Industrial Heat Pumps & Electrified Thermal Systems worked example

Energy Savings at 98% savings realization allowance: a worked example

This scenario runs the energy savings calculation on the strong side: 98% savings realization allowance, with every other input held at its documented default. Use it when energy managers and decarbonization teams are screening heat pump, heat recovery, or hot water electrification projects before detailed modeling.

The inputs for this scenario

  • Avoided thermal load served by the heat pump: 900 kW (unchanged)
  • Annual operating hours of the thermal system: 5,200 hr (unchanged)
  • Savings realization allowance (derate): 98 % (raised for this scenario; the documented default is 85)

Working through the calculation

  • Applying the documented formula (Base annual energy savings = avoided energy demand × annual operating hours) to the inputs above produces each figure below.
  • At this operating point the engine returns 4,680,000 kWh for energy used, the number this scenario is built around.
  • At this operating point the engine returns 458,640,000 $ for energy cost.
  • At this operating point the engine returns n/a $ / piece for cost per piece.
  • At this operating point the engine returns 88,200 $ / hr for hourly cost.

How this compares with the baseline

  • Against the tool's baseline example, where savings realization allowance sits at 85% and the headline result is 4,680,000 kWh, this scenario lands almost exactly on the baseline at 4,680,000 kWh.
  • Use it during feasibility studies, incentive applications, and post-install measurement and verification of an electrified thermal project. Treat this as a target state: the delta against the baseline quantifies what the improvement is worth before you commit to chasing it.

Results at a glance

  • Energy used: 4,680,000 kWh (headline result)
  • Energy cost: 458,640,000 $
  • Cost per piece: n/a $ / piece
  • Hourly cost: 88,200 $ / hr

Run it with your numbers

  • Every input above is editable in the live Energy Savings calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.