Annual demand-charge savings calculator
Annual demand-charge savings
Only peak-coincident power reduction reduces the demand bill.
Sd=ΔPpeak×cd,month×12
Calculator
Enter the values you know and leave one box empty. Calculate finds the empty one, the result or any input.
Worked example
Given
- ΔPpeak = 26 kW
- cd,month = 11 $/kW·month
Sd=26×11×12=3,432
Symbols and units
| Symbol | Meaning | Unit |
| Sd | annual demand savings | $/yr |
| ΔPpeak | reduction during billed demand interval | kW |
| cd,month | monthly demand charge | $/kW·month |
Results are estimates for study and screening. Check the inputs, units and assumptions before you use them for design, billing or contract decisions.