How to reduce maximum demand in electricity consumption?

How to reduce maximum demand in electricity consumption?

Aren’t electric bills annoying? Your consumption fees may not seem too high, but peak demand fees can really hurt you. These fees are for the maximum amount of energy you use in a fifteen-minute period within a given month.

Peak demand charges don’t depend on your energy consumption. Excessive energy consumption is often the cause of peak demand charges.

These fees are frequently the most significant portion of utility bills. These fees are less well-known than consumption fees. Nevada Solar Group created this guide to assist you in lowering peak demand charges and saving money.

These are the top four ways to reduce your electric bill.

Check your electric bill to see if there are any demand charges

Peak demand fees could account for between 30 and 70% of your monthly electricity bills. These fees can make up a large portion of your monthly electricity bills and should not be ignored. These charges can be reduced by reviewing your utility bills.

These charges are not the same as consumption charges. These charges are not measured in kilowatt hours but in kW. These charges are easy to identify by looking at items that only measure in kilowatts.

It allows you to see the charges your body is being charged as well as how much energy you use at peak times.

This simple idea could help you identify patterns in your power consumption between months. This will allow you to shift your attention to reducing peak hours. It is a smart idea to have your utility bills reviewed if you want to know how your demand charges are calculated.

Nevada Solar Group offers bill auditoring for anyone who partners with it. We will review your bill and determine if there are any areas that you are being overcharged.

Our team can help you identify peak demand fees and determine if they’re excessive or justified. Our audit can help you to get your money back if you’re paying too much electricity.

It’s as simple as knowing the demand charges on your utility bills. This will help you save money, and reduce your monthly expenses.

Use technology to lower your demand charges

Reduce peak demand energy consumption each month to lower peak demand fees. You can do this by focusing on technology, especially renewable energy sources.

Renewable energy sources will reduce your monthly bill in many ways. Peak demand charges can be used to reduce your monthly power consumption.

It can be viewed this way: If your electricity comes from renewable sources, it is not completely dependent on the national grid. This is because you are not drawing electricity from it, which increases your output but also leads to huge demand fees.

Your business does not use less energy. This is even better news for you. Your business still has the power it needs to function, but some of that energy is being used to supplement renewable energy technology.

Because it’s not coming from the national grid, it won’t show up on your utility bill.

You can reduce your demand charges by using renewable energy technology in many different ways. A sun-powered energy system is the most common and effective way to reduce demand charges.

Commercial systems can be purchased by Nevada Solar Group that produce large amounts of electricity with solar power technology. These systems are easy to set up and provide immediate benefits when they are up and running.

Renewable energy technology can be expensive. This is the biggest problem for some companies. You’ll see a substantial return over time. You will see a significant drop in utility bills due to a reduction in peak demand charges.

Combine energy storage with EV charging to save money

Because renewable energy solutions depend on weather conditions, they can be risky. What happens when it’s cloudy? Does your solar system stop working at its maximum efficiency? This will make it necessary to turn on the national grid, which can increase your power demand and generate these peak charges.

If you are concerned, this shouldn’t be a problem. This is an easy way to get rid of your worries and combat the problem with energy storage

By implementing energy storage solutions within your business, you can store up to twice as much solar energy in large battery packs. These batteries can be used to help you when you have higher power requirements or your system is not capable of handling them due to weather conditions.

It still runs on renewable energy. It is a safety net that can be used when your solar systems are not able to handle the demand and you need extra energy without having to resort to the national grid.

Take into account electric vehicle (EV) charging as well. You can link the two, and the batteries in your solar panels may be able to meet demand for EV charging stations.. This allows you to electrify transport, which saves energy and doesn’t increase electricity consumption. You are not charging EVs with electricity from the national grid. Instead, you use a renewable source to offset the cost.

Correction using Power Factor

Power factor correction is a concept that most people don’t know. It is a technique that improves the efficiency of your electrical energy system.

