How do business owners and consumers know how much their electricity truly costs? Consumption of electricity is measured in cost per kilowatt hour (kWh), but electric companies are great at disguising the actual cost of each kWh. They do this through subterfuge, by setting up a low rate for the published kWh, then adding multiple fees and charges.
How do you figure out how much you’re actually paying per kWh? It’s simple: Take the total amount charged and divide by the total kWh. The following are two real-world examples.
Building 1 (click any image to zoom)
- Published Cost Per Watt: $0.15228/kWh
- Total Amount of Electricity: 3654 kWh
- True Cost: $0.15228 x 3654 = $556.44
- Amount on Invoice: $910.11
- Actual Cost Per Watt: $910.11 / 3654 =
$0.249/kWh
Building 2 (click any image to zoom)
- Published Cost Per Watt: $0.15228/kWh
- Total Amount of Electricity: 5400 kWh
- True Cost: $0.15228 x 5400 = $822.31
- Amount on Invoice: $1,358.11
- Actual Cost Per Watt: $1,358.11 / 5400 =
$0.251/kWh
Let’s assume you have 20 6 lamp T5HO luminaires that are on for 12 hours per day, five days per week. Based on the electric company’s published rate, if you were to calculate your cost per year using a Cost Per Watt chart, you could be forgiven for thinking you would be paying only $0.15228/kWh, with a total annual cost of $3045.60. However, once you do the REAL math, the actual cost per year would be $5054.40, an increase in excess of 65% over the published rate per kWh!
Knowledge is power. When you check what your true cost per kWh is, you can correctly determine the cost to operate your current lighting system, and the cost of an alternative lighting system. Then, you’ll know the payback in reduced energy costs if you decide to update your lighting system. To learn more, contact an Access Fixtures lighting specialist.
What are you paying for electricity? Let us know where you’re located and what you’re really paying per kWh.