Electricity cost is one of the major operating expenses in industrial facilities. Understanding how to calculate energy consumption and cost accurately helps manufacturers control expenses, optimize machine usage, and improve efficiency.
Electricity consumption is measured in kilowatt-hours (kWh). One kWh represents using 1 kilowatt of power for one hour.
Energy (kWh) = Power (kW) × Operating Hours
Check the machine’s nameplate for its rated power in kilowatts (kW). If the rating is in horsepower (HP), convert it using:
kW = HP × 0.746
Calculate how many hours the machine runs per day or per month.
Energy (kWh) = Power (kW) × Hours
Electricity Cost = Energy (kWh) × Tariff (per kWh)
Suppose a machine rated at 15 kW runs 10 hours per day, and electricity tariff is ₹8 per kWh.
Energy = 15 × 10 = 150 kWh Cost = 150 × 8 = ₹1200 per day
This guide is for educational purposes. Actual electricity billing structures may vary depending on utility provider and tariff category.