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Has opening your electricity bill ever made your jaw drop? You’re not alone. The cost of electricity has consistently been on the rise in recent years. And as energy prices continue to fluctuate and climb, staying afloat and anticipating expenses can be incredibly challenging.
While there’s little one person can do about the ever-increasing energy cost, there are some things you can control. Understanding how peak demand functions and how it impacts your energy costs gives you power over your consumption and finances. Here’s what you need to know.
So, What Is Peak Demand?
Peak demand refers to the time span when consumer energy consumption is at its highest point. While most places across the United States have windows of peak demand, they can look very different from place to place. In warmer locations during the summer, many people will run their air conditioning during the hottest points of the day.
Those hot hours may correlate with peak energy demand. However, areas that don’t experience drastic temperature increases during the summer season may not experience the same level of demand on their energy systems.
What Makes Peak Demand So Important?
Understanding peak demand is crucial for consumers who want to reduce their energy bills. Have you ever received a letter from your electricity provider informing you that energy costs are higher at certain times of the day? Higher costs are typically associated with consuming energy during peak demand. As with most consumer products, higher demand pushes up prices.
Additionally, price increases during peak demand incentivize people to do energy-intensive activities, like doing the laundry or running the air conditioner, during off-peak hours. More off-peak use helps promote a more even distribution of reliance on the energy grid, ensuring there’s always enough supply to meet demand.
Studies have shown that global warming significantly impacts the demands placed on electric grids, so it’s more important than ever to alleviate some of the burdens we place on energy systems. When you understand and make energy-use decisions based on peak demand, you do your local energy distribution channels and your bank account a big favor.
How Do You Calculate Peak Electricity Demand?
Electricity costs vary from state to state. With the diversity in cost and consumption, it can be daunting to calculate peak energy demand and fully understand its financial impact on your household. Luckily, there’s a fairly simple way to determine peak demand in your area.
As we’ve discussed, “demand” means the amount of energy being consumed at a specific time. An energy charge is measured based on the amount of electricity consumed in kilowatt-hours, often written as “kWh.” But demand is measured in kilowatts.
Typically, demand charges are measured in 15-minute periods during the timeframe designated as peak demand for your location. While there are different calculations for different energy systems, the most basic is this:
kWh / hours = kW
When you divide the total kilowatt hours by the number of hours, you will get the kilowatt (kW) total. For example, if you were charged for 100 kWh for 4 hours of peak demand electricity usage, the equation would look like this:
100 kWh / 4 = 25 kW
If math isn’t your strong suit, don’t fret. Plenty of calculators online (like this one) can help you convert kWh to kW to determine peak demand costs.
What Are the Impacts of Peak Demand?
Why does any of this matter? Building on our earlier discussion of what makes peak demand important, let’s explore the impacts that peak demand can have on consumers and energy systems.
Cost of Energy
As mentioned, energy costs during peak demand are often higher. It’s because most current energy grids don’t have the ability to store created energy. This means that supply must always keep up with demand for consumers to have a steady stream of reliable electricity in their homes and businesses.
During peak hours, when most people are doing energy-intensive activities, like running the air conditioner or the dishwasher, there is greater demand for a limited supply. It causes the cost of electricity to go up during those hours to compensate for the extra strain on the grid and to incentivize energy conservation during peak hours.
Grid Overload
When there’s too much demand on an energy system, sometimes the supply cannot keep up. This often happens during heat waves and severe weather. Overload on the grid can lead to load shedding, which is when energy companies impose restrictions on service areas through targeted temporary disconnection of electricity, often referred to as rolling blackouts or brownouts.
Blackouts
While rolling blackouts are planned and communicated to consumers, grid overload can sometimes lead to unintentional power loss in specific neighborhoods or across whole cities. You can help prevent this type of unexpected blackout by reducing your electricity usage during high-demand periods.
How To Reduce Your Demand for Electricity
Know and Avoid Peak Hours
Do your research. Contact your local electricity company and inquire about peak hours and how energy consumption during that timeframe will affect your energy bill. This knowledge empowers you to make smarter choices about your electricity use.
Use Appliances Strategically
Understanding how much electricity the appliances in your home require to operate can make a big difference in reducing your demand for electricity. Don’t worry– here’s a helpful guide to get you started.
Additionally, some appliances, like ovens, produce ambient heat during use. Therefore, it is better to use those appliances during off-peak hours or avoid using them all together during hot spells. This helps reduce your energy consumption during peak hours and helps alleviate the need for your air conditioner to overcompensate for the added heat.
Generate Your Own Electricity
Want to avoid the stress of peak demand entirely? Invest in technology to create your own electricity. EcoFlow DELTA Series Solar Generators give you everything you need to capture energy right from the sun and store it for when it’s most needed. For example, the EcoFlow DELTA Pro + 400W Solar Panel comes with a high-quality, user-friendly solar panel.
Not only does this mean you avoid the high costs of peak demand, but it also gives you autonomy and control over your power, no matter what happens in the world around you.
Invest in Additional Residential Energy Storage
Energy storage is one of the biggest challenges faced by the energy grid. Investing in your own solutions is the way to go. Residential energy storage can help reduce your demand on the electric grid, give you a greater sense of security during power outages, and give you control over your finances during peak demand.
Some EcoFlow DELTA Series Portable Power Stations, like the EcoFlow DELTA Pro 3 Portable Power Station, charge quickly in various ways and can power almost all of your home appliances, making them a great option for backup power storage.
Final Thoughts
Peak demand is a reality for all energy grid consumers. And as the planet continues to warm due to climate change, that reality isn’t changing any time soon. Understanding peak demand and making conscious choices about your energy use can save you money, prevent grid overload, and empower you to change how you consume electricity.
Choosing an EcoFlow Solar Generator gives you the freedom to harness power right from the sun no matter where you are, while an EcoFlow Portable Power Station allows you to store electricity and power your essential devices and appliances from a wall outlet, a solar panel, or even your car adaptor in a pinch. Check out EcoFlow’s product line of electricity solutions today and leave the stress of energy grid dependence in the past.