How Much Will Compressed Air Cost You?

Compressed air is used in many different industries. From refrigerator manufacturers to toy makers, companies around the world depend on compressed air to produce products. It's so important that many consider it a utility as significant as electricity, water or natural gas.

Unfortunately, compressed air is also an expensive utility to produce. Many businesses spend tens of thousands of dollars generating compressed air. And lots of this air goes unused. In fact, we found nearly half of all compressed air is wasted.

With decades of experience designing energy-efficient air compressors, we understand the true cost of compressed air. We also know the potential savings are tremendous. In this article, you'll learn how to calculate the costs of compressed air- and how to cut them back.


The Cost of Compressed Air

Many people wrongly assume the majority of the cost of compressed air is in the initial purchase of the machine. In reality, electricity to operate the equipment over time is far more expensive. The equipment itself only accounts for just over 10 percent of the cost of producing compressed air.

Equipment and Installation

Purchasing an air compressor is one of the biggest upfront costs. The price of an air compressor can vary depending on whether you're looking for a rotary screw compressor or a reciprocating/piston compressor. How you dry and purify air can also affect the price of an air compressor.

Along with equipment, consider the cost of installation. If your building needs retrofitting to accommodate the new compressor, factor this in.

If you're purchasing a new air compressor, you should include any rebates into the price. Many Quincy Compressors are eligible for energy efficiency rebates, which can bring down the cost of equipment.

Maintenance

Maintenance and repairs make up about 12 percent of an air compressor's lifetime cost, according to Energy Star data. These expenses include labor and replacement materials. You may also have costs from project delays if repairs are needed at a critical time.

Regular inspections and maintenance can decrease repairs. Set up an inspection schedule, and stick to it. It's much easier to prevent damage than it is to repair it. In addition, you'll be able to find and make repairs when the damage is minor. This can help you avoid more expensive and time-consuming damage down the road.

Some parts of a compressor are more susceptible to damage than others. Common problems include air leaks and damaged cylinders, rings, and bearings.

Components that are likely to develop leaks include:

Open condensate traps and shut-off valves

Fittings, couplings, tubes, and hoses

Pressure regulators

Joints on pipes, thread sealants, and disconnects

You can reduce the likelihood of damaged rings, cylinders, and bearings by regularly lubricating your equipment. Choose a suitable oil to lubricate air lines, bearings, and screws. Keeping lubricant clean, applying the correct amount, and regularly lubricating components can prevent many repairs.

Electricity

Believe it or not, operating a compressor is usually more expensive than purchasing one. Energy Star says on average, 76 percent of the lifetime cost of an air compressor is electricity. In many businesses, compressed air is one of the most expensive utilities. Over 10 years of operating, a typical industrial air compressor can accumulate up to $800,000 in electricity costs.

Many factors impact the cost of compressed air. How long you run your air compressor and the cost of electricity in your area both can drive up cost. Technical specifications can also affect the cost of electricity. Energy-efficient air compressors cost less to operate than conventional compressors.

Because the cost of compressed air can be significant, Quincy Compressors offers a free walkthrough to establish a baseline of efficiency, otherwise known as EQ. The EQ rating can help you determine what the cost of operating a compressor will be.

How to Calculate Your Compressed Air Costs

Although our EQ rating can help you understand the efficiency of your system, the true cost depends on your use. Determining this cost can help you to reduce expenses. You can calculate the cost of operating an air compressor yourself in just four short steps. This example uses a small home air compressor, running for just a few hours a day. Plants with industrial air compressors will have significantly higher costs. However, large plants can still use this method to calculate their electricity costs.

1. Determine How Long the Compressor Is On

Most air compressors cycle on and off throughout the day. While the compressor is cycling on, it draws power. Use a clock or a stopwatch to figure out how long the compressor runs each day. For many businesses, an air compressor's use differs by day. You can get a more accurate estimate by averaging the compressor's use over a week. To do this, track your usage for seven days and divide the sum by seven.

2. Calculate How Much Power the Compressor Consumes

Your air compressor should have a wattage rating stamped on its nameplate. Multiply this wattage by the type of current needed to operate it. Many smaller compressors operate on a standard household current, which is llO volts. Larger air compressors may need 220- volt current.

Example: 15 amp air compressor X llO volts= 1,650 watts per hour

3. Find the Total Kilowatt Hours Used

You will need to know how many kilowatt-hours the compressor uses to determine the energy cost. To find kilowatt-hours, multiply the watts per hour by the total amount of time the compressor runs for. Then divide this number by 1,000.

Example: 1,650 watts per hour X 3 hours= 4,950 watt hours

4,950 / 1000 = 4.95 kilowatt hours

So a 15-amp air compressor that runs for three hours will use 4.95 kilowatt-hours of electricity.

