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Peak Shaving Savings Estimator

Monthly and annual demand-charge savings from shaving peak kW, the battery needed, and how many years that cycling lasts.

Inputs

Demand and tariff

Highest 15-minute average demand on the bill, from interval meter data or the utility demand reading.

How many kW the battery will carry through the peak window.

How long the shaved peak lasts each event, including any ratchet window you must cover.

Days per month you expect to discharge for demand control.

Demand rate from the tariff sheet. Confirm whether it applies to the monthly peak or a ratcheted value.

Battery

Share of nameplate cycled per event.

Discharge efficiency at the AC side, including inverter losses.

Cycle life from the warranty, used to convert demand-control cycling into service years.

Result

Demand savings per year
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Demand savings per month
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Peak reduction achieved
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Peak demand after shaving
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Cycles per year for demand control
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Battery nameplate needed
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Energy cycled per event
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Years of cycle life at this duty
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What to check

  • Interval meter data for the true 15-minute peak, and whether the tariff bills the monthly peak or a ratcheted maximum.
  • The peak window length, including any ratchet clause that keeps an old peak on the bill for months.
  • Whether the utility allows battery discharge for demand control, and any limit on how often.
  • Round-trip efficiency and depth of discharge, which set the nameplate size for a given shave.
  • Cycle life cost: daily demand-control cycling consumes the same warranty throughput as arbitrage.
  • Interconnection and metering requirements for commercial storage.

Related calculators

Demand savings estimate from a constant monthly shave. It does not model ratchet clauses, coincident load growth, utility restrictions on battery discharge, or the interaction with energy charges. Demand tariffs differ widely; confirm the rate structure on the tariff sheet and the interconnection rules with the utility before sizing equipment.

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