State Industries 317913-000 When Using Electricity To Heat Water, Estimating Water Heating Costs

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When Using Electricity To Heat Water

The system designer may want to modify the preceding heater recovery and storage tank capacity information when using electricity to heat water.

This is because electricity for commercial use, including water heating, is often sold on a demand rate basis. This means, in addition to the energy charge (measured in kWh), there is a charge for the demand (measured in kW) that a customer imposes upon the electrical service. Your power company will provide and explain rate information upon request.

kWh= ENERGY USED

(HEATS WATER, COSTS PENNIES)

kW= DEMAND

(DOESN’T HEAT WATER, COSTS DOLLARS)

The presence of a demand rate means the system designer should minimize recovery (heater kw rating) and maximize storage capacity (heater tank size.) Demand charges can greatly increase the cost of using electricity to heat water.

Another approach to minimize electric demand is to provide enough hot water storage to allow the elements to be turned off during periods of peak electrical usage. This may be done with a locally obtained time clock or through demand limiting equipment supplied by State or others in the energy control business. Working with the customer, power company, heater supplier and electrician can often result in significant power cost savings by providing control over the electrical demand.

Estimating Water Heating Costs

Occasionally the system designer may want to project energy expense and make fuel cost comparisons as a part of the system design project.

If so, use this formula and the example as a guide.

Cost = (Gallons per time period) x (8.25) x (temp. rise) x (cost of fuel per sale unit (Btu content of fuel per sale unit) x (Heater efficiency)

Cost example of heating 50 gallons of water with electricity:

Cost =

(50)x(8.25)x(100)x(.08)

Notes:

 

(3413) x (1)

 

Cost = 2062.5

8.25 - Weight of gallon of water

 

3413

 

 

 

8.00¢ per kwh assumed

Cost =

96 cents based on 100% efficiency, plus

1 kW = 3413 Btu/h

 

demand and fuel adjustment charges

 

 

if applicable.

Efficiency = 1 (100%)

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Contents Technical Guide to Introduction to Commercial Water heating ParametersWhat is Hot Water? 123456789011123456789011 Evaluating WaterHot Water Demand II. Principles of SizingProfiles of Operation Recovery Capacity Tables III. Equipment PerformanceStorage Capacity and Tank Efficiency Electric Tank Type Heaters Heater Recovery Plus Storage Tank Equals DemandGas and Oil-Fired Tank Type Heaters Auxiliary Tank Unfired123456789011 When Using Electricity To Heat Water Estimating Water Heating CostsDesign Objective IV. System Types and ApplicationSystem Types Two-temperature with mixing valve Pre-heater/booster heater Creating the Successful System Sizing Without Prepared InformationOne temperature example 123456789011 Field Assistance123456789011