What is kWh in the Electricity Bill?

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What is kWh in the Electricity Bill?
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When it comes to understanding the monthly power consumption or bills, the first step is to check kWh (kilowatt-hour). But what is kWh in the electricity bill? In simple words, the kilowatt-hour measures the energy used per hour. The cost per kWh will depend on the electricity provider and the electricity plan you're currently using.

If you're looking for a reliable charging solution to charge most appliances and reduce electricity bills, you may consider investing in the Jackery Solar Generators. They feature highly efficient batteries to power appliances, including air conditioners, televisions, refrigerators, well pumps, sump pumps, etc. Thus, they help you prepare for power outages or off-grid living.

Key Takeaways

  • A kWh on an electricity bill means the amount of power an appliance consumes (in watts) if used for one hour, divided by 1000.
  • Utility companies measure kWh to calculate the electricity bill.
  • Some ways to reduce kWh consumption are replacing incandescent lights with LED lights, turning off appliances when not in use, and investing in solar generators.
  • The energy used per month will depend on the wattage of appliances you use throughout the month and for how long.

What is kWh?

A kilowatt-hour (kWh) determines how much energy you use per hour. A 100-watt light bulb typically consumes 1 kilowatt or 1000 watts when operated for 10 hours. Kilowatt-hour and kilowatt are related measurement units that serve different purposes.

The main difference between kWh and kW is in what they measure. For example, a kilowatt-hour determines power or the rate at which something uses energy, whereas a kilowatt measures energy or the capacity to do work. Let's break down the kWh vs. kW differences below:

Kilowatt: It is the measure of how much power any electric appliance consumes. If you have watts, divide the watts to get kilowatts.

Kilowatt-hour: It measures the energy an appliance uses in kilowatts per hour. For instance, if you are cleaning a room floor with a 1000-watt vacuum cleaner for one hour, you consume 1 kWh of energy.

The difference between kWh and kW on your electric bill is that kW reflects the rate of electricity you use. On the other hand, kWh is the amount of electricity you use. But what is kWh and kVAh in the electricity bill? Electric power usually has two components, including active power (kWh) and reactive power (kVArh). When the active and reactive power components are combined, they form the apparent power (kVAh).

What is kWh in the Electricity Bill?

A kWh (kilowatt-hour) is the unit that calculates how many kilowatts an electric appliance uses per hour. Most electric providers charge for electricity based on how much kWh a customer uses. The electricity cost per kWh depends on how long you're running the appliances.

But what can one kilowatt-hour power? Ideally, one kilowatt is equal to 1000 watts. So, if you are running a 1 kilowatt AC unit for 1 hour, it means you have used 1 kilowatt-hour of electricity. Similarly, a refrigerator consuming 500W when run for 2 hours consumes 1 kilowatt-hour of electricity.

Let's briefly explain what one kilowatt-hour can do:

  • One kWh can power a refrigerator (500W) for 2 hours.
  • It can charge a 100-watt light bulb for 10 hours.
  • It can run a dishwasher consuming 600W for less than an hour.
  • One kWh can keep iron (1000W) for one hour.

The data from EIA reveals that the average household uses around 899kWh per month. However, not all households consume the same kWh every month. It may vary depending on the home type and size, the home appliances' wattage, and how long you are using them. The electricity bill constitutes the cost of electricity you used during the billing cycle and the delivery of that electricity.

How to Read kWh on Electricity Bill?

The complexity of reading the electricity bill might vary depending on the location and utility. However, there are several components that you should understand before reading the electricity bill. Let's explain the steps briefly:

Identify The Bill You're Reading and Your Billing System

The electricity bill might be bundled with other municipal bills in some countries. So, it is essential to know you're checking the electricity bill. Here's the simple trick: electricity consumption is determined in kilowatt-hours, whereas water usage is in gallons. If you have a gas bill, it will be used in British Thermal Units (BTUs). The units will help you understand when the electricity bills end and when water or gas bills start.

current charges for electricity

Know Your Monthly Billing Plan

Next, you'll need to check the monthly billing plan. For example, if you're on a monthly budget billing plan, the utility takes the number of kWh consumed in the last year. If you live in an area that typically remains hot and use electricity to run an AC in the summer months, you'll see a lower bill than your neighbor's monthly electricity bills. On the contrary, you might expect a higher bill than your neighbors in the winter months.

monthly billing charges

Understand the Breakdown Of Charges

One important thing to note is that the electricity bill combines the cost of electricity you consume and the expenses to maintain the utility grid. There are primarily two components to the electricity bill: a supply charge and a delivery charge.

