Supermarkets already operate with razor-thin profit margins, making it a challenge for many to remain profitable. Rising energy costs and increasingly frequent extreme weather events pose a significant barrier for supermarkets trying to secure reliable, cost-effective power. For example, energy expenses typically equal 1 percent of sales, about the same as a store’s overall profit margin. This means that even modest reductions in energy costs can lead to substantial savings for the business. Furthermore, supermarkets face unique energy challenges compared to other facilities due to their heavy reliance on critical energy-intensive refrigeration and HVAC systems to keep products fresh.

As energy rates soar and the grid tries to adapt, supermarkets need a way to lower their energy costs, increase profit margins and ensure that mission-critical processes can operate uninterrupted in an increasingly volatile energy environment. The increasing frequency and severity of extreme weather events are magnifying the impact of the energy crisis. Hurricanes and events such as the 2021 Texas grid failure have a steep cost to grocers. Power outages cost U.S. businesses US$150 billion annually. In 2024, there were 21 multibillion-dollar natural disasters costing the global economy US$417 billion. Billion-dollar events are becoming more frequent, a problem compounding the triple threat of aging infrastructure, high energy prices and an increased demand for quality food. A single supermarket could lose hundreds of thousands of dollars in spoiled perishable goods from a single power outage.

In April 2025, a massive power outage affected Spain, Portugal and France, causing commerce to grind to a halt. Millions of people were without electricity, while thousands more were stranded in airports and metro trains. One Spanish butcher shop discussed emergency steps, but acknowledged fresh products would likely be destroyed.

Take, for example, a supermarket in Pennsylvania that lost power for over a day, resulting in up to US$30,000 in spoiled inventory. When supermarkets lose power, it impacts the community, too. The public relies on retailers, particularly during inclement weather. Frequent power interruptions can have a collateral impact on public perception. Providing reliable power during times of crisis is an excellent way to gain community buy-in and differentiate a facility as a trustworthy community partner.

Microgrids offer a dual-purpose solution to energy insecurity and resiliency by bringing energy generation and storage capacities behind the meter. This enables grocers to access cheap renewable electricity and maintain critical operations when the lights go out.

What is a microgrid?

Microgrids are localized energy systems that can operate independently from the grid. Under certain circumstances, microgrids can enter “island mode,” which allows the microgrid to disconnect from the grid and operate independently in the event of a grid disruption. Microgrids combine a variety of distributed energy resources, usually solar with battery storage and backup generation, to provide power to a finite geographical area, such as a school campus, factory, corporate park or a supermarket. Microgrids are designed to fit the unique needs of a site, considering maximum load demand, desired auxiliary generator capacity in the event of a power outage and environmental goals. Unlike the traditional utility grid, microgrids can be redesigned, customized and expanded to fit the evolving needs of the facilities they serve.

Microgrids can also incorporate demand-response features, enabling them to adjust output based on the fluctuating power demands of the local grid. This allows microgrids to not only respond to emergencies but also provide flexibility to help optimize energy consumption during off-peak hours, providing a valuable asset to local utilities and energy markets.

Power outages are growing increasingly common as wildfires and heat waves continue to grip regions around the world. Extreme weather, from sweltering heat waves to intense winds, has caused rolling blackouts and devastating wildfires, impacting businesses in communities and the surrounding grid. Facility managers can access additional financial incentives by offering their microgrids as demand response assets capable of also supporting the needs of the community.

When the power goes out or disaster strikes, communities rally around institutions like grocers, supermarkets and retail centers. Keeping the lights on during such events goes a long way within the community while ensuring the facility remains operational and that necessary goods do not spoil. Moreover, solar energy installations are a highly visible way to communicate to the community that the host facility cares about local air quality and sustainability.

Supermarkets are ideal for microgrids owing to their expansive roof space and other underutilized surface areas like parking lots and undeveloped surrounding land. Deploying microgrids at supermarkets and large retail centers benefits businesses, consumers, the grid and the planet. Commercial solar is steadily growing, with 535 megawatts installed in the third quarter of 2024 in the United States,  44 percent more than in Q3 2023. Aside from delivering clean, reliable energy, microgrids require a smart control system to manage the distributed energy resources and substantially improve day-to-day operational efficiency, cutting costs while extending the lifespan of the existing infrastructure.

How much do microgrids cost?

Building a microgrid from scratch takes a lot of work and even more capital. Microgrid systems essentially perform on a smaller scale what large grid operators and utilities invest vast resources and decades of planning to achieve — aligning power generation with demand. Developing a microgrid involves sourcing, siting, installing, permitting, interconnecting, operating and maintaining key equipment, which typically includes:

  • Renewable energy generation (usually solar arrays or wind turbines)

  • Control and distribution equipment

  • Battery energy storage systems (BESS)

  • Backup generators or fuel cells

Microgrids can require high initial expenditures but benefit from strong contractual frameworks with the various stakeholders. Investing in a microgrid for a grocery store, supermarket or retail center provides long-term benefits. They can drastically reduce reliance on the main grid, cutting down on electricity bills, especially during peak demand periods.

Like any system, microgrids have ongoing operational costs. Throughout the life of the system, routine maintenance, cleaning and equipment replacement are all additional requirements and operating expenditures. While the costs of maintaining and operating solar energy systems are much lower than those for fossil fuel-based equipment, they can still be significant, particularly for supermarkets, whose profit margins are thin.

What is Energy as a Service (EaaS)?

Energy as a Service (EaaS) empowers grocery and retail center FMs to access the benefits of microgrids with no upfront investment, paying only for the energy they use, and at a discount to the retail cost. With EaaS, the project’s owner takes care of all related maintenance expenses, such as a landlord being responsible for maintaining tenant housing and grounds. Integrating microgrids with EaaS will improve supermarkets’ energy efficiency, lower expenses, support corporate sustainability goals and maintain critical services during power disruptions, all without any capital requirements. This arrangement provides a wealth of financial and community benefits. Microgrids can help supermarkets navigate an increasingly volatile energy landscape marked by unprecedented load demand growth. Microgrids are a proven and effective way to deliver baseline energy needs in a rapidly changing world.

EaaS, microgrids & supermarkets

Microgrids, especially when deployed through an EaaS model, can provide grocery and retail facilities with energy independence that empowers them to maintain critical activities such as lighting, security, HVAC and refrigeration while providing clean electricity at rates up to 15 percent lower than traditional utility tariffs. Microgrids also help reduce operational costs by avoiding food spoilage, which can be a costly result of extended power outages, a trend increasingly faced by the world’s largest supermarkets. Lastly, EaaS microgrids can significantly increase profit margins by offering electricity to the facility at an attractive discount, all with no upfront costs.

Microgrids are a high-profile way to communicate to the community that an organization cares about environmental sustainability, resilience and delivering quality to customers when they need it most. Prioritizing microgrids at grocery stores and retail centers not only drastically improves resilience and profit margins but also contributes significantly to renewable energy adoption in communities lacking the infrastructure and capital to invest in large-scale renewable energy deployment.

How much solar energy can a grocery store roof produce?

The potential for solar energy production on grocery rooftops is significant. The European Union is targeting 750 GW of solar by 2030, while in the U.S., solar energy is the fastest-growing power generation source. In 2024, solar energy provided 78 percent of total new power generation in the U.S. Solar is cheap and very modular, but it cannot be relied upon for consistent baseload power. However, grid operators are also moving to secure energy storage capacities to help solve intermittency. As this evolution continues, grocers, supermarkets and other large retail facilities can be confident in the benefits — both immediate and deferred — that on-site microgrids provide.

In the vibrant energy landscape marked by energy uncertainty, soaring prices and increasingly dangerous weather events, microgrids are not only environmentally beneficial but can also be a cost-effective solution for businesses, especially through an EaaS model. Global food demand will continue to increase, and supermarkets will continue to play a critical role in future food distribution. With microgrids, supermarkets can operate more efficiently and dependably despite an increasingly challenging environment. With EaaS eliminating the need for upfront CapEx, the long-term savings and operational efficiencies of microgrids are even more compelling.