Path-Q Solar
How do electricity demand charges change the savings from a commercial solar system?
Answer
Demand charges can make savings depend on the customer's highest or billed peak demand, not just total energy consumption. Solar may reduce demand charges only when production coincides with the measured peak and the tariff calculates demand in a way solar can affect; otherwise, the main savings may come from energy charges.
Key points
- A small high-demand interval can influence a billing period's demand charge.
- Solar output may be low when the facility creates its peak demand.
- Peak reduction requires comparing load and solar production at the tariff's measurement interval.
- Battery storage or controls may reduce peaks more reliably than additional annual solar production.
What it depends on
- Demand-charge tariff and measurement interval
- Facility load profile
- Solar production timing
- Billing-period peak rules
- Ability to control loads or dispatch storage
Risks and trade-offs
- Annual kWh production does not establish demand-charge savings.
- A larger solar array may add energy production without lowering the critical demand peak.
- Battery dispatch can reduce peaks but adds efficiency losses, controls, and operating cost.
Information you may need
- Interval demand and energy data
- Complete tariff details
- Solar production profile
- Operational constraints and storage options
Your next step
What to do next
Analyze historical interval data against the tariff's demand windows and simulate whether solar alone, or solar plus storage, reduces billed peaks.
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Some details may depend on your location, installer, utility, incentives, regulations, or specific property.
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