Energy Efficiency Glossary
kWh, kW demand, SEER, EER, NLC, EMS, BMS, IPMVP, SIR, IRR, EFLH and more.
What do these energy terms mean?
This glossary defines the energy and financial terms used in commercial efficiency projects, including kWh, kW demand, SEER, EER, networked lighting controls, EMS, BMS, IPMVP, SIR, IRR and EFLH. Each definition is written in plain language for owners, facility managers and finance teams.
- kWh (kilowatt-hour)
- A unit of energy. One kilowatt of power used for one hour. Utilities bill consumption in kWh, so kWh savings × your rate = energy dollars saved.
- kW demand
- The rate of power use at a moment in time. Commercial bills often include a demand charge based on the highest kW in the billing period, so reducing peak kW lowers that charge.
- SEER (Seasonal Energy Efficiency Ratio)
- Cooling output over a typical season divided by electricity used (Btu per watt-hour). Higher SEER means lower seasonal cooling kWh.
- EER (Energy Efficiency Ratio)
- Cooling efficiency at a single hot test condition (Btu per watt-hour). Higher EER means lower kW at peak.
- NLC (Networked Lighting Controls)
- A lighting control system in which fixtures or zones have sensors and communicate on a network, enabling occupancy sensing, daylight harvesting, high-end trim and scheduling.
- EMS (Energy Management System)
- Metering and software that measure, display and analyze energy use, often at circuit level, to find waste and verify savings.
- BMS (Building Management System)
- A control system that coordinates HVAC, lighting and other building equipment through schedules, sequences and alarms.
- IPMVP
- The International Performance Measurement and Verification Protocol, an industry framework for measuring energy savings by comparing metered use before and after a project, adjusted for conditions such as weather and occupancy.
- SIR (Savings-to-Investment Ratio)
- The present value of a project's lifetime savings divided by its net investment. An SIR above 1.0 means the project returns more than it costs.
- IRR (Internal Rate of Return)
- The discount rate at which a project's net present value equals zero. Compare IRR with your cost of capital or hurdle rate.
- NPV (Net Present Value)
- The value today of all future savings minus the net investment, using a chosen discount rate.
- EFLH (Equivalent Full-Load Hours)
- The number of hours a cooling system would need to run at full capacity to deliver its annual cooling output. Used to estimate annual HVAC kWh.
- EBITDA
- Earnings before interest, taxes, depreciation and amortization. Lower operating expenses from energy savings increase EBITDA directly.
- VFD (Variable Frequency Drive)
- An electronic drive that varies motor speed. On fans and pumps, power falls roughly with the cube of speed.
- DCV (Demand-Controlled Ventilation)
- Ventilation control that uses CO2 or occupancy data to supply outside air in proportion to the number of people present.
- M&V (Measurement and Verification)
- The process of quantifying actual savings from a project using metered data and an agreed method such as IPMVP.
Why a shared vocabulary helps
Plain language
Definitions for non-engineers.
Finance terms
SIR, IRR, NPV, EBITDA.
Engineering terms
kWh, kW, SEER, EER, EFLH.
Utility capital pays for part of the upgrade
Incentives are calculated on kWh and kW savings. Understanding these units helps you read your incentive estimate.
- We identify every eligible NV Energy prescriptive and custom incentive.
- We stack lighting with controls to raise the incentive 20–50%.
- We prepare and submit the application, then verify savings under IPMVP.
Quick savings estimate
Adjust the inputs for a planning estimate. The full calculator adds incentives, payback, CO2 and a 10-year view.
Assumes $0.10/kWh and $12/kW-month. Change rates in the full calculator.
Planning estimate only. Actual savings and incentives are confirmed through an on-site audit and utility program approval.
Related solutions
Frequently asked questions
Why does kW demand matter?
Commercial bills often charge for peak kW. Reducing peak demand lowers that charge every month.
What is a good SIR?
Any SIR above 1.0 creates value; higher is better.
What is the difference between SEER and EER?
SEER is seasonal efficiency; EER is efficiency at a hot peak condition.
What does IPMVP require?
A defined baseline, metered post-installation data and adjustments for conditions.
Turn Your Overhead Into Net Profit.
Book a no-pressure consultation with a veteran energy consultant. We will show you the savings, the incentive and the payback before you commit.
Every month you wait is money lost to inefficiency. Incentive funding is limited per program year.