In our previous blog, we highlighted why you need motor management to drive motor energy efficiency. To determine your potential motor management savings, you will first need to calculate the current value of your motor portfolio. Here’s five questions to ask to determine the current value of your motors:
- What is the value of your motor portfolio?
Did you know that, on average, motors cost $100-$150 per horsepower? A new 10 horsepower motor can easily cost you $1,000 or more and a 100 horsepower motor will run you more than $10,000. Then consider the number of motors you have at your facility(ies)! In other words, your motors add significant value to your capital assets. To calculate the value of your motor portfolio, identify the number of motors at each of your facilities; then, total their cumulative horsepower and initial capital value to get the gross value of your motors. Calculating your motor portfolio’s value as a percentage of your total capital assets enables comparison with your other capital assets and helps to persuade others that motors matter to your organization. - How much of your motors’ value has been depreciated?
Depreciation ratio indicates the average age and health of your motor portfolio. If your depreciation ratio exceeds 0.50, then you have a higher percentage of older motors in your portfolio. The good news: the higher your depreciation ratio, the higher your potential motor management savings. - What are your annual energy expenses?
Classifying your energy expenses as an operating cost in a particular division may make it easier to calculate the cost of producing/reclaiming water, but it obscures energy expenses’ impact on your bottom line. Sum up your total annual energy expense, then consider how this ranks versus other major cost centers, such as personnel. - What percentage of your energy expenses do your motors consume?
Motor energy expenses include two components: demand charges and energy charges. Your motors likely cause 100% of your demand charges unless your facilities use other high-demand equipment, such as (non-LED) ultraviolet lights or electric boilers. Energy charges can be calculated based on motor size (Hp), efficiency (%), load (%), and operating schedule (run-time); however, this calculation can become complex if your facility uses a time-of-use rate. - What does motor reliability cost you each year?
Your motor reliability costs include direct motor maintenance costs, maintenance-related labor, and supplies plus any lost revenue or regulatory fees due to motor failures and unscheduled downtime.
Want to put your numbers to the savings test? Check out our online calculator to size up your potential motor management savings. To learn more, download our white paper on building the business case for managing your motors.