Supply Charge: This includes the cost of generating electricity.

Delivery Charge: This covers the cost of delivering electricity from the utility grid to households.

You may also see some miscellaneous charges related to fees, taxes, renewable energy, and energy efficiency.

breakdown of total charges of electricity

Know Your Monthly Electricity Consumption

You'll need to calculate how much electricity you use each month carefully. You must measure and access the usage of your current billing cycle. If you want to calculate the electricity consumption manually, you can determine the total wattage consumed per month and multiply the watts by the monthly electricity rate.

electric usage history kilowatt hours kwh

How to Calculate kWh Usage and Cost?

If you want to determine the electricity cost, the first step is to calculate the kWh usage. There are two simple ways to determine how much electricity you'll use in a given month:

Power Bills: One simple method is to check your past bills and find how much electricity you used in the same month last year. However, the exact kWh consumption might vary depending on how much kWh you've actually used.

Manual Calculation: The second method is to manually calculate the kWh consumption of the appliances and devices used during the billing cycle. Here are the steps you'll need to follow:

Step 1: Check the wattage consumption of the appliance or device, which is typically available on the appliance itself or in the user manual.

Step 2: Convert the watts to kilowatts by dividing the wattage by 1000.

Step 3: Next, calculate the kilowatt-hour usage of household appliances by multiplying the kilowatts by the number of hours you're using the particular appliance. This will help you get the kWh per day.

Step 4: Simply multiply the kWh per day by 30 to get the average monthly kWh usage of the appliance.

Step 5: Repeat the process with all the other household appliances to get the total kWh usage per month.

Example:

Let's take an example to understand better:

Suppose you watch TV (150W) for 2 hours every day. The daily kWh usage will be 150W × 2H = 300Wh or 0.3kWh. The monthly kWh consumption will be 0.3kWh × 30 = 9kWh.

While the method is very accurate, it requires time and effort. If you want something quick, here are two ways to check out:

Billing Meter: If you have an electric meter installed at your home or business, you can read it at the beginning and end of each month to calculate the difference.

Inline Power Meter: You can also consider investing in an inline power meter that measures the power consumption of the appliances plugged into it. These meters are useful for determining the ripple power consumption of devices that consume some electricity even when turned off.

You can also use the Energy.gov calculator to determine the total kWh usage of household appliances.

As mentioned earlier, the average household energy use in the US is around 899kWh per month. However, the actual kWh will depend on how much electricity your home appliances use and for how long they work.

Steps to Calculate the Costs of kWh Electricity:

The kWh rate is the price of power supplied by the electricity provider. However, the actual cost of electricity will depend on the Retail Electric Providers (REP). Here's the simple formula to calculate the costs of kWh usage:

Total Cost = Energy kWh Usage × Electricity Rate

If the total energy usage is 899kWh and the electricity rate in the US is 16.68 cents per kWh, the total cost will be 899kWh × $0.1668 per kWh = $149.9. Let's calculate the kWh and cost of common household appliances:

Coffee Maker: If you have a midsize coffee maker drawing 800W of electricity and use it for 30 minutes daily, it consumes 400Wh daily. Multiply the Wh to kWh by dividing 400Wh by 1000 (400Wh ÷ 1000 = 0.4kWh). If the current electricity rate is 16.68 cents, the coffee maker will account for $2 of your overall monthly electricity bill.

Laptop: A laptop consumes around 150W of electricity per hour. When used for 8 hours daily, it would consume 1200Wh or 1.2kWh per day. With an electricity rate of 16.68 cents per kWh, the average monthly electricity bill will be $6 ($0.1668 per kWh × 1.2kWh × 30).

