Cost Calculator AI
Manufacturing & IndustrialIndustrial Power

Manufacturing Electricity Cost Calculator

Calculate plant electricity expenses for 3-phase industrial machinery, including energy consumption (kWh) and utility peak demand charges ($/kW).

Industrial Electrical Load & Demand Schedule

Total Monthly Electric Bill
—
kWh + Peak Demand
Total Monthly Energy
— kWh
active draw
Volumetric Energy Cost
—
kWh usage charge
Demand Charge Penalty
—
utility peak fee

Industrial Electric Bill Formula

Total Electric Bill = (Total kW × Load Factor × Hours × Energy Rate $/kWh) + (Peak kW × Demand Rate $/kW)
  • Connected Load: Sum of nameplate electrical power of all operating machinery in kilowatts (kW).
  • Load Factor: Average operating draw relative to maximum nameplate rating (typically 70%–85%).
  • Demand Charge: Monthly utility capacity fee based on the highest 15-minute peak kilowatt draw.

Step-by-Step Worked Example

Scenario: Running four 45 kW injection molding machines on two shifts

Calculation Steps:

  1. Effective Demand = 180 kW × 0.75 = 135 kW
  2. Monthly Consumption = 135 kW × 352 hrs = 47,520 kWh
  3. Energy Charge = 47,520 kWh × $0.11 = $5,227.20
  4. Demand Charge = 135 kW × $12.00 = $1,620.00
  5. Total Monthly Electricity Bill = $5,227.20 + $1,620.00 = $6,847.20 ($19.45 / operating hour)
Result: Monthly electricity bill is $6,847.20 ($82,166/year), comprising $5,227.20 in energy consumption and $1,620.00 in peak demand charges.

How to Use This Calculator

  1. 1Enter machine motor/heater electrical rating in kW and number of active units.
  2. 2Specify daily operating hours, monthly work days, and average load factor.
  3. 3Input your utility energy rate ($/kWh) and peak demand rate ($/kW).

Assumptions & Limitations

  • Peak demand coincides with simultaneous machine operation.
  • 1 kW = 1.341 Horsepower (HP).

Frequently Asked Questions

What is a peak demand charge on industrial electric bills?

Utilities charge a separate fee based on the highest power (kW) demanded by your facility during any 15-minute interval in the billing month, regardless of total energy consumed.

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