Across commercial and industrial estates — from warehouses and logistics parks to manufacturing units and large-format industrial buildings — heating decisions are driven by one overriding factor: operational cost. Electrification is firmly on the agenda, but for many existing commercial buildings the financial case — both in terms of capital expenditure and ongoing energy costs — does not yet stack up.
While electric heating technologies continue to advance and play an increasing role in the energy mix, gas remains the dominant fuel source in many commercial and industrial buildings for a very simple reason:
It delivers large volumes of heat, reliably, at a cost that still makes commercial sense.
Industrial buildings are not offices. They are:
Heating these spaces efficiently is less about theoretical efficiency figures and more about fuel cost per unit of usable heat delivered.
Gas continues to perform strongly in this context because it is well suited to high heat demand, long run times, and rapid recovery when heat is lost through doors or ventilation.
For operators of warehouses and logistics facilities, energy cost is a controllable overhead — and one that directly affects margins.
Gas offers:
In large industrial buildings, even small differences in unit energy cost are magnified. Gas allows operators to remain efficient in their pocket while meeting heating demand.
Most industrial estates and logistics parks were designed with gas as a primary energy source. As a result:
Moving entirely to electric heating can be the right choice in some scenarios, but often requires electrical capacity upgrades, increased connection size, and higher upfront investment. For many commercial operators, gas — either as a primary fuel or as part of a mixed approach — remains the most commercially realistic solution.
Industrial heating must perform in challenging conditions. Consistent indoor temperatures support workforce comfort and productivity, protect goods and materials, and help equipment operate reliably. Gas is valued in industrial environments because it delivers dependable output during cold weather and sustained demand, without placing additional strain on electrical infrastructure.
Electric heating is fully capable of heating entire buildings and, in the right applications, can be an effective standalone solution. However, in large-volume industrial spaces, it is often most efficient when used strategically through zoning and spot heating.
Rather than applying uniform heat across the full warehouse volume, electric systems can be used to target specific areas within the building that require higher comfort levels or intermittent heating, such as:
This zoned approach allows heat to be delivered precisely where it is needed, when it is needed, reducing unnecessary energy use in unoccupied or low-use areas. When combined with gas heating to serve wider background demand, electric spot heating can significantly improve overall system efficiency while maintaining comfort across the building.
This slide shows that for a 10,000 sq. ft industrial unit, gas remains the lowest-cost option both upfront and over time. Gas delivers the cheapest first-year cost and the lowest 10-year running cost (£45,600). Electric heating costs less to install but is far more expensive to run, resulting in a 10-year running cost of £97,140, more than double gas. Heat pumps have much lower running costs thanks to their SCOP, but the high upfront investment means the first-year cost is significantly higher, while the 10-year running cost (£47,530) is only slightly above gas. Overall, the slide shows that while heat pumps are efficient to run, capital cost is the deciding factor, keeping gas the most commercially cost-effective solution for this building size.
The energy landscape is changing, and electric heating will play a growing role. But for warehouses, industrial units, and logistics parks operating today, gas remains a sensible, commercially driven choice.
It is not about resisting change — it is about choosing a fuel that works now, supports operational efficiency, and keeps costs under control.
For many industrial buildings, gas isn’t a legacy fuel.
It’s a practical one.
Every building is different, and the most cost-effective heating solution is rarely one-size-fits-all.
Powrmatic provides both gas and electric heating options and specialises in designing balanced, commercially focused heating solutions for industrial and warehouse environments.
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