Table of Contents
Introduction
In the evolving world of cryptocurrency mining, two major pain points often surface: the investment in mining hardware, and the running costs, particularly electricity. In this article, we are going to delve into the often intimidating world of electricity costs for mining activities – cutting through the confusion and providing insightful analysis on reducing such costs. As a reality check, we will also talk about the impact of solar power on mining and how to leverage it.
The Reality of Mining Electricity Costs
It would be wonderful to mine coins without grappling with enormous electricity bills, but the reality is, mining operations are power-hungry. With an increased number of GPUs working round the clock, it’s no surprise that the watts of power required would be significantly high.
At first glance, it might appear counterintuitive that with an increase in the total number of GPUs, and hence an increase in the overall watts consumed, the electricity bill would decrease. So, how does one accomplish this feat of reducing electricity costs while increasing the power consumed by mining operations?
A Closer Look at Electricity Usage
To illustrate, let’s take a real-world example of a mining operation. The servers are hooked up to a Power Distribution Unit (PDU) which feeds into the back of the mining rig with a total power consumption of about 1600 watts.
This rig might consist of a mix of diverse GPU models, all working in sync to mine cryptocurrency. With additional rigs hooked up, such as the ones running 1060s and 1080s or the 1660 ti’s, the overall power consumption could increase substantially – perhaps up to around 1290 watts – give or take, on a 30 amp 240 volt setup.
The Impact of Solar on Mining Operations
For those fortunate enough to have solar panels, there is a glimmer of hope – but how significant is their impact on managing electricity costs? Let’s delve a little deeper.
For example, if you were to have 48 panels installed on your property, depending on their orientation to the sun and other environmental factors, you would have a varying degree of power generation.
Over the course of the year, you might notice that the output changes substantially month to month. Some months you might produce peaks of up to 1750 kWh, while other months might see lows of around 1300 kWh.
Even at our peak of solar power generation, this energy is only enough to offset roughly a quarter of our total power usage based on the scenario outlined above. While solar is definitely helpful, it does not wholly nullify the cost of power in this example.
The Non-Negotiable Electricity Bill: A closer Look
Understanding the billing structure
When it comes to the electricity bill, there are three numbers you need to know: the distribution charge, the transmission charge, and the generation charge. These three numbers combine to make up the total cost per kilowatt/hour.
For example, your distribution charge might be 4.33 cents, your transmission charge at 2.45, and your generation charge summing up to 4.22 cents. When these are combined, you’re looking at an electricity cost of 11 cents/kWh. This is the number to enter when you’re using calculators like “what to mine” to provide an accurate estimate of expenses.
Shopping your Electricity
Interestingly, in certain geographic areas, such as Pennsylvania, some parts of the electricity bill are shoppable, meaning that you can shop around for a cheaper supplier. In this particular area, you can shop the ‘generation’ part of your bill which could ead to substantial savings, often helping to offset the costs associated with mining.
One solution comes in the form of unlimited electricity plans. Offered by certain suppliers, these plans provide a flat monthly rate for electricity supply, irrespective of how much electricity you use. To illustrate the potential savings, let’s consider a bill where the shoppable, or ‘generation’ part, was previously costing $227.60 per month. Under the new ‘unlimited’ plan, this cost could drop substantially to $69.99.
When you compare the total ‘power cost’ before and after the switch to the unlimited plan, the cost per kWh decreases from 11 cents to around 6 cents. This decrease represents a significant consideration when calculating mining costs and potential profits.
Conclusion
The key lesson here is understanding your power use and the intricate details of your power bill can lead to significant savings, reducing the cost overheads associated with mining. While renewable energy sources like solar offer some respite, they alone cannot cover the hefty power use of a mining operation. However, with careful consideration and innovative power solutions like unlimited plans, you can potentially cut your mining electricity costs and increase your overall profitability.
Where are you located? What is your $/kWh? Mine was $0.11 now it is $0.057
im in northeast Pa and i was fine when my cost was .11 kw until it went up few months ago now to .178kw i have some asics running part time cause there not profitable and trying to put out of pocket as much as i can but i was close to 9000kw month. now i had to closed down to 3800kw is this deal available today i would love to get the unlimited at a set monthly rate i can power all my rigs back up. plus some that i have hosted also
What did you pay for your complete solar setup?
