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


Just like any other equipment, a compressed air installation also requires the necessary maintenance work during its entire lifespan. Even though maintenance costs are only about 5 to 10% of a machine's annual operating costs, failure to budget for maintenance can have potentially disastrous consequences.


The air dyer is one of the most ignored cooler in the system. A dirty condenser will cause water in the lines, or worse it will cause complete dryer failure.


Using nitrogen is not about fully replacing CO2, but it can reduce their consumption of CO2 by close to 70%. Using nitrogen is about sustainability. Creating your own nitrogen is easy and will reduce the use of a greenhouse gas, which is better for the environment. It will also save you money as early as month one adding that savings to your bottom line.


A question that is occasionally asked by our customers to Ash Air is 'what is the cost of compressed air?'  This article looks at the product costs involved with compressed air, as well as minimising the energy cost of compressors and cost allocation. When looking at these factors, we need to realise what causes dropped efficiency of your compressor, leading to increased costs of compressed air.


You may have great fall protection measures in place to keep employees safe when working at height, but what about their co-workers below? Dropped tools and other falling objects are a major hazard – and one that isn’t always fully addressed. 


Providing a safe working environment for operators is essential, especially when using pneumatic tools and compressed air. If there is a failure in the air network and the hose is not adequately clamped, the resulting whiplash could be devastating. Failure to follow best practice can result in injuries, associated production downtime and decreased productivity.


A common questions asked is why do I need an air dryer for my compressor? Typically, air compressors produce water, and although the water can be drained, there can still be aerosol and vapour droplets that are present. This is because water cannoet be compressed. Water can damage your compressor by corroding the valves, pipes and machinery controls, which will cost you time and money to resolve. In the long run, the cost of a new compressor is a small price to pay compared to the loss of production that could potentially arise due to water damage in your compressor.






Air compressors can fail for an assortment of different reasons: Normal wear and tear, lifespan and age of the unit, poor maintenance, power surge, install issues are just a few the come to mind. Check out this blog to find out our top 7 tips to ensure your compressor is looked after! 


That cold, rainy, and in some places icey New Zealand winter is upon us, and with the following air compressor tips, your air system will be prepared with the preferred temperatures, despite the weather outside. Regardless of whether or not it actually snows or freezes up where you live, most winterisation service recommendations are also basic, solid maintenance procedures that will help extend the life and operational efficiencies of air compressors regardless of whether you live in Queenstown or Northland.


If you're wondering what an air compressor actually is, you've come to the right place. Simply, air compressors convert power in to air that is pressurised which is then used to power air tools such as spray guns. Air compressors are used in a wide range of applications, so naturally if you want one that will be designed for spray painting your vehicle, you want a compressor specifically made for spray guns! This way your compressor will be able to provide the right amount of power to perform the job.


Compressed air plays a fundamental role in industrial activities. Depending on the type of application, the energy cost of producing compressed air can be very high. Below are some tips to save on you compressor bill.


Air Compressors are essential tools in a variety of industrial settings. No matter what industry you are in having a reliable air compressor can be a crucial part of getting the job done efficiently. However, like an investment, air compressors require upkeep and maintenance, and eventually will need to be upgraded. But how do you know when it’s time to upgrade your air compressor? Here are some things you need to consider.


When it comes to laser cutting and other industrial processes, the choice of assist gas is crucial in achieving optimal results. Nitrogen and oxygen are commonly utilized as assist gases, each with its own unique properties and applications. Understanding the characteristics of both gases, will help you to make an informed decision to ensure precision, efficiency, and cost-effectiveness in your operations.


Mobile air compressors are portable, towable compressors particularly useful for applications that suit the construction and roading industry! You'll often see a mobile compressor being used for sandblasting, irrigation blow-outs, and for quarrying tools such as pneumatic block cutters and rock drills.  


Did you know that Chicago Pneumatic helped man land on the moon? Notice in this photo of the Apollo 11 landing what appear to be "soccer balls" on top of the capsule. They were inflated through a compressor specially developed by Chicago Pneumatic for NASA.


Your company purchased an air dryer for your compressor, now where should you install it? One of the most common things we see in the industry are air dryers being stored on top of the compressors. Seems like a wasted space not being used on top of the compressor, right? Wrong.


When using air compressors, there are many variables that are integral to the quality and effectiveness of your compressed air. When dryer air is necessary, being able to constantly and accurately monitor dew points can be a critical factor to your operation.


Compressed air plays an integral role in breweries both large and small around the world. From start to finish, all details in the brewing process are managed in fine detail and having the right air compressor is no exception.


We Kiwi's love our Coffee! Coffee, like all other food & beverage products, must go through a preservation process to keep the beans fresh during storage and packaging before they reach the consumer. Coffee that is not properly stored after it is roasted will lose a large amount of carbon dioxide, which lessens its' flavor and speeds up the staling process. One of the most common ways to preserve the freshness of coffee is the use of nitrogen gas. Learn more here:


Air 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 ​inefficiency... 


We get it, buying an air compressor is a big financial decision. And now we are suggesting that you need two air compressors, not just one. Ask yourself one question- Can your business still run if your air compressor goes down?


