Demand Rate (Residential)
A rate structure that includes a charge based on your highest 15-minute average power draw (kW) during the billing period, in addition to volumetric kWh charges.
Why It Matters
Running an EV charger, dryer, and oven simultaneously creates a high demand spike. Battery storage or smart load management can shave demand peaks and reduce this charge.
Related Tools
Related Terms
Demand Charge
A utility charge based on your peak power usage (measured in kW) during a billing period, common for commercial customers.
Peak Shaving
Using batteries or load management to reduce maximum power demand during peak hours, lowering demand charges (for commercial) or maximizing TOU savings (for residential).
Load Shifting
Moving electricity consumption from one time period to another — typically from expensive peak hours to cheaper off-peak hours — using timers, smart controls, or batteries.