Cutting Costs in the Wash: Energy-Saving Tips for Laundromat Owners

 Why are your energy bills rising faster than your customer base? For laundromat owners, this isn’t just frustrating—it’s a direct hit to already tight margins. And here’s the kicker: a huge chunk of those rising costs? They’re baked into your washers and dryers. But the good news? You can slash those bills without cutting service.

Let’s unpack some energy-saving moves that actually work—and how smarter laundromat management plays a hidden role in all of it.

How much energy do laundromats really use?

Short answer? A lot.

An average laundromat in Australia chews through 1,000–2,000 kWh of electricity daily, primarily from washers, dryers, and hot water systems. That’s roughly the same as 50–70 homes. And with electricity prices seeing double-digit jumps in recent years, you’re not imagining things—it’s costing you more to keep the lights (and dryers) on.

And let’s not forget water heating—about 15–20% of your energy bill is just from heating water. That’s where things start to stack up.

What are the quickest wins for cutting laundromat energy costs?

Here’s where you start getting ahead:

  • Lower the water temp
    Switching from hot to warm or cold cycles where possible can cut energy use by up to 50%. Encourage this via signage, pricing incentives, or default settings.

  • Use high-efficiency machines
    Yes, it’s a capital cost—but the payback is real. ENERGY STAR-rated commercial washers can use 25% less energy and 40% less water than conventional models.

  • Stagger dryer usage
    Grouping machine use during peak times might feel smart, but it can spike demand charges. Spacing out dryer cycles can smooth your load curve (and save cash).

  • Seal the leaks
    Check for duct leaks in dryers. Even a small gap can reduce efficiency by 20–30%, leading to longer dry times and higher bills.

  • Switch to LED lighting
    If you haven’t already done this, you’re leaving money on the floor. LEDs use 75% less energy and last 25 times longer than old fluorescents.

Is solar power a smart move for laundromats?

In most Aussie states—particularly QLD, SA, and parts of VIC—yes.

Here’s why it’s a no-brainer if you have roof space:

  • Your usage is daytime-heavy, which aligns perfectly with solar generation.

  • A 10kW solar system can shave up to $4,000/year off your power bill.

  • Government rebates (like the STCs) can cut install costs by 30–40%.

Even better? Systems pay themselves off in as little as 3–5 years, depending on location and energy rates. That’s before you even consider feed-in tariffs or battery storage.

But be warned: solar isn’t a ‘set and forget’ solution. It’s only as good as how you manage the rest of your systems (hello, usage tracking).

Can automation really lower energy usage?

Absolutely—and here’s where most laundromats fall short.

A lot of owners think “automation” means flashy tech. In reality, it’s about data and control:

  • Monitor usage in real-time
    Energy spikes? You’ll spot them before they become billing headaches.

  • Remote shut-off for idle machines
    Some smart systems let you power down unused dryers outside peak hours automatically.

  • Maintenance prompts
    Automated alerts for blocked filters or heating elements can prevent energy waste and equipment damage.

All of this is easier when using a laundromat management app that tracks machine usage, customer flow, and power loads. The right software can flag inefficiencies and suggest optimal operating hours—saving thousands over time.

How do customer behaviours affect energy bills?

Here’s a behavioural twist most owners overlook.

Customers influence your utility costs. Yes, really. How?

  • Longer drying times (often due to overloading or using the wrong cycle)

  • Running small, partial loads instead of full machines

  • Insisting on hot washes even when not needed

You can’t control every customer’s habit—but you can nudge better behaviours:

  • Use loss aversion: "Using cold water saves you money—and keeps colours vibrant longer.”

  • Use social proof: "80% of customers choose cold cycles.”

  • Use defaults: Pre-set machines to eco-friendly cycles with clear opt-outs.

This is behavioural science in action. Framing choices the right way can reduce peak demand and lower your energy spend without sacrificing experience.

What’s the business case for making these changes?

Let’s run some quick numbers.

Say your monthly power bill is $5,000. Implementing a few of the above changes—LED upgrades, smart usage tracking, better customer nudges—could conservatively reduce that by 15%.

That’s $750/month, or $9,000/year back in your pocket.

Factor in longer equipment life from reduced wear and fewer breakdowns, and the ROI gets even better. Plus, energy-efficient businesses tend to score higher customer satisfaction—people notice clean, well-lit, smoothly operating spaces. That’s not just anecdotal; studies show customers link operational quality to brand trustworthiness .

FAQs

Is switching to cold water safe for all clothes?
Yes—for most. Modern detergents are designed to work in cold water, and cold washes protect colours and fabric longevity.

Do smart laundromat systems require lots of training?
Not at all. Most are designed with intuitive interfaces. Some providers even offer onboarding and support tailored to Aussie laundromats.

How do I know if my machines are energy hogs?
Check the age and rating of your equipment. Machines older than 10 years often lack energy-efficient tech. Energy audits (some are free or subsidised) can help pinpoint issues.

Cutting energy costs in your laundromat isn’t about turning off lights or scolding customers. It’s about using data, psychology, and a few smart upgrades to work with your environment—not against it. For operators already using a laundromat management app, the path to savings is shorter, clearer, and frankly—more competitive.

Sometimes, saving energy isn’t just about the power you use—but the power you give yourself to adapt.

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