What is the average annual cost savings expected per motor

Reference no: EM133659885

Problem: You have many simple three-phase 50hp motors in your facility (all run at 70% rated load for 8000 hours/year each), with an energy efficiency of 86% and average annual maintenance cost of $450 per motor, all getting close to end of life. You can replace/refurbish with the same model of motor for $3,000 each, or you can replace with high efficiency (96%) IIoT-enabled motors for $4500 each (with a $100 utility rebate). By using IIoT, maintenance costs are expected to be reduced 30%. Avg energy cost is $0.09/kWh. Ignore installation costs (same for both models). What is the average annual cost savings expected per motor if go with the high energy motors?

Reference no: EM133659885

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