A capacity charge is a fee imposed by utility companies based on the maximum amount of electricity a customer could use during a billing period, often referred to as their “demand” for power. This charge is typically applied to commercial and industrial customers to cover the costs of maintaining the infrastructure required to meet peak demand.Key points about capacity charges include:

 

  1. Peak Demand: The charge reflects the highest level of electricity consumption over a specified time period, often measured in kilowatts (kW).
  2. Infrastructure Costs: It helps utilities recover costs related to maintaining power generation and distribution systems, ensuring they can meet high demand periods.
  3. Billing Structure: Capacity charges are usually separate from the standard energy charges, which are based on the total energy consumed (measured in kilowatt-hours, or kWh).
  4. Incentive for Efficiency: Customers may be incentivized to manage their energy usage to minimize peak demand, potentially lowering their overall costs.

 

Our AI strategy is designed to help users reduce capacity charges by analyzing energy usage patterns and predicting peak demand periods. The AI optimizes energy consumption by determining the best times to draw power from the grid and when to use stored battery energy. This proactive approach helps users avoid higher peak demand fees and promotes overall energy efficiency. By leveraging our AI technology, users can significantly lower their capacity charges while maintaining a reliable energy supply.