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Demand Charge Management

Peak demand charges can represent a large share of a plant's electric bill, separate from total consumption.

Many utility electric rate structures include a demand charge based on the single highest 15-30 minute peak demand during the billing period, separate from total energy consumed.

Staggering large motor startups (avoiding simultaneous start of multiple blowers or large pumps) can meaningfully reduce peak demand charges without reducing total energy consumption at all.

Soft starters and VFDs reduce the inrush current spike associated with large motor starts, directly helping manage demand charges in addition to their process control benefits.

A demand charge analysis reviewing exactly when a plant's peak demand event occurs each month often reveals a specific, addressable operational pattern rather than an unavoidable process requirement.

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