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Industrial Electricity Cost Savings Checklist

A practical checklist for factory and industrial facility managers to identify and prioritize electricity cost reduction opportunities — reactive penalties, contract demand, tariff, and solar.

Use this checklist to identify which cost reduction opportunities apply to your facility. Each section corresponds to a distinct saving lever. Review them with your energy or maintenance manager. Sections marked with more than two items checked warrant immediate professional review.

1Reactive Power and Compensation System

  • Last 12 invoices show reactive power penalty line items in more than 3 billing periods
  • Reactive penalty exceeds 5% of active energy charge in any period
  • Compensation panel was installed more than 5 years ago without a full capacitor test
  • Facility has added significant inductive loads (motors, compressors, welding) since panel was sized
  • Facility uses variable frequency drives (VFDs) or switching power supplies
  • Panel controller displays reactive power that is not fully compensated during peak shifts

2Contract Demand and Capacity Charges

  • Monthly invoices show excess demand (aşım talep bedeli) charges in more than 2 periods per year
  • Contracted demand was set more than 3 years ago without review
  • Production capacity has changed significantly since the contract was set
  • Demand peaks occur only during shift startup or specific production sequences
  • Invoices show demand utilization below 60% of contracted level for more than 4 months

3Tariff Category and Market Eligibility

  • Annual electricity consumption exceeds 1,000,000 kWh (open market threshold)
  • Facility is currently on regulated distribution tariff (dağıtım tarifesi)
  • Last tariff review was more than 2 years ago
  • Facility has not evaluated time-of-use tariff structures for load shifting

4Rooftop Solar Feasibility

  • Facility has more than 500 m² of suitable south- or east-facing roof area
  • Annual consumption exceeds 200,000 kWh
  • Facility operates during daylight hours with significant daytime load
  • Roof structure is less than 20 years old and in sound condition
  • No major shading from neighboring structures or rooftop equipment

5Energy Monitoring and Management

  • No sub-metering for production lines or high-consumption equipment
  • Energy consumption is not tracked per unit of production (specific energy intensity)
  • Compressed air system has not been audited for leaks in more than 2 years
  • Lighting has not been upgraded to LED in production and warehouse areas
  • Motor inventory has not been reviewed for oversizing or continuous operation at partial load

Interpreting Your Results

3 or more items checked in Reactive Power section

Request a reactive penalty analysis — likely recoverable cost.

2 or more items in Contract Demand section

Contract renegotiation or load management review recommended.

All tariff items checked

Open market eligibility assessment warranted immediately.

4+ solar items checked

Rooftop solar feasibility study likely to show strong payback.

5+ total items across all sections

Comprehensive industrial energy cost diagnostic recommended.

Want a Professional Review of Your Results?

Send us your last 12 months of electricity bills. We will apply this checklist systematically and prepare a written preliminary memo identifying your highest-value savings opportunities.