Peak demand charges are based on the highest 15-minute electricity consumption in a billing period and can represent 30–50% of a commercial bill. Reducing peak demand — through load scheduling, equipment management, or storage — directly reduces this cost regardless of your supply contract.
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How Demand Charges Are Calculated
Your utility records electricity consumption in 15-minute intervals. The highest single interval (in kW) during a billing month becomes your billing demand. That number is multiplied by the utility's demand rate ($/kW/month). One high-demand event — a large motor starting, all HVAC units running simultaneously — can inflate demand for the entire month.
Load Scheduling Strategies
Staggering equipment startup to prevent coincident peaks is the simplest demand reduction approach. HVAC pre-cooling (bringing temperature down before peak hours when cheaper or before equipment loads add to demand), lighting management, and scheduling energy-intensive processes outside peak windows all reduce peak without changing operations materially.
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Battery Storage and Demand Charge Reduction
Commercial battery storage systems can reduce demand charges by discharging during peak demand events — providing building power from the battery rather than the grid. The economics depend on your demand charge rate, how often you spike, and the cost of storage. In markets with high demand charges ($15–$30+/kW), storage paybacks can be 3–5 years.
Demand Response as a Complement
Demand response programs pay you to reduce load during grid stress events. The load reduction techniques that earn DR payments (HVAC setback, process delay, lighting reduction) are the same ones that reduce demand charges. Enrolling in DR can make the investment in load management infrastructure economically attractive.
Demand Charges and Supply Contracts
Supply contracts don't typically change demand charge rates — those are set by your utility tariff. But some supplier contracts include demand charge management features or structured interruptible rates that effectively reduce total demand exposure. We evaluate these when available and relevant for your account profile.
Frequently Asked Questions
How does a commercial energy broker get paid?
Brokers are compensated by the supplier you choose — a small per-kWh fee built into the contract rate. This fee exists in every supplier's pricing regardless of whether a broker is involved. You pay nothing out of pocket.
How many suppliers will you get quotes from?
We submit to 30+ licensed retail energy suppliers active in your state. Not all will quote every account — load size, credit profile, and industry classification affect who bids. We pull from the full available market.
How long does the process take?
From data collection to competing offers typically takes 3–5 business days. Contract execution takes another 1–2 business days. Service transition happens on your next billing cycle — no interruption.
Is there a contract with the broker?
No. You authorize us to collect your usage data and solicit quotes on your behalf. There's no fee arrangement, no retainer, and no commitment until you choose a supplier offer to execute.
What if I'm currently under contract?
We'll review your existing contract terms, note the expiration window, and initiate a quote process 6–9 months before expiration. If there's an early termination option that makes economic sense, we'll flag it.