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Question 1

Score: 0/0

What is the primary difference between kW and kWh?

kW measures power capacity; kWh measures energy consumption over time

kW is for AC power only; kWh is for DC power only

kW measures voltage; kWh measures current

kW is used for residential; kWh is used for commercial billing

to track

2026 Statistics

Key Facts: CEM Exam

130

Exam Questions

AEE

~70%

Passing Score

AEE

4 hrs

Exam Duration

Open book

$500-625

Exam Fee

AEE (member/non-member)

65-75%

Pass Rate

Industry estimate

3 yrs

Certification Term

Recertification required

The CEM exam has 130 questions in 4 hours (open book) with approximately 70% passing score. Major domains: Energy Accounting & Economics (15%), Electrical Systems (15%), HVAC Systems (15%), Building Envelope (10%), Energy Audits (10%), Lighting (10%), Motors & Drives (10%), Codes & Standards (5%), Renewable/CHP (5%), and Controls (5%). Based on ASHRAE, IEEE, and AEE standards.

Sample CEM Practice Questions

Try these sample questions to test your CEM exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 198+ question experience with AI tutoring.

1What is the primary difference between kW and kWh?

A.kW measures power capacity; kWh measures energy consumption over time

B.kW is for AC power only; kWh is for DC power only

C.kW measures voltage; kWh measures current

D.kW is used for residential; kWh is used for commercial billing

Explanation: kW (kilowatt) is a unit of power representing the rate of energy use at any instant, while kWh (kilowatt-hour) is a unit of energy representing the total amount of electricity consumed over time. A 10 kW load operating for 2 hours consumes 20 kWh of energy.

2A facility has a monthly peak demand of 500 kW and energy consumption of 80,000 kWh. What is the load factor?

A.16%

B.22%

C.34%

D.62%

Explanation: Load factor = (Energy consumption) / (Peak demand × Hours in period). For this case: 80,000 kWh / (500 kW × 730 hours) = 80,000 / 365,000 = 0.219 or approximately 22%. A higher load factor indicates more efficient use of electrical capacity.

3Under a time-of-use (TOU) rate structure, when are electricity rates typically highest?

A.During off-peak nighttime hours

B.During weekday afternoons in summer

C.During all weekend hours

D.During early morning hours on weekdays

Explanation: Time-of-use rates charge the highest prices during peak demand periods, which typically occur on weekday afternoons in summer when air conditioning loads are highest. Off-peak periods like nights and weekends have lower rates to encourage load shifting.

4An energy efficiency project costs $50,000 and saves $12,500 annually in energy costs. What is the simple payback period?

A.2.5 years

B.3 years

C.4 years

D.5 years

Explanation: Simple payback period = Initial investment / Annual savings. In this case: $50,000 / $12,500 = 4 years. Simple payback does not consider the time value of money, so it should be used for quick initial screening rather than final investment decisions.

5Which economic analysis method considers the time value of money and provides the rate of return at which the net present value equals zero?

A.Simple payback

B.Life cycle cost analysis

C.Internal rate of return (IRR)

D.Benefit-cost ratio

Explanation: The Internal Rate of Return (IRR) is the discount rate that makes the net present value of all cash flows equal to zero. Unlike simple payback, IRR accounts for the time value of money and is useful for comparing projects of different sizes and durations.

6A project has the following cash flows: Year 0: -$100,000, Year 1: $40,000, Year 2: $40,000, Year 3: $40,000, Year 4: $40,000. Using a discount rate of 10%, what is the approximate net present value (NPV)?

A.$26,796

B.$60,000

C.$160,000

D.-$10,000

Explanation: NPV = -Initial investment + Sum of discounted cash flows. The present value of $40,000/year for 4 years at 10% is $40,000 × 3.1699 (annuity factor) = $126,796. NPV = -$100,000 + $126,796 = $26,796. A positive NPV indicates a financially viable project.

7In an energy savings performance contract (ESPC), what is the typical relationship between the energy service company (ESCO) and the facility owner?

A.The ESCO guarantees energy savings and is paid from those savings

B.The facility owner pays all costs upfront and receives rebates

C.The utility company pays the ESCO directly

D.The ESCO leases equipment to the owner for a fixed monthly fee

Explanation: In an ESPC, the ESCO designs, installs, and maintains energy efficiency measures and guarantees a certain level of energy savings. The ESCO is typically paid from the actual savings achieved, making it a performance-based arrangement that reduces risk for the facility owner.

8What is the approximate conversion factor between BTU and kWh?

A.1 kWh = 3412 BTU

B.1 kWh = 1000 BTU

C.1 kWh = 10,000 BTU

D.1 kWh = 1 BTU

Explanation: One kilowatt-hour (kWh) is approximately equal to 3,412 BTU (British Thermal Units). This conversion factor is essential when comparing energy consumption across different fuel types such as electricity, natural gas, and heating oil.

