Gym Energy Costs: What Actually Drives Your Bills and How to Lower Them

Gyms have some of the highest energy costs per square foot in commercial real estate due to HVAC, humidity control, lighting, and hot water usage. Most fitness centers spend 25–40% of operational expenses on utilities.

Fitness centers have unique energy profiles, which means gym energy costs can be high and unpredictable. Unlike standard commercial facilities, gyms typically have high ceilings, massive humidity loads caused by sweat, showers, and pools, and long operating hours. As a result, energy is often the second largest operating expense for gyms after rent and labor.

Yet a gym energy bill doesn’t have to stay inflated. Gym facility managers and operators can optimize energy costs through specific technologies such high-efficiency HVAC systems, LED lighting, and more. Budderfly’s Energy-as-a-Service (EaaS) model makes gym energy savings accessible, and gyms that partner with Budderfly get energy-saving solutions with no upfront capital required.*

*For standard installations

What Drives HVAC and Humidity Control Costs in Gyms?

HVAC is one of the biggest expenses for gyms, because a lot of energy is required to regulate the atmosphere of an indoor fitness environment. Gyms have a high standard for temperature regulation, as it can have a serious impact on the comfort and safety of members as they work out. It’s not just temperature; it is humidity removal, too. 50 people in a spin class create a moisture load that outdated systems struggle to handle, leading to higher energy spikes, member discomfort, and potential mold issues.

Replacing old HVAC units with new, premium energy efficient models and smart thermostats drives down gym HVAC energy consumption. Updated HVACs are able to regulate temperature and humidity control in gyms to create more uniformity throughout a building, while consuming less energy. High efficiency commercial HVAC models also break down less often, lowering annual repair costs and ensuring members are comfortable year-round.

• Orangetheory Fitness – A gym franchisee has installed new HVACs to lower its energy use and carbon footprint while keeping temperature and humidity consistent across its locations. Since partnering with Budderfly at 53 locations, they have seen improvements in member comfort and satisfaction and reduced energy waste.

How Much Does Gym Lighting Contribute to Energy Bills?

Gyms require bright, high-lumen lighting for members’ safety, hygiene, and aesthetics. Older styles of light bulbs such as fluorescents and metal halides, have a few significant disadvantages. They have higher energy costs, which can make a significant contribution to bills, especially for facilities that are open for long hours.

Meanwhile, LEDs use at least 75% less energy than incandescent bulbs, according to the U.S. Department of Energy, which translates to substantially lower costs. Budderfly provides fitness center lighting upgrades with high quality LED lighting that lowers energy and improves the visuals inside facilities.

Old lights also emit heat, which forced air conditioners to work harder and use more energy to keep rooms cool. This means outdated lighting has a "double penalty" on energy bills. LED bulbs don’t emit heat and help keep HVAC energy usage low.

Plus, energy efficient gym lighting can streamline operations by minimizing bulb replacement. A high-quality LED bulb can last 30 times longer than an incandescent bulb and 3 to 5 times longer than a CFL, according to the DOE.

• Planet Fitness – With thousands of locations, Planet Fitness has standardized LED lighting across corporate and franchise locations to reduce kilowatt-hour consumption per square foot.
• Gold’s Gym – Many franchisees have utilized lighting retrofits to lower operating costs immediately, improving member experience in locker rooms and weight floors.

How Do Showers, Hot Water, and Pools Affect Gym Energy Costs?

If a gym has a pool, it is a massive energy hog due to filtration pumps running 24/7 and heating costs. Even without a pool, shower usage during peak hours such as mornings or after work creates massive demand spikes.

High gym water usage doesn’t just impact water bills, but it also increases energy usage that is used to heat water throughout a facility. Commercial water efficiency practices can help reduce water and energy waste.

Budderfly’s water conservation solutions for gyms include hand sink aerators, low flow toilets and urinals, intelligent leak detection systems, and more.

• Healthrax– Healthtrax has old equipment causing inefficiency, repairs, and high costs. Aside from payroll, energy was the main operating expense. Budderfly’s water efficiency program, alongside new HVACs and lights, have improved the gyms’ environment and energy use.

Upgrading a facility for energy efficiency typically comes with a high upfront cost. Many gyms have other priorities they want to invest in, so old energy systems remain in place, and gym energy bills stay high. But with Budderfly, gym owners do not need to choose between investing in new equipment for members or buying a new HVAC unit.

Budderfly’s model allows gyms to upgrade their facility's infrastructure (including new high-efficiency HVAC, LED lights, water conservation technology, solar panels, and more) while saving their own capital for other business priorities.

This allows fitness brands to lower the energy consumption, manage their bills, and improve the member experience simultaneously.

To learn about Budderfly’s energy-as-a-service (EaaS) solutions and how you can get cutting-edge technologies across your facility, contact one of our gym energy experts today.

Ready to cut gym energy usage while improving the member experience? Talk to a Budderfly gym energy expert to see how much your facility could save.

FAQs

Why is my gym’s electricity bill so high compared to other businesses?

Gyms face a "perfect storm" of energy usage: long operating hours (often 24/7), high ceilings that are hard to cool, and massive humidity loads from sweating members and showers. This forces HVAC systems to run longer and harder than in typical retail spaces. Budderfly helps mitigate this through high-efficiency HVAC upgrades and smart monitoring.

How much can LED lighting actually save a fitness center?

Lighting typically accounts for 20-30% of a gym's energy bill. Switching to LED lighting not only reduces lighting energy usage by up to 60%, but it also emits less heat, which reduces the load on your air conditioning. Budderfly manages these retrofits entirely, including installation and maintenance.

Can I upgrade my gym’s HVAC without a huge upfront payment?

Yes. With Budderfly’s Energy as a Service model, we provide the capital to replace aging, inefficient rooftop units with modern, high-efficiency systems. We monetize the energy savings to pay for the upgrade, meaning you get better air quality and lower bills without the capital expenditure (CapEx).

How do swimming pools impact energy costs?

Pools are one of the largest energy consumers due to the constant need for heating and the 24/7 operation of filtration pumps. By installing variable speed drives (VFDs) and using smart monitoring, facilities can significantly reduce the energy required to keep pools clean and warm without sacrificing member comfort.

What are "Peak Demand" charges and how do gyms avoid them?

Utilities often charge commercial facilities based on their highest point of energy usage during a billing cycle. For gyms, this usually happens during the post-work rush. Smart energy monitoring helps smooth out these spikes (load shedding) to prevent setting a high demand rate for the entire month.