Annual demand cost savings calculator

Use billed peak reduction, not automatically every connected-watt reduction.

S_{\text{demand}} = {\Delta \mathrm{kW}_{\text{billed}}} \times r_{d} \times M

Calculator

Enter the values you know and leave one box empty. Calculate finds the empty one, the result or any input.

Given

S_{\text{demand}} = 12.4 \times 14 \times 12 \approx 2{,}083

Symbol	Meaning	Unit
$S_{\text{demand}}$	annual demand savings	$/yr
${\Delta \mathrm{kW}_{\text{billed}}}$	reduction of billed peak demand	kW
$r_{d}$	monthly demand charge	$/kW-month
$M$	months with billed reduction	month/yr

Results are estimates for study and screening. Check the inputs, units and assumptions before you use them for design, billing or contract decisions.