Should My Commercial Facility Have Backup Power?

This blog was originally published June 15, 2023, and was rewritten March 3, 2025.

Is your commercial facility prepared for an unexpected power failure? The answer is likely no if your facility is like many commercial buildings across the country. Power outages are becoming more frequent and severe, impacting businesses across all industries. The consequences of an outage can be devastating, from financial losses to data corruption and operational disruptions. Implementing a robust commercial facility backup power system is no longer an option but a necessity.

The Rising Frequency of Power Outages in Commercial Facilities

Power outages in commercial facilities are on the rise, driven by an increase in extreme weather events, aging infrastructure, and grid mismanagement. Since 2003, weather-related power outages have doubled in frequency. Hurricanes, wildfires, heatwaves, and snowstorms have all contributed to widespread blackouts, leaving businesses vulnerable to lost revenue and operational disruptions.

A 2018 survey found that one in four companies experiences a power outage at least once a month. These outages are far from minor inconveniences; they carry significant financial consequences. The U.S. Department of Energy estimates that power outages cost the economy 150 billion dollars annually. For large corporations, downtime can mean losses reaching millions of dollars per hour.

In some cases, utility providers have implemented Public Safety Power Shutoffs to prevent wildfires, particularly in high-risk areas like California. However, these proactive outages can last days, forcing businesses to rely solely on backup power systems. Facilities may face prolonged downtime without adequate preparation, affecting operations and customer satisfaction.

The Financial Impact of Power Outages

The financial repercussions of power outages extend beyond lost revenue. Downtime can result in unsold inventory, equipment damage, and data loss, all of which further exacerbate the impact on businesses. Consider the following industry-specific losses:

• Data Centers: Businesses are relying on cloud software now more than ever. When servers go down, it wreaks havoc on business operations, leaving downtime for hours or days. A 2018 study found that 31 percent of data centers experienced downtime in a year, with power failures as the leading cause. Companies can lose millions of dollars due to power failures.
• Manufacturing: Power disruptions can halt production lines, causing ripple effects throughout supply chains. More than 25 percent of manufacturers reported experiencing an outage at least once a month, with some lasting longer than an hour. A single hour of downtime in a high-volume manufacturing facility can lead to 5 million dollars in lost production.
• Retail: Frequent outages disrupt sales and can result in significant inventory losses. One in three retailers experienced at least one outage per month in 2017, with 40 percent reporting outages lasting over an hour. Supermarkets, for example, can lose hundreds of thousands of dollars in perishable goods if refrigeration systems fail.
• Healthcare: Hospitals rely on uninterrupted power to operate life-saving equipment. However, diesel generators, the traditional backup power source, often fail if not maintained properly. During Hurricane Sandy, 16 percent of emergency medical facilities reported generator failures, leading to patient evacuations and prolonged service disruptions.
• Education: Campuses rely on continuous power for IT infrastructure, laboratories, and heating/cooling systems. Power failures disrupt classroom instruction and research activities. A 2018 outage at Stanford University affected one-third of campus buildings, forcing class cancellations and lab shutdowns.

How Commercial Facility Backup Power Mitigates Risks

A well-planned backup power system is the best defense against prolonged outages. Businesses must proactively implement and maintain their backup power solutions to ensure resilience. Here are the key components of a reliable backup power system:

Assess Power Requirements

Determine your facility’s critical power needs. Contact a commercial electrician to evaluate your power load, or obtain historical usage data from your local utility provider. This information helps in selecting the appropriate generator size and capacity.

Install an Automatic Transfer Switch

An automatic transfer switch detects power loss and switches to generator power within seconds. When grid power is restored, it safely transitions back, minimizing downtime and reducing manual intervention.

Consider an Uninterruptible Power Supply

For facilities with IT infrastructure, an uninterruptible power supply system is critical. It ensures seamless transitions between power sources, preventing data loss and protecting sensitive equipment from power surges.

Regular Maintenance and Testing

One of the leading causes of generator failure is a lack of routine maintenance. Conduct regular system tests to verify the functionality of your backup power solution. Ensure that fuel levels are adequate and that all components, including the transfer switch and uninterruptible power supply, function correctly.

Implement a Fuel Management Plan

Gas or diesel-powered generators require a continuous fuel supply. Plan for scenarios where refueling might be delayed due to road closures or extreme weather. Additionally, generators should be placed in locations that mitigate risks such as flooding.

The Importance of Backup Power for Business Continuity

Power failures are unpredictable, but with proper planning, businesses and facilities can protect themselves from financial loss and disruptions to their daily operations. Backup power systems can prevent power failures caused by weather, equipment failure, or grid mismanagement. Businesses can’t afford to wait for disaster to strike before installing backup power systems. Companies like healthcare, data centers, or manufacturing plants could see serious setbacks or even danger to peoples’ lives should there be power outages.

Action Services Group offers expert advice in facility management, including backup power options. Don’t leave your facility vulnerable, contact us today by calling 610-558-9773, email [email protected], or schedule a call that fits your needs by clicking the button below.