Demand Charge Savings

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Save on operating costs by reducing peak power demand charges!

The long-term operating costs of a fast-charging station are an important factor to consider in the setup of a fast-charging location and choice of charging hardware. Aside from the initial investment costs for the purchase and installation of the station, the running costs of a charging station are decisive for the lasting economic viability in the following 5 to 10 years of operation. Hereby, one element are the electricity costs charged by the local utility.

In the U.S., utility bills for commercial and industrial customers – such as charging stations – are based on the quantity of energy used (energy charges, $/kWh) and the customer’s maximum power demand draw on the grid (demand charges, usually $/kW).

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Demand charges and EV fast charging

DCFC charging has a distinct power demand and load profile on the electricity grid, whereby high-power capacity (kW) is required for a relatively short period of time to deliver a fast charge to vehicles. This causes high demand charges for the operation of standard DC fast chargers. In contrast, the battery-buffered ChargeBox system by ADS-TEC Energy reduces peak power demand of an ultra-fast charging station by two thirds compared to a standard (non-battery buffered) DC charging station whilst achieving the same charging power. The reduced peak power demand leads to substantial savings in the long-term operation of the charging location.

Utility rates vary across the U.S.

Demand charges are set by the utility and reflect the condition of the local electricity grid and the costs for the utility to add more peak power capacity to the grid, for example by building new peaking power plants to accommodate the additional capacity. Demand charges vary across the United States, so that a location-specific analysis is recommended to assess the potential savings for operators.

Frequently asked questions (FAQ)