Demand Charge Mitigation Technologies

Research output: NRELManagement


Most commercial buildings or facilities pay for their electricity bills with two types of charges—energy charge and demand charge. Energy charge is the cost for the total energy consumption for the month and demand charge is the charge for the peak power demand of the month. The peak power demand of the month for billing is usually calculated as an average demand in 15-minute time frames. NREL has a contract with the utility at $0.04/kWh for energy charge and at $16.79/kW for demand charge in 2017. With this price rate, even 50 kW peak reduction can result in saving more than $800. Therefore, electricity cost can be lowered not only by using energy efficient products but also by reducing peak demand by distributing power demand throughout the day for flexible devices, specifically plug-in electric vehicles (PEV) charging.
Original languageAmerican English
Number of pages7
StatePublished - 2020

Bibliographical note

See the Vehicle Technologies Office Electrification 2019 Annual Progress Report at

NREL Publication Number

  • NREL/MP-5400-78512


  • DC fast charger
  • demand charge mitigation
  • Level 2 EVSE
  • stationary energy storage system


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