Short answer: yes — and in most Canadian applications, it’s already required by law. Here’s exactly what the efficiency difference costs vs saves, and when the payback beats a 2-year timeline.
| Attribute | Standard Efficiency | Premium Efficiency (NEMA Premium / IE3) |
|---|---|---|
| Legal status in Canada | Not permitted for most new industrial motors since 2010 (EISA) | Current minimum — every new motor sold ships as NEMA Premium |
| Efficiency (10 HP, 1800 RPM example) | ~86.5% (older EPAct standard) | ~91.7% (NEMA Premium) |
| Efficiency (100 HP, 1800 RPM example) | ~92% (older) | ~95.4% (NEMA Premium) |
| Purchase price premium | Baseline | 15–25% higher than pre-EISA standard motors |
| Annual energy cost (10 HP, 4000 hr/yr, $0.12/kWh) | ~$4,140 | ~$3,905 (saves ~$235/yr) |
| Annual energy cost (100 HP, 6000 hr/yr, $0.12/kWh) | ~$58,600 | ~$56,500 (saves ~$2,100/yr) |
| Typical payback period | — | 1–3 years on high-runtime applications |
| Rebate eligibility | None — not eligible for new installs | Yes — provincial rebates typically $30–$3,000 per motor (see program list) |
| Motor life | Same materials, similar life expectancy | Runs cooler due to lower losses — often longer effective life |
NEMA Premium (IE3) is today’s baseline. Super Premium (IE4) is another 2–3% more efficient — sometimes worth it, sometimes not.
• Motor runs 6,000+ hours/year (continuous or 24/7 process).
• Electricity cost is above $0.10/kWh.
• A provincial rebate program includes IE4 (BC Hydro, Save on Energy, Efficiency Nova Scotia).
• Motor is 20 HP or larger — savings scale with size.
• You’re replacing an old motor anyway (the upgrade cost is marginal).
• Motor runs less than 2,000 hours/year.
• Very low HP (fractional to 3 HP) — savings are small.
• No rebate available in your province for IE4.
• Application is intermittent-duty (grinders, presses).
• Standard replacement where existing infrastructure fits a Premium-efficient (IE3) motor exactly.
Assumes NEMA Premium upgrade vs an older pre-EISA standard motor. Estimates only — use our efficiency calculator for your exact numbers.
| Motor HP | Runtime | Annual Savings ($0.12/kWh) | Payback |
|---|---|---|---|
| 5 HP | 2,000 hr/yr | ~$95 | 3–5 years |
| 5 HP | 6,000 hr/yr | ~$285 | 1–2 years |
| 25 HP | 4,000 hr/yr | ~$720 | 1.5–3 years |
| 50 HP | 4,000 hr/yr | ~$1,350 | 1–2 years |
| 100 HP | 6,000 hr/yr | ~$4,150 | Under 1 year |
| 200 HP | 6,000 hr/yr | ~$8,200 | Under 1 year |
Send us the current motor spec + your annual runtime. We’ll price a premium-efficient replacement AND estimate the payback, rebates included.
Filter by exact spec for replacements.
Guides, charts, spec references.
Technical guides from our experts.