Enter the total amount of power generated in kilowatts and the total cost into the calculator to determine the cost per kilowatt.

Cost Per Kilowatt Formula

The following equation is used to calculate the Cost Per Kilowatt.

CPKW = TC / P(KW)
  • Where CPKW is the cost per kilowatt ($/kw)
  • TC is the total cost ($)
  • P(KW) is the power in kilowatts (kw)

To calculate the cost per kilowatt, simply divide the total cost by the number of kilowatts (kw)

What is Cost Per Kilowatt?

Definition:

A cost per kilowatt measures the cost per unit of power. In this case, the power is in kilowatts.

How to Calculate Cost Per Kilowatt?

Example Problem:

The following example outlines the steps and information needed to calculate the Cost Per Kilowatt.

First, determine the total cost. In this example problem, the total cost is calculated to be $210.00.

Next, determine the number of kilowatts. For this example, the number of kilowatts is 10.

Finally, calculate the cost per kilowatt using the formula above:

CPKW = TC / P(KW)

CPKW = $210 / 10

CPKW = $21 /kw

FAQ

What factors can affect the cost per kilowatt?

The cost per kilowatt can be influenced by several factors including the source of power (solar, wind, fossil fuels, etc.), the efficiency of the power generation process, the geographic location, and the time of use. Market demand and regulatory policies can also play significant roles.

How can I reduce my cost per kilowatt?

Reducing your cost per kilowatt can be achieved by improving energy efficiency, investing in renewable energy sources, negotiating better rates with your power provider, or taking advantage of off-peak rates. Regular maintenance of your power systems can also ensure they are running efficiently.

Why is calculating cost per kilowatt important?

Calculating the cost per kilowatt is crucial for understanding how much you are paying for electricity. This information can help in budgeting for energy costs, making decisions about energy consumption, and evaluating the cost-effectiveness of investing in alternative energy sources. It also allows businesses and households to identify opportunities for cost savings.