What does Kilowatt-Hour (kWh) and Megawatt (MW) mean?: Solar PV units of Measurement and Savings Explained
At Blue Renewables, we specialise in providing renewable energy solutions for commercial customers across the UK. A key part of understanding solar energy systems is getting to grips with the units of measurement used to describe energy production and consumption. This knowledge is crucial, not only for understanding the capacity of your solar installation but also for calculating the potential savings on your energy bills. In this blog post, we'll explain the key units of measurement in solar electricity: kilowatt-hours (kWh) and megawatts (MW), and how they relate to your financial savings.
What is a Kilowatt-Hour (kWh)?
A kilowatt-hour (kWh) is a unit of energy that measures the amount of electricity consumed or generated over time. One kWh is equivalent to using 1,000 watts of electricity for one hour. For example, if you run a 1,000-watt appliance for one hour, it will consume 1 kWh of electricity. This unit is commonly used by electricity suppliers to calculate your energy bills, and by solar energy providers like Blue Renewables to estimate the amount of energy that a solar installation can produce.
What is a Megawatt (MW)?
A megawatt (MW) is a unit of power equal to 1,000 kilowatts (kW). In the context of solar energy, MWs are used to describe the capacity or size of a solar system. For instance, a 1 MW solar system can generate 1,000 kW of electricity under optimal conditions. This measurement helps in understanding the scale of a solar installation and is crucial for planning and designing systems for commercial properties. Larger systems, measured in MW, are typically more cost-effective in the long run due to economies of scale.
How Do These Units Relate to Cost Savings?
The energy generated by solar panels, measured in kWh, directly correlates with potential cost savings on electricity bills. In the UK, the average price of electricity is approximately 17p per kWh (as of the latest data). Therefore, for every kWh of solar energy your system generates, you save this amount. Over time, these savings can be substantial, especially for commercial properties with high energy demands.
For example, if your business consumes 50,000 kWh per month and your solar installation generates 20,000 kWh per month, you could save approximately £3,400 per month (20,000 kWh x £0.17/kWh). Additionally, with a larger system (measured in MW), these savings can scale up, providing even more significant financial benefits.
Maximise Savings and Environmental Impact
Understanding the units of measurement in solar electricity, such as kWh and MW, is essential for appreciating the full value of solar energy systems. At Blue Renewables, we aim to help our commercial customers maximise their savings and environmental impact by designing and installing efficient solar solutions. By harnessing the power of the sun, businesses can reduce their reliance on traditional energy sources, lower their energy bills, and contribute to a more sustainable future.
If you're interested in exploring how solar energy can benefit your business, contact us today for a consultation. Let's make your energy solutions as green and cost-effective as possible!