TV: If you have a smart TV at home that draws 150W while powered on and runs for 3 hours daily, it will typically consume 150W × 3H = 450Wh or 0.45kWh. If the electricity rate per kWh is 16.68 cents, the total monthly cost will be $2.2.

How to Reduce kWh Electricity Costs?

There are many ways to reduce the kWh electricity cost you pay monthly. Here are some of the easy tricks to check out:

Turn Off Unused Electronics

Your TV, stereo, and computer can consume electricity even when unused. It's better to turn off electronics when not in use, which will help you lower your electricity bill. Also, turn off fans, lights, and other appliances when you're not in the room.

Insulate Your Home

Insulation breaks over time and must often be replaced to ensure appliances do not consume more electricity. You'll need to check the attic insulation to reduce the overall kWh electricity costs. If you can see the rafters on the floor, it means you don't have enough insulation. A well-insulated attic helps secure the building envelope around the house.

Change AC Air Filters Often

Saving money on electricity bills all boils down to the power consumption of heating and air conditioning systems. The harder the HVAC systems work, the more power they need. Cleaning or changing the air filters regularly makes the most noticeable impact on the air conditioning unit's efficiency.

Buy Energy Star Appliances

An appliance with an Energy Star tag will help you save money on electricity. It typically uses 10 - 50% less electricity than non-Energy Star appliances. Replacing household appliances with energy-efficient Energy Star appliances can help you conserve electricity in the long run. You may also consider investing in Energy Star dishwashers and washing machines designed to save water.

Use Solar Energy

Sometimes, it is not possible to lower the electricity consumption per month. In this case, investing in solar generators that use free solar energy is best. They even work when there's an unexpected power outage in your area. However, installing a large rooftop solar system can be expensive. If you're on a limited budget, you may consider investing in portable Jackery Solar Generators. They can act as a reliable charging solution to power most household appliances when there is a power outage or you're outdoors.

Jackery Solar Generators Explained

Jackery is a leading brand that manufactures highly efficient solar generators, portable power stations, and solar panels. The large Jackery Solar Generators can run most household appliances during power outages or reduce high electricity bills. They combine Jackery Portable Power Stations and Jackery SolarSaga Solar Panels to collect, convert, and supply electricity to the appliances.

You can charge small or heavy-duty appliances with the Jackery Solar Generators, especially during peak electricity hours with higher electricity rates. They feature a sturdy handle and ergonomic design that ensures easy movement from one place to another. Investing in solar generators will help you cut electricity bills by a large amount. Here are some of the Jackery Solar Generators ideal for home backup or to lower high electricity bills:

Jackery Solar Generator 3000 Pro

The Jackery Solar Generator 3000 Pro is a large-capacity solar generator that can charge 99% of household appliances for hours. It has pull rods and double wheels to move the solar generator anywhere and charge appliances. You can charge heavy-duty appliances, including air conditioners and space heaters, during peak electricity hours and lower your electricity bills. It can also be connected to the home circuit to choose up to 6 circuits and start charging essential appliances in the blink of an eye.

Appliances Running Time

  • Garment Steamer (2100W) = 1.2H
  • AC (1000W) = 2.5H
  • Electric Cooktop (3000W) = 51 minutes
  • Electric Cooker (1900W) = 1.3H
  • Hand Drill (800W) = 3.2H

jackery solar generator 3000 pro for reducing electricity bills

Customer Review

"The 3000 Pro will be our backup power for our home fridge and chest freezer. We have already tested it: 3 days of power for the fridge and 5+ days for the freezer. We plugged in our radiant heater for a test. 1.5 hours and done. It only took 2.1 hours to plug in the wall plug for a full recharge." — J D.

Jackery Solar Generator 2000 Plus

The Jackery Solar Generator 2000 Plus is an expandable charging solution that charges 99% of household appliances. It supports multiple Jackery Battery Pack 2000 Plus to extend the battery capacity from 2kWh to 24kWh. Whether you're looking for a whole-home backup solution that supports most household appliances or wish to lower the electricity bills to some extent, the Jackery Solar Generator 2000 Plus might be a reliable solution.

Appliances Running Time

  • Garment Steamer (2100W) = 49 minutes
  • AC (1000W) = 1.7H
  • Microwave (1000W) = 1.7H
  • Electric Cooker (1900W) = 54 minutes
  • Hand Drill (800W) = 2.1H

jackery solar generator 2000 plus for reducing electricity bills

Customer Review

"I went off-grid with it, and we love it. We power up everything for at least two days without charging but using everything, so I'm very happy that we got it. We have a small generator that we relied on, but now we have no problem with power." —Marcin Powichrowski.

Jackery Solar Generator 2000 Plus Kit (6kWh)

If you're looking for a larger solar generator that supports most household appliances and helps lower the high electricity bills, then the Jackery Solar Generator 2000 Plus Kit (6kWh) might make more sense. It can also be an ideal solution for those planning to live off the grid and be completely independent from the utility grid. With the solar generator, you can charge lights, electronics, and other appliances during off-grid living, as well as home backup or professional power.

Appliances Running Time

  • Garment Steamer (2100W) = 2.4H
  • AC (1000W) = 5.2H
  • Electric Cooktop (3000W) = 1.7H
  • Electric Cooker (1900W) = 2.7H
  • Hand Drill (800W) = 6.5H

jackery solar generator 2000 plus kit 6kwh for reducing electricity bills

Customer Review

"This is absolutely a great addition to the 2000 Plus. I mainly have this for power outages, but I will use it on the occasional camping trip. I will probably buy an additional pack to make my supply 6k." — Mark Watkins.

How Solar Helps to Lower kWh Electric Bills?

The total solar savings can be calculated by subtracting the amount paid for the solar panel system from what you would have otherwise paid for electricity. The average US homeowner might save around $40,000 - $45,000 over 25 years after installing a solar panel system. However, the exact solar savings will depend on where you live and the electricity cost in the area.

Jackery Solar Generators are reliable and highly efficient charging solutions that can power 99% of home or outdoor appliances. You might claim a tax rebate through a federal solar tax credit (ITC) or an annual residential clean energy tax credit. To do this, fill out Form 5695 to earn tax rebates of around $839.7 - $1139.7 and reduce the upfront cost of investing in a solar system.

utility vs solar electricity costs

FAQs 

What size of solar generator do I need for my home?

The size of the solar generator needed for a home will depend on the number and wattage of the appliances in the household, along with the hours they are run. Let's take an example to understand:

Suppose you are running an AC (1000W), TV (150W), and smartphone (30W) when there's a brief power outage. When these appliances are charged with the Jackery Solar Generator 3000 Pro, the running time can be calculated as follows:

Working Hours = Battery Capacity in Wh × 0.85 ÷ Operating Wattage of the Appliances = 3024Wh × 0.85 ÷ 1180W = 2.1H.

Note: The 0.85 is the power factor conversion that represents the power loss when charging the appliances.

How many kWh per day is normal?

The average US household consumes nearly 29 - 30kWh per day or 899kWh per month. However, the average kWh consumption per day will depend on the size, location, and number of members in a household.

How do I calculate kWh from my electric bill?

If you want to calculate the kWh consumption from the electric bill, multiply the total kW consumption of all the appliances by the time they are run.

How is kWh charged?

The electricity provider charges by how much electricity you use per kWh (kilowatt-hour), depending on the electricity unit price. The kWh is the energy unit or the number of kilowatts you use over time on different appliances.

How many kWh does an AC use per day?

Most window AC units draw between 900 and 1440 watts per hour. On the other hand, portable AC units consume between 2900W and 4100W. A typical 1500W inverter AC will consume roughly 60 units of power (Pa) per hour, and a non-inverter 1000W AC will draw about 47 Pa/hour.

Final Thoughts

Understanding what is kWh in electricity bills will help you manage the bills better and find ways to save money. One of the best ways to lower your bill is by investing in a solar system or solar generator. Jackery Solar Generators are powerful and portable solutions that can charge 99% of household or outdoor appliances, including air conditioners, space heaters, lights, coffee makers, etc. They can help you shift the energy load from the utility grid to the solar generator and reduce the high electricity bills.

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