What Are Demand Charges and Why Do They Matter?
For most commercial and industrial facilities in Houston, demand charges make up 30 to 70 percent of the monthly electric bill. Unlike energy charges (per kWh consumed), demand charges are based on your single highest 15-minute power draw during the billing period. One spike — from startup surges, process equipment cycling, or HVAC compressors kicking in — sets your demand charge for the entire month.
Peak shaving with a battery energy storage system (BESS) works by discharging stored energy during those brief demand spikes, flattening your load profile so the utility meters a lower peak. The result is a measurable reduction in demand charges month after month, with no change to your operations or equipment.
Who This Is For
Peak shaving delivers the strongest ROI for facilities with spiky or unpredictable load profiles:
- Warehouses with large dock door openers, conveyor systems, or EV charging fleets
- Manufacturing plants with motors, compressors, or welding equipment that cycle on and off
- Cold storage and refrigeration facilities with compressor startup surges
- Commercial buildings on demand-ratchet rate structures
- Any facility where demand charges exceed 40% of the total electric bill
How We Help
Power Study
A free 30-day study using professional metering equipment captures your facility’s load profile at 1-second intervals so we can identify exactly when and where peaks occur.
Savings Analysis
We model your historical demand data against your rate structure to project monthly demand charge savings and system payback period.
System Design & Build
We size and manufacture a BESS at our Houston facility, optimized for your peak shaving targets. Systems are modular and stackable as your needs grow.
Deployment & Optimization
After installation, our team monitors and tunes the dispatch algorithm to maximize demand charge reduction as your load profile evolves.
What We Need for a Fast Quote
The more you can share upfront, the faster we can scope a solution:
- Recent utility bills (12 months preferred) showing demand charges
- Peak demand (kW) and average facility load
- Rate schedule or utility provider name
- One-line diagram or panel schedule (if available)
- Known demand spike sources (motors, compressors, EV chargers, etc.)
- Target savings or budget range (if you have one in mind)
Frequently Asked Questions
It depends on your rate structure and load profile, but most commercial facilities in Houston see demand charge reductions of 15 to 40 percent. We run a detailed savings analysis using your actual utility data before you commit to anything.
The BESS monitors your facility's real-time power draw. When demand approaches a set threshold, the battery discharges to supplement grid power, preventing the spike from being recorded by the utility meter. Once the spike passes, the system recharges from the grid during lower-demand periods.
No. Peak shaving is completely transparent to your operations. Your equipment runs exactly as it does today — the BESS sits behind the meter and manages the electrical load profile without any changes to your processes or workflows.
Payback periods typically range from 3 to 6 years depending on your demand charges, rate structure, and system size. Facilities with high demand charges relative to energy charges see the fastest returns. We provide projected ROI as part of our proposal.
Yes. A BESS designed for peak shaving can also serve as backup power during grid outages. Many of our customers use a single system for both demand management and emergency backup to maximize the value of their investment.
Our systems are modular and stackable — you can add capacity as your facility grows. We also provide ongoing monitoring and can retune the dispatch algorithm if your load profile shifts due to new equipment, seasonal changes, or operational adjustments.
Not necessarily. We offer BESS-as-a-service and financing options that allow you to benefit from demand charge savings without a large upfront capital expenditure. Contact us to discuss the best structure for your situation.
Houston is our home base and where we manufacture, but we deploy and support systems across Texas and nationwide. Remote monitoring and support are included regardless of location.