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What Is a Kilowatt Hour & Why is it Important for Your Business?

What Is a Kilowatt Hour & Why is it Important for Your Business?

By Vanessa Peng

In order to understand how much your company is paying for their energy, you need to know what a kilowatt hour is and how to read it on your utility bill. A kilowatt-hour will tell you how much your facility is consuming in energy. 

A kilowatt, or kW, is a unit of power based on watts. Power is defined as “the time rate at which work is done or energy is transferred.” Therefore, watts measure the rate at which energy flows through an electrical system (essentially the rate at which it is being used). 

For example, a 100-watt light bulb draws 100 watts of electricity when turned on. After 10 hours of operation the 100-watt bulb will consume 1,000 watts of power, or one kilowatt. The higher the wattage, the more electricity is being consumed.

What is a kilowatt-hour?

A kilowatt hour will show the amount of electricity that’s being used over a period of time. Electricity can be measured using kWh (kilowatt hour). kW and kWh are often mistaken for one another but they are measuring two different things.

The amount of power used by a piece of equipment or machine is measured in watts and the amount of energy used is measured in kWh (kilowatt hour).

Measuring kWh is not as straightforward as measuring kW. A kilowatt is measured in terms of watts (W), and a kilowatt hour is measured in terms of energy. Energy is measured by multiplying the kilowatt consumption by the amount of time the power is needed. For example, a 1000-watt light bulb uses 1000 watts during one hour. Therefore, 1000 watts has converted to 1 kWh.

Power is defined as “the time rate at which work is done or energy transferred”. For example, if you have switched on a machine that has 1000 watts of power and it stays switched on for 2 hours then the machine has consumed 2 kWh of electricity (1kW x 2hrs=2kWh). The higher the wattage and the longer the hours, the more electricity is being consumed. 

The higher the wattage, the more electricity is being consumed. A kilowatt hour will show how much electricity your facility uses.

A kWh (kilowatt hour) is a unit of energy. It measures the amount of electricity consumed in your building over a certain period. 

Understanding how to read a kilowatt hour is important for energy efficiency among commercial and industrial facilities. The electricity that your facility consumes every day can have a significant environmental impact not only on the country but also your place of business, home, or school. If you are interested in conserving energy then learning more about kilowatt hours, kWh, is essential to helping your business reduce its carbon footprint and save money.

How can I reduce my facility’s kWh consumption?

Reducing your kWh usage is a great way to reduce your carbon footprint. There are many ways to reduce your facility’s kWh consumption including:

  1. Use efficient appliances and equipment – Reduce the amount of energy each individual piece of equipment uses by purchasing energy efficient equipment.
  1. Make sure that lighting is used correctly – Many lights are left on during the day, after hours, or unneeded lighting fixtures are still turned on inside or outside of the building. Keep all lights off when not needed and use daylight where possible to reduce usage.
  1. Reduce the number of service runs needed – Most service runs are done during peak energy usage times. Instead, have your service professionals do preventative maintenance on your equipment to make sure that the energy being used is the best efficiency and that you are operating with the minimum amount of electricity possible.
  1. Save energy by improving your building’s HVAC systems – The HVAC system is an important part of a building’s overall energy efficiency. HVAC systems can be equipped with sensors that monitor the temperature and humidity of a room and adjust the temperature accordingly. By monitoring a building’s HVAC system, it is possible to create energy-efficient buildings.
  1. Buy from local businesses to reduce your company’s energy consumption – Buying products from local businesses will help you to reduce your overall energy usage by avoiding the need for shipping materials and supplies, as well as cutting down on transportation costs.

Read our top tips for saving energy in the workplace, warehouse, or factory here.

Why is understanding kilowatt hours important for your business?

It is important for your business to understand what a kilowatt hour is and why it is crucial to saving energy. You can save your company money and also help the environment by using energy efficiently. It is easy to understand and can make a significant impact on your company.

If you have any questions about why you should learn what a kilowatt-hour is or how it can help you maximize your energy efficiency through energy saving solutions, please do not hesitate to ask us: (800) 834-8737 or contact us online.