Question

You find that you can replace a 50 kW motor with a 5 kW motor by cutting the total air flow requirements, given than ( motor running time is 8,750 hours/year, efficiency 90% for both motors, demand charge $ 9 /kW-month, energy charge $0.05/kWh fuel adjustment cost $0.005/kwh). Calculate the dollar savings ?

$ 29,490

$20,400

$22,090

$14,010

Correct answer with Explaination needed

Answer 1

Answer Option A.

For total dollar savings, we take into account the amount saved in demand, energy and adjustment over 1 year. After calculation, we get the value to be $29,462. 5 which is closest to option 1. The working is shown below:

(We have multiplied by 12 because $9 demand charge was per month. So for 1 year, it is 12 times)

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