Demand Charges: What Are They?…How can Batteries Help?

AltSys Solar Inc – Blog Post #001
By Daniel Moreno and Eric Sustaita – May 7th, 2019

Your energy bill is not just how much energy you use but the “rate” at which it is used and also “when” you use it: a combination of consumption (energy), demand (power) and Time-of-Use. Demand is defined by Southern California Edison (SCE) as: “The measure of how much electricity is used at a single point in time” and is charged by kW (kilo-watts) vs energy use which is charged by kWh (kilo-watt hours). The utility infrastructure (“the grid”) must be prepared to provide a certain level of power demand, varying on the time of day – PEAK demand occurring around early evening (4pm-9pm). The Utility collects Demand Charges to cover the cost of Grid Upgrades necessary to be capable of providing power up to the level of Peak Demand. Generation and Distribution of Power requires sufficient powerlines, transformers, substation facilities, but most expensive of all Power Plants!

There are two different demand charges billed by the utility: Facilities Demand and Time-Related Demand.  According to SCE website, “Facilities Demand Charges apply at all times throughout the year, calculated per kilowatt (kW) according to your highest recorded demand during each billing cycle—no matter what season, day of week, or time of day, while Time-Related Demand Charges only apply during the summer season (June 1 through September 30), when demand reaches its peak and costs are highest. Time-Related Demand Charges are assessed each month during On-Peak hours & also during Mid-Peak hours. Time-Related charges are in addition to and separate from a Facilities-Related Demand Charge.”

Energy Storage for Lower Grid Demands = Happy Solar Consumers!

Energy bills come with so many charges, so what do we do?  ADD BATTERIES, of course! Solar combined with Storage allows for saving on not just Energy Consumption costs, but also Power Demand charges – this means Overall Bill is able to be reduced to lowest possible result. Solar generation generally happens during hours that fall within what is called “Off-Peak TOU rate schedule” (8am-4pm) times when value of energy is at its lowest. During the evening times, PV systems are not producing energy and ‘coincidently’ lines up with “On-Peak TOU schedule” (4pm-9pm) – when energy and power costs are at their highest.

With Batteries, energy produced during the day that isn’t immediately consumed can get stored for usage later in the evening to avoid (high cost energy) imports from “The Grid” and reduce Peak Power level that “The Grid” must provide (reduce demand charges). Good for everyone!

Value of Solar Energy MAXIMIZED with addition of BATTERIES!

When you ready to take control of your energy needs and protect yourself against rising electric bills give us a call at (559) 688-2544 to start saving now.

Click the link below to get started…
https://www.altsyssolar.com/quote/
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