Note that Demand charges apply to Unbundled Tariffs only.
The demand charges is a component of an unbundled bill where your customer is charged based upon their peak demand in a year, month, or the capacity of their connection.
If you need any help with unbundled bills, we encourage you to scan the bill and upload it to a support ticket, along with the project link. PVsell support staff are here to help - we want you to feel confident that you're presenting accurate figures.
The way you enter Demand Charges in PVsell depends on whether you enter the Unbundled Tariff into the Bill using the Fast entry method or the Detailed entry method. Whichever method you choose, the first step will be to identify the structure of the demand charge, in other words, select which type of demand charge is expressed on the bill – is it Flat rate, Time of Use, DUOS & TUOS, or Block?
1. Option 1 - If you are entering an Unbundled Tariff using the Fast entry method, enter the values of the energy rate
1.1.1. Select the "Flat" type of Demand Charges
1.1.2. Enter the flat rate values
Here you need to enter the energy rate in dollars per kWh from your flat rate demand charge.
Dollars not cents. E.g., for 25 cents per kWh enter "0.25".
1.2.1. Select the "Time of Use" type of Demand Charges
1.2.2. View TOU Times
This button allows you to see (and adjust) Time of Use (TOU) times from your TOU library.
Learn more about TOU timing: How can I adjust the Peak/Shoulder/Off-peak times?
1.2.3. Enter your Time of Use demand charge energy rate for Peak, Shoulder, and Off-Peak
Enter the energy rate values for Peak, Shoulder, and Off-Peak in dollars per kWh.
Dollars not cents. E.g., for 25 cents per kWh enter "0.25".
1.3.1. Select the "DUOS & TUOS" type of Demand Charges
1.3.2. Enter your DUOS & TUOS demand charge energy rates in $/kWh
Enter the DUOS (Distribution Use of System) energy rate value and the TUOS (Transmission Use of System) energy rate value (in the respective fields) in dollars per kWh.
Dollars not cents. E.g., for 25 cents per kWh enter "0.25".
1.4.1. Select the "DUOS & TUOS" type of Demand Charges
1.4.2. Enter the Quantity and the Energy rate from your block demand charge (for the 1st Block)
Enter the Quantity in kWh and the Energy rate in dollars per kWh for the 1st Block.
1.4.3. Repeat for the next block until all blocks are represented on the bill
Leave any unused blocks blank if the block doesn't apply (e.g. if there are only 3 blocks in your customer's tariff but there are 4 blocks in the PVsell input).
2. Option 2 - If you are entering an Unbundled Tariff using the Detailed entry method, enter the charge values in dollars and the quantity values in kVA
2.1.1. Select the "Flat" type of Demand Charges
2.1.2. Enter the flat rate values
Here you need to enter the fields from your flat rate demand charge. Enter the charge in dollars in the "Charge" field, and the quantity in kVA in the "Quantity" field.
Note! We recommend you allow the Demand Rate to calculate automatically from the other fields you should enter for greatest accuracy although you can override this if you wish.
2.2.1. Select the "Time of Use" type of Demand Charges
2.2.2. View TOU Times
This button allows you to see (and adjust) Time of Use (TOU) times from your TOU library.
Learn more about TOU timing: How can I adjust the Peak/Shoulder/Off-peak times?
2.2.3. Enter your Time of Use demand charge entries from your customer's bill
- Enter the Charge in $ total on the bill for Peak and Off-Peak (and Shoulder if applicable)
- Enter the Quantity in total kVA for Peak and Off-Peak (and Shoulder if applicable)
- PVsell will automatically calculate the $/kVA for you
Note! We recommend you allow the Demand Rate to calculate automatically from the other fields you should enter for greatest accuracy although you can override this if you wish.
2.3.1. Select the "DUOS & TUOS" type of Demand Charges
2.3.2. Enter your DUOS & TUOS demand charge entries from your customer's bill
- Enter the Charge in total $ for DUOS & TUOS
- Enter the Quantity in kVA for DUOS & TUOS
- PVsell will calculate the $/kVA for you
Note! We recommend you allow the Demand Rate to calculate automatically from the other fields you should enter for greatest accuracy although you can override this if you wish.
2.4.1. Select the "DUOS & TUOS" type of Demand Charges
2.4.2. Enter your block demand charge entries from your customer's bill (for the 1st Block)
Enter the Charge in dollars and the Quantity in kVA for the first Block. PVsell will automatically calculate the $/kVA for the block.
Note! We recommend you allow the Demand Rate to calculate automatically from the other fields you should enter for greatest accuracy although you can override this if you wish.
2.4.3. Repeat for the next block until all blocks are represented on the bill
Leave any unused blocks blank if the block doesn't apply (e.g. if there are only 3 blocks in your customer's tariff but there are 4 blocks in the PVsell input).
3. Select how often Peak Demand is calculated (monthly or annually)
If the bill for your project has a peak demand charge it might be calculated either monthly or annually. Let PVsell know which case it is for the most accurate analysis possible.
4. Decide whether to calculate and include the benefits of Peak Demand Reduction in your solar ROI
In unbundled bills, the energy price is quite low, making for a long solar payback. However if solar can reduce the peak demand then this will improve the payback. PVsell can calculate the likely reduction in peak demand and include it amongst the annual benefits. However, there is no guarantee that the sun will be shining in each moment of peak demand, so we encourage you to communicate this benefit as the icing on the cake rather than the cake itself... – so we recommend presenting the financials without demand reduction benefit included.
There may also be separate capacity charge – which solar will certainly not affect. Treat this like a fixed charge and enter it in the fixed charges section.
Learn more: Where do I enter Capacity Charges?
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