How to Calculate Electricity Usage Cost and Charges

Over 30% of the electricity produced in the United States annually is consumed by homes. As a homeowner, it is your responsibility to find ways to conserve the amount of energy your residence uses. Allowing energy usage to get out of control will usually result in higher than normal utility bills.

When trying to get a handle on your energy spending, you will have to gather some important information. Figuring out how to calculate energy usage costs and charges will take some time and effort. Below are some tips to help you make these calculations correctly.

Assessing the Wattage of Your Devices

The first step in figuring out electricity usage and costs is getting information from the devices and appliances in your home. Most people fail to realize just how much energy older appliances can use. If your home is filled with outdated appliances, opting for more energy-efficient options is crucial. When trying to figure out the wattage a device or appliance needs to operate, you need to check the tags they have.
Assessing the Wattage of Your Devices’

If you can’t find this information on the product tag, you need to do some online research to find the user manual for the product inquest.

As you start to collect this information, you need to understand how you are billed for electricity. Most electric companies bill customers in kilowatt hours. A thousand watts is roughly equivalent to one kilowatt.

Figure Out Watts Per Day Averages

Once you have information regarding the wattage being used by the appliances and electronic devices in your home, it will be time to break out the calculator. The number of watts being used by a particular appliance or electronic device needs to be multiplied by the average number of hours it is used daily. With the daily average of wattage usage added up, you should be able to assess how much money you are spending on electricity each day.
Figure Out Watts Per Day Averages
Making sure you are getting the cheapest rate on residential electricity is crucial. With all of the different power companies on the market, you should have no problem finding a great deal. Looking at websites like EnergyBot is crucial when trying to figure out which power company offers the best possible deal. The time invested in performing this research will be worth it considering the money it can help you save.

Calculating Monthly Electricity Usage

The last step in figuring out your average electricity usage is taking the daily wattage usage you have calculated and multiplying it by the number of days in a given month. Getting to know what each electricity provider in your area charges for a kilowatt of energy can be helpful. This information will allow you to figure out whether or not you are currently overpaying for electricity.

There are a number of states, like Texas, where the energy industry has been deregulated. This deregulation allows consumers and business owners to use any provider they choose. Generally, the deregulation of energy providers leads to lower prices and far more competition. Taking advantage of this deregulation can help you save tons of money on your monthly electricity bill.

What Are You Waiting For?

What Are You Waiting For
As you can see, figuring out the electricity usage in your home will take time. However, the information you gain from this research can help you greatly in the future. Allowing professionals to come in and perform an energy audit is crucial when trying to uncover sources of energy waste. Fixing these issues will allow you to reduce the amount of energy your home uses, which in turn helps you save money.

Additional Resource: What is a Gaussmeter?

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