Power vs. Energy: Why kWh and MWh Matter
Understanding the critical difference between power (kW) and energy (kWh)
The kilowatt-hour (kWh) and megawatt-hour (MWh) measure energy — the total amount of work done or electricity consumed over a period of time. This is fundamentally different from kilowatts (kW) and megawatts (MW), which measure power — the instantaneous rate of energy transfer. Your electricity bill charges you in kWh because it reflects the total energy your home consumed, not the peak rate at which it used it. A 2 kW space heater running for 5 hours uses 10 kWh (2 kW × 5 h = 10 kWh) of energy.
Megawatt-hours (MWh) become the preferred unit when dealing with utility-scale energy quantities. Power Purchase Agreements (PPAs) between solar farms and utilities price electricity in dollars per MWh ($/MWh). Battery storage systems like the Tesla Megapack are rated in both MW (power capacity) and MWh (energy capacity) — a Megapack 2 XL is rated at 3.9 MW / 3.9 MWh, meaning it can discharge at 3.9 MW for exactly 1 hour, or at 1.95 MW for 2 hours. Carbon emission reports also use MWh as the basis for calculating greenhouse gas intensity.
kWh: Household Energy
How kilowatt-hours show up in residential energy consumption.
- 🏠 U.S. home annual usage: 10,500 kWh
- 📱 Charging a smartphone (year): ~2 kWh
- 🚗 Tesla Model 3 full charge: ~60 kWh
- 🧊 Refrigerator (annual): ~400 kWh
- 💰 Avg. U.S. cost per kWh: ~$0.16
MWh: Grid & Storage Scale
How megawatt-hours are used in utility-scale energy and storage.
- 📦 Tesla Megapack 2 XL: 3.9 MWh
- ☀️ 1 MW solar farm (annual): ~1,500 MWh
- 💰 Wholesale price (U.S.): $30–60/MWh
- 🌍 CO₂ per MWh (U.S. avg): 0.386 t CO₂
- 🏭 Moss Landing BESS: 3,000 MWh