Queens Small Businesses Are Drowning in AC Costs as 2025 Energy Rates Spike to Record Highs

Small businesses across Queens are facing an unprecedented crisis as Queens County residents spend about $367 per month on electricity, adding up to $4,404 per year—47% higher than the national average electric bill of $3,003. With average electricity rates in the U.S. going up 34% between 2021 and 2025, adding more than $500 to what the average home pays each year, the burden on commercial enterprises has become crushing.

The Perfect Storm: Energy Rates and Commercial Cooling Demands

The numbers paint a stark picture for Queens businesses. The average New York commercial electricity rate is 22.73 ¢/kWh (61% higher than the national average), while commercial electricity rates and bills in New York have also increased, with current 2025 rates (19.25¢/kWh) meaning a small business using 600 kWh/month might pay around $114/month, an increase from 2024.

For businesses operating cooling systems during Queens’ sweltering summers, these rate increases translate to devastating operational costs. Con Edison had a rate hike proposal pending to raise the cost by 11.4%, with the current rate case proposing an 18% increase in delivery costs. This creates a compounding effect where businesses must choose between customer comfort and financial survival.

Commercial HVAC Systems: The Hidden Cost Multiplier

The installation costs alone present a significant barrier to entry. A central air-conditioning alone is estimated to be around $3000 to $5000 or more for a 2000 square foot commercial space, while a central heating furnace can cost between $2000 and $8000. For comprehensive systems, a 1000 square foot building can have a commercial HVAC that costs around $6000 to $12000.

However, the real financial impact comes from ongoing operational costs. With energy rates climbing and cooling demands intensifying, many small businesses find themselves trapped in a cycle where they cannot afford to operate their systems efficiently, yet cannot afford to replace them with more energy-efficient alternatives.

The Queens Business Climate Challenge

Queens’ unique position in New York’s energy landscape compounds these challenges. NYC and Long Island get three-quarters of their power from fossil fuel plants, with the densest concentration in Queens. This heavy reliance on fossil fuels, combined with taxes making up the largest portion of the rising cost of energy, creates a particularly expensive environment for commercial operations.

Small businesses—from restaurants requiring refrigeration to retail shops needing customer comfort—are being forced to make impossible choices. Some are reducing operating hours during peak cooling seasons, while others are passing costs directly to consumers, potentially pricing themselves out of competitive markets.

Finding Solutions in a Crisis

Despite these challenges, businesses don’t have to face this crisis alone. Professional commercial ac service Queens providers are stepping up to help businesses navigate these difficult times with energy-efficient solutions and strategic maintenance programs.

Companies like Excellent Air Conditioning and Heating, which provides specialized HVAC services for residential and commercial customers throughout Manhattan, Brooklyn, Queens, Nassau and Suffolk Counties, are offering innovative approaches to help businesses manage costs. With over 30 years of experience, they work with each client to design custom systems tailored to fit their needs, having helped many commercial customers including industrial, professional, medical, and retail buildings.

Strategic Approaches to Cost Management

Smart business owners are exploring several cost-mitigation strategies. Commercial and Industrial HVAC Prescriptive Rebates offer rebates for upgrading to high-efficiency air conditioners and heat pumps, providing some financial relief for system upgrades.

Preventative maintenance has become more crucial than ever. Regular upkeep of commercial AC and heating units can help prevent unexpected failures, ultimately saving Long Island or Queens businesses time and expense. By investing in professional maintenance programs, businesses can ensure their systems operate at peak efficiency, reducing energy consumption even as rates continue to climb.

The Path Forward

The energy crisis facing Queens small businesses requires immediate attention and strategic planning. While keeping power affordable remains the biggest challenge as New York’s energy system changes, with state government facing pressure to make policies that balance clean energy goals with bills people can actually pay, businesses cannot wait for policy solutions.

The key to survival lies in partnering with experienced HVAC professionals who understand both the technical and financial challenges businesses face. Companies focused on community service, reliable performance, and straightforward advice can help businesses develop comprehensive strategies that balance immediate cost concerns with long-term efficiency goals.

As Queens businesses continue to grapple with rising energy costs, those who act proactively—investing in efficient systems, establishing maintenance partnerships, and exploring available rebates—will be better positioned to weather this storm and emerge stronger when conditions improve.