Control Peak Demand Charges Thru Demand Control and Solar Power

Power Planet can reduce your commercial electrical bill by controlling the demand charges by ensuring you are in the correct commercial rate schedule (GS-1, GS-2, or GS-3), programmed load shedding, demand control, and by installing solar photovoltaic electrical systems.

 

 

Electrical Demand Charges and Load Shedding

Commercial electricity customers, in GS-2 or GS-3 rate schedules, in the California market are billed by the utility for the electrical usage (KWh) and an electrical peak demand charge (KW). The electrical demand charge or peak demand charge (KW)is the highest rate of electrical usage during any 15 minute period during the month. Thus, the peak demand charge determines the cost for the entire month and is billed at between $10 and $30 per KW. Commercial electrical customers with un-balanced load profiles can incur electric demand charges of 2 to 3 times the amount for actual energy used. Un-balanced load profiles are caused by multiple large loads being on simultaneously. Large appliances like air conditioners, water heaters, space heating, and refrigeration are the main factors contributing to peaks in electrical demand profiles. The most effective method for controlling demand charges and flattening out demand peaks is by time shifting of loads through an automatic demand controller. The use of a demand control energy management system can reduce summertime electric bills by 10 to 40%.

Solar PV Electrical Generation

A roof or carport mounted solar PV system not only generates electricity (KWh) to offset usage, it also helps to lower peak demand (KW). Solar's peak generation is coincident with most commercial peak loads like air conditioning, so it can reduce demand. A little known benefit of solar is that it qualifies for a renewable energy rate schedule with many utilities, such as, Edison. The renewable energy rate change alone can account for 75% of the benefit from solar.