Introduction: The CPUC (California Public Utilities Commission) Avoided Cost Calculator helps determine the financial benefits of producing energy through renewable sources. It computes the total avoided cost based on the amount of energy produced (in kWh) and the avoided cost per kWh.
Formula: The avoided cost is calculated by multiplying the energy produced (in kWh) by the avoided cost per kWh.
Total Avoided Cost = Energy Produced (kWh) × Avoided Cost per kWh
How to Use: Using the CPUC Avoided Cost Calculator is straightforward. Follow these steps:
- Enter the amount of energy produced in kilowatt-hours (kWh).
- Input the avoided cost per kWh in dollars.
- Click the “Calculate” button.
The calculator will instantly provide you with the total avoided cost.
Example: Let’s consider an example:
- Energy Produced: 1000 kWh
- Avoided Cost per kWh: $0.15
Upon clicking “Calculate,” the calculator will display a total avoided cost of $150.
FAQs:
- What is the avoided cost? The avoided cost represents the cost that utilities would incur to generate or purchase the same amount of electricity from conventional sources, which is avoided by using renewable energy sources.
- Why is calculating avoided cost important? Calculating avoided cost helps in assessing the financial benefits of renewable energy projects and provides insights into the economic advantages of sustainable energy production.
- Is this calculator specific to California? While designed with the CPUC in mind, this calculator can be used in any location where avoided cost calculations are relevant.
- Can this calculator be used for non-renewable energy sources? This calculator is designed specifically for assessing the avoided cost of renewable energy production. It may not be suitable for non-renewable sources.
- How is the avoided cost determined? The avoided cost is typically determined by the cost of conventional energy sources that would have been used in the absence of renewable energy production.
Conclusion: The CPUC Avoided Cost Calculator is a valuable tool for assessing the financial benefits of renewable energy production. It provides a clear estimate of the avoided cost, which is crucial for decision-making in sustainable energy projects. Use this calculator to gain insights into the economic advantages of utilizing renewable energy sources and contribute to a more sustainable future.