This was such a great video. Like all the info. If it was longer I wouldn’t of mind, all great info
I would kill if my $/kwh was $.057. California is insane right now I’m thinking about just getting an office to run all my equipment. What do you think about this?
I pay 26c. Loving CA.
Wow that is so crazy that you cannot do what the hell you want with your own house that you own!!! I’m working to do solar on my house I live in North Carolina they’re not gonna tell me a damn thing I own it at all fight to the bitter end.
Very interesting video. I am adding 17KW solar in FL and expanding more rigs much the same as you have done. I am at .11 electric and it is going up in January. I will like the more stability solar will give me. I is very nice to see real world numbers.
Wish this worked in my area
My electric cost from January 2021 will be 0,33$/kw. Let that sink in.
How much did your solar set up cost?
Also how many panels did they set up
Dude if this unlimited power plan deal works out for me I know you a ton! You sent me here from your discord thanks again! Summited my request to them.
Super underrated video!!!
I can’t believe this was real until I confirmed 15,000$ to my account with the recommendation of his service…
some states have regulated energy markets, the power company owns everything from the power generation, distribution, and the delivery to the customer, so we don't pay delivery charges, my energy is fixed at 8.9 cents up to 600 kWh and 10.036 cents above that and a $6 a month fee for connection to the grid. This company also provides natural gas so I pay a combined utility bill.
The state regulator regulates what my rates are but I don't have a choice of energy provider
Awesome! Thank you!
I need to do a bit of looking around into this. Especially with ETH mining going away within the year, profits going low. I live in Eastern PA, with PPL as well. Going to look into this.
this video deserves a new subscriber. thanks, man!
That unlimited electricity would be nice in California
48 Panels for a 13kw system? Sounds like they cheaped out on your panels. Im doing research into panels for my own rig and a 300w rig requires 7.2KW system which only needs about 7, 250W panels: This would produce enough energy within 5 hours to fully charge the 7.2kw Battery system and output more than what is drained from the mining
So im going to assume that you mean you get 13KW generation per hour? Otherwise they cheaped out 🙁
Also the most expensive part of building a mining solar system is the batteries. Storing all the energy is expensive. DIY solar is the way… I had originally planned on going with an install company but they quoted an extra 30K over the part cost so that was a quick no from me
Can't know how I bumped onto this. All in all Awesome video 🙌🙌. I also have been watching those rather similar from MStarTutorials and kinda wonder how you guys make these clips. MStar Tutorials also had cool info about similiar money making things on his vids.
southern California with 7kw of solar which forces you to TOU billing. Tier1=.30 Tier2=.34 Tier3=.47
hey man, im looking to set up my rig. Do you have a video on how i can learn to set up my rig and which wires i need etc? Or know of someone in the youtube community that has a good step by step educational one? Thanks in advance!
Any advice for miners in the Caribbean, how do I cashout to cover electricity and ROI
Your numbers are wrong. Its not 0.11 but 0.122. You want to take your total billed usage then divide by your total amount paid out of your account which includes taxes. eg, The total cost to you for that power. The amount that left your back account. For most people this is the number you would use. So $368.5 / 3017kWh gives you 0.122cents which is the amount that came out of your account for 3017kWh you used. In whattomine this is important as its looking at the total power cost and the profit you would make. For most people that watch your video this is the right way. Total paid out of your account divide by usage. Now if your running a business and your business pays the power cost then yes it will be without taxes as its a business expense but for most people mining from home which i would guess is most of your viewers this will not be the case. Also nice work on adding solar that will really help and everyone should do it as the solar payoff by mining and using all generated power will make the solar pay itself off really quickly as your saving 0.12c for every kWh the solar is making. btw love the vids.
I dont count delivery charge or the fees, u pay those anyways, I only calculate how much the kilowatts cost
WOW! Sounds like you found a gem of a power plan there! Congrats on saving some money while mining!
Can you show everybody the difference between 4 capacitor risers vs 8 capacitor risers? I had twelve 30 series gpus pulling about 2,000w reported in gminer (two different rigs). They were on 4 capacitor risers and pulling 11amps according to the pdu. Once I switched all of them to 8 capacitor risers, I was only pulling 10 amps on the exact same cards, exact same algorithms, no changes whatsoever.
Nice find. That is a great savings.
Good info ! I wish CA has similar switch like in PA
I have been sitting on the idea of solar for too long! Thanks for the time and effort you’ve put in.