Billing
kWh (Kilowatt-Hour)
Definition
The standard unit of electrical energy equal to consuming 1,000 watts of power for one hour. A kilowatt-hour is what appears on every commercial utility bill as the measure of total energy consumed.
Why It Matters for Your Business
kWh is the primary unit utilities use to charge for energy consumption. Monitoring kWh usage over time reveals consumption trends, enables benchmarking against similar buildings (Energy Use Intensity), and measures the ROI of efficiency upgrades.
Frequently Asked Questions
What is the difference between kW and kWh?
kW (kilowatt) measures power — the rate of energy use at a specific instant, like speed. kWh measures energy — the total amount consumed over time, like distance traveled. A 10 kW HVAC unit running for 3 hours consumes 30 kWh.
How much does a kWh cost commercially?
Commercial electricity rates vary by region, utility, and tariff. U.S. commercial rates typically range from $0.07 to $0.25/kWh as of 2024. Check the EIA (eia.gov) for current state-level averages.