Definition
Electricity is typically 60-80% of total mining operating costs. Rates vary dramatically by location: from under $0.03/kWh (some hydroelectric regions) to over $0.20/kWh (residential rates in expensive markets). Canadian provinces like Quebec offer some of the most competitive rates globally.
Understanding your true electricity cost (including delivery charges, taxes, and demand charges) is essential for accurate profitability calculations. Home miners using miners as space heaters can effectively offset electricity costs against heating bills, potentially making mining profitable even at higher rates.
In Simple Terms
The cost of power for mining, measured in $/kWh. The biggest ongoing expense, varying greatly by location.
The cost of power consumed by mining hardware, measured in dollars per kilowatt-hour ($/kWh). The single largest ongoing expense for miners.