Clear answer
Clear answer, explained.
Ontario electricity rates include a demand charge component calculated against this figure — meaning a single production spike can set the demand charge for the entire month.
For manufacturing facilities running continuous production, demand charges can represent 30–50% of the total electricity bill. Identifying and reducing peak demand — through load scheduling, HVAC optimisation, or battery storage — is often the highest-return energy investment available before solar is considered.
Key points
What this means in practice.
- Peak demand is the highest electricity consumption recorded in a 15-minute interval within a billing month
- Ontario electricity rates include a demand charge component calculated against the peak 15-minute figure
- A single production spike sets the demand charge for the entire month
- For manufacturing facilities running continuous production, demand charges can represent 30–50% of the total electricity bill
- Demand reduction through load scheduling, HVAC optimisation, or battery storage is often the highest-return first investment
- Reducing peak demand before adding solar allows the solar system to be sized to an accurate, lower baseline
When this applies
Best-fit environments.
- Your manufacturing facility has high monthly electricity bills and demand charges are a significant component
- You want to understand why your electricity bill is high even in months with lower production volumes
- You are evaluating energy investments and want to understand whether demand reduction or solar should come first
- Your CFO has asked for an explanation of the demand charge component before approving an energy project
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