1. What is an Energy Savings Calculator?

Definition: This calculator estimates the monetary savings achieved by reducing energy consumption.

Purpose: It helps homeowners, businesses, and energy auditors quantify the financial benefits of energy efficiency improvements.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Savings \) — Monetary savings in dollars
• \( E_{old} \) — Original energy consumption (kWh)
• \( E_{new} \) — New energy consumption (kWh)
• \( Rate \) — Cost per kilowatt-hour ($/kWh)

Explanation: The difference between old and new energy use represents the energy saved, which is then multiplied by the cost per unit of energy.

3. Importance of Energy Savings Calculation

Details: Calculating energy savings helps justify energy efficiency investments, track conservation efforts, and forecast utility bill reductions.

4. Using the Calculator

Tips: Enter your original energy use, new (reduced) energy use, and your electricity rate (default $0.12/kWh). All values must be ≥ 0.

5. Frequently Asked Questions (FAQ)

Q1: What if my new energy use is higher than old?
A: The calculator will show $0 savings (negative savings are not displayed).

Q2: Where can I find my electricity rate?
A: Check your utility bill or contact your electricity provider. The default of $0.12/kWh is a US average.

Q3: Does this account for time periods?
A: No, ensure both energy values cover the same time period (e.g., monthly or annual).

Q4: Can I use this for different energy units?
A: This calculator uses kWh. For other units, convert to kWh first or adjust the rate accordingly.

Q5: How accurate are these savings estimates?
A: They provide a basic estimate. Actual savings may vary based on rate structures, taxes, and usage patterns.