Peak Shaving

If you’ve ever looked at your electricity bill and wondered why the costs seem to spike during certain times, you’re not alone. What you’re seeing might be the result of something called peak demand charges. But there’s a smart energy strategy that businesses (and even some savvy homeowners) use to combat this—it’s called peak shaving.

So, what exactly is peak shaving?

At its core, peak shaving is the practice of reducing your electricity usage during periods of high demand—often referred to as “peak hours.” These are the times when the grid is under the most stress and electricity is most expensive, typically in the late afternoon or early evening when people are getting home, turning on lights, cooking dinner, and blasting the AC or heat.

Utilities often charge more during these times, especially for commercial and industrial users, in the form of demand charges based on the highest level of power drawn during the billing period. That one 30-minute spike in energy use could heavily influence your entire month’s bill.

Peak shaving is all about avoiding or minimizing those spikes.

Even if you’re not running a factory or office tower, peak shaving has real benefits:

• Lower energy bills: Avoiding peak demand charges can save significant money—especially for businesses.
• Grid stability: Reducing peak loads helps ease pressure on the grid, reducing the risk of blackouts.
• Sustainability: When the grid is overloaded, utilities often turn to dirtier, more carbon-intensive power sources. Peak shaving helps reduce this reliance.

As renewable energy like solar and wind becomes more common, managing when you use energy matters more than ever. Batteries paired with solar panels can be used not only to store clean energy but to deploy it strategically during peak hours—a win-win for your wallet and the planet.

Peak shaving might sound like an industrial-only concern, but as energy costs rise and smart home tech becomes more accessible, it’s a strategy that more and more people can take advantage of. Whether you’re a business owner, facilities manager, or just an energy-conscious homeowner, understanding peak shaving could help you save money and contribute to a more resilient energy system.

Got questions about how to get started with peak shaving in your home or business? Send us an email or give us a call—we’d love to help!