Did you know your industrial air compressor could be one of the biggest energy guzzlers in your facility, costing you over $1,000 a month to run?

The good news is, Singapore’s **Energy Efficiency Grant (EEG)** can slash those costs dramatically. But how much can you actually save? This guide will provide a simple formula to calculate operational costs and the massive savings a new, grant-subsidised compressor can deliver.

The True Cost of Running Your Air Compressor

The energy consumption of your air compressor depends on a few key factors:

• Motor Power (kW): The size of the compressor’s motor.
• Load Factor (%): How hard it’s working on average.
• Operating Hours: Hours per day, days per year.
• Electricity Tariff ($/kWh): Your current electricity rate in Singapore.

Use the following formula to calculate your annual energy cost:

Calculating Your EEG Grant Savings

A new, energy-efficient compressor could be 10-15% more efficient or more. For the same output, a new compressor might use only 65 kW.

The EEG grant covers up to 70% of the cost of new pre-approved equipment, capped at $30,000. With the grant covering a large portion of the capital cost, your payback period could be under 2 years, and you’ll enjoy decades of lower energy bills.