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Can industrial rooftop solar reduce peak demand charges in Canada?

Many industrial electricity tariffs in Canada include demand charges based on the highest level of power drawn from the grid during peak intervals.

UpdatedJune 2026
Read time4 min read
CategoryCommercial Rooftop Solar
Reviewed byGI Engineering
Clear answer

Clear answer, explained.

Rooftop solar generates electricity during the day, which can offset a portion of this peak demand. By reducing the maximum grid draw, solar can lower demand charges and improve overall project savings. The impact depends on load profile, system size, and timing of peak demand.


Key points

What this means in practice.

  • Demand charges are based on highest measured grid load
  • Solar reduces grid draw during daylight peak periods
  • Larger systems can provide greater peak shaving
  • Load profile alignment affects demand reduction potential
  • Batteries can further reduce peaks when paired with solar
  • Tariff structure determines financial impact

When this applies

Best-fit environments.

  • Industrial facilities on demand-based or
  • TOU tariffs
  • Manufacturing, processing, and logistics operations
  • Sites with daytime or mid-day peak loads

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