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Content Type:Q&A

Question:

Do you have information about the cost of running various commercial and industrial appliances?

Answer:

While there are many guides listing costs for home appliances, it's not so simple for workplace electronics. For most commercial and industrial appliances there are too many variables to come up with a simple list of cost estimates. Instead, I'm providing two formulas that may be useful, as well as some additional resources.

  1. The U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy suggests the following formula to estimate the amount of energy a specific appliance consumes:
    (Wattage X Hours Used Per Day)/1000 = Daily Kilowatt-hour (kWh) consumption (1 kilowatt (kW) = 1,000 Watts)

    Multiply this by the number of days you use the appliance during the year for the annual consumption. You can then calculate the annual cost to run an appliance by multiplying the kWh per year by your local utility's rate per kWh consumed.

  2. Since you mentioned motors, I asked our motors' specialist to provide a formula for determining the annual cost of running a motor:

    Annual Cost = (HP X 0.746 X hours X load X utility kWh rate)/(efficiency)

    Where:
    HP = horsepower rating
    hour = annual running time (Constant running time is 8,760 hours)
    load = loading, e.g. 0.75 for a motor loaded to only 3/4 its rating. 0.75 is sort of an industry average loading.
    Utility kWh rate = the cost of electricity in dollars per kWh. Average may be around $0.06.
    efficiency = efficiency as a decimal, e.g. 0.92

    Example: A 100 HP motor that runs 6,000 hours per year at 75 percent of maximum load and 92 percent efficiency for six cents per kilowatt hour costs $21,893 per year to run.


Additional Resources

Here are some related web sites that might help your customers determine the cost of running appliances:

Energy-Efficient Products
This FEMP site lists various commercial, industrial, and residential appliances and the number of watts an energy-efficient model can be expected to use.

Energy Star's Buildings and Plants website.
Among other things, this site allows users to download free software for evaluating the cost effectiveness of upgrading fans, chillers, lighting, etc. Results can be limited to a specific type of business/organization.

Self-Assessment Workbook for Small Manufacturers
This workbook from the State University of New Jersey Rutgers is designed to help manufacturers quantify and reduce energy costs. It includes a number of useful formulas for calculating costs and cost savings.

U.S. Department of Energy Advanced Manufacturing Office Industries & Technologies website
focuses on seven major industries and seven major energy-using technologies.

Topic: Appliances--General
Topic: Appliances--Office
Topic: Economics/Funding--Feasibility/Cost Analysis
Topic: Building/Plant Energy Management--Plug Load
Sector: Commercial
Sector: Industrial
Content Type: Q&A
Keywords: boilers, fans, motors, procurement, distribution transformers, BestPractices
ID:  2818