Demand charge scenarios.
Explore a reduction in billing demand, costs, and simple payback.
Based on your entered values
Your scenario will appear here.
Illustrative defaults. The entered reduction must actually reduce tariff billing demand. A flat demand charge is assumed across selected months.
Model a billed reduction, not just a lower peak.
Gross savings equal the entered reduction in billing kW multiplied by the monthly demand charge and applicable months. Additional annual operating costs are deducted. Simple payback divides upfront cost by positive annual net savings; it excludes financing, taxes, degradation, and maintenance not entered.
Demand ratchets, minimum billed demand, multiple demand components, and tariff-specific measurement intervals can change the result. A lower observed peak does not necessarily reduce billed demand. This tool does not calculate PJM capacity or transmission obligations.
Keep your comparison useful.
Use the same account scope, commodity, time period, and charge definitions. Save or print the assumptions with the result. Inputs are not uploaded or saved by this calculator.