Avoided electricity cost calculator
Avoided electricity cost
Price reduced energy and actual reduced billed demand at their marginal rates; do not assume fixed charges disappear.
Savings=ΔkWh×renergy+ΔDbill×rdemand
Calculator
Enter the values you know and leave one box empty. Calculate finds the empty one, the result or any input.
Worked example
Given
- ΔkWh = 8,500 kWh
- renergy = 0.085 $/kWh
- ΔDbill = 32 kW
- rdemand = 14 $/kW
Savings=8500×0.085+32×14≈1,171
Symbols and units
| Symbol | Meaning | Unit |
| Savings | avoided variable bill amount | $ |
| ΔkWh | energy reduction | kWh |
| renergy | avoided marginal energy price | $/kWh |
| ΔDbill | actual billed demand reduction | kW |
| rdemand | applicable demand rate | $/kW |
Results are estimates for study and screening. Check the inputs, units and assumptions before you use them for design, billing or contract decisions.