Solar-Powered Savings: How Cold Storage Operators Are Reducing Costs and Gaining Energy Resilience

The High Cost of Keeping Cool

Cold storage facilities are the backbone of the modern supply chain, ensuring the safe storage of food, pharmaceuticals and other temperature-sensitive goods. Yet, these facilities face a mounting financial challenge: energy costs. In fact, the cold storage industry spends over $30 billion annually on energy, with electricity expenses consuming up to 18% of a facility’s total operating costs.

Rising utility rates and increasing volatility exacerbate the situation. For example, in California, commercial electricity prices have doubled over the past decade, with state regulators raising rates four times in 2024 alone. Such volatility can wreak havoc on budgets and erode profitability.

Why Energy Volatility Threatens Cold Storage

Unlike standard warehouses, cold storage facilities operate 24/7 and are among the most energy-intensive buildings in the industrial sector. Refrigeration alone can account for over 70% of total energy use, and these facilities can require up to 60 kWh per square foot annually, making them four to five times more energy-intensive than typical commercial buildings. Even minor fluctuations in energy prices can translate into significant, unpredictable cost increases, undermining financial planning and operational stability.

Solar + Storage: Predictable Costs, Stronger Bottom Line

On-site solar and battery storage offer cold storage operators a powerful solution to these challenges. By generating electricity on-site, facilities can offset a substantial portion of their grid consumption, reducing exposure to utility rate hikes and creating long-term cost predictability. The average commercial utility cost in 2024 was 13.1 cents per kWh, whereas solar energy can be produced for as little as 3.2 to 15.5 cents per kWh, depending on location and system size. This price stability acts as “rent control” for energy bills, protecting operators from future spikes.

Battery storage further enhances these benefits. By storing excess solar energy during peak demand periods – when utility rates are highest – facilities can avoid costly demand charges and maintain operations during grid outages. According to a study by Wood Mackenzie, businesses using solar-plus-storage save an average of $20,000 to $50,000 annually in energy costs.

Energy Resilience: Insurance Against Outages

Energy Resilience is another critical financial advantage. Grid outages, whether caused by extreme weather or infrastructure failures, can lead to product spoilage, compliance violations and lost revenue. While only solar-plus-storage systems provide backup power during blackouts, solar installations alone offer substantial benefits by reducing reliance on volatile grid pricing and lowering operating costs.

For example, Catalyze’s Jessup Cold Storage Solar Project in Maryland demonstrates how a large-scale rooftop solar system can deliver over 2.5 million kWh of clean energy annually for a 268,000-square-foot facility. This project enables the facility to lock in predictable energy costs and achieve significant long-term savings, all while reducing the facility’s carbon footprint and supporting Maryland’s ambitious clean energy goals.

Bonus: Sustainability as a Market Advantage

While the financial case for solar and storage is compelling, sustainability remains a valuable secondary benefit. Solar adoption reduces reliance on fossil fuels, lowers greenhouse gas emissions and helps facilities meet the growing expectations of customers and regulators. While federal and state incentives can further accelerate ROI and make solar investments even more attractive, the core financial benefits of on-site solar, predictable energy costs, long-term savings and greater operational resilience, stand on their own. Facilities can achieve substantial savings and sustainability gains independent of any single policy, ensuring a strong business case today and into the future.

Ready to Future-Proof Your Cold Storage Operations?

As energy costs rise and grid reliability becomes less certain, cold storage operators can’t afford to wait. On-site solar and storage solutions offer a proven path to financial resilience, predictable energy costs and a more sustainable supply chain without the burden of upfront investment.

Why Catalyze

Catalyze specializes in turnkey solar and battery storage solutions tailored to the unique demands of cold storage facilities. Our team manages every step, from site assessment through installation and ongoing asset management, so you can focus on your core business while we deliver reliable savings and energy security.

With our Energy-as-a-Tenant (EaaT) model, facilities can implement solar projects with zero upfront investment, benefiting from immediate cost savings and long-term financial resilience. Our proven track record demonstrates how tailored solar solutions can future-proof operations, enhance profitability and support sustainability goals.

Curious how much your facility could save, or how you can strengthen your market position with clean, reliable energy?

Contact Catalyze today to start the conversation and discover what solar-powered savings could mean for your business.