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Savings Formula:
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The kWh Savings Formula calculates the monetary savings from reduced energy consumption by comparing original energy usage with new energy usage and multiplying by the cost per kWh.
The calculator uses the Savings Formula:
Where:
Explanation: The formula calculates the difference in energy consumption and multiplies it by the cost per unit to determine total monetary savings.
Details: Calculating energy savings helps evaluate the financial benefits of energy efficiency improvements, informs investment decisions in energy-saving technologies, and supports sustainability initiatives.
Tips: Enter original energy consumption in kWh, new energy consumption in kWh, and cost per kWh in $/kWh. All values must be valid (energy values > 0, E_old > E_new, cost >= 0).
Q1: What if my new energy usage is higher than the original?
A: The calculator requires that new energy usage be less than or equal to original usage. If new usage is higher, it indicates increased consumption rather than savings.
Q2: How accurate is this savings calculation?
A: The calculation provides an estimate based on the inputs provided. Actual savings may vary based on time-of-use rates, seasonal variations, and other factors.
Q3: Can I use this for different currencies?
A: Yes, as long as you consistently use the same currency for the cost per kWh input, the savings will be calculated in that currency.
Q4: Does this account for changing electricity rates?
A: No, this calculation uses a fixed rate. For variable rates, you may need to perform more complex calculations or use an average rate.
Q5: Can I calculate annual savings with this calculator?
A: Yes, simply input annual energy consumption figures and your average cost per kWh to calculate annual savings.