This group brings together the best thinkers on energy and climate. Join us for smart, insightful posts and conversations about where the energy industry is and where it is going.


A new power bill approach is highly needed

image credit: Instant heater x tank heater

A new power bill approach is highly needed

What makes more sense to you regarding water heating?

Option "A": go for a 9.5 kW tank-less water heater 
Option "B" go for a 1.5 kW 20 gallon water heater

Total installed cost for both are about the same. And at the end of the day the amount of kWh used to heat the water is about the same as well. 

Then the decision is about your personal preference because the power cost is the same.

But ... for the power providers it makes a huge difference because being able to meet a 9.5 kW load requires a lot more grid infrastructure than the 1.5 kW load. 

Don't you agree that the guy who chooses the 1.5 kW 20 gallon heater should get a hefty benefit? 

Tariffs have been based in kWh for more than a century. This is especially so for residential energy users. For industrial/commercial and institutional ones as well but there is a kW charge that is usually a smaller proportion of the power bill - around 20% typically.

It is high time to change the rate structure to reflect the real incurred costs. Simply put because in this example of the water heaters, the one who decided to go for the 1.5 kW option is actually subsidizing the one who chose the 9.5 kW.

If you would like to better understand the concept I have in mind and the associated calculations make sure to get in touch.

Rafael Herzberg's picture

Thank Rafael for the Post!

Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.


No discussions yet. Start a discussion below.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »