Definition

What is Demand (Peak Power)?

The average maximum power draw over a set interval; penalized if the contracted power is exceeded.

Demand is the average maximum power a facility draws over a set interval (usually 15-minute periods), expressed in kW. Distribution companies use this value to measure how much instantaneous capacity your facility requests from the grid.

Every facility has a contracted power (an agreed maximum). If the demand value exceeds this contracted power, the excess is usually billed at twice the unit price — this is called a demand (power overshoot) penalty. Even a short overshoot during a single busy production moment in a month affects that month's bill.

Demand management (peak shaving) means lowering peak demand by preventing high-power equipment from running simultaneously. SolarTools monitors the demand value in real time and warns as the contracted power is approached, helping you avoid the demand penalty.

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What Is Demand (Peak Power)? Definition | SolarTools