Measure electricity and fuel savings with confidence today. Model rates, rebates, and maintenance benefits quickly. Get clear annual results, payback, and value for planning.
| Scenario | Current kWh | Proposed kWh | Rate | Demand? | Project Cost | Incentives | Maintenance |
|---|---|---|---|---|---|---|---|
| LED + controls | 12,000 | 9,000 | $0.18 | No | $3,500 | $500 | $150/yr |
| HVAC tune-up | 24,000 | 19,200 | $0.22 | Yes | $2,200 | $200 | $80/yr |
| Process upgrade | 60,000 | 51,000 | $0.15 | Yes | $12,000 | $1,000 | $400/yr |
Annual energy savings converts technical improvements into finance terms that support approval. Start with last twelve months of bills to capture seasonality. A 10% reduction on 12,000 kWh at $0.18 saves $216 before add-ons. When demand charges apply, shaving peak demand often delivers outsized value because savings repeat every month. This calculator summarizes those effects in a single annual figure. It also helps set realistic targets for budgeting, tracking, and reporting to stakeholders over time internally.
Electricity use and rates usually dominate, but accuracy improves when you add demand and fuel. For many small businesses, blended electricity rates fall between $0.12 and $0.30 per kWh, while demand fees can range from $8 to $25 per kW-month. If you heat with gas, annual therm reductions paired with $1.00 to $2.00 per therm quickly change the baseline. Maintenance savings captures avoided service calls, filter swaps, and lamp replacements.
Simple payback divides net project cost by first-year total savings. If net cost is $3,000 and total annual savings is $600, payback is 5.0 years. ROI here is a year-one ratio, not an internal rate; it helps compare options when budgets are limited. Short paybacks may still hide large long-term value, so use payback as a screening metric rather than the final decision.
Net present value discounts future savings to today’s money and subtracts net cost. With a 7% discount rate and 3% escalation, savings in later years still contribute meaningfully, but less than year one. A positive NPV suggests the upgrade beats the discount rate hurdle. The year-by-year table and graph show how escalation grows projected savings and how discounting reduces their present value.
Good inputs are consistent, traceable, and conservative. Keep units aligned: annual kWh, peak kW, monthly demand rate, and annual therms. Use a blended rate that includes supply plus delivery when possible. If proposed kWh is uncertain, start with a percent reduction from a measured retrofit or audit. Finally, document incentives and confirm whether they are received upfront or later.
Use a blended rate from your bill that includes supply and delivery. If you have time-of-use tiers, estimate an average by dividing total annual charges by total annual kWh.
Enter proposed annual kWh if you have a modeled value. If you only know an improvement percent from an audit or retrofit report, choose percent reduction and the calculator will compute the proposed kWh.
Demand charges bill your monthly peak kW. If your utility uses demand, include current and proposed peak values so the tool can estimate annual demand savings as peak reduction times the monthly demand rate.
Use escalation to reflect expected energy price growth, and discount rate to reflect your required return. NPV becomes more conservative as the discount rate rises and more optimistic as escalation rises.
Payback uses first-year total savings and ignores time value. NPV values the full stream of savings over the chosen horizon. A project can have a longer payback but still a strong NPV.
Yes. Run one scenario at a time, download the CSV or PDF, then adjust inputs and recalculate. Keep the exports to compare options side by side for budgeting and approvals.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.