
When to Buy Premium Efficiency Motors? (photo credit: traveridc.com)
Reducing Operating Costs
Using premium efficiency motors can reduce your operating costs in several ways. Not only does saving energy reduce your monthly electrical bill, it can postpone or eliminate the need to expand the electrical supply system capacity within your facility.
On a larger scale, installing efficiency measures allows electrical utilities to defer building expensive new generating plants, resulting in lower costs for all consumers.
After obtaining readily available information such as motor nameplate data, annual operating hours, and electrical rates, you can quickly determine the simple payback that would result from investing in and operating a premium efficiency motor.

An example of premium efficiency motor (on photo: X$D Ultra – a complete cast iron NEMA Premium Efficient motor; via GE)
Oportunities
The following circumstances are opportunities for choosing premium efficiency motors:
- When purchasing a new motor in horsepower and speed ratings where energy efficient units can still be sold
- Instead of rewinding failed standard efficiency or energy efficient motors
- To replace an operable but inefficient motor for greater energy savings and reliability.
Instances
Premium efficiency motors should be specified in the following instances:
- For all new installations
- When major modifications are made to existing facilities or processes
- For all new purchases of original equipment manufacturer (OEM) products that contain electric motors
- When purchasing spares
- As economically justified replacements for failed standard efficiency or energy efficient general purpose motors that would otherwise be rewound
- To replace oversized and underloaded motors (consider downsizing when a motor is operating at less than 40% of its rated output)
- When accelerated standard efficiency motor replacement is part of an energy management plan or preventive maintenance program
- When utility conservation programs, rebates, or incentives are offered that make premium efficiency motor retrofits immediately cost-effective.
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Reference: Premium efficiency motor selection and application guide - U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy.