Industrial Heat Pumps & Electrified Thermal Systems worked example

Energy Savings at 61% savings realization allowance: a worked example

This worked example runs the energy savings numbers for a tougher week than the baseline: 61% savings realization allowance instead of the typical 85%. Estimate realized annual kWh savings from an industrial heat pump or heat recovery project using avoided demand, operating hours, and a realization allowance.

The inputs for this scenario

  • Avoided thermal load served by the heat pump: 900 kW (held at the documented default)
  • Annual operating hours of the thermal system: 5,200 hr (held at the documented default)
  • Savings realization allowance (derate): 61 % (the input this scenario stresses; the baseline uses 85)

Working through the calculation

  • The calculation starts from the formula this tool documents: Base annual energy savings = avoided energy demand × annual operating hours.
  • Energy used works out to 4,680,000 kWh at these inputs, and this is the headline figure for the scenario.
  • Energy cost works out to 285,480,000 $ at these inputs.
  • Cost per piece works out to n/a $ / piece at these inputs.
  • Hourly cost works out to 54,900 $ / hr at these inputs.

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. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Energy used: 4,680,000 kWh (headline result)
  • Energy cost: 285,480,000 $
  • Cost per piece: n/a $ / piece
  • Hourly cost: 54,900 $ / hr

Run it with your numbers

  • To rerun this with your own numbers, open the live Energy Savings calculator, set savings realization allowance to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.