For today's commercial facilities, kW consumption is just as important as kWh. Therefore, reducing kW demand is critical to driving bill savings for commercial facilities. With the cost of advanced energy storage declining significantly, the investment case for addressing demand charges with solar plus storage can be made today.
Unlike residential customers, larger electricity consumers must pay additional demand charges on a kW (power) basis in addition to their kWh (energy) consumption. To calculate the demand charge of a facility, the utility notates the highest average 15 minute period during a billing cycle. This is a surcharge on top of standard kWh rates and often times is a substantial portion of the total bill.
So why is storage needed for demand charge management systems? In short, PV can only go so far. When an energy storage system senses a peak demand event, it discharges the stored energy at a rate capable of curbing the facilities overall demand to reduce peak charges.
When screening potential demand charge management customers, one must have 15-minute interval data from the utility or an energy meter. Here's a list of screening guidelines for potential customers:
Solar + Storage Screeing Guidelines
Facility Peak Demand
> 100 kW
Utility Demand Charge
> $18 / kW
Solar System Size
> 100kW / site
Ideal PV:Storage kW Ratio
Facility Load Factor
< 70% / month
Get a Quote
We know how competitive the solar market is. Let our experts find the right equipment at the best price to give you an advantage. Whether it's a few panels or a full commercial system, we’re here to help. Contact us to get started.
Register now to become a CivicSolar dealer. You'll have access to new project leads, system design advice and, as always, great pricing to generate success for your business. Click below to fill out our application.
With abundant resources including how-to articles, technical help, installation gallery and a rich community forum, CivicSolar is your one-stop shop to learn and interact with other solar professionals. Join us today.