9What is power factor in an electrical system?

A.The ratio of real power (kW) to apparent power (kVA)

B.The ratio of voltage to current

C.The efficiency of electrical equipment

D.The maximum load divided by average load

Explanation: Power factor is the ratio of real power (kW) to apparent power (kVA), representing how effectively electrical power is being converted into useful work. A low power factor indicates reactive power consumption, which does no useful work but increases current flow and losses.

10A motor draws 100 kW of real power with a power factor of 0.80. What is the apparent power in kVA?

A.80 kVA

B.100 kVA

C.125 kVA

D.180 kVA

Explanation: Apparent power (kVA) = Real power (kW) / Power factor. For this case: 100 kW / 0.80 = 125 kVA. The facility is charged for 125 kVA of capacity while only using 100 kW of useful power, demonstrating the economic impact of poor power factor.

About the CEM Exam

The Certified Energy Manager (CEM) is the premier certification for energy management professionals. The exam covers energy accounting and economics, electrical systems, HVAC systems, building envelope, lighting, motors and drives, energy audits, codes and standards, renewable energy, and combined heat and power systems.

Questions

130 scored questions

Time Limit

4 hours (open book)

Passing Score

~70%

Exam Fee

$500-625 (AEE (Association of Energy Engineers))

CEM Exam Content Outline

15%

Energy Accounting & Economics

Energy units, utility rate structures, time value of money, NPV, IRR, simple payback, life cycle cost analysis

15%

Electrical Systems

Power factor, demand, three-phase power, transformers, motors, electrical distribution, power quality

15%

HVAC Systems

Heating, cooling, chillers, cooling towers, air distribution, economizers, heat pumps, HVAC controls

10%

Building Envelope

Insulation, windows, air infiltration, thermal bridging, moisture control, daylighting

10%

Energy Audits

ASHRAE audit levels, benchmarking, instrumentation, data collection, energy conservation measures

10%

Lighting Systems

Lamp technologies, ballasts, fixtures, controls, LED retrofits, illuminance, color rendering

10%

Motors & Drives

Motor efficiency, NEMA Premium, VFDs, motor management, load matching, high-efficiency motors

Codes & Standards

ASHRAE 90.1, ASHRAE 62.1, LEED, Energy Star, IECC, local energy codes

Renewable Energy & CHP

Solar PV, wind, cogeneration, thermal storage, fuel cells, renewable energy economics

Controls & Automation

Building automation systems, EMS, DDC, setpoint optimization, scheduling, temperature reset

How to Pass the CEM Exam

What You Need to Know

Passing score: ~70%
Exam length: 130 questions
Time limit: 4 hours (open book)
Exam fee: $500-625

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

CEM Study Tips from Top Performers

1Focus on the three 15% domains: Energy Accounting & Economics, Electrical Systems, and HVAC Systems — together they make up nearly half the exam

2Master economic analysis calculations: simple payback, NPV, IRR, life cycle costing, and utility rate analysis

3Know power factor correction, three-phase power calculations, and motor efficiency principles

4Understand ASHRAE audit levels and when to apply Level I, II, or III audits

5Study HVAC efficiency metrics: SEER, EER, COP, kW/ton, and understand chiller optimization

6Practice with your reference materials during study — the open-book format requires knowing where to find information quickly

Frequently Asked Questions

What is the CEM certification?

The Certified Energy Manager (CEM) is the premier professional certification for energy management professionals, offered by the Association of Energy Engineers (AEE). It demonstrates expertise in energy accounting, building systems, economic analysis, and energy conservation across commercial, industrial, and institutional facilities.

What are the prerequisites for the CEM exam?

Candidates need a 4-year engineering degree plus 3 years of energy management experience, OR a 4-year non-engineering degree plus 4 years of experience, OR a 2-year technical degree plus 5 years of experience, OR 10+ years of verified energy management experience. AEE membership provides exam fee discounts.

How hard is the CEM exam?

The CEM exam is considered moderately difficult with a 65-75% first-time pass rate. It is an open-book exam covering 10 major domains. Most candidates who complete a prep course and study 80-100 hours pass on their first attempt. The open-book format allows reference materials but time management is critical.

What is the format of the CEM exam?

The CEM exam is an open-book, multiple-choice exam with 130 questions administered over 4 hours. The passing score is approximately 70%. Exams are administered via computer-based testing at PSI centers. Candidates can bring reference materials including handbooks, standards, and calculators.

How do I maintain my CEM certification?

CEM certification requires recertification every 3 years. You must earn 30 Professional Development Hours (PDHs) over the 3-year period and submit a recertification application with a $125 fee. PDHs can be earned through continuing education, conference attendance, publishing articles, teaching, or professional activities.