Save 20% when you go solar with neighbors — Lock in your discount today!
Save 20% when you go solar with neighbors — Lock in your discount today!
Why Your Bill Can Still Be High After Solar
Peak usage can still make your bill high. Learn how a solar and battery storage system can eliminate demand charges and maximize your savings.
Understanding Demand Charges: Why Isn’t Your Bill Going Down?
You might think that after installing a solar system, your electricity bill would naturally drop significantly. But what if your bill is still high, even after going solar? You're not alone. Many solar users find themselves facing a common electricity cost trap—demand charges. Why does this happen? Let's take a closer look.
What Are Demand Charges?
Demand charges are fees that utilities apply based on the highest amount of electricity (measured in kW) you use during any 15-minute window in your billing cycle. This means that even if your total electricity usage decreases, if you experience a sudden spike in power usage during a short period, that peak usage will determine your demand charge for the entire month.
Real-World Example: How Demand Charges Impact Your Bill
Imagine you run a farm. After installing a large solar system, your yearly energy use from the grid drops by over 80%, so your monthly bill should be much lower. However, on one hot summer afternoon, you simultaneously start several high-power irrigation pumps. Even though your solar system is powering most of your needs, that 15-minute spike in grid demand becomes your peak for the month. The utility calculates your demand charge based on this high point, not your average usage, resulting in an unexpectedly high bill.
How Battery Storage Solves the Problem
If you only have solar, while it can significantly reduce your overall electricity costs, it doesn't help with short-term demand spikes. This is where solar + storage systems come into play. A storage system can discharge power during peak demand times, leveling out your load and preventing the grid from seeing a surge in power. This can effectively eliminate or greatly reduce demand charges.
Why Choose Solar + Storage?
Solar Only: Lowers overall energy costs, but still leaves you vulnerable to demand charges due to short-term spikes.
Solar + Storage: By using battery storage to discharge during peak periods, you flatten your load curve, preventing peak demand charges altogether.
Interested in how solar + storage could save you more on your energy bill? Contact us for a free energy assessment and customized solutions that help you save on electricity costs for your farm or factory.
Understanding Demand Charges: Why Isn’t Your Bill Going Down?
You might think that after installing a solar system, your electricity bill would naturally drop significantly. But what if your bill is still high, even after going solar? You're not alone. Many solar users find themselves facing a common electricity cost trap—demand charges. Why does this happen? Let's take a closer look.
What Are Demand Charges?
Demand charges are fees that utilities apply based on the highest amount of electricity (measured in kW) you use during any 15-minute window in your billing cycle. This means that even if your total electricity usage decreases, if you experience a sudden spike in power usage during a short period, that peak usage will determine your demand charge for the entire month.
Real-World Example: How Demand Charges Impact Your Bill
Imagine you run a farm. After installing a large solar system, your yearly energy use from the grid drops by over 80%, so your monthly bill should be much lower. However, on one hot summer afternoon, you simultaneously start several high-power irrigation pumps. Even though your solar system is powering most of your needs, that 15-minute spike in grid demand becomes your peak for the month. The utility calculates your demand charge based on this high point, not your average usage, resulting in an unexpectedly high bill.
How Battery Storage Solves the Problem
If you only have solar, while it can significantly reduce your overall electricity costs, it doesn't help with short-term demand spikes. This is where solar + storage systems come into play. A storage system can discharge power during peak demand times, leveling out your load and preventing the grid from seeing a surge in power. This can effectively eliminate or greatly reduce demand charges.
Why Choose Solar + Storage?
Solar Only: Lowers overall energy costs, but still leaves you vulnerable to demand charges due to short-term spikes.
Solar + Storage: By using battery storage to discharge during peak periods, you flatten your load curve, preventing peak demand charges altogether.
Interested in how solar + storage could save you more on your energy bill? Contact us for a free energy assessment and customized solutions that help you save on electricity costs for your farm or factory.