It is not immediately obvious that commercial properties in Colorado are billed substantially differently than residential customers. This is due to that businesses are charged for how fast they use energy in addition to the consumption. No matter what time of day it is or how much is available, residential customers pay the same rate for kilowatt-hours of electricity, where as the commercial customer have partial-peak hours with middle-rate demand charges for certain times of day. This indicates that your over half of potential power bill consists of demand charges. In regard to your power bill, you are not only paying for the energy consumption, but you are also paying that the maximum power you may never use. With this in mind, we at Advanced Electrical Solutions Corp. would like to further elaborate on these demand charges.

Power Demand Charges

Because one is a response to the other, peak hours and demand charges are two concepts that are permanently linked. A lot of the factors involves the weather and the use of the HVAC system gets relied on to combat outdoor temperatures as well as the varied hours in the time of day. During these times, businesses rely on more power than other times, which results in a temporary shortage on the grid. In order to generate more power because of this, very expensive “peaker plants” use is required in order to generate the extra power needed to keep the lights on.

Peak Load Shaving

In the face of rising demand charges a budget minded business has a few options. Most small businesses take the hit, where other major facilities rely on backup solutions to avoid, the peak hours and save every month.
There are quite a few businesses that rely on backup generators for several reasons. Those that do can utilize their backup generators to offset at least some of the power consumption during peak hours and this is known as peak load shaving. Using these already owned power assets to save money on demand charges, you can reduce their burden on the utility grid.

Reduce Peak Demand Load with Solar

For those that do not have a backup generator, you have the opportunity to take advantage of the peak load shaving trick. This solution is more affordable as it is more popular, tax-deductible, affordable, and completely green. To directly offsetting your building’s electricity consumption, install solar panels.

Intelligently Reducing Load from the Grid

Knowing exactly how and when to use your auxiliary power solution is the vital element to peak load shaving. To offset you will need to have a grid-tied solar and battery solution that discharges during peak usage. The solar panels soak up sunlight and send power down the cables during the day. This energy can be directed directly into your batteries or it can be sent through your building first as active power and then into the battery reserves. The batteries will discharge at a rate proportional to the demand from the utility during the time the facility is using maximum volumes of power. Saving the power and utilize energy with the solar panels can help you save and avoid the peak energy usage among other benefits.

Electrical Power Monitoring, Logging and Chart Recording & More in Arvada, Aurora, Black Hawk, Boulder, Broomfield, Centennial, Cherry Hills, Commerce City, Englewood, Golden, Greenwood Village, Highlands Ranch, Lakewood, Lafayette, Littleton, Parker, Thornton, Westminster, Wheat Ridge & Greater Denver, CO | Jefferson & Gilpin County, Colorado

Advanced Electric Solutions, Corp specializes in assisting businesses in maximizing their energy savings with a number of solutions. Call us today to see how we can help you.