4. Multiply the Kilowatt Hours Used by Cost of Electricity

Most utilities charge by the kilowatt-hour. This means that you will need to multiply the total kilowatt-hours used by the electricity rate per kilowatt-hours. If your utility company uses tiered rates, you may want to use the average rate. This will give you a more accurate estimate than selecting the lowest rate.

Example: 4.95 kilowatt-hours X 15 cents per kilowatt hour= 74 cents for 3 hours of use

Energy Saving Opportunities for Air Compressors

Luckily, there are many ways to reduce the costs of compressed air. Choosing the right air compressor can reduce your costs by approximately 45 percent. Today there are many energy-efficient compressors on the market.

Here are specific techniques you can use to save energy on compressed air.

1. Purchase an Energy-Efficient Air Compressor

Many modern air compressors offer better controls and storage than previous generations. If you're in the market for a new compressor, look for energy-efficient flow control and storage systems.

Flow Control: Nearly half of compressed air is wasted. Flow control tools that can sense downstream pressure and react to small changes can reduce compressed air waste.

Storage: Higher storage capacity means a compressor will need to run less often. If you use a lot of compressed air, you may want to consider increasing the storage capacity. In an efficiency study of Mega Brand, we recommended they increase their storage from 400 gallons to 1,560 gallons. That saved them $22,015 a year in compressed air costs.

2. Turn Off Your Air Compressor

Air compressors regularly cycle on and off to maintain the chosen pressure. Even minimal air leaks can cause your compressor to cycle on regularly. Compressors that are on constantly can use a significant amount of electricity. Many businesses leave compressors on during weekends and after hours. If you don't use your compressor during these times, turn it off. By turning it off when it's not in use, you can reduce your electric bills by up to 20 percent.

3. Use Only the Required Air Pressure

Although it's tempting to raise the pressure to compensate for air leaks or clogged filters, you will spend more on electricity if you do so. Each additional 10 sig requires approximately 5% more energy to produce. If you don't need the additional pressure, don't use it.

4. Change Filters Regularly

Changing your filter regularly can help reduce the electricity your air compressor uses. Clogged or dirty filters cause an air compressor's motor to work harder to provide the appropriate psi, which results in a higher electric bill.

Regular filter cleaning can also reduce the cost of maintenance and the likelihood of air leaks. Filters are responsible for removing dust and particles from the air. If these particles get into the compressor pipes, they can quickly corrode the pipes and cause air leaks.

Check compressor pipes regularly for any debris to make sure your filters are performing. If there is dust, dirt or sludge inside of the compressed air pipes, your filters are not doing their job. Replacing these filters immediately will reduce the likelihood of expensive repairs.

5. Regularly Survey for Air Leaks

Regularly surveying for leaks can reduce energy use This can equate to five to ten thousand dollars a day in big companies. A successful leak audit requires three elements:

Knowledge: Ensure technicians understand the compressor's technical specifications and how to inspect the equipment.

Planning: Plan a regular time to inspect air compressors for leaks. If necessary, break up the inspection so it doesn't interfere with regular work. Tag and take pictures of any leaks for repair.

Follow through: Survey equipment again to make sure all tagged leaks have been repaired.

6. Prioritize the Largest Air Leaks

If this is the first time you've conducted a leak audit, you may have found many air leaks. This can easily overburden an already over-worked maintenance staff. Prioritize any air leaks you find by size. Larger holes mean your equipment will need more power to maintain air pressure. These should be repaired first. Add a note that includes the priority level of any repairs to be made when you find new leaks.

7. Prevent Large Repairs

Regular maintenance reduces the likelihood of large, time-consuming repairs. It can also prevent smaller air leaks from forming. Check pipes, seals, and bearings regularly for corrosion and particulates.

Make sure compressor components are operating within their optimum range. Periodically clean the water jackets and pipes that help to maintain the temperature of the air compressor. If a compressor gets too hot, costly repairs and breakdowns are more likely. If the compressor is air-cooled, check to make sure fins are not clogged with dirt.

8. Review Piping Infrastructure

You can reduce the amount of energy your compressor needs by optimizing the pipes that deliver air. For instance, you can increase air pressure by reducing the pipe size. This often means you can operate your compressor at a lower psi.

Choosing smaller pipes is one of the most effective ways to increase air pressure. Replacing a 3-inch diameter pipe with a 2-inch diameter pipe will increase air pressure by approximately 50 percent. You may also want to consider whether you can shorten the distance between the compressor and the air end.

9. Reclaim Compressed Air for Heating

Some businesses choose to use the heat from air compressors for heating their building. By recirculating this air, you'll reduce the need for additional heating.

To make this effective, you'll need to have ducting installed connecting the compressor to the area you will heat. Reclaiming compressor air for heating is most effective if your compressor is air-cooled. Some businesses do reclaim water from water-cooled compressors for other uses as well.

Who we are and how Ash Air can help your business!

