Reduce Your Utility Costs & Ensure Reliability Using These Two Strategies
What is peak shaving? How does it affect your wallet? How can you use peak shaving energy storage? And how about using solar batteries with peak shaving? You can keep more money in your pocket by utilizing both methods. An added benefit is that these methods can be used for both solar power users and those without.
Let’s Define Peak Shaving
Peak shaving, also called “load shedding” involves quickly reducing one’s energy consumption for a short period of time to avoid spikes in usage and cost. Load shifting is found more in industrial processes than residential usage. In load shifting the overall consumption is the same, instead used at contrasting times. Load shifting in contrast, refers to a reduction in energy consumption for a short period of time. Because utility companies do not charge a flat rate for energy consumption and instead utilize peak times and higher costs, utilizing peak shaving lowers overall cost and peak load times.
How does peak shaving work?
Use this strategy to lower your overall energy costs by reducing either not using or turning off electrical equipment during peak times or by using batteries. The point of peak shaving is to decrease and even eliminate short term spikes in peak demand and reduce overall costs associated with usage of electricity.
Ensure Reliability
If each energy consumer used electricity during high usage times, it could result in power outages and blackouts due to high demand and less supply. The two primary areas where cost is affected. Peak Shaving and demand charges.
What are Demand charges?
Demand charges are usually for commercial and industrial consumers who use more energy than the average homeowner, though with the influx of electric cars, charging stations and electrical charging at home, there is an increase in residential usage. Demand charges vary by location, but usually takes up about 30-70% of an electric bill. By understanding these components, you can balance peak shaving with battery energy usage.
How Utility Companies Charge Electricity Usage
Consumption Charges are put out as Flat, Tiered and Time of Use Structure which are all paid for with kilowatt-hours of electricity. Our utility bill can be divided into two parts: how much energy we use that’s measured in kilowatt hours (kWh) and demand measured in kilowatts (kW).
Flat Rate
With a flat billing rate, the price stays constant regardless of how much energy is used and what time of day it is used.
Tiered Rate
With a tired rate, consumers pay at least 2 different rates for different usage amounts. When the usage surpasses
Time of use
Has at least 2 levels of billing for different times of the day and days of the week where there will be on- and off-peak times.
Save More Money
Peak shaving with solar & energy storage. Peak shaving can be best utilized with solar batteries for maximum efficiency and the most money saved.
Reduce Your Utility Costs
Find out what your utility’s peak hours are. The key is to be flexible with your energy usage. Use energy intensive appliances such as washing machines, dryers and your HVAC system during off peak times and avoid using them at the same time. During peak times, use your solar battery or regular battery as backup. By proactively reducing your energy consumption and guarding against high demand charges, you are on your way to leaving more money in your pocket for you and your family.
