Demand charges are here to stay

The world of electric rates, schedules, and bills is a complicated one, and figuring out where your money is going is not always easy. It is a common misconception that electric utilities determine the bill only on overall energy consumption, when in fact most utilities charge not only for how much electricity used (energy or kWh) but also for how fast it is consumed (power or kW). This ‘demand charge’—based on as little as 15 minutes of use per month —can double overall electricity expenditures. In short, 50% of an electric bill can be from a little-known charge that to date has been difficult to reduce

The Demand Reduction Solution

Fortunately, there is something that small to mid-size businesses can do to keep these demand charges in check. Introducing the latest product in Gaia’s PowerTower energy storage application line: the PowerTower for Demand Reduction. With our patent-pending energy management system, demand charges can be significantly reduced, lowering the cost of electricity expenditures while at the same time increasing the efficiency of electricity usage and adding to the stability of the entire electric transmission and distribution system.

Why Demand Charges Exist

When a company has a surge in power demand (an appliance is turned on, multiple devices are running) for even a short period of time, the electric utility calculates that it must always provide the power capacity for that demand. If the capacity is not maintained, and another surge occurs, the stability of the transmission and distribution system is weakened; it is this vulnerability that frequently leads to brown and blackouts, and leads the utility to charge high rates for peak power demand.

How A PowerTower Works

With an installed PowerTower for Demand Reduction, a business’s peak demand for power is met not by the utility from a central power plant many miles away, but instantaneously and automatically by the battery-based on site PowerTower. The result is simple: you don’t ask the utility for the power, and they don’t charge you for it, simple as that. Best of all, your business can continue the use of all devices and machines as normal, and your employees can operate just as they always have.

At the same time that electrical bill cost savings is delivered, Gaia's PowerTower can also be configured to provide backup power to desired circuits. Get backup power that pays for itself.