Glossary
Demand Charge
Quick definition
A utility billing component based on peak power demand over a billing period, common in commercial tariffs.
Technical Explanation
Demand charges are calculated from a customer's highest measured demand interval. They can materially affect total energy cost and influence charging/storage strategy.
Mitigation can involve scheduling, load controls, and storage dispatch aligned with tariff structure.
Practical Implications
Commercial charging and battery projects often evaluate demand management to avoid costly peak intervals.
Examples
- • Limiting simultaneous charger usage during peak site demand windows.
- • Using storage to shave short-duration demand peaks.
Related Terms
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