Refrigerator systems are used for food preservation as well as other applications. However, the cost of running the system is high due to rising fuel and electricity prices. Traditionally, these systems are controlled by On/Off controllers. This study proposes the use of a proportional-integral-derivative (PID) controller algorithm to reduce costs for domestic and industrial refrigeration without negatively affecting the system performance. To accomplish this, a physical model was developed, comprising a domestic refrigerator, microcontroller, and MATLAB computer software for analysis. A mathematical model of second-order lead and second-order lag transfer function was also developed for a typical refrigerator system. The physical model was connected, and open-loop temperature-time response data was collected for system modeling. In addition, Data were collected from industries namely Fan Milk Industry and Benue State University Teaching Hospital Mortuary for a robust system analysis. All data sets were imported into MATLAB's system identification toolbox to estimate model parameters. The ultimate gains, frequency, and period were determined for each feedback closed-loop model, allowing the application of Ziegler-Nichols and Tyreus-Luyben PID tuning settings. The closed-loop models were then simulated in MATLAB to evaluate system performance. Simulation results showed that the Tyreus-Luyben model performed better, and offered better temperature response, less undershoot, and faster settling time than the Zeigler-Nichols method. Both PID models outperformed the traditional On/Off controller, with energy consumption reduced to less than one-third of the conventional method. The study concludes that PID controllers are a better alternative to On/Off systems when properly tuned.