Clear answer
Clear answer, explained.
In facilities where lighting operates during peak demand windows, the reduction in lighting load contributes directly to a lower demand figure and a lower monthly demand charge. For facilities where lighting represents a significant share of total load, the demand saving can be material.
Key points
What this means in practice.
- LED fixtures draw less power than legacy fixtures — reducing the facility's electrical demand in real time
- Demand charges in Ontario are measured over 15-minute intervals and can represent 30–50% of a C&I electricity bill
- In facilities where lighting operates during peak demand windows, LED retrofits contribute directly to a lower demand charge
- For facilities where lighting is a significant share of total load, the demand saving can be material
- LED demand reduction combines with consumption savings for total electricity cost reduction
- The demand saving is separate from and in addition to the energy consumption saving from reduced kWh
When this applies
Best-fit environments.
- Your facility has high peak demand charges and you want to understand whether LED retrofits contribute to reducing them
- You are building a financial model for an LED retrofit and want to include demand savings alongside consumption savings
- Your lighting operates during the peak demand window and you want to quantify the demand charge reduction
- You are evaluating LED as part of a broader energy cost reduction strategy alongside solar and storage
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