It’s no secret – air compressors are excellent sources of energy. Not only do they power essential manufacturing elements and applications, but the heat generated as a result of the compressed air processes can be used as a byproduct that offsets other energy costs. However, there’s another form of energy that is also a consequence of the air compression process – sound.


The emergency stop, "e-stop", is for true emergency situations only. When hitting the e-stop, all power is halted from the machine and the unload process isn't achieved. The emergency stop button is intended to help with possibly hazardous situations that are developing. Common conditions of having to use the e-stop is the misuse of the equipment in ways that weren’t intended, predictable failures not addressed or failing to consider all the foreseeable uses of the compressor.


We've put together a list of tips for working safely with air compressors in your environment! We recommend that you always read owners manual before running your compressor. The number one cause for repairs and personal injury is improper use. You've got to remember to use eye protection and hearing protection when operating your air compressor and try to avoid using air compressors in a wet area. 


Air Compressor Installation Tips Installing Your Reliable Air Compressor

So, you've just bought an efficient and reliable ALUP air compressor? Welcome to the world of compressed air. As your partners in compressed air, we will continue to assist you along your journey. We have provided air compressor installation tips to ensure you get the most out of your air compressor. 


Air dryers remove any condensation from the air compressed by your air compressor. Questions about them? Find answers to the most frequently asked questions here.


Power tools are a key to productivity in the oil & gas or the metal working industry. Maintenance and production tasks must be carried out efficiently, however intensive use of vibrating power tools, such as grinders, can expose operators...


Selective soldering with nitrogen is an essential process in the production of printed circuit boards (PCBs). It is used for bonding components to PCBs that could otherwise be damaged if exposed to a lot of heat. Another area of application are mixed-technology circuit boards with layout constraints. 


Hydrogen is becoming increasingly important as a promising clean energy carrier – especially with a view to a more climate-friendly future. But have you ever wondered what hydrogen actually is and how it is produced? In this article, we look at the basics and technologies used to produce hydrogen and what makes hydrogen a special element.


Your passion is vinification, ours is air compressors. 

Compressed air accounts for a large amount of energy consumption in the wine production process, especially in the production of grapes. A big part of wine-making is a result of the work of equipment and is dependent on its efficiency. An air compressor should be located in well ventilated, shaded areas, out of direct sunlight. This includes the inlet for the compressed air system which should be located away from heat sources such as the compressed air outlet, refrigeration or air conditioning plant and equipment.


Cutting, shaping, drilling, and finishing, compressed air is critical for any machine shop. Shops rely heavily on the compressed air system to assist in a variety of operation processes. Commonly the parts produced are used in the machine industry, car industry or even the aircraft industry. A traditional workday in a machine shop requires the use of air compressors to generate an intermittent or continuous source of pressurized air. What machines commonly require compressed air in the shop?


Variable Speed Drive compressors  are a game-changer in the world of compressed air. These compressors automatically adjust their operating speeds to match the real-time demand for compressed air. It's an important feature, especially when it comes to energy savings. Surprisingly, the electricity consumed by a compressor can account for the largest portion of its total cost of ownership, not the initial purchase price. On average, VSD technology can reduce energy costs by 35% to 50%, which translates into significant saving


When an industrial application calls for a steady supply of quality air, more and more users are turning to rotary screw compressors. Their efficiency, reliability and versatility make them a great choice in these cases. But there are countless applications and many different types of rotary screw air compressors. So which one is the right one for you?


Your tool is stalling, or is not working to its expected performance, and you find yourself asking ‘why is my angle grinder spinning too slowly?’, or ‘why has my pneumatic grinder stopped working?’, read on.


Lighting tower reminds night, but also refers to diesel engine. In turn, night reminds us of silence, which is not exactly what we associate with an engine... With urban centers becoming increasingly dense and legislation increasingly strict about noise pollution in construction sites, keeping decibels to acceptable levels has been the great challenge of the main construction equipment manufacturers.


In today’s world of increasing environmental awareness and the drive for sustainable practices, industries are actively seeking innovative solutions to reduce energy consumption and minimize their carbon footprint. If your business uses air compressors, focusing on energy recovery in air compressors is one area to pay attention too. 


Did you know that 70% of the total cost of compressor installation consists of energy costs?

There are many reasons why saving energy is important for your business as it helps you in many ways to make your business more efficient as well as providing you with many different forms of value. Ash Air's range of Alup products can help you become more energy efficient to help reduce energy bills, reduce your costs and comply with all environmental legislation.


Exactly what is compressed air? Where does it come from? What is it for? When we compress—or squeeze—air into a small space, we call it compressed air. When humans discovered the ability to compress air, civilisation made a huge leap forward. The reason? Compressed air opened the door to all kinds of new production methods. 


Compressed air system leaks are indeed a big source of energy waste. Leakage in piping systems have been shown to exhibit leaks of up to 25 percent of the total energy costs. Addressing leaks is one of the first maintenance steps a facility can take to reduce energy costs.


Think about efficiency for a minute. Every year with constant innovation, things are becoming even more efficient. Everything from electronics to industrial machinery are being developed to get more done faster while using less power.


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.