Introduction to Energy
Consumers, including the buyers and sellers of real estate, do not necessarily think in terms of energy units and energy efficiency. Instead, consumers think about comfort and about the dollar amount on their utility bill each month. As a real estate professional, it is important to speak to clients in terms of their values. Real estate professionals have the opportunity to provide added value by understanding basic energy-related terms and units, and being able to communicate the benefits of the energy efficiency features of real estate to buyers and sellers more effectively.
Basic Terms / The Units of the Energy Trade
Kilowatt (kW) - unit of power equal to 1,000 watts.
Kilowatt hour (kWh) - the basic unit of electric energy equal to 1 kilowatt or 1,000 watts of power used for one hour. The amount of power the customer uses is measured in kilowatt hours (kWh). A 100 watt light bulb operated for 10 hours uses 1 kWh. Residential or commercial building customers typically pay between $0.05 and $0.25 per kWh. However, during severe conditions, such as those that occurred in California in recent years, costs soared to $1.00 per kWh and higher.
British thermal unit (Btu) - a standard unit for measuring the quantity of heat energy equal to the quantity of heat required to raise the temperature of 1 pound of water by 1 degree Fahrenheit.
Therm - a common unit of measurement of natural gas is equal to 100,000 Btus of energy. Depending on its quality, natural gas typically contains approximately 1,000 Btu per cubic foot. Therefore, a therm of natural gas is usually equal to about 100 cubic feet. The Energy Information Administration estimated that homeowners would pay an average of approximately $1.02 per therm during the 2004-2005 heating season.
Utilities - services, such as gas, electricity, water, sewers, and telephone, which are required in most dwellings and for which the owner or occupant usually pays separately.
Load duration - the period of continuous application of a specified load, or the aggregate of periods of intermittent applications of the same load; how much service is required to meet consumer demand, and how a utility meets that demand.
