Demand charges can make up a large portion of the delivery charges on a small business utility bill.
Here are some tips to reduce demand charges:
- Set a schedule to stagger equipment startup to avoid turning on all appliances or machinery within a single 15-minute window.
- Run equipment only when needed or in times of lower demand (such as overnight) to reduce the amount used at peak hours. Turn off unnecessary equipment at times of highest energy use or put some of it to "sleep" when it is not needed.
- Use high-efficiency appliances, equipment, machinery, and lighting.
- Scale the equipment for the job. An oversized motor could increase demand and cost more.
- Generate and store electricity. Implementing solar or alternative energy sources may reduce the need to rely on the grid.
- Take advantage of load shedding. This uses electronic systems to monitor and control appliances, ramping down or turning off non-essential high consumption circuits to reduce the total demand
- Do an energy audit. If consumers can find out where and when they use the most power, they can use this to help determine where to focus on energy savings.
