To compare laundromat electricity costs in NSW, price the same meter usage on each offer, including usage rates, demand charges, daily supply and other fees. Check when the machines actually run and which heating systems use electricity or gas. Opening 24 hours does not mean most electricity is used off-peak.
A cheaper off-peak rate can make a time-of-use offer attractive. A separate demand charge can change the result. The worked example below compares TOU with Cable’s battery-backed flat rate, including usage, demand and supply charges.
What determines a laundromat’s electricity costs?
The main questions are which equipment uses electricity, how often it runs, when it runs and how the tariff charges for that pattern.
Commercial dryers can use electric resistance heating, gas or heat-pump technology. Gas-heated dryers still need electricity. Washers may heat water internally or use hot water from a central system, with the fuel source depending on the installation.
Keep electricity and gas costs separate when comparing electricity offers. A lower electricity bill at a gas-heated laundry does not, by itself, establish a lower total energy cost.
| Equipment or operating detail | What to establish |
|---|---|
| Washers | Programmes, load sizes, cycle activity and how water is heated |
| Dryers | Electric, gas or heat-pump heating, plus electrical requirements |
| Central hot water | Fuel source and which machines it serves |
| Lighting, ventilation and other equipment | Electricity used outside wash and dry cycles |
| Self-service and attended laundry | When customers run machines and when staff process loads |
| Planned equipment changes | Whether future consumption or demand will differ from current meter data |
Use actual bills and interval data to compare retail plans. Machine specifications help explain the load, but they do not replace a record of how the whole site operates.
How to calculate electricity cost per wash or dry cycle
For the usage component, multiply the electricity consumed during the cycle by the applicable price per kWh:
Cycle electricity cost = cycle energy in kWh × electricity rate in dollars per kWh.
If a cycle spans time-of-use bands, apply the relevant rate to the electricity used in each band. Use measured energy or manufacturer data for the actual model, programme and load conditions. A machine’s kW rating alone does not establish its kWh per cycle.
This calculation covers only the electricity usage attributed to that cycle. A complete operating-cost estimate also needs any gas or central hot-water energy, water, detergents, site-level electricity charges and other business costs. For selecting an electricity plan, compare the whole site’s bill.
Time-of-use or flat rate for a laundromat?
A time-of-use offer applies different usage prices during specified periods. Peak is usually the highest rate, off-peak the lowest, and shoulder sits between them where offered. A flat-rate offer applies one usage price throughout the day.
Match those periods to machine activity. An overnight opening schedule helps only to the extent that customers actually run machines during the lower-priced window. Weekend and seasonal rules may also differ. Check the retail offer; there is no single peak timetable for every NSW business.
An attended wash-and-fold service may have some flexibility in when loads run. Self-service customers choose their own times. A useful comparison reflects that distinction and the service you need to provide.
A flat usage rate does not automatically remove demand charges. Check whether demand is charged separately under either offer.
How demand charges affect laundromat bills
Demand charges relate to the power drawn during the tariff’s specified intervals. They are separate from usage charges, which are based on the amount of electricity consumed.
An average load of 30 kW sustained for half an hour uses 15 kWh. The 15 kWh contributes to usage costs. If that interval establishes the chargeable demand, the 30 kW also enters the demand calculation.
Several electrically heated machines operating together can raise the combined load. A brief start-up spike is different from sustained demand across a billing interval. Check whether the tariff measures kW or kVA, which hours qualify and whether it uses the current month or a longer look-back period.
The business demand charges guide explains what to check on the bill.
Worked example: compare time-of-use with Cable
This laundry uses 6,000 kWh in 30 days, half of it off-peak. That gives the TOU offer a substantial low-rate contribution before demand and supply charges are added.
