Path-Q Solar
Can solar reduce demand-related charges when a business has short but intense electricity peaks?
Answer
Sometimes, but only if solar output coincides with the intervals used to calculate demand charges and reduces the measured peak. Solar that produces outside those intervals, or after the peak has already occurred, may reduce energy charges without materially reducing demand charges.
Key points
- Demand charges are based on power during defined measurement intervals, not just total monthly energy.
- The timing, duration, and recurrence of production peaks must be compared with solar output.
- A battery or controls may reduce short peaks more reliably than solar alone, depending on power requirements.
- The system must be evaluated against both annual energy and maximum demand.
What it depends on
- Demand-charge calculation method and measurement interval
- Timing and magnitude of business load peaks
- Solar production during those peaks
- Battery power, controls, and operational flexibility
Risks and trade-offs
- A large solar array may provide limited demand-charge savings if peaks occur in low-sun conditions.
- Battery demand management can require substantial power capability and operational controls.
- Tariff definitions and demand rules can materially change the result.
Information you may need
- Detailed tariff and demand-charge rules
- Interval demand data and peak-event dates
- Solar production estimate by time of day and season
- Operational constraints and possible battery or load-control options
Your next step
What to do next
Obtain interval demand data and the applicable tariff, then test whether solar output overlaps the business's actual billing peaks before sizing for demand reduction.
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Some details may depend on your location, installer, utility, incentives, regulations, or specific property.
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