Ash Air has been around in New Zealand since 1979, and we’ve grown into a nationwide company with international support and a reputation for quality and reliability.We look after all things compressed air for your business!

Ash Air's range of Chicago Pneumatic, Alup, Pneumatech, and Quincy compressors are used extensively around the world in industries ranging from oil and gas to food, automotive and farming, and we bring you these world class compressors here in the land of the long white cloud.Our technicians are compressed air equipment experts and are dedicated to addressing customer needs. Supported by a 13 locations nationwide, Ash Air offers one of the widest selections of compressed air equipment and parts available today in New Zealand.

Reliability and Efficiency

With Ash Air compressors, you can count on reliability and high performance for even the most demanding applications. We focus our efforts on the following:


Talk to the team today:  CONTACT US CONTACT US


Other Blogs


The air surrounding us is a mixture of fry air and water vapor. The amount of water in the air depends on the temperature and volume of the gas. The higher the air temperature, the higher the air's ability to absorb more moisture. Find out about compressed air humidity here.


Investing in an on-site industrial gas generator is a great way to reduce your environmental footprint and your operating costs. Once you have taken this important step, there are some other things you can do to maximize your gas generation energy savings. Here are seven of them.


For many businesses, preserving energy and becoming more sustainable have become top priorities. That not only saves them money but also makes them more competitive in the future, when demand for “green” products and services will only increase. Not just because governments mandate greater sustainability but also because customers expect it.


While you relax and read this, do you see an electronic appliance around you? Wondering how could you relate to the current read? We got you! Compressed air is all around, in the electronic appliances you use right now.


There are many contaminants that can threaten your compressed air system, but moisture is among the most prevalent. You may be thinking, but it’s just water, but water can have a devastating impact on your compressed air system, your production equipment, and your end product. The best way to prevent moisture from contaminating your compressed air is with a dryer.


Compressed air can be one of the most expensive forms of energy for manufacturing plants, often using more energy than other equipment. One horsepower of compressed air requires eight horsepower of electricity. With many air compressors running at efficiencies as low as 10%, there’s often plenty of room for improvement. Fortunately, 50% of compressed air systems at small- to medium-sized industrial facilities have opportunities for low-cost energy conservation.


As easy as it would make all of our lives, vacuum pumps are far from being “one size fits all”. Not only do you have the size to consider when choosing a vacuum pump, but more importantly type. I will briefly touch on some of the advantages and disadvantages associated with each vacuum technology we deal with. This should give you a better understanding of where to begin your search...


AIRnet offers moisture-eliminating drop fittings called Quick Drops! Quick Drops make “drop-tees” obsolete, removing the need for extra parts and pipe, while saving time and money.


Proper compressor installation and commissioning helps ensure trouble-free startup and long-term reliability. Thorough inspection and critical review during each phase of the installation process eliminates “built-in” deficiencies or problems which c...


Price is an important consideration when choosing a tool for metalworking applications, but it alone should not be the deciding factor. Other things also contribute to the total cost of ownership, performance, and, ultimately, the overall productivit...


Are you faced with the decision of whether to switch from purchasing bottled nitrogen or oxygen to on site gas generation? In that case, the decision is easy. You should! Lower costs, the right purity, less transportation emissions, improved safety, no logistics headaches. In all of these areas, on site gas generation is the superior solution. And making the switch is easy. All you need is a gas generator and a supply of compressed air.


Did you know that one of the largest costs for industrial manufacturers is compressed air? That’s right – anywhere from 12% to 40% of a facility’s total energy costs come from its compressed air installation. This means that finding innovative ways (no matter how small) to increase compressed air efficiency can amount to big savings over the long run! Items like leak eliminationair audits, reduced pressure bands, and reducing unloaded running hours are some of the most popular ways to decrease energy usage – but there are many other actions that you can take. Read on to discover additional ways to reduce your costs and make sure your compressor system is running as efficiently as possible!


A properly sized and designed piping system is a necessary component of any distribution compressed air system. Without this key component in place, the delivery of air from the compressor to the specific points of use will be inefficient and costly, both in the short term as well as in the long term. Let’s look more closely at how to size your compressed air piping system to ensure minimal pressure loss while maintaining maximum efficiency.


Potential for growth of micro-organisms in a compressed air system is tied to the moisture level (dew point) of the compressed air. In simple terms, if there is moisture in your compressed air, microorganisms such as mold and bacteria have the environment they need to grow and thrive. While it’s true that as air is compressed, much of the moisture present in the intake air will condense, enough moisture remains to allow micro-organisms to proliferate.


Your compressor installation is a workhorse that requires regular service and maintenance to help it achieve maximum efficiency and longevity. This is where compressor monitoring and data gathering technologies come in, as these provide meaningful information on your system that can be visualized, tracked over extended time periods, and used to make insightful decisions regarding compressor performance. 


