If Demand Charges make up more than 1/3 of an energy bill, there is likely a case for DEMAND CHARGE REDUCTION using a Sponge Controlled Battery.
How to Calculate Demand Charge Ratio on a Hydro One Bill
(4) Electricity + (5) Global Adjustment = Energy Charges (kWh – volume of energy consumed)
(6) Delivery = Demand Charges (kW – maximum power consumed)
So for this example…
Energy Charges = $363.20 + $1,812.12 = $2,175.32
Demand Charges = $1,582.88
Demand Charge : Energy Charge Ratio = $1,582.88/$2,175.32 = 42%
At this site, demand charges make up 42% of the electricity bill.
A Sponge-controlled battery has the potential to significantly reduce this energy bill. HOW?
Sponge will intelligently deploy your battery targeting a maximum power threshold for your facility’s energy demands. By ensuring that you maintain a reduced power threshold, we lower your bill.
What’s the Next Step?
Why is Demand Charge Reduction an Important Distributed Energy Resource Strategy?
Demand-related charges (kW) in HydroOne territories have increased by an average of 5% Year-over-Year in the last 5 years. In contrast, Volume-based charges (kWh) have shown moderate decline over the last 5 years, and are predicted to only rise at a continuous rate of 2%-3% a year. See our analysis here.
Steady rises in Demand Charges make batteries a strong hedging investment.
- Solar alone cannot respond to sudden demand peaks.
- Solar can be used to charge batteries which can be used to reduce demand peaks limiting risk to savvy businesses.
- Sponge is the unique battery control solution, custom tailored for the Ontario market that makes this hedge possible.
To learn more about Hydro One’s Commercial Billing Structures you can click this link to view their official website.