How to reduce demand charges
Demand charges can make up a large portion of the delivery charges on your small business utility bill. The good news is that even 24/7 operations can reduce this cost. Some tips you can try include:
- Set a schedule to stagger equipment startup. This way, you will avoid turning on all your appliances or machinery within a single 15-minute window.
- Run equipment only when needed or in times of lower demand (such as overnight) to reduce the amount you use at peak hours. Turn off unnecessary equipment at times of highest energy use or put some of it to "sleep" when it is not needed.
- Use high-efficiency appliances, equipment, machinery, and lighting.
- Scale your equipment for the job. An oversized motor could increase your demand and cost you money.
- Generate and store your own electricity. Implementing solar or alternative energy sources may reduce the amount you rely on the grid.
- Take advantage of load shedding. This uses electronic systems to monitor and control appliances, ramping down or turning off non-essential high consumption circuits to reduce the total demand.
- Do an energy audit. If you can find out where and when you use the most power, you can use this to help determine where to focus on energy savings.