A variable speed compressor is not for every application. VSD rotary screw compressors need to be ran in a location that is in need of 24/7 compressed air and has a changing demand on the amount of air needed. If your compressed air needs are constan...


Compressed air purification equipment must have a very low pressure drop, long service life and be strong enough to withstand the most strenuous operating conditions. Protection from oil slugs or compressor air/oil separator failure is essential.


Intelligent Connectivity System (ICONS) is the eyes into your compressed air system. Ditch the logbooks, the regular visits to the compressor room and dealing with surprises with your compressor. • Most maintenance organizations operate between 10% to 40% efficiency • Most spend more than 50% of time on emergency work • Reactive maintenance costs 3-5 times more than preventive maintenance.


Compressed air is used in many different industries. From refrigerator manufacturers to toy makers, companies around the world depend on compressed air to produce products. It's so important that many consider it a utility as significant as electricity, water or natural gas.


Compressed air is always contaminated. Contaminants include, • Liquid oil - oil aerosols - oil vapor, Dirt - microorganisms - pipescale, Trace gases: carbon monoxide, sulfur dioxide, nitrous oxide. Learn more about why you need to filter compressed air... 


As part of a concerted effort worldwide to reduce energy consumption, CO2 emissions and the impact of industrial operations on the environment, regulatory authorities in many countries have introduced legislation to encourage the manufacture and use ...


Air is always contaminated with solid particles such as dust, sand, soot, salt crystals and water as it leaves the compressor. An effective compressed air treatment system lowers the dew point of the air and takes out the elements that may harm equipment downstream of the compressor and dryer


Dewpoint spikes immediately after desiccant switchover (line C) indicate that the desiccant was not sufficiently cooled before being brought on-line. Hot desiccant will not adsorb moisture well until it cools down, after which the dewpoint should dro...


Don’t be alarmed if you find oil in your air compressor tank. Actually, all rotary screw compressors pass trace amounts of oil in the compressed air. The question is how much is the normal amount of oil in my compressor tank?


As you know, compressed air filters protect your machine from dirt, dust, oil and water. These contaminants are extremely common in the areas you would find a compressed air system and will wear down your machine if not properly filtered out.


Air compressor leaks can be a substantial source of wasted energy in any system, sometimes wasting 20-30% of a compressor's production. Worst of all, a poorly maintained compressor can have a leak rate expected to equal 20% of total compressed air...


Choosing the right compressor is essential to your long-term satisfaction and maybe, to the profitability of your business. Many times compressors are based on a single factor alone, such as horsepower or tank size, which is only part of the story.


In oil injected screw compressors, there is a thin layer of oil found between the rotors to create a seal and maintain proper efficiency as the compression occurs. The unfortunate side effect of this solution is that oil may carry over to the point of use in your air system. This can be mitigated by having correct filtration in place to remove the oil contaminants in your air. Additionally, many individuals may decide to opt for a completely oil-free solution, with the use of a scroll compressor or water injected screw compressor.


Most businesses concentrate on the air compressor and consider the piping as a secondary concern. The piping system can make or break your business. Faulty, inefficient piping can cause pressure loss and lost power. Keeping a close eye on the overall layout, installations and maintenance of your air piping system will help keep your business running at its’ optimal efficiency.


Our #1 Focus is Customer Service! Whether you have questions about which compressor is right for you, or if you’re ready to improve your operations and start saving on expenses. Ash Air has been around for over 40 years because we offer reliable and hardworking air compressors, vacuum pumps, and services as well as expert advice and support.


An oil analysis can prevent problems later down the road. It's often been referred to as the blood test for your compressor. Just like a blood test can tell you about your health and early alerts to impending problems, an analysis can do the same for your compressor.




Did you know that pressure drops and leaks are the two largest areas of energy loss on your air compressors? It’s easy to understand why a leaking pipe or fitting creates energy loss. Pressure drops are not quite as noticeable, since you cannot hear ...


Whenever anything doesn't work properly, it's frustrating and we get it. If this is your first time experiencing troubles with your dryer, you're probably unsure where to even start. Getting your dryer repaired and back up and working is critical to ...


Screw compressors are helpful for an enormous range of applications such as air filling, packaging, tools, HVAC control, and more! One possible drawback is the amount of electricity they use; air compressors can be a huge drain on energy if used ​ine...



Most air compressors require constant oil lubrication to prevent friction on the pistons or screws and other moving parts. To make sure your air compressor is running efficiently, it is important to check your oil level regularly and to know how much...


Have you heard of the term "Total Air Solutions"? A total air solution means everything that goes with the compressor for your business’s air system. 90% of companies require more than just an air compressor. 


When speaking of air compressors, compressed air treatment is a process that dehumidifies and cleans air before entering the compressor. Most commonly, this process involves air filters and an air dryer.