What are Demand Charges?
Commercial electric rates, schedules, and bills are much more complex than residential charges, and figuring out where your money is going is not always easy. Most electric utilities charge not only for how much electricity is 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 for some businesses. In short, 50% of an electric bill can come from a little-known charge that won't be affected by typical energy-saving measures.
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. Cumulatively, this vulnerability frequently leads to brown and blackouts, and causes the utility to charge high rates for peak power demand.
The Demand Reduction Solution
Fortunately, there is something that small to mid-size businesses can do to keep demand charges in check. Gaia's PowerTower for Demand Reduction uses a patent-pending energy management system, to significantly reduce demand charges without any behavioral changes on the part of the user. The result is lower total energy expenditures, along with greater efficiency in electricity usage and increased stability of the entire electric transmission and distribution system.
How A PowerTower Works
With an installed PowerTower for Demand Reduction, a business's peak demand for power is met 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. 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.
A PowerTower for Demand Reduction can also be configured to provide a backup power source in the event of a blackout or brownout. Click here to learn more about backup power applications for the PowerTower.
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