Demand describes the rate of electricity use and is measured as kW. Consumption is based on the actual electrical energy used, and is measured as kWh. Utilities generally levy separate charges for each, and some energy conservation measures will help to reduce both demand and consumption for electricity. Considering both paints a more accurate picture of potential cost savings and makes the results of the low-cost and no-cost improvement assessment more meaningful and useful.
Question
<p>What’s the difference between demand and consumption, in terms of energy costs and energy cost savings?</p>