Peak Shaving Calculator

Determine the optimal battery size to reduce demand charges and maximize your energy savings.

System Parameters

Your highest recorded demand in a billing period

Percentage of peak demand to shave

How long the battery needs to sustain discharge

Monthly demand charge from your utility

Total installed cost per kWh of capacity

Usable capacity percentage (typically 80-90%)

Number of working days with peak demand

Expected battery system lifetime

Frequently Asked Questions

How do I calculate battery size for peak shaving?

To calculate battery size for peak shaving, multiply the power reduction needed (in kW) by the duration of peak demand periods (in hours). For example, if you need to reduce 100 kW for 4 hours, you need a 400 kWh battery. You should also account for depth of discharge (typically 80-90%) by dividing the required capacity by the DoD factor.

How much can peak shaving save on demand charges?

Peak shaving can reduce demand charges by 20-50% depending on your load profile and battery system size. Demand charges typically account for 30-70% of commercial electricity bills. A well-sized battery system can pay for itself in 3-7 years through demand charge reduction alone, with additional savings from energy arbitrage and grid services.

What is the difference between peak shaving and load shifting?

Peak shaving reduces the maximum power drawn from the grid by discharging a battery during high-demand periods, directly lowering demand charges. Load shifting moves energy consumption from peak to off-peak hours to take advantage of time-of-use rate differences. While both use battery storage, peak shaving targets the power component (kW) of your bill, while load shifting targets the energy component (kWh).