Illustrative Cable rate: 23c/kWh, above the 20c TOU off-peak rate. Actual pricing is set for the site. The battery supports flat-rate pricing by shifting electricity purchases towards lower-cost periods.
| Charge | Quantity | Time-of-useWith demand charges | Cable flat rateBacked by a battery | ||
|---|---|---|---|---|---|
| Rate | Total | Rate | Total | ||
| Peak usage | 1,200 kWh | 48c/kWh | $576.00 | 23c/kWh | $276.00 |
| Shoulder usage | 1,800 kWh | 30c/kWh | $540.00 | 23c/kWh | $414.00 |
| Off-peak usage | 3,000 kWh | 20c/kWh | $600.00 | 23c/kWh | $690.00 |
| Usage subtotal | 6,000 kWh | — | $1,716.00 | — | $1,380.00 |
| Demand | 30 kW × 30 days | 30c/kW/day | $270.00 | Absorbed by Cable | $0.00 |
| Supply | 30 days | $2.663967/day | $79.92 | $2.663967/day | $79.92 |
| Total for 30 days | — | — | $2,065.92 | — | $1,459.92 |
Even with half the electricity used off-peak, the Cable column is $606 lower over these 30 days: $336 from usage and $270 from demand. Off-peak electricity costs $90 more at 23c, offset by $426 less for peak and shoulder use. A laundry with still more overnight activity needs its own calculation.
These are illustrative electricity charges, including GST, not typical savings or a site quote. Both columns use the same supply input; other fees and contract costs are excluded. See how we built this example for the assumptions, exclusions and full calculation.
How to compare electricity offers for your laundry
- Gather the meter history and current agreement. Use a full year where available to capture seasonal activity. Separate the electricity account from gas and water bills.
- Record the equipment and fuel mix. Include planned machines, a change from gas to electric heating, or expanded opening hours. Ask the provider to identify assumptions about future use.
- Apply each offer to the same usage. Check its own time bands and demand formula, then add the daily supply charge and other fees.
- Include credits and switching costs. Account for applicable discounts, solar credits and any cost of leaving the current agreement. Compare on the same GST basis.
- Check the contract as well as the total. Review the term, rate changes, deposit and return conditions, and early-exit charges.
The NSW business electricity bill guide helps locate the figures needed for the comparison.
How Cable’s offer works for a laundromat
Cable funds, owns and operates a battery at suitable laundromats. It charges in lower-cost wholesale periods and uses stored electricity when prices rise. Cable absorbs network demand charges; the laundry pays one usage rate across the day plus daily supply. More electricity use still means a higher bill.
Discuss battery space, landlord consent, any additional site work and installation timing, especially if the laundry trades around the clock. Standard installation does not keep machines running during an outage.
Cable covers suitable Ausgrid and Endeavour Energy sites in NSW. Joining requires at least six months of smart-meter data, although you can enquire earlier. The initial term is three years, with annual CPI adjustments and other permitted rate changes. Check the personalised offer’s deposit, return conditions and early-exit charges.
Laundromat electricity questions
Are gas dryers cheaper to run than electric dryers?
You need the relevant model’s gas and electricity consumption, energy prices and operating conditions to compare running costs. Include both fuels for a gas-heated dryer. An electricity-plan comparison alone cannot establish which machine is cheaper to operate.
Does opening 24 hours make an off-peak plan the best choice?
No. What matters is the electricity used during each rate period, together with demand, supply and other charges. A 24-hour laundromat can still have much of its activity during higher-priced hours.
Will new machines change my electricity quote?
They can. Adding capacity or changing heating technology may alter both consumption and demand. Provide the proposed models and operating pattern so the estimate does not rely entirely on the old equipment’s meter history.
What if I am opening a new laundromat?
You can request a quote and discuss the site, equipment and trading hours. Cable currently requires at least six months of smart-meter data to join, so confirm data availability and eligibility before relying on an installation date.
Get an electricity quote for your laundromat
Share your contact and energy-account details, then authorise access to your usage history. Include planned machine or fuel changes so Cable can prepare a personalised offer for the laundry you expect to operate.
Get a quote for your laundromat
Sources
Sources checked 3 November 2026. Comparison and pricing explanation updated 5 November 2026.
- AER: electricity tariff guide — usage structures and demand charges.
- Australian Government: review your business energy contract — comparing costs and demand calculations.
- Ausgrid: 2026–27 network prices — the EA256 network access input used in the illustration.
- Miele Professional Australia: laundry equipment specifications and commercial dryer instructions — heating options and electrical connections; check the installed model.
- Cable FAQs and service areas — published offer conditions and coverage.