Commercial Peak Demand Charges - How Solar Power Installations can help.

Peak Demand Charges and Power Factor Correction:

In most cases of high energy use there is a capped amount of energy supply available to you depending upon where you lie in the utilities electricity network. The further away you are from main power substations, the harder, and more expensive it is to get that power to you. If you start to exceed that capped amount the charge rate is amplified significantly for the full billing period, the result in a lot of cases is that your peak demand charge becomes a large portion of your energy account.  To reduce the likely hood of your power consumption spiking beyond the contracted peak charge amount, the installation of a commercial solar farm together with clever system design is key to reducing the chance of these peak charges being applied.


Some energy retailers now charge in Kva as opposed to KWh, the difference is that previously an account charged in Kwhrs didn’t have to be concerned with inefficient plant equipment which can cause poor power factor and increased wasted power.
A weak power factor can be improved by dedicated power factor correction units, and can also be assisted through good design and the integration of commercial solar power to an existing facility.

Power factor correction can help reduce your peak demand and lower your total energy bill with possible savings of around 20% depending on your current energy account structure.  Poor power factor means you may also be overloading your facilities transformer which can increase the chances of transformer failure which would result in no power for your facility for days.

The below graph is the load profile of a factory which has a power factor of around 0.8 or less.  The red line is the power supplied to the factory (kVa) and the blue line is the power that is actually used in the factory(kW), the difference is wasted power, and the ratio between the two is your power factor.  The yellow, purple and green lines indicate the solar power penetration to the current energy demand.

To determine exactly what your energy usage and power factor is during a 24 hour cycle, we can perform a load profile at request and examine the possible problems and investigate the cost benefits of implementing Solar Power or other energy efficient devises to the facility or grid network.


Load Profiling