How Does Battery Storage Reduce Maximum Demand Charges?
Battery storage reduces maximum demand charges through peak shaving — discharging the battery during high-load periods so the site draws less power from the grid at its peak.
What are maximum demand charges?
For many commercial and industrial users, the electricity bill is driven not only by total energy consumed (kWh) but by the highest power drawn from the grid (kW) during the billing period. Even a short spike — several machines starting together — can set a high maximum demand and raise the whole monthly bill.
How does BESS peak shaving work?
The EMS monitors site demand against a target. When demand rises toward the threshold, the battery discharges to supply part of the load, so the grid sees a lower peak. The battery then recharges during off-peak periods or from surplus solar. For example, if a site peaks at 1,800 kW and the BESS supplies 400 kW, the grid only records 1,400 kW.
What do the savings depend on?
Savings depend on the load profile, the tariff structure, the battery size and the operating strategy. A site with sharp, predictable peaks benefits more than one with a flat profile. This is why Solunar models savings from your actual bill and interval data rather than quoting a fixed figure.
Frequently Asked Questions
It depends entirely on load profile, tariff structure, battery size and EMS strategy. Solunar reviews your electricity bill and interval load data to estimate savings, system size and payback per site.
No. The EMS supports the load automatically during peaks and recharges off-peak, so production continues normally while the grid sees a lower demand peak.
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