building (10%)
- Health care facilities (8%)
- Lodging (6%)
## **How Buildings Rely on Energy**
According to the U.S. Department of Energy, the average commercial building consumes an average of 22.5 kilowatt-hours (KWh) per square foot of floor space. Usage can be further broken down to see which aspects of a commercial building use the most energy:
- 8 KWh/sq ft for refrigeration and equipment
- 7 KWh/sq ft for lighting
- 3 KWh/sq ft for cooling
- 2 KWh/sq ft for heating
- 2 KWh/sq ft for ventilation
- 0.5 KWh/sq ft for hot water heating
Of course, while this can give you an image of how commercial buildings consume energy on a regular basis, it’s worth noting that these averages can vary based on a handful of different factors. The location, overall size, and even the industry served by the commercial building all impact its overall consumption.
Although total energy usage has [reduced 12% per total floor space from 2012 to 2018](https://www.eia.gov/consumption/commercial/data/2018/pdf/CBECS%202018%20C%26E%20Flipbook.pdf), there has been a tremendous push to improve energy efficiency of commercial buildings in recent years.
## **How to Calculate Your Building’s Energy Consumption**
Knowing how much energy a building consumes is the start of an effective and efficient energy management strategy.
Real estate portfolio management platforms often rely on energy usage intensity (EUI) as a key energy efficiency metric. Essentially, it describes a building’s energy consumption compared to its size and other characteristics.
A lower EUI denotes energy efficiency. The higher the EUI, the more energy intensive the building is. The EUI indicates the purpose for which the building was created. For example, [healthcare and assisted living](https://www.budderfly.com/the-budderfly-effect/assisted-living/) buildings, which use medical devices, air conditioning systems, heat pumps, etc., obviously have higher energy consumption than [convenience stores](https://www.budderfly.com/the-budderfly-effect/convenience-stores/).
This detail is important in building energy consumption benchmarks, which help assess opportunities and identify ways to save energy. Knowing your benchmarks is the first step to energy efficiency.
In calculating the EUI, divide the total energy consumed by the building in one year (measured in kBtu or GJ) by the total gross floor area of the building in square feet.
Once you know your EUI, you can compare your building against national benchmarks, similar buildings, and better evaluate efficiency strategies.
## **Energy Efficiency and Its Importance**
Energy consumption in the U.S. is expected to continue to rise from 2026 to 2050. Reducing energy consumption in a building is both a challenge and an opportunity for developers and business owners. Aside from helping the environment, energy efficiency and green alternatives also cut down on their operational expenses and, depending on the industry or application, can even attract new customers.
Developers, as well as business owners and building operators, can plan and execute sustainability efforts and reduce the amount of energy consumed by commercial buildings. Energy efficiency brings benefits, such as the following:
- Lower energy consumption costs—electricity, heating, water, etc
- Reduce losses from operational inefficiencies, such as heat loss through inadequate insulation
- Qualification for renewable energy tax credits
- Generating interest for environmentally conscious customers
- Extended lifespan for electrical and heating equipment
Despite its importance, energy conservation is easier said than done. The tasks required to reach your energy-efficiency goals can be tedious and need a considerable amount of time and capital. Luckily, you can circumvent these issues by partnering with an [energy-as-a-service](https://www.budderfly.com/about/) company.
### **What Is Energy-as-a-Service?**
Energy-as-a-Service (EaaS) allows organizations to implement energy-saving upgrades without upfront capital investment. Providers install, monitor, maintain, and optimize energy-saving technologies while customers benefit from reduced energy usage and improved operational efficiency.
## ** Here’s How We Help Commercial Buildings Reduce Energy Consumption**
U.S. buildings generally require high levels of energy on a regular basis—but there’s something you can do about it.
Energy management solutions are available. Budderfly, for one, is an [innovative energy-as-a-service provider](https://www.budderfly.com/energy-service/) that unlocks energy savings, but more importantly, unlocks growth. We’ve already helped over 9,000 business locations across the U.S.:
- Reduce energy usage up to 30%
- Get new, energy-efficient equipment with ZERO cost
- Eliminate the risk of getting energy efficiency upgrades
- Provide insight into how you can save electricity
Ready to make a big impact on your business and the environment? [Contact Budderfly today.](https://www.budderfly.com/lets-talk/)
## FAQ
### What uses the most energy in commercial buildings?
Refrigeration equipment, lighting, cooling systems, heating systems, and ventilation are typically the largest energy consumers.
### How much energy does a commercial building use per square foot?
Commercial buildings use approximately 22.5 kWh per square foot annually.
### What is Energy Use Intensity (EUI)?
Energy Use Intensity measures annual building energy consumption divided by total building square footage.
### How can commercial buildings reduce energy consumption?
Organizations can reduce energy consumption through HVAC optimization, efficient lighting, refrigeration upgrades, building controls, and energy management services.
---
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