Energy Cost Calculator
Estimate electricity cost from power consumption, hours, and tariff rate.
Calculator
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Daily consumption: 1200 kWh
Monthly cost: ₹2,88,000
Annual cost: ₹34,56,000
Formula
Energy (kWh) = Power (kW) × Hours. Cost = Energy (kWh) × Tariff (₹/kWh). Monthly cost = Power × Daily hours × 30 × Tariff.
Example calculation
75 kW motor running 16 hrs/day, tariff ₹8/kWh: Daily kWh = 75 × 16 = 1200 kWh. Monthly cost = 1200 × 30 × 8 = ₹2,88,000/month.
Engineering notes
Industrial tariffs in India typically have two components: demand charge (₹/kVA of maximum demand) and energy charge (₹/kWh). Include both in your cost model. Power factor penalty applies if PF < 0.9. Also check for time-of-use (TOU) tariffs where night rates may be 30–50% lower.
When to use this calculator
- Energy budgeting — estimate monthly electricity bill for a new machine or production line before installation
- Equipment comparison — compare energy cost of two machines with different power ratings
- Shift scheduling — quantify savings from running energy-intensive equipment during off-peak tariff hours
- VFD justification — calculate energy savings from installing a variable frequency drive on a motor
- Energy audit — build a bottom-up estimate of site electricity consumption from equipment inventory
Frequently asked questions
- What is the difference between kW and kWh?
- kW (kilowatt) is a measure of power — the rate of energy use at any instant. kWh (kilowatt-hour) is a measure of energy — the total electricity consumed over time. A 10 kW machine running for 5 hours uses 50 kWh. Your electricity bill charges in kWh (energy units). Power in kW tells you the instantaneous demand; energy in kWh tells you the total consumption.
- How do I reduce my industrial electricity bill?
- Key strategies: (1) Power factor correction — install capacitor banks to bring PF above 0.95 and avoid penalties. (2) Variable speed drives — reduce motor speed when full speed is not needed (power ∝ speed³ for fans/pumps). (3) Peak demand management — stagger equipment start-up to reduce maximum demand. (4) Off-peak scheduling — shift non-critical loads to night or weekend hours. (5) LED lighting and insulation — reduce base loads.
- What tariff rate should I use for industrial electricity in India?
- Industrial HT tariff in India varies by state and sanctioned load: typical energy charge ₹6–9/kWh, demand charge ₹300–600/kVA/month. Check your DISCOM's latest tariff order for exact rates. LT industrial tariffs (for smaller loads) are typically ₹7–11/kWh all-inclusive. For budgeting, use ₹8–9/kWh as a conservative national average for HT industrial consumers.
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