How to Estimate Demand Charge Savings from PV on Commercial Buildings
Program Document
·
OSTI ID:1397156
- National Renewable Energy Laboratory (NREL), Golden, CO (United States)
Rooftop photovoltaic (PV) systems are compensated through retail electricity tariffs - and for commercial and industrial customers, these are typically comprised of three components: a fixed monthly charge, energy charges, and demand charges. Of these, PV's ability to reduce demand charges has traditionally been the most difficult to estimate. In this fact sheet we explain the basics of demand charges, and provide a new method that a potential customer or PV developer can use to estimate a range of potential demand charge savings for a proposed PV system. These savings can then be added to other project cash flows, in assessing the project's financial performance.
- Research Organization:
- National Renewable Energy Lab. (NREL), Golden, CO (United States)
- Sponsoring Organization:
- USDOE Office of Energy Efficiency and Renewable Energy (EERE), Renewable Power Office. Solar Energy Technologies Office
- DOE Contract Number:
- AC36-08GO28308
- OSTI ID:
- 1397156
- Report Number(s):
- NREL/FS-6A20-69016
- Country of Publication:
- United States
- Language:
- English
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