What are Demand Charges & Why Does It Matter for Maine Manufacturing Companies?

Maine manufacturing plant

As energy brokers, we understand that managing energy costs is a crucial part of your manufacturing business. One area that often goes overlooked is demand charges. These can significantly impact your overall expenses, and that’s why it’s essential to shed light on this topic. Let’s dive in!

What are Demand Charges?

Demand charges are the costs you pay for your highest usage of electricity during any 15-minute period over your billing cycle. They’re separate from your regular energy consumption charges, which are based on the total amount of energy you use. 

An energy bill typically consists of fixed charges, variable charges, and demand charges. While fixed and variable charges are relatively straightforward, demand charges can be a bit trickier to understand, but they have a significant impact on your overall energy bill.

What’s the Significance of Demand Charges for Manufacturing Companies in Maine?

As a manufacturing company in Maine, managing demand charges should be a high priority. Demand charges can make up a large portion of your energy bill, especially if your manufacturing operations require high power levels at certain times. 

For instance, let’s take a look at a local welding company. This company saw its demand charges skyrocket during the winter months when its energy use peaked due to increased heating needs. This situation isn’t unique and can happen to any manufacturing company in Maine, emphasizing the need for effective demand charge management.

6 Strategies for Reducing Demand Charges

Thankfully, several strategies can help reduce demand charges:

  1. Energy efficiency measures: Upgrading to more efficient machinery and equipment can lower your peak energy usage.
  2. Peak shaving techniques: This involves reducing energy use during peak demand periods, which can lower demand charges.
  3. Load shifting strategies: If possible, shift some operations to off-peak hours when demand charges are lower.
  4. Automated demand response programs: These programs automatically reduce energy usage during peak periods.
  1. Renewable energy solutions: Investing in onsite renewable energy sources, like solar panels, can reduce reliance on grid electricity.
  2. Use of energy storage technologies: Storing excess energy produced during off-peak times for use during peak periods can significantly lower demand charges.

What’s the Role of an Energy Broker in Managing Demand Charges?

As an energy broker, My Energy Doctors can help you understand and manage your demand charges effectively. We have the tools and expertise to analyze your energy usage patterns and devise a comprehensive plan to reduce your demand charges. 

Understanding and managing demand charges is crucial for manufacturing companies in Maine. It’s not just about reducing costs; it’s about gaining control over your energy usage and making informed decisions that benefit your bottom line. With our team at My Energy Doctors, you’re not alone in this journey.

To start saving on your Maine manufacturing company energy bills, look no further than My Energy Doctors. Contact us today for a no-obligation consultation!

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