We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is an Energy Budget?

By Kathy Heydasch
Updated: May 17, 2024
Views: 5,720
Share

An electric bill is often one of the highest overhead expenses to consider when drawing up a budget. Many options exist for reducing or eliminating the need for an energy budget in a home, on a farm or in a business. Solar, wind power, and alternative fuels are just a few of the options that can reduce the need for energy.

No business or residence can survive in today’s world without using energy. In a home, an energy budget must be considered when anticipating household expenses. Extreme months of summer and winter are when the cost of using energy becomes so high. Many utility companies offer options which spread the cost of the spikes in energy use over a 12-month average period, making extreme months of energy use more bearable in terms of expense.

One aspect of an energy budget that is vital to households is the cost of the gasoline for everyday commutes and travel. Transportation companies have also felt the heat from rising energy costs and have had to introduce fuel surcharges. Fuel surcharges are a common item on freight invoices these days because the cost of fuel can shift dramatically in such a short period of time.

On a farm or in a business, an energy budget is vital to the proper management of finances. Heating and cooling costs are only part of the picture. In farming and manufacturing, energy is used to run all sorts of equipment, from tractors and machinery to forklifts and automatic doors. With a good energy budget, some costs can be anticipated, preventing detrimental spikes in energy costs.

While the cost of energy keeps rising, the options for alternative sources of energy are increasing as well. An energy budget nowadays can actually produce positive income if the right investment is made in energy-saving equipment. Private individuals can actually produce power and sell it back to the power companies for a positive cash flow.

The drawback to these ideal positive cash flow options for energy is the cost. Very high capital expenditures are required to purchase the equipment or make the conversions necessary to maintain a positive energy budget cash flow. Some models of energy efficiency require an investment that may not be paid back for months or even years.

In the world of anatomy, an energy budget refers to the balance of energy expenditure versus energy income. Energetics studies energy in the physical world, such as the transfer of energy from one form to another. Energy is measured by calories and joules, and the metabolism of food can be written in an equation known as an energy budget.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Editors' Picks

Discussion Comments
Share
https://www.wisegeek.net/what-is-an-energy-budget.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.