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Title: How to Estimate Demand Charge Savings from PV on Commercial Buildings

Abstract

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.

Authors:
 [1];  [1]
  1. National Renewable Energy Laboratory (NREL), Golden, CO (United States)
Publication Date:
Research Org.:
National Renewable Energy Lab. (NREL), Golden, CO (United States)
Sponsoring Org.:
USDOE Office of Energy Efficiency and Renewable Energy (EERE), Solar Energy Technologies Office (EE-4S)
OSTI Identifier:
1397156
Report Number(s):
NREL/FS-6A20-69016
DOE Contract Number:
AC36-08GO28308
Country of Publication:
United States
Language:
English
Subject:
14 SOLAR ENERGY; 29 ENERGY PLANNING, POLICY, AND ECONOMY; rooftop PV; photovoltaic; demand charges; tariffs; savings

Citation Formats

Gagnon, Pieter J, and Bird, Lori A. How to Estimate Demand Charge Savings from PV on Commercial Buildings. United States: N. p., 2017. Web.
Gagnon, Pieter J, & Bird, Lori A. How to Estimate Demand Charge Savings from PV on Commercial Buildings. United States.
Gagnon, Pieter J, and Bird, Lori A. Thu . "How to Estimate Demand Charge Savings from PV on Commercial Buildings". United States. doi:. https://www.osti.gov/servlets/purl/1397156.
@article{osti_1397156,
title = {How to Estimate Demand Charge Savings from PV on Commercial Buildings},
author = {Gagnon, Pieter J and Bird, Lori A},
abstractNote = {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.},
doi = {},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Thu Sep 28 00:00:00 EDT 2017},
month = {Thu Sep 28 00:00:00 EDT 2017}
}