What is Peak Shaving?

Peak shaving is an energy management strategy used by industrial and commercial consumers to reduce electricity costs by leveling out peaks in electricity usage. By utilizing onsite battery energy storage systems (BESS) or renewable sources during periods of high demand, businesses can avoid expensive “demand charges” imposed by utility companies.

How Peak Shaving Works with Apex Ultimate Systems

For many factories, electricity bills consist of two parts: energy consumption and peak demand charges. Peak shaving acts as a “buffer” for your power grid:

  1. Charging Phase: During periods of low electricity demand (or high solar production), your Apex Hybrid System charges the batteries.
  2. Monitoring Phase: The system continuously monitors the building’s total power load.
  3. Discharging Phase (Shaving): When the factory’s demand hits a pre-set threshold, the system automatically discharges stored energy, preventing the grid intake from exceeding the limit.

Key Benefits at a Glance

FeatureWithout Peak ShavingWith Apex Peak Shaving
Demand ChargesHigh (based on unpredictable peaks)Low (capped and controlled)
Grid StabilityFrequent fluctuationsStable and protected
Energy IndependenceFully dependent on the utilityHybrid autonomy
Cost Savings0%Up to 15% – 40% reduction

Frequently Asked Questions

Q：Is peak shaving the same as load shifting?

Not exactly. While both manage demand, peak shaving focuses on reducing the total grid peak, while load shifting shifts consumption to off-peak hours.

Q： What is the ROI of a peak shaving system?

Depending on local utility tariffs, most industrial facilities see a full return on investment (ROI) within 3 to 5 years.

Q： Does peak shaving require solar panels?

No, it can be done with a standalone Battery Energy Storage System (BESS), though adding solar further enhances the savings.

Learn more about our Commercial BESS Solutions or contact an Apex Specialist to calculate your potential savings.