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Posted by Bob D. on November 18, 2011 at 10:10:47:
In Reply to: KW cost calculation posted by barnstable1197 on November 17, 2011 at 20:39:50:
1 MW = 1,000 kW
1,000 kW x 1 hour = 1,000 kWh
1,000 kWh x $0.055/kWh = $55.00
So, your produced energy offset cost is $55.00 per hour at 1 MW output. This is the same as it would cost you to by the energy, assuming the $0.055 is your "last kWh" cost (incremental cost of the last kWh once your basic service charges are covered), and not simply the average cost. This very simple calculation doesn't account for any demand charge - the "last kW" (power), or reactive charge (kVAR), which larger facilities usually have in a large commercial/industrial account.
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