What Is the Best Power Setup for Mixed-Use Industrial Facilities?
Mixed-use industrial sites combine offices, warehouses, and factories. Each area uses energy in different ways. Some spaces run heavy machines. Others just power lights and computers. This mix of needs often leads to high energy bills and power problems.
Example Scenario:
- A 500-acre site runs forklifts in a warehouse while design engineers work in office spaces nearby.
- Lights in production bays stay on 24/7, but the office wing shuts down at 6 p.m.
- Some days the site uses just 300 kW (kilowatts; a unit of power that shows how fast energy is used); during peak output, demand spikes to 1.5 MW (megawatt or 1,000 kilowatts).
That kind of up-and-down energy use is common at mixed-use industrial facilities, and it can drive costs through the roof.
Electric rates are estimated to increase by 13 percent for U.S. manufacturers since 2022, according to the Energy Information Administration (EIA, 2025). Meanwhile, grid outages are getting longer. Weather-related events averaged 7.2 hours of downtime last year, which is double what we saw five years ago. For a site that values uptime even a 30-minute outage can mean spoiled inventory or lost production shifts.
Traditional “grid plus diesel genset” setups no longer cut it. Traditional generators use a lot of fuel, pollute more, and make it hard to control energy costs. That’s why best-in-class operators are moving to hybrid systems that layer solar panels, battery storage, intelligent controls, and (when needed) a smaller, cleaner backup generator on top of the utility feed.
Camali Corp has helped many clients, like cold-storage depots and light-assembly factories, cut their total energy costs by 25% to 40% with a hybrid power setup. These savings happen across all U.S. markets. Why? Because hybrid systems unlock multiple benefits at once:
- A 30% federal Investment Tax Credit (ITC) lowers the upfront cost of solar equipment.
- Accelerated depreciation lets businesses write off that equipment faster at tax time.
- Lower demand charges reduce monthly fees tied to peak power use.
When you combine these financial advantages, the math makes sense and the savings add up quickly.
Still, many facility managers don’t know where to start. Should you size solar to cover your daytime production load? Is a 1-hour or a 2-hour battery the sweet spot? Do you ditch your diesel genset or keep it for rare multi-day outages? The good news: there’s a straightforward framework to answer all of those questions, and we’re about to walk through it step by step.
Why Mixed-Use Industrial Sites Need a Hybrid Power Strategy
Mixed-use facilities have a wide range of power needs. You might have:
- Office spaces with standard lighting and HVAC
- Warehouses or light manufacturing areas running high-power motors
Utilities charge you in two ways:
- Kilowatt-hours (kWh) – the total energy you use over time
- Peak demand (kW) – the highest amount of power you use in any 15-minute window
Solar power helps lower your total kWh, but it doesn’t reduce your peak demand. That’s where batteries come in, they handle those short spikes in power use, helping to avoid expensive demand charges.
When you also add an Energy Management System (EMS)—a smart software that controls how and when you use electricity—you can shift cheaper, off-peak grid power into your busiest times.
The result? A lower, more predictable energy cost compared to relying on the grid alone.
Core Pieces of a Modern Industrial Power Setup
2.1 Grid Supply & Smart Tariffs
You’ll still lean on the utility for baseline power. But shifting to a “time-of-use” or “real-time pricing” tariff, paired with an EMS, knocks 3 to 8 percent off bills before you install a single panel.
2.2 On-Site Solar PV (Roof & Carport)
- System Size: 250 kW to 2 MW (for facilities between 100,000 and 1 million sq. ft.)
- Payback Period: 4–6 years with the 30% ITC and MACRS depreciation (lets you write off equipment faster and save on taxes)
- Bonus Benefit: Carport solar offers shaded parking, which employees love.
2.3 Battery Energy Storage Systems
- Right Size: Batteries should be 50–70% of your peak demand (kW), with 1–2 hours of storage.
- Main value:
- Cuts demand charges (extra fees for high power use)
- Time-shifts solar power to when you need it most
- Extra perk: Instant, quiet backup for IT rooms and cold-storage compressors.
2.4 Backup Generation & Reliability
Regulators still require a standby generator for life-safety loads. Switching from diesel to natural gas (or renewable diesel) can cut NOx emissions by up to 90% and makes permitting easier and faster.
2.5 Energy-Management System (EMS)
Think of the EMS as air-traffic control. It pulls live tariff data, solar forecasts, and battery state-of-charge, then dispatches the cheapest kWh to your facility in real time. Clients often see 5–7% savings from the EMS software alone, before hardware ROI kicks in.
A 6-Step Framework to Design Your Ideal System
Designing a reliable and cost-saving power system takes more than guesswork. At Camali Corp, we use a proven 6-step process to build the best hybrid setup for your mixed-use facility.
- 30-Day Load Audit
We install portable submeters to measure energy use in production areas, HVAC systems, and office spaces. This helps us understand your real power needs.
- Roof & Site Assessment
We check the structure of your roof, shade levels, and connection points. We also evaluate nearby carports and land, these often provide more solar capacity (measured in megawatts, or MW) than the roof alone.
- Financial Modeling
We create a detailed NPV model (Net Present Value, which calculates the future value of savings in today’s dollars). This includes utility rate increases (typically 3% per year), available incentives, and the estimated value of your battery system after 10 years.
- Technology Stack Selection
We match the right combination of solar panels (kWdc), batteries (kWh), backup generator (kW), and EMS software. Right-sizing your system is more cost-effective than oversizing it.
- Permitting & Interconnection
We work with your utility company early in the process. In many states, projects under 5 MW can qualify for a fast-track approval process.
- Build, Commission & Monitor
Camali manages the entire EPC process (Engineering, Procurement & Construction), files for all available incentives, and provides 24/7 monitoring. Everything is included under one SLA (Service Level Agreement, which defines system uptime and support) to ensure your savings are real, and visible on your utility bill.
ROI Breakdown: Costs, Incentives & Payback Math
Example Scenario
Facility: 500,000 sq. ft. mixed-use campus in Ohio
Upfront Costs –
- 1.2 MW DC solar (rooftop + carport): $1.7M
- 2 MWh lithium-ion battery system: $1.1M
- EMS, switchgear, and SCADA (a control system that manages power in real time): $350K
- Federal 30% Investment Tax Credit + bonus depreciation: -$730K
Total Net Capital Expense: $2.42M
Year 1 Savings
- Energy arbitrage (using cheaper off-peak energy): $180K
- Demand-charge reduction (lower fees during peak use): $220K
- Outage avoidance (based on a 7-hour average outage): $80K
Total Year 1 Savings: $480K
Simple Payback: 5.0 years
25-Year Internal Rate of Return (IRR): 18%
- With state battery incentives (like NYSERDA’s $85/kWh rebate), payback can drop below 4 years.
Questions to Ask Before You Pick a Technology Partner
- Can you deliver solar, storage, EMS, and backup under one contract?
- Will you model multiple utility tariffs, including future tariff risk?
- Do you guarantee kWh and demand-charge savings in writing?
- How do you handle battery augmentation after year 10?
- Can your EMS integrate future EV-charging stations or hydrogen fuel cells?
Next Steps & How Camali Corp Can Help
We’ve engineered more than 150 hybrid systems for Fortune 500 manufacturers, food-logistics operators, and 2 million square feet e-commerce parks.
Our clients see:
- An average 27% drop in total energy costs
- N+1 reliability (which means if one system fails, backups keep you running—no downtime)
- All without overspending on diesel
Want to see how it works for your facility?
Book a free 30-minute assessment or call us at (949) 580-0250. We’ll run a no-obligation load analysis and give you a custom ROI report, usually within 5 business days.