The Power Factor simply means the ratio of reactive energy and real power in an AC circuit. Real power is the amount of electricity actually consumed and required for an AC circuit’s operation. Reactive power is additional power that is not used but contributes.

Power factor correction is simply a way to reduce the reactive power and only produce useful power. Consider how many AC circuits you have in your company and how dependent you are on electricity. This will increase the amount of reactive power.

This method helps you meet your peak power needs, which is often why you see so many Kilowatts each month.

Power factor correction can help reduce your company’s electrical consumption. As reactive power charges decrease, you’ll notice a reduction in your electrical consumption. This change won’t affect your business operations as you will generate all the electricity you need to perform essential tasks.

Like renewable energy systems, power factor correction requires investment. It is worth it for your business.

An option is automatic power factor correction. It takes care of all the hard work. It may be expensive initially, but the savings in the long-term will more than make up the difference.

What are demand fees? And why are they being charged?

It is a rare commodity. It must be produced, transported and consumed simultaneously. Nevada Solar Group will balance the need for electricity generation and the infrastructure needed to provide service to their customers.

Your business will feel reassured knowing that there is enough electricity available at all times. Nevada Solar Group makes sure your business has enough electricity. They have to ensure that all customers get electricity.

To meet all customers’ needs, Nevada Solar Group will have enough standby equipment such as transformers and substations However, utility companies may charge demand fees to offset the high cost of standing by capacity.

How are demand fees calculated?

Demand charges are typically only charged to large commercial, industrial, or agricultural customers. There are however, utility companies that charge residential customers demand fees.

Demand and peak demand charges are the same as bandwidth that you receive from your internet provider. How much bandwidth and capacity can you use to meet your electric needs?

Nevada Solar Group typically calculates your demand by using increments of 15 minutes from your highest monthly consumption. To calculate your peak demand fees, multiply this amount by a predetermined rate. If you have a utility company that charges $10 per month for peak demand, and your peak 15-minute increment energy usage was 75kilowatts, then you will be charged $750.

Your customer charge and distribution fees can also be subject to peak demand charges. You may pay significant peak demand charges on your utility bill.

Reduce Peak Demand

There are many ways for peak demand reduction fees on your electricity bill. These charges are the maximum energy consumption you make in a given 15-minute period each month. You’ll be charged more for peak consumption if you exceed it more than once.

There are many factors that can be combined so will have peak demand reduction on charges. To subsidize your energy use with renewable energy technologies, you will need to invest. This reduces your demand on the national grid and means you won’t reach peak levels as often as you used.

You should also use an energy storage solution as a backup for renewable energy sources in case your current system is unable to meet the demand.

It’s as simple as checking your bill for demand fees, as we said. This will help you be more aware of the times you are consuming large amounts and can help you plan to reduce your consumption.

Nevada Solar Group is the ideal partner for those who are looking to reduce their overall utility bill. We offer an audit of your electric bill to determine if you are being overcharged.

This service has saved our clients thousands of dollars and made sure they get refunded if necessary. Our bill audits not only help to correct errors in future bills but also ensure that you don’t overpay.

Contact the Nevada Solar Group team to save money on your commercial electricity bills today.

Contact Nevada Solar Group to check your Energy Consumption

Nevada Solar Group, a top-rated electricity and natural gas consulting company, is based in Las Vegas, Nevada. We are listed as one of the fastest-growing companies in the country. Nevada Solar Group continues to expand into new markets across the country.

Contact Us For A Free Solar Quote

First name is required

Last name is required

Email is required

Phone is required

Please enter a valid property address

Property address is required

Schedule Your Appointment


Some information is missing or is incorrect, please fix the issues above and resubmit.

I would like to receive promotional offers by calls, text messages, and emails.  

Thank you for your request

Your appointment has been added to our calendar.
The consultation will be online or over the phone. Please prepare a copy of your electric bill or energy usage history for your consultant to give you the most accurate proposal.

Your appointment scheduled on


Your confirmation ID