Cut Your Demand Charges with Behind-the-Meter Battery Storage
- Brian Webster
- Aug 19
- 5 min read
Why Your Bill Is So High
Utility demand ratchets turn a single 30-minute peak into 12 months of charges.
What’s Happening
Many utilities charge for on-peak demand, with the highest 15-30 minute interval locking in charges for the next 12 months (even through the winter). A single 30-minute spike in July can lock in higher charges for the next 12 months.
Ratchet
This 12 month lock-in is called a ratchet. For example, PSO’s Large Power & Light rate tariff locks in 90% of the worst on-peak 30-minute interval. No matter how low you keep your power demand over the following year, your floor will be 90% of your highest 30-minute peak from the summer.
Magnitude
In the PSO scenario above, a single 1,000 kW 30-minute spike during the summer peak results in an additional $69,795 to $102,069 of charges during the following 11 months (even if the facility consumes minimal electricity during those 11 months -- the charges are locked in via the 90% ratchet).
Upload a recent bill or AMI export
Speak directly with an engineer about your load profile and options.
The Solution: Behind-the-Meter Batteries, in Plain English
What we install: A containerized battery system (power electronics, controls, protection, fire system) behind your meter.
What it does: Predicts/identifies peaks, discharges to eliminate those peaks, and recharges outside of peaks.
Why it works on ratchets: Every clipped summer peak sets a lower billing baseline for the next 12 months.
Add-ons:
Optional backup power zones
Power‑factor correction
Participation in demand response programs
Ownership Models
No-CapEx, pay-from-savings (performance-based) – We fund, own, and operate the system; you pay only from the actual savings delivered, with no upfront cost.
Fixed service fee (“storage-as-a-service”) with guarantees – You pay a predictable monthly fee for guaranteed demand-charge reduction, keeping any upside beyond the guarantee.
Customer-owned with third-party O&M if you want 100% of savings – You purchase and own the system outright, while we or another qualified operator handle dispatch, monitoring, and maintenance.
What You Get
Bill impact: Material reduction in demand charges, potential demand-reduction incentives, and minor arbitrage adders. As a rule of thumb in PSO territory on the Large Power & Light rate tariff, expect a total of ~$250k savings per 1.5 MW of shaved peaks.
Is your facility outside of PSO territory? We’re happy to review your bill, study your utility and rate tariff, and generate a behind-the-meter battery proposal — complete with a written savings performance guarantee based on your data.
Reliability: Designable backup for critical panels in addition to power factor correction.
Simplicity: No operational changes for your staff; we monitor and dispatch.
Compliance & safety: Modern fire suppression, code-compliant interconnection, FEOC-friendly supply chain.
Warranty & performance: 10-year warranty coverage from day one — including batteries, inverters, and controls — plus contractual guarantees on peak-shaving performance and system uptime for the life of the agreement.
Who’s a Great Fit (and Who’s Not)
Great fit - Facilities with potential spikes of at least 1,000 kW lasting 90 minutes or less
Common drivers of tall, narrow spikes:
Process starts & changeovers
Chiller starts & restarts
Crushers & grinders
HVAC restarts after setback
Weld lines
Elevators & lift systems
Metal fabrication equipment
Metal anodizing process starts
CNC plate cutting
Large industrial air compressors
High-horsepower pumps
Industrial ovens, furnaces, or heat-treat lines cycling on
Large dust collection or ventilation fans starting simultaneously
Not a Fit (yet!):
Flat loads
Low demand charges
No ratchet
Severe siting constraints
Not sure if your load profile qualifies? Talk to an engineer and find out in minutes.
How We Deliver
Fast screen (free): Provide us one bill and answer a few questions → “go/no‑go” within days.
Data‑driven analysis: Advanced Metering Infrastructure (AMI) data → right‑sized battery + modeled savings.
Commercial offer: Choose performance‑based, fixed‑fee, or ownership.
Build: Permitting, interconnection, installation, commissioning.
Operate: 24/7 monitoring, guaranteed dispatch during billable windows.
Tech & Safety Highlights
Compact footprint – Outdoor containerized battery units with pad-mount transformer/switchgear, typically 1,500–2,500 ft² including clearances.
Standard interconnection – Behind-the-meter tie-in at 480 V or medium-voltage per your service entrance, staged to keep downtime short.
Certified & compliant – Designed to NFPA 855 / NEC 706 with UL-listed equipment and IEEE 1547-compliant interconnection.
Multi-layer safety – Cell/module monitoring, gas/smoke detection, HVAC, fire suppression, and emergency shutdowns.
Built for your site – Weather-rated enclosures, wind/seismic anchoring, lightning protection, and acoustic compliance.
24/7 monitored – Remote diagnostics, performance tracking, and preventive maintenance throughout the term.
Ready to Cut Your Demand Charges?
You’ve seen how a single peak can lock in high charges for a year — and how a behind-the-meter battery can stop it.
The next step is simple: let’s see what it can do for your facility.
Upload a recent bill or AMI export
Speak directly with an engineer about your load profile and options.
FAQ
Can we simply shift our electrical loads operationally and achieve the same demand charge reductions?
If you can shift load operationally at low cost, do that first. We’ll model the remainder!
Can the battery back up the facility? We get a lot of storm outages.
Yes — we can design the system to provide backup for selected critical loads. During the design phase, we’ll identify which circuits or panels you want covered, size the backup capacity, and integrate automatic transfer capability. Keep in mind that the energy duration and backup run time depend on the battery size and your chosen backup loads.
What is the typical timeline?
Most projects move from initial screening to operation in 4–9 months. The exact schedule depends on interconnection timelines, local permitting, and site-specific construction needs. We handle the entire process — permitting, utility coordination, procurement, installation, and commissioning — to keep things moving as quickly as possible.
What do you need from me?
Initially, just a recent electric bill (and, ideally, your interval/AMI data) plus answers to a few site questions. Once we confirm the opportunity, we’ll need site access for a survey, your single-line diagram, and approval to proceed with utility interconnection and permitting. From there, we take care of design, procurement, installation, and ongoing operation.
Isn’t this going to be expensive?
Not if it’s the right fit. For many customers, we offer a no-CapEx, pay-from-savings model, meaning the system is funded, owned, and operated by us, and your payments come only from the actual savings it generates. If the battery doesn’t save you money, you don’t pay. This eliminates the upfront cost barrier entirely.
What if the ROI doesn’t pencil out for my site?
We don’t guess. We run your interval data through a detailed model before you sign anything, and our proposals come with written performance guarantees. If we can’t model strong savings, we’ll tell you up front — no pressure, no sunk cost.
Who takes care of the system once it’s installed?
We do. All systems are monitored 24/7 with predictive maintenance alerts, annual inspections, and a full parts-and-labor warranty for 10 years. You don’t have to train staff or manage dispatch — we handle it all so the system delivers peak performance without adding to your workload.
Upload a recent bill or AMI export
Speak directly with an engineer about your load profile and options.