Path-Q Solar

How should demand charges be included when calculating commercial solar savings?

Answer

Model demand-charge savings separately from energy savings by analyzing whether solar reduces the utility-defined peak during each applicable billing interval. Annual kilowatt-hours alone cannot establish demand savings.

Key points

  • Identify the demand measurement interval, seasonal rules, ratchets, and applicable peak periods.
  • Use interval load and modeled solar data to estimate the post-solar billing peak for each period.
  • Account for clouds, equipment startup, changing business loads, and peaks outside solar-producing hours.
  • Include any export, fixed, minimum, or non-bypassable charges that solar will not reduce.

What it depends on

  • Utility tariff and demand definitions
  • Interval load data
  • Solar output by interval
  • Business operating and expansion schedule
  • Any battery or load-control strategy

Risks and trade-offs

  • A system can generate substantial energy while failing to reduce the monthly demand peak.
  • Oversizing solar may not improve demand savings if the peak occurs at another time.
  • Battery controls may improve demand reduction but add cost, degradation, and operational complexity.

Information you may need

  • Current commercial tariff
  • Interval demand history
  • Solar production model
  • Known operational peaks and future load changes
  • Battery or load-management assumptions, if relevant

Your next step

What to do next

Request a bill model that recalculates each historical billing-period peak with the proposed solar output and clearly separates demand savings from energy savings.

Path-Q

Find the right next step

Answer a few questions and we’ll narrow your options.

Loading…

Some details may depend on your location, installer, utility, incentives, regulations, or specific property.

SQ02460