Billing
kW (Kilowatt)
Definition
A unit of power equal to 1,000 watts, measuring the instantaneous rate at which electrical energy is being consumed or generated. On commercial bills, kW appears in demand charges — the peak power draw during a billing period.
Why It Matters for Your Business
Understanding kW vs. kWh is essential for commercial energy management. Demand charges based on peak kW can dominate your bill. Controlling your peak kW draw — not just total energy use — is often the fastest path to bill reduction.
Frequently Asked Questions
How is kW different from kWh?
kW is a rate (like miles per hour), kWh is a quantity (like miles traveled). Your demand charge is set by your peak kW; your energy charge is set by total kWh consumed.
What is a typical commercial building's peak kW demand?
This varies enormously by building size and type. A 50,000 sq ft office might peak at 200–400 kW; a large retail center might peak at 500–2,000 kW. Check your utility bill's demand section.