Industrial Power Rate & Cost Calculator
Analyze monthly energy consumption and peak demand charges
Cost Analysis Results
Energy Consumption Charge:
Demand Capacity Charge:
Apparent Power Demand:
Estimated Monthly Bill:
*Note: Effective Rate per kWh:
Understanding Industrial Power Rates
Industrialists and plant managers must look beyond simple unit rates. Industrial electricity billing is multi-faceted, often involving "Demand Charges" that can account for up to 50% of the total bill. This calculator helps you break down these costs to identify where efficiency can be improved.
Key Components of Industrial Billing
- Consumption Charge (kWh): This is the variable cost based on the actual amount of energy your machinery uses throughout the month.
- Peak Demand Charge (kW): This is based on the highest level of power required by your facility during a specific window (usually 15-30 minutes). Even if you only reach this peak once, you are billed for that capacity for the whole month.
- Power Factor (PF): A measure of how effectively you turn current into useful work. A low power factor (below 0.9) often results in penalties because it puts more strain on the utility's infrastructure.
- Apparent Power (kVA): Calculated as kW / Power Factor. Many modern industrial tariffs are moving toward kVA-based billing to automatically penalize low power factor.
Calculation Example
Suppose a manufacturing unit has the following metrics:
| Total Usage | 40,000 kWh |
| Peak Load | 200 kW |
| Energy Rate | 0.10 per kWh |
| Demand Rate | 12.00 per kW |
The energy charge would be 40,000 * 0.10 = 4,000. The demand charge would be 200 * 12.00 = 2,400. Totaling 6,400 (excluding fixed fees and taxes). This demonstrates why managing peak loads is as critical as reducing overall energy usage.