Enter the total cost and the total energy usage into the calculator to determine the Cost of Energy. 

Cost of Energy Formula

The following equation is used to calculate the Cost of Energy.

CoE = TC / TE
  • Where CoE is the Cost of Energy ($/J)
  • TC is the total cost ($)
  • TE is the total energy usage (Joules, J)

To calculate the cost of energy, simply divide the total cost by the total energy usage.

What are the units for Cost of Energy?

The most common units for Cost of Energy are $/J.

How to Calculate Cost of Energy?

Example Problem:

The following example problem outlines the steps and information needed to calculate the Cost of Energy.

First, determine the total cost. In this example, the total cost is determined to be 1500 ($).

Next, determine the total energy usage. For this problem, the total energy usage is measured to be 10,000 (Joules, J).

Finally, calculate the Cost of Energy using the formula above: 

CoE = TC / TE

Inserting the values from above and solving the equation with the imputed values gives: 

CoE = 1500 / 10000 = .15 ($/J)

FAQ

What factors can affect the total cost in the Cost of Energy calculation?

The total cost in the Cost of Energy calculation can be affected by various factors including the source of energy (e.g., fossil fuels, renewable energy), the geographical location (due to different energy prices in different regions), the time of use (peak hours can have higher rates), and the efficiency of the energy usage system.

How can one reduce the Cost of Energy?

Reducing the Cost of Energy can be achieved by improving energy efficiency, utilizing energy-saving appliances, shifting to cheaper or renewable energy sources, and optimizing energy usage patterns to avoid peak rates. Regular maintenance of energy systems to ensure they are functioning efficiently can also help reduce costs.

Are there any tools or technologies that can help track and manage energy usage more effectively?

Yes, there are several tools and technologies available for tracking and managing energy usage. Smart meters and energy management systems (EMS) can provide real-time data on energy consumption, identify patterns, and suggest areas for improvement. Additionally, smartphone apps connected to these systems can offer insights and control over energy usage, even remotely.