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Business Energy Prices for Laundries

Commercial laundry energy prices are among the highest per square metre of any small business sector, driven by the heat and water heating requirements of industrial washing, drying and, in larger operations, steam ironing or finishing equipment. A mid-size commercial laundry can use 150,000 to 400,000 kWh of electricity and a similar or greater volume of gas annually, given the scale of hot water and drying demand involved.

Because water heating represents such a large share of total energy use, laundries are particularly sensitive to gas prices where gas-fired boilers are used to heat water and generate steam, making gas rate comparison especially important in this sector.

Compare Market compares commercial laundry energy contracts against throughput volume and equipment type, helping laundry operators secure rates that reflect their genuinely high, heat-intensive consumption profile.

  • Typical electricity use: 100,000 to 300,000+ kWh a year depending on throughput
  • Gas is often the dominant fuel where hot water and steam are gas-fired
  • Washing, drying and ironing equipment are the primary cost drivers
  • Consumption scales closely with laundry throughput volume rather than floor area alone
  • Standing charges are typically higher given the substantial capacity required
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Typical laundry energy consumption

Consumption is closely tied to throughput volume, meaning a laundry processing hotel or care home linen at scale will use considerably more energy than a smaller dry cleaning or self-service laundrette.

Laundry typeElectricity (kWh/yr)Gas (kWh/yr)
Small dry cleaner/self-service laundrette20,000 - 50,00010,000 - 30,000
Mid-size commercial laundry100,000 - 300,000150,000 - 400,000
Large industrial laundry (hotel/healthcare contracts)300,000 - 700,000+400,000 - 900,000+
Indicative annual consumption by laundry type Figures are indicative and vary with throughput volume, water heating method and equipment age.

What drives the cost

  • Industrial washing machines heating large volumes of water per cycle
  • Tumble dryers running for extended periods at high temperature
  • Steam-based ironing and finishing equipment in larger operations
  • Water softening and treatment systems supporting wash quality
  • Extraction and ventilation to manage heat and humidity in the laundry area

Gas versus electricity split

In laundries using gas-fired boilers for hot water and steam generation, gas often represents the larger share of total energy spend, sometimes 55 to 70 percent. Fully electric laundries shift this balance towards electricity, but generally at a higher unit cost per unit of heat generated.

Throughput and continuous operation

Larger commercial laundries, particularly those servicing hotel or healthcare linen contracts, often run equipment for extended shifts or continuously to meet turnaround requirements, creating one of the more consistent, high base-load demand profiles among small and medium commercial sectors.

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Standing charges and metering

Given the scale of equipment involved, mid-size and larger laundries typically require higher capacity electricity and gas connections, reflected in higher standing charges than most other small business sectors. Many qualify for half-hourly electricity settlement.

Contract length and renewal timing

One to three year fixed contracts are common, with larger operations sometimes negotiating bespoke terms given the scale of consumption. Renewal comparisons should begin 4 to 6 months ahead of contract end given the complexity of quoting for high-consumption sites.

How to compare laundry energy prices

  • Provide throughput volume alongside consumption data for accurate quoting
  • Confirm whether hot water and steam generation are gas or electric
  • Check standing charge and capacity requirements given equipment scale
  • Request bespoke quotes for larger operations rather than standard small business tariffs

Laundries: frequently asked questions

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