Peak Shaving 101: How to Design your Peak-Shaving System to Lower Energy Costs
Many electric utilities are charging higher rates when there’s more demand (“peak pricing”). For instance, you may pay more for energy from 1:00 pm to 7:00 pm — exactly when you’re using energy-intensive air conditioning or industrial/commercial machines. Your goal is to pay the lowest possible price for electricity. In this article, you’ll discover how peak shaving can help, including: 1. How to buy energy at a discount, instead of paying the maximum price; 2. What we can learn from Texas and California’s electricity price hikes; 3. Why energy companies use time–of–use rates; 4. Basics of peak shaving for profit and reliability; and 5. What to expect when you’re considering peak shaving.